What: M&S has overhauled its Sparks loyalty scheme, replacing points with spendable cash rewards and leveraging advanced AI to offer tailored benefits and partner rewards.

Why it is important: This transformation reflects the retail industry’s shift toward real-money rewards, digital wallets, and AI-powered personalisation as key drivers of customer loyalty and engagement.
M&S has unveiled a major transformation of its Sparks loyalty programme, moving away from traditional points-based rewards to a system that offers customers real-money incentives and personalised benefits. The new digital Sparks wallet allows shoppers to earn cash rewards across all categories, with additional bonuses for cross-category purchases and partner activities, such as booking holidays with Virgin Atlantic. This overhaul is powered by advanced AI and data analytics, enabling M&S to deliver more relevant, timely, and seamless offers tailored to individual shopping habits. The programme also encourages customers to explore new areas of the store, rewarding discovery and engagement beyond their usual purchases. By prioritising transparency, flexibility, and immediate value, M&S is responding to evolving consumer expectations and the broader industry trend toward digital wallets and omnichannel loyalty. The new Sparks scheme positions M&S at the forefront of customer-centric retail, aiming to deepen engagement and foster long-term loyalty in a competitive market.

IADS Notes: M&S’s transformation of its Sparks loyalty programme is part of a sweeping industry shift toward real-money rewards, AI-driven personalisation, and customer-centric value creation. Retailers like Selfridges, Harvey Nichols, and Gymshark have all reimagined their loyalty strategies in the past year, moving away from traditional points-based systems to focus on direct, spendable rewards and experiential engagement (Drapers, May 2025; Fashion United, January 2026). The integration of advanced AI and data analytics is now central to delivering tailored offers, seamless experiences, and increased engagement, as seen in Selfridges’ “Unlocked” programme and Harvey Nichols’ new tiered structure (Inside Retail, May 2025; Fashion United, January 2026). This evolution is driven by declining shopper loyalty and rising consumer demand for transparency, flexibility, and immediate value, with omnichannel and partner rewards emerging as key differentiators (Fashion Network, November 2025; Journal du Net, November 2025). The most successful retailers are leveraging digital wallets, unified data, and cross-category incentives to foster deeper relationships and long-term retention, setting a new standard for loyalty in the digital age.

M&S transforms Sparks loyalty programme

What: Kering is implementing aggressive restructuring and leadership changes to restore profitability after significant sales declines, particularly at Gucci.

Why it is important: The group’s strategy underscores how leading luxury brands are rebalancing portfolios and management structures to regain competitiveness in a challenging environment.

Kering is undergoing a significant transformation as it seeks to rebuild profitability following a period of declining sales, most notably at its flagship brand, Gucci. The group has responded to these challenges by accelerating cost-cutting initiatives, including store closures and asset sales, while also investing in brand revitalisation. The appointment of Luca de Meo as CEO marks a pivotal leadership change, bringing a renewed focus on operational efficiency and strategic repositioning. Despite persistent revenue declines and a net loss in 2025, these restructuring efforts have begun to show early signs of stabilising performance, with Gucci’s sales decline slowing in recent quarters. Kering’s approach reflects a broader shift within the luxury sector, where agility, decisive action, and a willingness to overhaul management structures are becoming essential for survival and future growth. The company’s commitment to doubling profitability signals both ambition and recognition of the need for fundamental change in response to evolving market dynamics and consumer expectations.

IADS Notes: Kering’s ambition to double profitability comes amid significant transformation and challenge, as reflected in a series of financial setbacks and strategic pivots reported throughout 2025 and early 2026. In April 2025 (BoF), Kering disclosed a 14% drop in group revenues and a 25% decline at Gucci, leading to accelerated cost-reduction measures, including store closures and restructuring. By July 2025 (WWD), net profit had fallen 46% in the first half, prompting the closure of 80 stores and continued brand portfolio adjustments. The appointment of Luca de Meo as CEO in September 2025 (BoF) marked a decisive leadership shift, focusing on operational efficiency, debt reduction, and repositioning of key brands. October 2025 (WWD) saw a further 10% decline in group revenues, with intensified restructuring and asset sales, while February 2026 (WWD) confirmed a net loss for 2025 and further store closures. These developments highlight Kering’s commitment to restoring profitability through agility, decisive action, and renewed strategic focus, even as the luxury sector faces persistent market headwinds and evolving consumer expectations.

Kering aims to double profitability in turnaround push

What: The EU is urging Google to allow third-party search engines access to its data to promote competition and reshape digital advertising in retail. 

Why it is important: Increased data access may force retailers to rethink digital marketing and personalisation, aligning with the shift toward AI-powered commerce.

The European Union’s recent directive for Google to provide third-party search engines with access to its data marks a significant turning point for the retail sector. By challenging Google’s control over search data, the EU aims to foster greater competition in digital advertising, which could have far-reaching consequences for retailers’ marketing strategies. As AI-driven personalisation and automation become central to retail, the ability to access and leverage consumer data is increasingly vital. Retailers may need to adapt quickly, re-evaluating how they target and engage customers online, especially as new competitors and technologies emerge. The regulatory push also highlights growing concerns around data privacy and compliance, compelling both retailers and technology partners to innovate within stricter frameworks. This evolving landscape is expected to accelerate the adoption of AI-powered tools and reshape the way retailers interact with consumers, ultimately redefining the competitive dynamics of digital commerce.

IADS Notes: The EU’s intervention coincides with major industry shifts, as seen in January 2026 when Forbes and Bloomberg reported on Google and Walmart’s investments in agentic commerce and AI-powered shopping on Gemini, driving automation and personalisation in retail. In the same month, the Financial Times highlighted Google’s integration of personalised shopping ads into its AI tools, intensifying competition and raising regulatory concerns. The surge in generative AI-driven traffic, with an 830% increase noted by Forbes in November 2025, demonstrates the urgency for retailers to optimise for AI answer engines. Additionally, Journal du Net in November 2025 analysed how generative AI and evolving search behaviours are challenging Google’s dominance, reinforcing the significance of the EU’s regulatory stance in accelerating these transformations.

Google should allow third-party search engines access to data, EU says

What: Yumi Shin has joined Nordstrom as executive vice president of global brand partnerships, taking on a newly created role overseeing luxury, designer, and beauty merchandising.

Why it is important: The move highlights the importance of talent integration and executive renewal in strengthening merchandising, brand partnerships, and customer experience at major department stores.

Nordstrom has appointed Yumi Shin as executive vice president of global brand partnerships, a newly established role that expands her responsibilities across luxury, designer, and beauty merchandising. Shin, formerly chief merchandising officer at Bergdorf Goodman, brings extensive experience from Saks Fifth Avenue, Prada, and Barneys New York, positioning her to drive innovation and exclusive collaborations at Nordstrom. Her appointment comes as the retailer accelerates its investment in store environments, digital platforms, and curated designer experiences, aiming to attract a geographically diverse and high-value customer base. Shin’s remit includes reimagining key departments, launching new retail concepts, and deepening relationships with both established and emerging brands. This strategic move reflects Nordstrom’s commitment to executive renewal and talent integration, reinforcing its ability to deliver differentiated customer experiences and strengthen its position in the competitive luxury retail landscape.

IADS Notes: Yumi Shin’s appointment as executive vice president of global brand partnerships at Nordstrom is part of a broader wave of leadership renewal and strategic transformation across the department store sector. In the past year, major retailers such as KaDeWe, Saks Global, Bloomingdale’s, John Lewis, El Corte Inglés, and Galeries Lafayette have all undergone significant executive changes, often creating new roles to drive innovation, merchandising, and brand partnerships (Fashion Network, November 2025; WWD, June and October 2025; Retail Week, October 2025; Les Echos, April 2026). These appointments reflect the sector’s focus on integrating experienced talent from both internal and external sources to support commercial performance, operational agility, and customer experience. The movement of executives between leading retailers—such as the transition of talent from Saks Global and Neiman Marcus to Macy’s and Bloomingdale’s—underscores the competitive dynamics and importance of succession planning, talent integration, and leadership stability in navigating market shifts and driving growth. The creation of new leadership roles, like Shin’s, highlights the need for dedicated oversight of luxury, designer, and experiential retail, as department stores invest in exclusive collaborations, curated experiences, and digital innovation to attract the next generation of luxury consumers and reinforce brand differentiation.

Yumi Shin joins Nordstrom, at last

What: David Jones faces possible closure after 188 years, as mounting financial losses and digital disruption force the iconic department store to downsize and rethink its business model.

Why it is important: This situation illustrates the risks of delayed transformation and the importance of strategic reinvention for department stores amid rising competition and changing market dynamics.

David Jones, Australia’s oldest department store, is at risk of closure following a $74 million loss in 2024 and growing pressure from online competitors. The retailer’s struggles are compounded by shifting consumer behaviour, with shoppers increasingly seeking extreme discounts and turning to digital channels in response to rising living costs. In an effort to adapt, David Jones has closed underperforming stores, cut head office staff, and delayed payments to key suppliers, while its new owners, Anchorage Capital Partners, have pledged continued investment and modernisation. Despite these efforts, the company’s future remains uncertain, reflecting a broader trend of retail consolidation and closures across Australia, as seen with Glue Stores and Jeanswest. The David Jones case highlights the existential threat facing legacy department stores that fail to transform quickly enough, underscoring the need for innovation, operational agility, and a clear value proposition in today’s rapidly evolving retail landscape.

IADS Notes: David Jones’ ongoing transformation and risk of closure reflect the broader crisis facing department stores in Australia and globally. As reported by the Daily Mail in December 2025, David Jones is closing long-standing stores and optimising its retail network to adapt to digital disruption and shifting consumer expectations, while investing in omnichannel innovation. Inside Retail in September 2025 highlights the retailer’s efforts to reengineer value creation through a flexible loyalty program and major investments in e-commerce, store refurbishments, and customer experience. Parallel strategies at Myer, detailed by Inside Retail in September 2025, focus on cost-cutting, operational efficiency, and strategic partnerships to remain competitive. Retail Week in August 2025 demonstrates that, despite widespread closures, some department stores are thriving by blending tradition with modernisation and investing in experiential retail. Influencia in April 2026 underscores the sector’s shift from a “for everyone” model to curated experiences, community engagement, and strategic use of technology and influence as critical levers for survival. Finally, WWD in January 2026 provides a global context, showing how aggressive expansion, vendor payment delays, and debt have led to dramatic downsizing and instability among legacy department store groups. Collectively, these sources illustrate that the future of department stores depends on their ability to innovate, personalise, and adapt to a rapidly changing retail environment.

David Jones posts $74m loss

What: RedNote or Xiaohongshu is entering the U.S. market with a new e-commerce portal and a strategy focused on local hiring and adaptation.

Why it is important: This move demonstrates how international entrants are intensifying competition and reshaping consumer expectations in the U.S. through immersive and adaptive retail strategies.

RedNote’s expansion into the U.S. marks a significant step in the ongoing globalisation of retail, as the company opens new offices, hires local talent, and launches a dedicated e-commerce portal tailored to American consumers. This strategic move is not simply about market entry; it reflects a sophisticated understanding of the need for localisation and adaptation in today’s retail landscape. RedNote’s approach includes customising its product offerings and marketing strategies to resonate with U.S. shoppers, while also leveraging its digital expertise honed in Asia. The company’s commitment to local hiring underscores its intent to build authentic connections with the market and respond swiftly to consumer preferences. By prioritising immersive online experiences and adapting to the competitive dynamics of the U.S. retail sector, RedNote positions itself as a formidable new player. This expansion highlights the increasing influence of Asian brands in Western markets and signals a broader shift toward customer-centric, innovation-driven retail strategies that are redefining industry standards.

IADS Notes:
RedNote’s U.S. entry mirrors a broader trend identified in The Robin Report (January 28, 2026), where Chinese and Asian brands are expanding into the U.S. and Europe through digital-first and experiential retail models. The Economist (January 19, 2026) highlights how these brands are leveraging local hiring and adaptation strategies to navigate Western markets. Beams’ U.S. flagship launch, covered by Inside Retail (March 9, 2026), and Pop Mart’s expansion into American malls, reported by Inside Retail (January 29, 2026), further illustrate how Asian brands are intensifying competition and prioritising immersive customer experiences. These developments underscore the importance of localisation and innovation, as also noted in The Robin Report (January 4, 2026), and position RedNote’s strategy firmly within this dynamic, customer-centric transformation of global retail.

RedNote chases U.S. expansion after its “TikTok refugee” moment fades

What: Rinascente is staging a major takeover themed around The Devil Wears Prada 2, transforming its Milan flagship with immersive installations, exclusive merchandise, and cross-industry collaborations.

Why it is important: This initiative highlights how department stores are leveraging cultural and cinematic collaborations to create immersive, experiential destinations that drive footfall and brand differentiation.

Rinascente’s Milan flagship is undergoing a dramatic transformation to celebrate the release of The Devil Wears Prada 2, with the entire store façade, windows, and interior spaces dedicated to the film’s iconic imagery and themes. The activation includes large-scale installations, such as four-metre-high red stilettos, immersive displays inspired by the movie’s editorial universe, and a series of events culminating in the Italian premiere. Exclusive merchandise, including a limited-edition T-shirt capsule featuring memorable quotes, is available in-store, while collaborations with brands like Samsung, Starbucks, and Moët & Chandon extend the experience across multiple categories. This large-scale, narrative-driven takeover positions Rinascente as a cultural platform, engaging customers across generations and reinforcing its role as a destination for creativity, fashion, and entertainment. By aligning the activation with Milan Design Week, Rinascente maximises visibility and footfall, demonstrating the commercial and branding power of immersive, cross-industry collaborations in today’s retail landscape.

IADS Notes: Rinascente’s large-scale takeover for The Devil Wears Prada 2 exemplifies the growing trend of department stores transforming into immersive, experiential destinations through cultural and cinematic collaborations. Galeries Lafayette Haussmann’s March 2026 contemporary art exhibition, curated by Maurizio Cattelan in partnership with Centre Pompidou-Metz, brought art directly into the retail environment, engaging international tourists and reinforcing the store’s modern relevance (BeauxArts, March 2026). This approach is echoed by Le Bon Marché and Galeries Lafayette, which have positioned themselves as cultural destinations by hosting major art exhibitions and collaborations with leading artists and museums, blending commerce with culture to foster deeper customer engagement (Le Figaro, March 2026). Bloomingdale’s September 2025 artist-led flagship transformation and Harrods’ December 2025 partnership with Brunello Cucinelli further illustrate how immersive installations, exclusive collaborations, and narrative-driven activations are redefining the role of department stores as platforms for creativity, culture, and community (WWD, September 2025; Fashion Network, December 2025). These initiatives highlight the strategic value of integrating art, entertainment, and experiential marketing to differentiate brands, attract diverse audiences, and generate excitement around retail environments.

The Devil Wears Prada 2 takes over Rinascente 

What: European authorities are rolling out a new age verification app, reshaping compliance requirements and online access for retailers and consumers.

Why it is important:
The introduction of age verification technology signals a shift in compliance and customer engagement, aligning with broader trends in regulatory innovation and consumer trust.

The European Union’s launch of an age verification app marks a significant evolution in the regulatory landscape for retailers operating online. This initiative is designed to enforce stricter controls on youth access to digital platforms and age-restricted products, compelling retailers to adapt their compliance processes and customer journey. The move comes as part of a broader wave of regulatory innovation across Europe, where digital convergence and heightened data privacy standards are already challenging retailers to balance operational efficiency with consumer trust. The integration of new verification technologies is expected to introduce both friction and reassurance into the online shopping experience, as retailers must ensure robust data protection while maintaining seamless service. These changes are particularly impactful for brands targeting younger demographics, who now face new barriers to engagement and discovery. As the sector accelerates its digital transformation, the ability to navigate these regulatory shifts while safeguarding privacy and fostering trust will be critical for maintaining competitiveness and relevance in a rapidly evolving marketplace.

IADS Notes: The EU’s introduction of age verification technology mirrors the regulatory innovation and digital transformation trends highlighted in the adoption of superapps (GDI, October 2025) and digital product passports (The Robin Report, November 2025). The operational and reputational risks associated with data privacy were underscored by the Coupang data breach (The Diplomat, March 2026), emphasising the need for robust security measures. The use of facial recognition technology on UK high streets (Financial Times, March 2026) demonstrates retailers’ investment in advanced compliance and security solutions, despite ongoing privacy concerns. Additionally, the shift in youth marketing strategies following social media bans (Inside Retail, December 2025) shows how regulatory changes are compelling retailers to adapt their engagement approaches and digital strategies.

EU unveils age verification app as social media bans gain steam

What: Green packaging adoption accelerates in retail as the Iran conflict drives up plastic prices and disrupts supply chains.

Why it is important: This shift demonstrates how geopolitical shocks and cost pressures are accelerating sustainability initiatives in retail, as seen in recent industry analyses.

The retail industry is experiencing a marked acceleration in the adoption of green packaging, driven by the sharp rise in plastic prices and ongoing supply chain disruptions resulting from the Iran conflict. As geopolitical instability intensifies, retailers are compelled to reassess their sourcing and operational strategies, with many shifting rapidly toward eco-friendly alternatives to mitigate escalating costs and ensure business continuity. This transition is not solely a reaction to immediate economic pressures but also reflects a broader alignment with evolving regulatory requirements and consumer expectations for sustainability. The convergence of these factors is prompting retailers to innovate in packaging design, invest in alternative materials, and strengthen their risk management frameworks. As a result, sustainability is becoming an integral part of retail strategy, not only as a means of cost control but also as a competitive differentiator in a volatile market. The industry’s response to these challenges is setting new standards for operational resilience and environmental responsibility, underscoring the critical role of adaptability in navigating global crises.

IADS Notes: The surge in green packaging adoption across the retail sector is a direct response to the compounding pressures of geopolitical instability, particularly the Iran conflict, which has driven up plastic and energy prices and severely disrupted global supply chains. As detailed in Forbes and Inside Retail (March 2026), these disruptions have forced retailers to overhaul their risk management and pricing strategies, with sectors such as beauty experiencing acute cost increases for packaging and logistics, as reported by Reuters (April 2026). This environment has accelerated the shift toward sustainable packaging, a trend already underway as highlighted by BCG (April 2025), where retailers are balancing immediate cost pressures with long-term commitments to environmental responsibility. The regulatory landscape is also evolving, with the European Commission’s Environmental Omnibus package (January 2026) compelling retailers to innovate and adapt their supply chains to meet stricter sustainability standards and heightened consumer expectations. Collectively, these developments underscore how the convergence of geopolitical shocks, cost volatility, and regulatory demands is reshaping retail’s approach to packaging and sustainability.

Green packaging finally takes off as Iran war causes plastic prices rises

What: Retailers are transforming their environments and workforce approaches to meet Gen Alpha’s expectations for authenticity, personalisation, and digital fluency.

Why it is important: Gen Alpha’s influence is accelerating innovation in retail, requiring brands to adapt both customer experience and workforce development strategies.

Retailers are undergoing a significant transformation as they adapt to the rising influence of Gen Alpha, a generation defined by its digital fluency and demand for authenticity and personalisation. This cohort expects retail to deliver immersive, evolving experiences that seamlessly blend physical and digital touchpoints, prompting brands to rethink traditional store formats and engagement models. The shift is not limited to customer-facing strategies; it extends to workforce development, as retailers recognise the need to cultivate digital skills and foster inclusive leadership to attract and retain young talent. Gen Alpha’s values are also reshaping product offerings, with a strong emphasis on social impact, sustainability, and transparent brand narratives. As the boundaries between age groups blur and cross-generational consumption rises, retailers are challenged to move beyond rigid segmentation and embrace more flexible, intent-driven approaches. The convergence of these trends is setting new standards for innovation, operational agility, and relevance in a rapidly evolving retail landscape.

IADS Notes: Gen Alpha is emerging as a transformative force in retail, with their expectations for immersive, digitally integrated, and socially driven experiences compelling brands to rethink every aspect of engagement and store design. As Inside Retail (April 2026) highlights, this generation’s digital fluency and social media habits are accelerating the shift toward experiential retail, while BCG/WWD (October 2025) confirms that both Gen Alpha and Gen Z are driving a move away from traditional brand loyalty in favour of authenticity, personalisation, and community. The boundaries between age groups are blurring, as Forbes (January 2026) notes, with cross-generational consumption and “kidult” spending reshaping demand and challenging rigid segmentation. At the same time, HR Dive (December 2025) and The Robin Report (April 2026) reveal that the retail workforce must adapt to generational tensions and the “AI encouragement gap,” emphasising the need for inclusive leadership, digital upskilling, and new approaches to talent development. Collectively, these trends underscore how Gen Alpha’s influence is prompting retailers to innovate not only in customer experience but also in workforce strategy and brand positioning.

Why social obsessed Gen Alphas will reshape retail

What: The escalation of war in the Middle East has halved luxury retail sales in key regional markets, with airport shopping and tourism-driven revenues collapsing.

Why it is important: This development highlights the acute vulnerability of luxury retail to geopolitical shocks, reinforcing the need for operational agility and crisis management.

Luxury brands are facing a significant downturn in sales as the ongoing conflict in the Middle East severely disrupts airport and travel retail. The region, once considered the fastest-growing market for luxury, has seen its fortunes reversed almost overnight, with sales in major hubs like Dubai and Abu Dhabi dropping by up to 50%. Store closures and a dramatic fall in tourist traffic have compounded the crisis, exposing the sector’s dependence on international travel and its susceptibility to external shocks. Brands are now compelled to reassess their risk management strategies and diversify their operations to withstand such volatility. The sudden contraction in consumer spending and the collapse of tourism-driven revenues underscore the fragility of luxury retail in the face of geopolitical instability. This environment demands heightened agility and robust crisis planning, as even established markets can be rapidly destabilised by regional conflict, fundamentally altering global retail dynamics and consumer behaviour.

IADS Notes: As reported by Reuters and Fashion Network in April 2026, luxury sales in the UAE and major malls in Dubai and Abu Dhabi have dropped by up to 50%, forcing leading brands to close stores and revealing the sector’s acute vulnerability to geopolitical shocks. This downturn follows the region’s status as luxury’s fastest-growing market just a year earlier. According to WWD in March 2026, the ongoing conflict is projected to halve luxury sales in the Middle East, primarily due to the collapse of tourist traffic and widespread store closures. Retail Week in March 2026 highlighted the disruption to airport and travel retail, while Inside Retail in March 2026 emphasised how regional conflicts are fundamentally altering tourism retail, compelling brands to reassess operational strategies, risk management, and diversification. These developments underscore the urgent need for agility, scenario planning, and resilience as luxury retailers navigate an environment where regional instability can rapidly reshape global market dynamics and consumer behaviour.

Luxury brands book sales drop as Mideast war takes toll on airport shopping

What: Retailers are missing the real shift in the industry by concentrating on AI checkout, while the true change lies in end-to-end digital transformation and AI-driven business models.

Why it is important: The industry’s competitive edge will belong to retailers who prioritise comprehensive digital transformation and workforce upskilling over narrow automation projects.

The current debate around AI-powered checkout solutions fails to capture the magnitude of change underway in the retail sector. While self-checkout and automation technologies have garnered significant attention, the real transformation is occurring at a much deeper level, as retailers integrate AI across their entire business models. This shift encompasses not only operational efficiency but also data-driven personalisation, enhanced customer engagement, and strategic investment in digital capabilities. Retailers that focus solely on checkout automation risk falling behind, as the most successful players are those embracing holistic digital transformation and equipping their workforce with new skills to leverage AI’s full potential. The evolving landscape demands leadership commitment and organisational agility, as AI becomes central to both customer experience and internal processes. As a result, the future of retail will be defined by those who move beyond incremental upgrades and invest in comprehensive, AI-driven strategies that reshape every aspect of their operations.

IADS Notes: The retail industry’s transformation is being driven by comprehensive AI integration, as detailed by BCG in February 2026, which highlights the need for retailers to overhaul business models and investment strategies to achieve sustained growth. Journal du Net in January 2026 warns that retailers who fail to adapt their digital platforms for AI compatibility risk losing relevance, while Retail Touchpoints in January 2026 documents measurable gains in efficiency and customer experience from agentic AI models. The Financial Times in November 2025 emphasises the dual impact of AI, democratising commerce technologies but also shifting power away from traditional retailers, and BCG’s November 2025 report stresses that leadership, organisational change, and workforce upskilling are essential for success in this rapidly evolving landscape.

Why the AI checkout debate misses the real shift in retail

What: Southeast Asian retail faces mounting challenges as economic growth slows, tourism declines, and competition from Chinese imports intensifies.

Why it is important: This situation underscores the vulnerability of Southeast Asia’s retail sector to macroeconomic and geopolitical shocks, reinforcing the importance of balanced growth and innovation.

Southeast Asia’s retail sector is entering a period of heightened uncertainty as the World Bank projects slower economic growth for 2026. Major retail conglomerates such as Makro-Lotus, Big C, and Central Retail are already experiencing the effects of this downturn, with stagnant growth, declining tourist arrivals, and subdued consumer demand undermining profitability. Retailers are responding by intensifying promotions, leveraging digital payment partnerships, and calling for government stimulus to support spending and tourism recovery. However, these efforts are complicated by the influx of low-cost Chinese imports, a consequence of US tariffs, which has intensified competition and forced both local and international retailers to rethink their supply chain and pricing strategies. Central Retail’s recent struggles highlight the risks of over-reliance on tourism and aggressive expansion, especially as operational challenges in Vietnam and weak domestic demand persist. The sector’s response is shifting toward greater operational efficiency, resilience, and a more balanced approach between local and tourist-driven demand, as retailers adapt to a complex and volatile economic environment.

IADS Notes: The World Bank’s projection for slower growth in 2026 aligns with recent developments in Southeast Asia’s retail sector. In February 2026, Inside Retail and the Bangkok Post reported that major players like Makro-Lotus, Big C, and The Mall Group are facing stagnant growth and subdued consumer demand, prompting intensified promotions and calls for government stimulus. The influx of low-cost Chinese imports, highlighted by Inside Retail in September 2025, has increased competition and forced retailers to reconsider supply chain strategies. Central Retail’s challenges with declining same-store sales and profits, as detailed by Inside Retail in June and August 2025, underscore the risks of over-reliance on tourism and aggressive expansion, particularly amid operational struggles in Vietnam and weak domestic demand. These sources collectively illustrate the sector’s vulnerability to macroeconomic and geopolitical shocks and the growing emphasis on resilience and balanced growth.

Southeast Asian economies’ growth to slow in 2026, World Bank says

What: Geopolitical tensions in the Middle East have caused a dramatic drop in luxury retail sales and forced major brands to close stores in the UAE.

Why it is important: The crisis highlights the urgent need for luxury brands to strengthen crisis management and diversify their retail strategies in volatile regions.

Luxury brands operating in the UAE are experiencing a significant profit squeeze as ongoing conflict involving Iran has led to a sharp decline in mall sales and a notable reduction in tourist footfall. The sudden drop in consumer spending has forced several major luxury retailers to temporarily close stores, disrupting what was once one of the fastest-growing luxury markets globally. This downturn exposes the sector’s acute vulnerability to geopolitical shocks, particularly in markets heavily reliant on international tourism and stable travel flows. Brands are now compelled to reassess their operational strategies, focusing on cost management, crisis preparedness, and diversification to mitigate future risks. The situation also places pressure on mall operators and retail landlords, who depend on luxury tenants for rental income, further amplifying the economic impact. The current environment stands in stark contrast to Dubai’s previous resilience and growth, highlighting the need for agility and robust risk management in the face of mounting external pressures.

IADS Notes: As reported by WWD and the Financial Times in March 2026, the escalation of conflict in the Middle East has led to a projected 50% decline in luxury sales in the UAE, primarily due to a collapse in tourist arrivals and widespread store closures. Retail Week and Inside Retail, also in March 2026, emphasise the acute vulnerability of luxury brands to geopolitical shocks, noting sharp declines in airport and duty-free retail and the urgent need for brands to overhaul crisis management and risk strategies. This situation is a stark contrast to the optimism described by BoF in June 2025, when Dubai’s strategic advantages and robust investment in retail infrastructure positioned it as a global luxury hub. The current crisis has exposed the risks of over-reliance on travel-related retail and highlighted the necessity for operational agility, diversification, and resilience in the luxury sector.

Luxury brands face profit squeeze as Iran conflict shrinks UAE mall sales, sources say

What: Increased fuel costs are driving up retail prices and prompting changes in consumer behaviour and retailer strategies across the UK.

Why it is important: Rising energy costs are reshaping consumer priorities and retailer responses, highlighting the sector’s vulnerability to global disruptions documented in the past year.

The sharp rise in fuel prices is exerting significant pressure on both UK consumers and retailers, amplifying inflationary trends and altering the retail landscape. As transportation and logistics costs escalate, retailers are forced to pass these increases onto consumers, resulting in higher shelf prices and a tangible squeeze on household budgets. This environment is prompting a marked shift in consumer behaviour, with many households prioritising essential purchases and reducing discretionary spending. Retailers, in turn, are reassessing their pricing strategies, promotions, and product assortments to protect margins while striving to maintain affordability and competitiveness. The sector is also contending with broader operational challenges, including supply chain disruptions and rising labour costs, which further complicate planning and risk management. The cumulative effect of these pressures is a more cautious and value-driven consumer, alongside a retail sector that must remain agile and resilient to navigate ongoing economic and geopolitical uncertainty.

IADS Notes: The recent surge in UK fuel prices is intensifying a broader cost crisis for both retailers and consumers, as documented in several reports from early 2026. In March 2026, Forbes highlighted how the Iran conflict has driven up inflation, energy costs, and supply chain disruptions, forcing retailers to reassess pricing and risk management while eroding consumer confidence. Also in March 2026, Inside Retail reported that the Middle East conflict triggered the worst global energy disruption in history, causing severe supply chain shocks and altering consumer demand and shopping behaviour. Reuters, in March 2026, noted that Next warned of reduced consumer demand and higher prices if the Iran war persisted, underscoring the acute challenges for UK retailers. The Financial Times in January 2026 observed that shop price inflation reached its highest level in nearly two years, increasing pressure on consumers and prompting retailers to reconsider pricing and supply chain strategies. Additionally, Reuters in February 2026 described how labour reforms and rising costs have intensified inflationary pressures, leading to wage increases, job cuts, and higher prices for consumers.

Rising fuel prices weigh on UK consumers, surveys show

What: Paris retailers are preparing to capitalise on the economic boost from Celine Dion’s 16-concert series, expected to draw half a million visitors and inject hundreds of millions of euros into the local economy.

Why it is important: This event highlights the growing importance of cultural tourism and experiential retail in driving sales, customer engagement, and international visibility for Parisian department stores.

Paris is set to experience a significant retail uplift as Celine Dion’s 16-concert residency this autumn is projected to attract around 500,000 visitors and generate hundreds of millions of euros for the local economy. Department stores and retailers are being advised to seize this opportunity by implementing tactics such as extended opening hours, targeted marketing, pop-up experiences, and cross-industry collaborations to maximise the “Celine Dion effect.” With 30% of concert-goers expected to be international visitors, the event is poised to drive substantial footfall and spending in Paris’s flagship department stores, which already attract tens of millions of visitors annually. Experts emphasise the importance of experiential activations and cultural programming to engage high-spending, culturally motivated tourists and sustain momentum beyond the concerts. The anticipated influx underscores how major cultural events can serve as powerful catalysts for retail, reinforcing Paris’s position as a global destination for shopping, culture, and lifestyle.

IADS Notes: Parisian retailers, particularly department stores, are increasingly leveraging major cultural events to drive footfall, engagement, and sales, as exemplified by the upcoming Celine Dion concert series. Galeries Lafayette’s transformation into an art destination, with contemporary exhibitions and collaborations, has proven the power of experiential marketing and cross-industry partnerships to attract international tourists and deepen customer engagement (BeauxArts, March 2026). The retailer’s 2026 cultural programme further positions its flagship as a hub for art, performance, and community, reflecting a broader trend toward experiential retail (Fashion Network, November 2025). This strategy is echoed across Paris, with department stores like Le Bon Marché integrating major art exhibitions and museum partnerships to become cultural and experiential hubs (Le Figaro, September 2025). The success of Breuninger’s Fashion & Food festival in Freiburg demonstrates how experiential events and extended hours can increase customer engagement and support downtown retail, offering a model for Parisian retailers preparing for major cultural moments (Freiburger Wochenbericht, September 2025). Galeries Lafayette’s stable Q1 2026 sales, buoyed by a 14% boost from Middle Eastern clients and ongoing investment in experiential retail, underscore the resilience and growth potential of this approach, even amid global volatility (BoF, April 2026).

Paris retailers advised to capitalise on ‘Celine Dion effect’

What: The traditional “for everyone” department store model is collapsing, prompting leading players to reinvent themselves through curated experiences, community engagement, and strategic use of technology and influence.

Why it is important: The shift highlights how innovation in curation, influence, and technology is now critical for department stores to attract qualified traffic and rebuild brand desirability.

Department stores are undergoing a fundamental transformation as the historic “for everyone” model gives way to a new era defined by exclusivity, experience, and hyper-local engagement. Rising fixed costs, brand disintermediation, and the polarisation of consumer demand between luxury and ultra-low-cost have exposed the limits of the traditional format. As luxury brands increasingly favour direct channels and digital sales surge, department stores must differentiate through exclusive collaborations, immersive events, and curated assortments that speak directly to local communities. Influence is shifting from broad-based advertising to micro-communities and experiential marketing, with in-store events and live collaborations driving qualified traffic and renewed desire. Technology, especially AI and hyper-personalisation, is being leveraged to anticipate customer needs and elevate the in-store experience without diluting human connection. The risks of brand dilution are clear when fast fashion is blended with historic prestige, underscoring the need for coherence and strategic focus. In this new landscape, only those department stores that innovate in curation, influence, and technology will remain relevant and desirable.

IADS Notes: Recent industry analysis confirms that department stores are undergoing a profound structural transformation. RLI in April 2026 highlights how leading operators are prioritising curated experiences, community engagement, and the integration of culture and hospitality to remain relevant and drive qualified traffic. BoF in September 2025 documents the sector’s pivot away from scale-driven models toward curated, community-driven retail, with department stores and boutiques focusing on service, tight brand selection, and experiential environments. Emarketer in April 2026 underscores the need for new success metrics—such as social media relevance, ecommerce share, and individual store performance—as the sector blends tradition with innovation. Fashion Network in January 2026 details how department stores are investing in experiential retail, exclusive events, and partnerships to differentiate, while also warning of the risks of operational missteps and brand dilution. Maeil Business Newspaper, in March 2026, analyses how the concentration of sales in top-performing stores is forcing smaller department stores to adapt through strategic brand partnerships, curated assortments, and experiential retail. BoF in February 2026 examines the transformation of beauty departments at Macy’s and Nordstrom, emphasising the importance of local curation, immersive experiences, and advanced technology. Retail Week in August 2025 demonstrates that well-run department stores can still thrive through strong operations and engaging environments, and Inside Retail in April 2026 documents how Japanese department stores are diversifying offerings and accelerating digital and service innovation to build resilience and reduce dependence on tourism. Collectively, these sources illustrate that the future of department stores lies in their ability to innovate, personalise, and create unique, community-driven experiences that cannot be replicated online.

The future for department stores: influence, experience and personalisation

What: Retail websites have become less accessible, with error rates and complexity rising, making online shopping more difficult for disabled users.

Why it is important: This trend highlights the urgent need for retailers to address accessibility, as regulatory and consumer pressures intensify across the sector.

The latest WebAIM Million 2026 report reveals a troubling decline in digital accessibility for retail websites, which now average 71 errors per page—27% higher than the cross-sector average and a sharp increase from the previous year. This deterioration is attributed to the growing complexity of retail homepages, which now feature more interactive elements and images, but often lack essential accessibility features such as adequate contrast, alternative text, and properly labeled forms. As a result, disabled users face significant barriers when browsing and purchasing products online, with research from Nexer Digital and Warbox confirming that a majority struggle to complete basic shopping tasks. The commercial implications are clear: retailers risk losing customer loyalty and sales, as poor accessibility drives users away. Furthermore, the introduction of the European Accessibility Act means that compliance is no longer optional, making digital inclusivity both a legal and business imperative. Retailers must recognize that accessibility is fundamental to customer experience and long-term competitiveness.

IADS Notes: The worsening state of digital accessibility in retail, as highlighted by the WebAIM Million 2026 report, is not only a technical challenge but a missed commercial and reputational opportunity for the sector. Recent research, including the Harvard Business Review’s analysis from February 2026, demonstrates that designing with disability in mind can drive innovation and unlock new markets, while Forbes’ July 2025 findings confirm that retail remains the most challenging sector for disabled consumers, with access barriers affecting 65% of respondents. The Digital Capability Index 2026 (March 2026) further underscores that despite significant digital investments, retailers still struggle to meet rising consumer expectations for seamless and inclusive online experiences. Regulatory changes, such as the European Accessibility Act referenced in the October 2025 Ecommerce Europe report, are intensifying the need for compliance and adaptation. Finally, the evolution of DEI strategies, as discussed in the February 2025 Harvard Business Review, reinforces that authentic inclusion is now central to retail competitiveness and resilience, making accessibility not just a legal requirement but a core business imperative.

Retail websites among worst performers as accessibility standards continue to slip

What: Geopolitical conflict in the Middle East has caused luxury retail sales in Dubai and Abu Dhabi to drop by up to 50%, forcing major brands to close stores and exposing the sector’s vulnerability to external shocks.

Why it is important: The downturn in Dubai and Abu Dhabi underscores the risks of over-reliance on high-growth regions and the far-reaching impact of regional instability on global luxury performance.

The escalation of conflict in the Middle East has led to a dramatic contraction in luxury retail, with sales at Dubai and Abu Dhabi’s leading malls plummeting by as much as 50% in March 2026. Major luxury brands, including those at the Mall of the Emirates and Dubai Mall, have been forced to close stores as footfall collapsed, particularly among international tourists. This abrupt reversal follows a period in which the Middle East was luxury’s fastest-growing region, buoyed by favourable business conditions and high sales per square metre. The crisis has exposed the acute vulnerability of global luxury brands to geopolitical shocks, especially in markets heavily reliant on tourism and regional stability. The ripple effects are being felt beyond the Gulf, with declining tourist spending impacting luxury sales in Europe and Japan, and analysts warning that hopes for a sector rebound in 2026 may be delayed. The situation highlights the need for luxury retailers to diversify their geographic exposure, strengthen crisis management, and build operational resilience to withstand future disruptions.

IADS Notes: The Iran conflict has triggered a dramatic downturn in luxury retail across Dubai and Abu Dhabi, with sales at major malls dropping by 30–50% and footfall at the Dubai Mall down by half in March 2026. This crisis has forced leading global brands to temporarily close stores, exposing the acute vulnerability of even the most resilient luxury markets to geopolitical shocks (Reuters, April 2026; Fashion Network, April 2026). The Middle East, which had been luxury’s fastest-growing region in 2025, is now projected to see sales halved, as the collapse of tourism and widespread store closures ripple through the sector (WWD, March 2026; Financial Times, March 2026). The situation is compounded by the region’s strategic importance for profitability, given Dubai’s high sales per square metre and favourable business conditions. The ripple effects extend globally, with declining tourist spending impacting luxury sales in Europe and Japan, and analysts warning that recovery expectations for 2026 may be postponed (The Economist, March 2026; Inside Retail, March 2026). The crisis underscores the urgent need for luxury brands to strengthen crisis management, diversify retail strategies, and build operational resilience to withstand external shocks and regional volatility.

Luxury brands face profits squeeze as Iran conflict shrinks Dubai Mall sales

What: The definition and success metrics of department stores are evolving, with a renewed focus on curation, experience, and digital engagement over traditional mall-anchored, multi-category formats.

Why it is important: The shift toward curation, experience, and flexible formats demonstrates the sector’s resilience and ability to reinvent itself amid ongoing retail disruption.

The modern department store is undergoing a fundamental transformation, moving away from its traditional identity as a mall-anchored, multi-category retailer toward a more focused, multi-brand, and experience-driven model. Analysts now define success not only by sales per square foot, but also by metrics such as social media relevance, ecommerce share, and individual store performance. As consumer expectations shift and online sales for categories like apparel and home furnishings approach 40%, department stores are rethinking their assortment strategies—balancing broad selections and curated private labels to drive both discovery and margin. Experiential retail, high-touch customer service, and loyalty programs are increasingly seen as essential, not optional, for differentiation and foot traffic. While large, multi-floor formats and in-store services retain value, the future lies in blending tradition with innovation, leveraging partnerships, digital engagement, and curated environments to remain competitive. This evolution underscores the sector’s resilience and its capacity to reinvent itself in the face of ongoing retail disruption.

IADS Notes: Recent industry analysis confirms that the reinvention of department stores is being driven by a shift toward curated experiences, flexible formats, and integration of culture, hospitality, and technology, as highlighted by RLI in April 2026. WWD in April 2026 documents Bloomingdale’s transformation through curation, innovation, and omnichannel integration, demonstrating how targeted investments and experimentation can drive sustained growth. Forbes in March 2026 emphasizes that successful department stores are thriving by focusing on curated assortments, personalized service, and adapting core retail principles to modern consumer expectations. Fashion Network in January 2026 details how major department stores are betting on experiential retail and new operational models to respond to financial pressures and evolving shopper habits. The Chosun Daily in February 2026 illustrates how Korean department stores are reorganizing layouts and management structures to create immersive, lifestyle-driven environments, reflecting a broader global trend toward customer experience and engagement. Collectively, these sources show that the future of department stores lies in balancing tradition with innovation, leveraging curation, service, and experiential strategies to remain relevant in a rapidly changing retail landscape.

Department stores aren't dead, they just need new metrics for success

What: Metro Retail’s nationwide sales growth has driven double-digit earnings gains.

Why it is important: This performance highlights the value of network diversification and technology-driven efficiency in sustaining profitability and competitiveness.

Metro Retail’s recent surge in sales has translated into robust double-digit earnings growth, underscoring the company’s effective expansion strategy and operational discipline. By leveraging its extensive branch network, Metro Retail has managed to capture rising consumer demand across diverse regions, positioning itself as a leader in the evolving retail landscape. This growth is not isolated; it mirrors broader trends across Asian markets, where strategic investments, regional diversification, and digital transformation are driving sector-wide momentum. The company’s focus on operational efficiency and adaptability has enabled it to thrive despite external disruptions and shifting consumer preferences. As technology-driven workflow optimization becomes increasingly central to retail profitability, Metro Retail’s results demonstrate the tangible benefits of integrating intelligent operations and customer-centric strategies. This approach not only supports sustained earnings growth but also enhances competitiveness, setting a benchmark for peers navigating similar market dynamics.

IADS Notes: Metro Retail’s performance aligns with the high double-digit revenue growth reported in India in April 2026 (India Economic Times) and SM’s regional expansion strategy in March 2026 (Inside Retail), both of which highlight the importance of network diversification and adaptability. SM Investments’ 6% profit growth in November 2025 (Inside Retail) and the October 2025 Zebra report on intelligent operations further illustrate how technology-driven efficiency and operational innovation are fuelling profitability. The March 2026 Harvard Business Review confirms that customer-centricity and supply chain agility remain critical for sustained growth and resilience in the retail sector.

Metro Retail sales rise, fuelling double-digit earnings growth 

What: Ripley Corp is institutionalizing artificial intelligence as a strategic function, with a dedicated executive team and significant investment to accelerate digital transformation in the region.

Why it is important: Ripley’s approach highlights the importance of cross-functional AI management and robust investment in technology to capture synergies and scale innovation.

Ripley Corp has taken a decisive step in its digital transformation by establishing a dedicated AI management team, institutionalising artificial intelligence as a core strategic function across its banking, real estate, and retail businesses. The appointment of Rodrigo Guajardo, an executive with deep internal experience in digital projects and team leadership, signals the company’s commitment to leveraging AI for cross-functional innovation and operational excellence. Backed by a record year of profitability and a 28% increase in technology investment for 2026, Ripley is channelling nearly half of its new resources into strengthening its omnichannel ecosystem and digital capabilities. This move positions AI not as a siloed technology initiative but as an integrated management tool reporting directly to the CEO, ensuring alignment with corporate objectives and the ability to drive synergies across business units. Ripley’s strategy exemplifies the broader shift in Latin American retail, where AI is now central to competitiveness, customer engagement, and long-term growth.

IADS Notes: Ripley Corp’s creation of a dedicated AI management team, led by Rodrigo Guajardo, marks a pivotal shift in Latin American retail, reflecting the sector’s rapid move from isolated AI pilots to full-scale, cross-functional transformation. As highlighted in April 2026, AI is now fundamentally reshaping retail business models, with leading companies institutionalising AI as a core strategic function to drive efficiency, customer engagement, and sustained growth (BCG, February 2026; The Robin Report, April 2026). This transition is supported by significant financial investment, as only retailers with comprehensive AI integration and robust governance are achieving measurable gains in productivity and revenue, while others risk falling behind (BCG, December 2025; Forbes, January 2026). The integration of AI management across banking, real estate, and retail units at Ripley mirrors a broader industry trend, where leadership commitment, organisational redesign, and systematic upskilling are essential for capturing synergies and scaling innovation (BCG, March 2026; Bain & Company, December 2025). The elevation of AI to the executive level, reporting directly to the CEO, underscores its growing importance in shaping corporate strategy and sector competitiveness, as seen in the most successful global retail organisations (BCG, January 2026; Inside Retail, September 2025).

Ripley creates new AI management team

What: LVMH’s Q1 2026 revenues fell 5.9%, with organic growth at 1%, as regional volatility and external shocks weighed on performance across all divisions.

Why it is important: The results underscore the vulnerability of global luxury leaders to geopolitical instability and macroeconomic shocks, highlighting the need for operational agility and diversification.

LVMH reported a 5.9% decline in first-quarter 2026 revenues, with organic growth limited to 1%, as the group faced significant headwinds from the Middle East conflict and adverse currency movements. The downturn affected all business divisions, with fashion and leather goods seeing a 2% organic dip and selective retailing, watches, and jewelry showing relative resilience. The Middle East, once a growth engine for luxury, experienced a dramatic reversal, with store closures and a collapse in tourism halving regional sales. Europe and Japan also suffered from reduced tourist spending and currency volatility, compounding the challenges for global luxury brands. Despite these pressures, LVMH maintained its focus on innovation, flagship store openings, and creative leadership, which helped offset some market weakness. The group’s experience highlights the acute vulnerability of luxury retail to geopolitical shocks and underscores the importance of operational agility, diversification, and strategic investment in navigating an increasingly unpredictable global environment.

IADS Notes: LVMH’s 5.9% revenue decline in Q1 2026, attributed to the Middle East conflict and currency headwinds, highlights the acute vulnerability of global luxury leaders to geopolitical instability and macroeconomic shocks (WWD, April 2026). This downturn follows a challenging 2025, when LVMH reported a 5% drop in Q4 sales and a 13% decline in net profit, with regional disparities and currency fluctuations compounding market pressures (WWD, January 2026). The Middle East, once luxury’s fastest-growing region, is now projected to see sales halve in March 2026, as store closures and the collapse of tourism ripple through the sector (WWD, March 2026; Financial Times, March 2026). Meanwhile, Europe and Japan are also experiencing sharp declines in tourist spending, driven by currency volatility and changing consumer behaviours (Financial Times, August 2025; Vogue Business, August 2025). Despite these headwinds, LVMH’s diversified portfolio and continued investment in innovation, flagship openings, and creative leadership have helped offset some market challenges, with selective retailing and watches and jewellery showing resilience. The broader luxury sector faces mounting pressure to adapt, with analysts forecasting a rebound in 2026, contingent on renewed creativity, operational agility, and the ability to capture emerging demand in a volatile global landscape.

LVMH revenues dip 5.9% in Q1 amid mideast conflict

What: Mytheresa is pursuing Middle East expansion despite regional conflict and market volatility.

Why it is important: The development underscores the Middle East’s dual role as both a growth engine and a source of risk for global luxury brands, building on insights from the past year.

Mytheresa’s decision to target growth in the Middle East reflects both the promise and the complexity of the region for luxury retail. Despite the area’s recent status as the fastest-growing luxury market, ongoing conflict has led to a dramatic downturn, with luxury sales projected to fall by half and major players like Chalhoub forced to close stores. This volatility has exposed the acute vulnerability of even the most robust retail operations to geopolitical shocks, compelling brands to reassess their strategies and crisis management capabilities. Nevertheless, the Middle East’s youthful, affluent, and digitally engaged population continues to attract investment, with local leaders emphasising the importance of quality, customer experience, and innovation. Mytheresa’s leadership transition and renewed focus on operational efficiency and brand differentiation align with broader industry trends, as luxury retailers seek to balance expansion with the need for resilience and adaptability in an unpredictable environment.

IADS Notes: Mytheresa’s Middle East ambitions reflect the region’s rapid ascent as a luxury market, as seen in June 2025 when Dubai was highlighted for its resilience and continued investment despite global challenges (BoF). Michael Chalhoub’s remarks in October 2025 underscored the Middle East’s emergence as a global growth engine for luxury, driven by youthful demographics and a focus on customer experience (RLC). However, the conflict-driven downturn in March 2026, which halved luxury sales and led to widespread store closures by groups like Chalhoub (WWD, Reuters), has tested even the most strategically positioned brands. Mytheresa’s leadership transition and strategic transformation in December 2025 (Forbes) further illustrate the sector’s need for agility, operational excellence, and crisis preparedness as luxury retailers navigate both risks and opportunities in the Middle East.

Luxury retailer Mytheresa has sights on Middle East growth despite conflict