Macy's is rolling out a free same-day delivery pilot program in 30 markets beginning on 1 October for qualifying purchases of $75 or more, for a limited time -however no timeline has been given for when the free option will end. Orders placed Monday through Saturday by noon local time, or 10 a.m. local time on Sunday, will be delivered the same day through an existing partnership with Deliv.

In 2014, Macy's launched same-day delivery with a fee in five markets for a limited selection of products. By 2017, the retailer had expanded same-day delivery to 33 markets, but the overall service underperformed. The new program covers "hundreds of thousands of products."

Similar to Walmart, Macy's played up the fact that shoppers do not need to be part of a paid subscription program like Amazon Prime to qualify for free deliveries.

Jill Ramsey, Macy's chief product and digital revenue officer, said Over the last two years, we've made significant investments in new technology in our stores and on our website that have given us the ability to better serve our customer's needs."

In the second quarter, Macy's reported its fortieth consecutive quarter of double-digit e-commerce growth.

Macy's relaunch comes as retailers are pushing the accelerator on speedier deliveries.

French department store group Galeries Lafayette received a series of awards within the past few days to celebrate several of their initiatives. At the 29th Enseigne d'Or ceremony, they received the award for:

• Architecture for the Galeries Lafayette Champs Elysées store
• Efficiency for Eataly in le Marais
• Man of the Year to Nicolas Houzé

In addition, the retail magazine LSA underlined the commitment to sustainability of Galeries Lafayette through their Go For Good inititative by giving them awards for:

• Responsible merchandising to Galeries Lafayette
• Best CSR product for Louis Pion's private label collection of watches under the Go For Good banner

Update on 04.09.19: Contrary to what had been reported earlier (see "Chinese stores suffer from online competition"), Takashimaya of Japan has changed its mind on closing its Shanghai store. The store has apparently gained support from the landlord, Changning District, and the city. The store trading on 40 000 m², will become a "high-quality department store", according to management. No further details have been made available on the nature of the support nor on the reasons for the change of heart, even after a loss in the year ended February 2019 of 8.6 million yuan, following several years of losses.

Published on 01.07.19: Takashimaya of Japan has announced it would close its store in Shanghai on 25 August. The announcement came soon after Carrefour sold an 80% stake of its Chinese business to Suning.com. Takashimaya, founded in 1831, operates 17 stores in Japan, and one each in Singapore, Thailand, and Vietnam. It entered China in 2012 in Shanghai's affluent Gubei area, and has made a loss for seven consecutive years. According to commentators, only some areas of Shanghai are appropriate for luxury retail. These include Nanjing Road West, Huaihai Road East and Lujiazui area in Pudong where Galeries Lafayette is now present.

Swedish department store giant Åhléns has launched a new independent beauty concept in Sweden, Beauty Bargain. Beauty Bargain offers a mix of established brand favorites as well as new and temporary brands. The focus is on beauty and well-being, but also on products that inspire and puts a spice on life. Beauty Bargain is launched online and in physical stores in parallel, starting in Göteborg.

r4873_9_selfridges_partners_with_british_cbd_body_and_wellness_start-up_grass__co.png

As CBD oil becomes increasingly important to the consumer products sector, Selfridges is aiming to get in on the trend and is linking up with premium British CBD wellbeing start-up Grass & Co.

The start-up, which has only been trading since July, is selling its body products (including products from its Ease and Calm collections) through the luxury department store's London and Manchester sites. The brand is also featured in the store's London Beauty Workshop, which gives it an extra boost as the area is a  focus on 28 brands from some of the most talked about new names in beauty and wellness. Selfridges also plans to stock Grass & Co's consumable CBD oil in the future. "CBD is one of the fastest growing well-being product categories in the UK. Grass & Co's brand values together with the quality and provenance of its product ingredients and commitment to ethical sourcing was a great fit for Selfridges," said Emily Saunders, the retailer's Beauty Workshop Buyer.

Grass & Co said the UK CBD industry is expected to be worth almost £1 billion a year by 2025, which is equivalent in size to the entire UK herbal supplement market at present. The company, which recently raised almost £1 million in seed funding, is headed by health supplements specialist Toby Gordon-Smith as CEO. Its products use organic hemp along with complementary botanicals and it said that demand from both consumers and retailers has "far exceeded" its initial projections since its launch.

CBD is having a major impact on both the beauty and wellness sectors and is a buzz ingredient in many new launches. This is something that's giving a wide range of international start-ups an entry point into luxury retail as they've reacted faster to the trend than have many established beauty players.

The Fitch rating agency has increased the rating of El Corte Ingles from BB to BB+. According to Fitch, the improvement in its valuation is a consequence of the right business strategy, a positive reduction of debt and financial flexibility. It is in line to reach the next level BBB- in less than a year and a half. The new rating will allow the group to continue diversifying and cheapening its financial sources.

The Hudson's Bay department store group has confirmed it will close its 15 stores in the Netherlands, as well as its e-commerce site and headquarters in the country by the end of the year. The confirmation comes three weeks after Dutch business daily Financieel Dagblad reported on the plans. The company says it has come to an agreement with local unions to offer solutions for the 1,424 employees impacted by the closure.

In June, the Canadian company sold its minority stake in its European operations – excluding the Dutch interests – to Austrian investment company Sigma, and took back sole ownership of the Dutch operation. It said at the time some stores would close. The owner of the Saks Fifth Avenue department stores entered Europe in 2015, buying Germany's Kaufhof chain, and began the Dutch operation in 2017.

press release: Hudson's Bay Stores to Close in the Netherlands

Selfridges of London has agreed a partnership with independent boutique cinema Olympic Studios to open a three-screen cinema in the store. According to management, this is a natural extension of the Selfridges aim of providing customers with extraordinary experiences all year round. The Cinema will have an entrance within the store as well as direct access from the street. It will schedule a mix of blockbusters and independent films. Some years ago, Selfridges opened a small pop-up cinema in the store which created quite a buzz.

El Corte Ingles of Spain has announced its results for the year to end February 2019: turnover was up 1.1% for the group to €15783m, while EBITDA increased 2.2% to €1075m. The retail business of the group, which is by far the largest activity, accounted for €12974m, an increase of 0.37%, with an EBITDA of €882m. This includes department stores, hypermarkets, the specialty chain Sfera, Bricor DIY and convenience stores. The second largest part of the group is the travel business with sales of €2722m, up 4.9% on the previous year.  The chairwoman struck a very positive note, issuing a reminder that El Corte Ingles is "a systemic company for the Spanish economy, creating wealth and jobs, catalysing ideas that are capable of creating innovative concepts, setting trends and placing us at the cutting edge. We have been doing this for almost 80 years. With enthusiasm, commitment, zeal and sensitivity; with innovation".

press release "Positive results at El Corte Inglés"

el corte inglés annual report 2018

According to Bloomberg, Austrian property owner Rene Benko (Signa) is seeking half a billion euros by selling shares, and a further 300 million euros in a bond offering as his purchase of Germany's Kaufhof department store chain nears completion.

Benko is apparently meeting investors in London, Paris and Frankfurt after he secured regulatory approval for the acquisition of the 50% stake in Kaufhof he didn't already own. The purchase is expected to close by the end of September.

Once the transaction is completed, total assets of his Signa Prime Selection AG will have grown tenfold in seven years, to 15.1 billion euros. The expansion has been funded by a series of private investors that included a Greek shipowner, a private bank from the Gulf, celebrity businessmen, wealthy European families and German insurers. Benko agreed to buy the Kaufhof stake from Hudson's Bay in June after acquiring the first 50% last year. The new funds are earmarked for "future asset acquisitions" and "to support Signa Prime's growth".

Nordstrom's Local concept made its New York debut with the opening of a roughly 1,800 sqft location on the Upper East Side. A second New York City Local will open in the West Village at the end of this month.

The novelty at these two "Nordstrom Local" concept stores is that they will accept merchandise returns from rivals like Macy's Inc. and Kohl's Corp., regardless of whether Nordstrom carries the same item. Nordstrom's decision to accept returns from its competitors is a first for the upscale department store chain, and is being made with the busy New York City shopper in mind. With a focus on services and eschewing products, Nordstrom's Local store concept is positioned as a convenience hub for consumers. [Accepting rivals' returns isn't a totally new concept: Kohl's has been allowing Amazon.com Inc. returns in its stores nationwide since July.]

The new "local" Nordstrom in New York will also offer services like shoe, handbag and small leather goods repair, charity drop-offs for used items, stroller cleanings, and serve as meeting spots "for networking and family driven events", in a bid to get customers in stores, whether or not they're buying.

The company, which already operates three stores under the new format in California, is also opening its Manhattan flagship location next month.

Traditional retailers like Macy's continue to fight an uphill battle due to dwindling foot traffic and shifting consumer demand for e-commerce and buzzy direct-to-consumer brands.

Performance in the second quarter of 2019 fell "well below expectations," citing surplus inventory as a "mounting problem" during the period. In an effort to clear excess product, the retailer made significant store-wide markdowns, contributing to a net sales drop to $5.546 billion from $5.572 billion at the same time last year. Same-store sales grew by 0.2%.

Jeff Gennette attributed Macy's inventory troubles to three main factors: low performance in sectors like women's sportswear, private labels, and home goods; slow sales of warm weather apparel; and a decline in international tourism.

Macy's CFO Paula Price said on the call that while the brand was "not pleased" with its performance, it's focusing on more strategic inventory allocation moving forward and she's confident it will make a bounce back.

Both Gennette and Price noted the industrywide challenges plaguing traditional retailers, as consumers flock to e-commerce and buzzy direct-to-consumer brands. In an attempt to attract younger, more eco-conscious shoppers, Gennette announced a pilot partnership with ThredUp, which will feature resale clothing in 40 select stores.

Additionally, Macy's-owned Bloomingdales is looking to capitalize on the booming rental industry with a recently announced rental program called My List, which Gennette said Macy's aims to emulate down the road.

An article in Simply Wall St looks at the debt of New World Department Store of China. In brief, it has liabilities totalling HK$4.19b more than its cash and near-term receivables, combined. However, New World Department Store China grew its EBIT by 19% last year, making its debt load easier to handle. Over the last three years, New World Department Store China recorded negative free cash flow, in total. Debt is usually more expensive, and almost always more risky in the hands of a company with negative free cash flow. The article concludes that it is not "comfortable" with the stock. However, although New World did not make a statutory profit in the last year, its positive EBIT suggests that profitability might not be far away. The company announced a change in CEO last August. The company currently operates a national network of 22 New World stores and 9 Ba Lin Chun Tian stores and malls in Shanghai.

La Grande Epicerie de Paris, sponsored by Le Bon Marché, has opened a small 25sqm shop in Parisian train station Saint Lazare. Dubbed La Petite Grande Épicerie de Paris, it brings together the essentials: breakfast pastries, lunchtime sandwiches and salads, takeaway dishes, plus a range of grocery products and wine & spirits.

Bulgaria's Central Department Store company, owner of the retail and office building of the same name in central Sofia, said that it is planning to raise some 6.4 million levs ($3.6 million/3.3 million euro) through a capital increase.

All new 6,385,989 shares will be offered for subscription at a price of 1 lev apiece to local company Bulinvest Com, Central Department Store said last week in an invitation for a shareholders' meeting. The shareholders of Central Department Store will vote on the company's proposal at a meeting scheduled for October.

Central Department Store closed 2018 with a net profit of 284,000 levs on revenue of 4.8 million levs, according to the company's annual financial statement.

Myer has reported a profit for the first time in nine years, but sales at the department store chain continue to fall. The company managed a narrow full-year profit of $24.5 million, while revenue for the 12 months to June 30 fell by 3.5 per cent to $2.99 billion. The company again refrained from paying a dividend.

Chief executive and managing director John King hailed cost management, which he said saved $32.6 million through a new staffing model, a more focused marketing spend and reduced store occupancy.

Since July 2018, Myer has either closed or announced the closure of 29,000 square metres in store GLA with a further 5 per cent to 10 per cent under active discussion. John King says there is more to be done to transform the business:

"In addition to cost savings expected with further space reductions, material opportunities remain to reduce costs in supply chain and fulfilment as well as other non-customer facing activities." he said.

The company also says that a "significant brand refresh" was currently under way with an additional 40 new brands set to arrive in-store by this Christmas, including Oasis, Warehouse, Karl Lagerfeld Paris, Selected Femme, Selected Homme, Vero Moda, Fiorucci, Rotate by Birger Christensen, Jack London, Twisted Tailor and Acqua di Parma.

Netherlands-based department store de Bijenkorf, part of the Selfridges group, has launched its website in Germany. It offers products from around 1000 brands. This is the third market where the store is active since it is already available in Belgium. Payment methods offered are Klarna, Giropay, iDeal, Visa/Mastercard, American Express and PayPal. Orders will be delivered within two days, whereas in the Netherlands delivery takes one day.

Harvey Nichols soft-launched an omnichannel concept store on Monday 16 September 2019, part of an almost $32 million re-haul of the business that dramatically transforms its Pacific Place mall store location and global e-commerce offerings. One of its goals with the concept is to drive in-store pick-up of orders to 35 percent (up from 25 percent now). The website will focus on stocking major international brands, while the physical store will be more focused on promoting new and emerging labels. The availability of stylists, even to online shoppers, is another key initiative for the brand.

full article by wwd "Harvey Nichols launches omnichannel concept store"

In spite of an increase in overall sales in the last quarter, Hyundai Department Stores of Korea showed a downturn of operating profit of -32.7% due to heavy losses from the new duty free business which opened last November. The increase in sales was due to the duty free operation in the Gangnam store which, like that of its competitor Shinsegae's Gangnam store operates at a loss. Overall, Hyundai's duty free operations run at a loss while Shinsegae manages to be profitable. This is probably because Shinsegae has a store in the key tourist area of Myeong-dong whose profits offset losses from stores in other areas. Hyundai will need to grow its duty free business whose share is estimated to be around 2% currently. The core department store business is apparently profitable.

Kurt Geiger is introducing its new Carvela business to US shoppers. After relaunching its namesake Kurt Geiger London footwear brand in the States in 2018, the British fashion powerhouse is now turning its attention to growing the Carvela women's footwear and apparel label abroad. For that, the company has signed an exclusive partnership with Dillard's, an upscale Arkansas-based department store chain that will carry the footwear and accessories line in 75 locations. Dillard's will initially launch with a cruise collection, consisting of heels, on-trend fashion sneakers and a selection of sandals ranging from $85 to $150. An exclusive ad campaign will help promote the debut. "We are honored to welcome the Carvela collection to the United States," said Dillard's director of exclusive branded footwear, Michelle Dillard Hobbs, "we continually seek new, exceptional brands, and Carvela is a perfect addition to our curated footwear assortment." The collection will launch in Dillard's store in December.

press release: Dillard's Brings British Brand Carvela to the US

Government data from Hong Kong shows that retail sales in July fell 11.4% from a year earlier as visitor numbers began to fall and social unrest hurt consumer sentiment. The unrest which originated in June over a now-suspended extradition bill, has now been transformed into broader calls for democracy for the former British colony which returned to Chinese rule in 1997. Retail sales fell to HK$34.4 billion in July, a sixth consecutive month of declines. The decline is exacerbated by the strains of China's economic slowdown, a weak Chinese yuan, and fallout from the Sino-US trade war. The government recently cut its full-year growth forecast to 0-1%, down from 2-3% previously. Hotel occupancy has been falling and retailers are expecting further drops. According to one report, department store operator Lifestyle has described the retail sector as challenging as people lose the appetite to consume.

UK online grocery company Ocado, which was set up 20 years ago to service the Waitrose supermarket chain of John Lewis, is developing its automated warehouse system in the US. It signed a deal last year with large supermarket group Kroger to build up to 20 Customer Fulfillment Centers (CFCs) using Ocado's automated technologies. The John Lewis Parnership no longer holds any participation in Ocado. Earlier this year, Ocado and Marks & Spencer announced a joint venture whereby M&S acquired a 50% share in Ocado's UK retail business. The automated warehouse system of Ocado attracted a great deal of attention as an innovation, and also because the warehouse in which it operated in the UK accounting for 10% of the company's business was ravaged by a fire last February which burned for three days and caused residents to be evacuated. This did not deter Kroger which is planning to open its first 33 000 m² centre in Monroe, Ohio in 2021 at a cost of $55 million.

See video of robotic system

article: Ocado prays warehouse blaze won't douse its hopes for a hi-tech future

Mr Jack Ma formally retired on 10 September from Alibaba, the Chinese e-commerce giant he founded that helped transform the way hundreds of millions of people shop and made him one of the world's richest men. Starting as a company that aimed to connect Chinese manufacturers with small foreign businesses, Alibaba struck gold when it switched its focus to become an online marketplace for Chinese sellers and consumers.

Mr Daniel Zhang, Alibaba's chief executive, will succeed the 55-year-old Ma as executive chairman. Mr Ma, however, will remain a considerable force at the company. He is a lifetime member of the Alibaba Partnership, a group of a few dozen employees with tremendous power over the company's board and leadership. The partnership also holds sway over key licenses that Alibaba requires in order to do business on the mainland.

Ma will also still control the parent company of Alipay, the Chinese online payment system used in many of Alibaba's digital marketplaces. That business fiercely competes with WeChat, owned by Tencent Holdings, which has become a power in online payments in China, giving Mr Ma a continuing challenge on the business front.

Ma has said he will devote his time to philanthropy, especially rural education.

Harvey Nichols is introducing an after-care programme for luxury accessories that invites customers to bring in shoes and bags for refurbishment within 18 months of purchase. The programme was created in partnership with London startup The Restory, whose services include cleaning, reheeling, leather conditioning and colour restoration (for an extra £120 for shoes or £250 for bags). The package is available at the UK department store only, which claims a commission on each sale. It is also cheaper for clients than if they approach The Restory directly for similar services. The collaboration stemmed from customers' desires to have items last longer at a time when sustainability and the circular economy is top of mind for fashion. By improving and lengthening the lifespan of luxury goods, Harvey Nichols is also contributing to the secondhand luxury market : customers often bring in items that they previously haven't been able to sell on a secondary site, in hopes that restoration will improve the likelihood of resale.