Czech department store Kotva has been purchased by Generali Real Estate for approximately 4 billion CZK, which would make it one of the biggest real estate deals of the year.  The 28,000sqm, seven-story building, which is a culturally protected, will be renovated by Sekyra Group. Generali said the aim of the cooperation with Sekyra Group is to carry out an extensive renovation of Kotva in order to restore the prestige and status of a top shopping destination in the historical center of Prague. The building, which dates to 1975, was once a key shopping centre in Prague, but it has since been overshadowed by more modern ones, including Palladium, which is across the street from it.

full article: Generali bought Prague's Kotva department store, plans extensive renovation

IADS comments 09/04/2020

It has become clear that coronavirus poses two threats: the first is a threat to health which the media have covered and they rightly continue to do so. As conditions evolve, so does advice on behaviour, and so do containment and lockdown measures. Much can and should be learnt from other countries (Wolf cited below suggests comparing Norway and Sweden). In general, measures are taken to "flatten the curve", in other words, to slow the spread of infections over time to help medical and health services cope with the crisis. Most people now acknowledge this - "we get it".

However, confinement and other measures have a direct impact on the economy

According to the OECD, "the implications for annual GDP growth will ultimately depend on many factors, including the magnitude and duration of national shutdowns, the extent of reduced demand for goods and services in other parts of the economy, and the speed at which significant fiscal and monetary support takes effect". It is estimated that for every month that large parts of the economy remain closed, annual growth might fall by 2 percentage points.

Increasingly, experts are talking about how the economy is also a public health concern, and the need for what Munich-based IFO has called a "risk-adapted strategy".

Martin Wolf of the Financial Times recommends that first, lockdowns must pay, that is they must allow us to live without them in the future. Second, we must minimise economic damage. And here, the focus must be on today, and not on high public debt and other burdens of the future.

The key is that the devastating economic impact has to be managed and that this involves trade-offs: some freedoms may have to be given up, and some governments will attempt to increase their grip. The essential ingredient for constructive measures to work is trust which, unfortunately, is in short supply at the moment, both in business and in politics.

See, among others, available on IADS website under C-19 Files:

-    Martin Wolf, We must focus our attention on the next steps, FT, 08/04/2020

-    Clemens Fuest, Martin Lohse, Making the fight against the coronavirus epidemic sustainable, IFO, 02/04/2020

-    Danielle Allen, The tech we need to end the pandemic and restart the economy, TED video, 06/04/2020

Related items:

• A year without spring 2: The curse of efficiency and wilful blindness
• A year without spring 3: Flexibility, risk management and innovation

Herewith a message from the chairwoman of The Mall Group in Thailand to all suppliers and partners.

Message from The Mall in Thailand

IADS comments 20/04/2020

The IMF has recently called it "The Great Lockdown" and is predicting the worst economic downturn since the Great Depression… It is imperative that retailers, who are both the most vulnerable industry to sudden unexpected disruption and, at the same time, deal every day with change, fashion, trends and nimble competition, should get the balance right between efficiency and robustness, and should do so without shrinking from the consequences, and with their eyes wide open.

Download full report below:

The curse of efficiency and wilful blindness - A year without spring – 2

Related items:

• A year without spring 1: Pandemic resilience and trust
• A year without spring 3: Flexibility, risk management and innovation

J.C. Penney Co Inc has approached consulting firm AlixPartners LLP as the U.S. retailer looks at options for managing its debt.

Brick-and-mortar retailers are struggling to keep up with the shift to online shopping, and the crisis has been exacerbated by the coronavirus outbreak that has forced them to shutter stores and furlough employees.

J.C. Penney has been in talks with lenders in recent weeks about its liquidity needs and is negotiating a possible debt deal.

The company also furloughed a majority of its hourly staff and salaried associates last month, as it was forced to extend closures due to the health crisis.

The retailer had $3.72 billion in borrowings as of Feb. 1, its latest annual filing showed, with cash and cash equivalents of $386 million. Its 2019 sales fell 8% to $10.72 billion compared with the previous year.

More news:

• US department stores are furloughing staff

Amid the current health crisis, and after Eataly initiatives to support hospital staff, Galeries Lafayette and BHV/Marais have also decided to bring support Paris' hospitals. In order to allow the opening of several beds for covid-19 patients in hospitals, the retailers have shared a large part of its home section seasonal stock with the 15 Parisian public hospitals (AP-HP). More than thousands articles were packed and delivered in the city within just a few days.

More on department stores initiatives during the covid-19 crisis:

• M&S donates clothes to NHS
• Nordstrom is sewing face masks for health care workers
• Eataly Paris Marais supports hospital staff
• What are IADS members doing on Instagram?

[![

Votre navigateur ne supporte pas la balise vidéo.

](https://www.iads.org/files/pmedia/public/r580520covervideoreview.png)](https://www.iads.org/files/pmedia/public/r580517linkedin_avril.mp4)

Get Adobe Flash player

El Corte Inglés has converted its sewing workshops located in Madrid's Tomás Bretón street into another capable of producing protective masks with all the guarantees of safety. In this way, El Corte Inglés responded to the request from Fashion Spain (Confederation of Fashion Companies of Spain), which has asked companies in the sector to respond "in an agile and safe way to the development of protective masks that different organizations are requesting through this association". In total, there are 40 workers who come from the dressmaking and tailoring areas of both El Corte Inglés and Sfera. They are manufacturing IIR type masks, a model made up of five layers of compact fabric, breathable and resistant to splashes and bacterial filtration and viruses such as Covid-19.

Additionnally, El Corte Inglés has donated specialized material to public administrations, highlighting the delivery of 500,000 masks to the Ministry of Health for health personnel and the donation of another 150,000 masks for the Generalitat of Catalonia, from suppliers.

press release: El Corte Inglés starts producing masks [in spanish]

More on El Corte Inglés:

• El Corte Inglés joins the '200challenge'

ING has released a study in which it looks at four possible scenarios for the global economy after the coronavirus. They have developed scenarios on how the virus, the lockdown measures and the different economies could evolve. Even if we cannot fully rely on these predictions, they bring a benchmark for both an extreme evolution and a middle-ground evolution of the situation.

Read the full economic and financial analysis below:

ing: four scenarios for the global economy after covid-19

In any economic scenario, there are winners — and already, sexual wellness companies are on top. Amid the public health crisis, customers are either finding themselves in closer proximity to their partners or in total isolation. It's allowed sexual wellness products to take on a bigger role in the self-care space. Two-year-old brand Maude, which sells condoms, lubricants, vibrators and candles, started to see an increase in returning customers at the beginning of February. As of the week beginning March 23, returning customer revenue nearly doubled. Maude's lubricant sales have increased 15% and condom sales increased 50% month-over-month. Violet Grey has also seen an accelerated interest in its sexual wellness products. The Nécessaire sex gel it sells is on backorder by nearly 100 units, and a massage oil candle has seen a 150% sales increase since it launched in January. CBD brand Kush Queen has also seen its DTC personal lubricant sales organically increase by 17% since February.

Dior Beauty has made its online store a virtual 3D experience of its Parisian flagship, which is located on Avenue des Champs-Élysées. Shoppers are able to virtually wander around the store and learn more about products before making purchases. In a bid to properly emulate the feeling of visiting the store, Dior Beauty will also alternate the decor of its virtual shop in accordance with each season. In honour of spring, it is currently complimented by a flurry of flowers.

dior virtual beauty store

The Seattle-based retailer outlined its new environment sustainability goals for 2025 and has also added beauty to its sustainable style category. Customers can now shop sustainable beauty products in one location on nordstrom.com and the Nordstrom App. "Through this COVID-19 crisis, we've been given a unique opportunity to reimagine our future and rethink what kind of company we want to be [...]" said Pete Nordstrom, president and chief brand officer at Nordstrom Inc.

Nordstrom's sustainable goals for 2025 include:

• Setting science-based target to reduce greenhouse gas emissions.
• Using sustainably sourced raw materials in 50 percent of Nordstrom Made products constructed primarily of cotton, polyester or cellulosic fabrics.
• Helping customers extend the life of 250 tons of clothing through donation and re-commerce.
• Contributing $1 million in corporate grants in support of industry innovation for textile recycling.
• Reduce single-use plastic by 50 percent. To help meet this goal, one of the first steps is to begin phasing out plastic bags from the 245 Nordstrom Rack off-price stores.
• Ensure 15 percent of all product is considered sustainable.
• Donate $1 million to support textile recycling innovation.

Nordstrom has also made shopping easier for products that are sustainable by adding a "Sustainable Style" category filter on the navigation pane in many categories on its web site and app. Last January, Nordstrom launched "See You Tomorrow," a re-commerce experience that includes an online marketplace and a shop inside Nordstrom's Manhattan flagship. Finally last August, Nordstrom announced its participation in the G7 Fashion Pact, a coalition of luxury retailers around the world working to mitigate the environmental impact of the fashion industry.

press release: Nordstrom Expands Commitment to Protect Environment

Related news:

• Nordstrom launches resale shop
• Nordstrom and Rent the Runway extend partnership
• Nordstrom launches online curation of sustainable goods and joins G7 Fashion Pact

French sports retailer Décathlon, which had to close all physical locations in France because of the lockdown, has introduced a small assortment of its goods in 70 Franprix locations in the Paris area. Five items, such as skipping ropes, exercice mats and weights, are sold at less than 17€ to encourage customers to maintain a physical activity while staying at home.

Decathlon has also been offering its famous snorkeling masks to hospitals lacking medical supplies since the beginning of the pandemic.

More news:

• John Lewis launches virtual experiences
• Liberty London gives Crocs a luxury make-over
• Sexual wellness brands see sales spike during lockdowns

Just a few weeks on, the coronavirus pandemic has dealt a devastating blow to the so-called "out of home" sector, a once resurgent industry dependent on busy roads, packed urban centres and transport hubs.

Udo Mueller, the founder of one of Europe's biggest outdoor advertising groups, has been forced to backtrack, with the crisis forcing Cologne-based Ströer to scrap its 2020 guidance and tell investors it would consider revisions to dividend payouts. Other operators have taken drastic action, cancelling dividends and drawing on revolving credit lines.

The defensive measures are likely to be the start of a wrenching period with a significant portion of the world's population largely confined to their homes.

Advertisers are pulling back on the $40bn they were predicted to spend on ads across big cities and transport systems in 2020.

Analysts at Macquarie Research note that about a fifth of global expenditure is generated by sectors, such as leisure and travel, that have been devastated by coronavirus. If those clients halve planned spending while others shave 10 per cent from campaign budgets, the overall hit would be about 18 per cent, they estimate.

Clear Channel, whose share price has tumbled 75 per cent in a month, said last week that it was tapping $150m from its revolving credit facility.

JCDecaux, the world's biggest out-of-home advertising group, last month unveiled sweeping measures which included cancelling the payment of dividends, cutting discretionary spending and reducing employee hours. The French group also withdrew guidance predicting a 10 per cent hit to revenues, issued at the beginning of March.

Digital technology has been the big growth driver for the industry in recent years, with expensive investments in high-tech billboards allowing eye-catching adverts to be sold and rotated much faster than physical posters.

But relatively new entrants are now exposed, especially in the UK, the world's most digitised outdoor advertising market.

full article: Advertisers suffer from lower spending

South Africa Woolworths Holdings, parent company of David Jones, has flagged a 20%-plus drop in full year earnings as the COVID-19 crisis decimates sales in clothing stores in Australia, New Zealand and South Africa. This follows a sharp fall in sales at David Jones and Country Road Group stores in Australia and Woolworths' clothing and home stores in South Africa, even while most of the stores remain open to the public. Only two of David Jones' stores will close temporarily — the small format Barangaroo store in Sydney and James Street in Brisbane, with staff redeployed to other stores.

David Jones' sales fell 19% in the four weeks to the end of March, despite a 108% increase in online sales, as customer traffic slumped. In South Africa, Woolworths' fashion beauty and home sales fell 28% in the four weeks to the end of March, but food sales rose almost 28% 7.5% in January and February.

r5659_9_department_stores_top_list_of_consumer_companies_most_likely_to_default_on_debt-2.png

America's department store chains have seen their odds of defaulting escalate more than any other consumer-facing companies over the past month. In a new analysis by S&P Global Market Intelligence, the firm's median, one-year probability of default represents the odds that a company will default on its debt within the next year, based on fluctuations in a company's share price and other risk factors. That jumped to higher than 40% for some industries earlier this month. That's compared with being under 10% at the end of February. Department store operators, including Macy's and J.C. Penney, had the highest median, one-year probability of default, 42.1%, as of 7 April. Second to department store chains are hotels, resorts and cruise lines. Industries with the lowest rate of default include businesses that sell consumer staples and household products.

Full article: Department stores top list of consumer companies most likely to default on debt

More news on US department stores:

• US Department stores suspend dividends and conserve cash
• US department stores are furloughing staff
• J.C. Penney considers debt-management options
• Neiman Marcus advances bankruptcy preparations

Forbes explores the current state of Macy's, and is wondering what will replace it in case it collapses. Interestingly enough, the mentionned challengers are not similar in size and are quite smaller, due to a change of the nature of the market: discover Neighborhood Goods, or Showfield's.

Read the full article below

Coronavirus could be what finishes off several US department stores

Amazon is buying the former Lord & Taylor building for $1.15 billion. The Fifth Avenue landmark, which spans 11 stories and 61 315sqm will serve as Amazon's New York City headquarters, housing several thousand employees in the coming years.

Only two years ago, the troubled office-sharing startup WeWork leased the former department store building to become its own headquarters. But WeWork's plans fell apart last fall when the company and its former CEO Adam Neumann were embroiled in a series of scandals that ultimately derailed its plans to go public.

The former Lord & Taylor building is the latest office space the e-commerce giant has snapped up in New York City, after Hudson Yards and the Farley Building.

French department store Printemps has launched a new web site, adopting an inclusive approach in an attempt to stand out in a crowded e-commerce field. The site, which has gone live in France, will be rolled out first in Europe and the U.K. in the fourth quarter, followed by the U.S. and Asia at a later stage. Printemps.com took two years to develop and features over 200 brands, including big luxury labels as well as designers and smaller brands; with over 40 labels exclusively in France. The store has also signed 30 exclusive collaborations, adding up to more than 550 exclusive pieces on the site.

Printemps.com offers a gender-neutral section that shows the same clothing on a man and a woman side-by-side; a section built into the structure of the web site.

The online store also offers a wider range of sizes than is customary for the luxury fashion industry; as the store asked designers to expand their range of sizes and is buying more of larger sizes than it had in the past.

The site can be adapted to cater to specific needs associated with color blindness, dyslexia or Parkinson's, for example. For clients indicating they have Parkinson's disease, extra space is added between sections to make it easier to click on something, while it changes color for people who are color blind— the group has signed an exclusive contract with the French startup that developed the technology.

Printemps worked with Antidote magazine for the editorial content on the site, with plans for long articles on specific themes each month, accompanied by related interviews and photo shoots.

Paolo de Cesare, who took charge of French department store group Le Printemps in 2007, stepped down on 28 February. The decision was taken by Le Printemps's supervisory board, and "followed the acknowledgement of the difficulties experienced in the last few years by the retail sector, both internationally and especially in France, and of the need to put in place a new leadership, in order to accelerate and bring to fruition the development plan of Le Printemps, […]" The board added that it is building a basis for growth by reinforcing its team, refocusing the store offer, widening commercial avenues through digital channels, improving operations, optimizing costs and developing abroad.

De Cesare has overseen extensive renovations and an upscaling drive at Printemps Haussmann flagship store, which entailed a total revamp of its men's, beauty, homewares and children's offer, as well as the addition of a food hall on an upper floor.

press release: Departure Printemps CEO

full article by www: Paolo de Cesare Exits Printemps

John Lewis's new chairwoman Sharon White, is continuing to show that she doesn't feel tied by decisions taken under her predecessor and is ready to launch a strategic review of the business, according to a report.

An earlier review under previous chairman Sire Charlie Mayfield resulted in major changes in the organisation of the company's two retail chains, with John Lewis department stores and Waitrose being brought closer together. A number of respected senior executives left the company as a result.

Another review coming so soon into White's tenure is leading some analysts to believe that she could undo some of the decisions taken previously.

Walmart is launching a new service that allows third-party vendors to hire the retailer to store, pack and ship items for customers, a move that could better position the big-box retailer to compete against Amazon. Through Walmart Fulfillment Services, third-party vendors that sell clothing or other items in Walmart.com's marketplace can pay to have the retailer handle the logistics of getting items to a customer's door. They currently have to use a third-party to handle fulfillment or do it themselves. Walmart said both sellers and customers will benefit from the new service. Sellers will pay a low fee to store and ship goods and be able to drive up profitability while customers will have more brands to choose from, faster shipping and easier returns.

With the service, Walmart will have more control over the customer experience. It will be able to increase the number of packages with next-day or two-day delivery and will also have more visibility in warehouses.

Crocs may have become known for their comfort and quirky charms back in 2007, but in recent years they've been elevated to a whole new sartorial standing through numerous fashion collaborations. And now the brand announced its latest collaboration with iconic British department store Liberty London. Fusing comfort with undeniable style, the Liberty London x Crocs collection features an assortments of heritage archive prints from the London-based stores iconic collection. The range is made up of two silhouettes: the Classic Crocs Clogs and Classic Crocs Sliders - both feature Liberty's iconic floral Art Nouveau Liberty print Ianthe, which dates back to 1902.  Each style also comes customised with one of Liberty's signature silk scarves that is expertly tied around each shoe. The scarves are available in three historic Liberty prints: Tanjore Gardens, Chesham and Ianthe, which have been reworked into exclusive new colourways for the collaboration. The slides come in classic black or white hues for those who prefer a subtler silhouette, whereas Crocs recognisable clogs are offered in a bold fuschia pink and black. Liberty has also given Croc charms a stylish revamp with a selection of whimsical limited-edition metal charms, from a purple Liberty logo to a double-decker bus, that will be available to buy separately. The first part of the collection is already available online; the second part will be presented on 2 April.

The coronavirus pandemic is reshaping retail as cities and countries temporarily shut down to ease the virus's rapid spread. With large swathes of employees working remotely, businesses are looking to the virtual world for new models of conducting business. As luxury brands seek new retail solutions, Ordre - a virtual showroom company founded and led by CEO Simon Lock and fashion director Kirsten Lock - has seen a boost to its business. The company was created to help luxury brands manage their global wholesale networks as the industry evolves, and travel to physical showrooms around the world becomes more of an economic and logistical hassle for retail buyers. Through the company's virtual showrooms, users can access 'ORB360' images - 360 degree interactive images of wholesale sample collections - that allow buyers to view every aspect of the product and place wholesale orders online.

Ordre's virtual solutions are becoming increasingly appealing to brands who want to keep sales going through the coronavirus outbreak. "Ordre Virtual Showrooms combined with our ORB360 technology is really providing a B2B solution in these difficult times to showcase collections and confirm wholesale orders," said Simon Lock.

full article: Amidst the coronavirus outbreak, brands turn to virtual showrooms

article: Now Is the Time for Virtual Showrooms to Shine. Will They?