Galeries Lafayette continued its push into new territory, opening a store in a freshly built mall in Marseille, France. The new 100,000-square-foot store stretches over four floors and serves as the anchor to the modern, glass-covered Prado shopping centre. It is the second Galeries Lafayette store in the city for the retailer. "The Galeries Lafayette Marseille Prado store perfectly matches our ambition to make our stores living spaces, genuine homes in which our clients are our guests and in which we offer them the best of our fashion know-how," said Olivier Bron, operations director for the group.

The Prado centre sits near an affluent section of France's second largest city, not far from the Orange Vélodrome -France's second-largest stadium- known to host high-profile soccer and rugby matches, as well as an exhibition centre. In addition to traffic flows generated by sports events, the developer hopes to tap into demand for food in the neighbourhood, with a rooftop terrace and a half a dozen restaurants, and French grocer Auchan which will open a specialty food store stocked with local and regional produce.

read press release of Galeries Lafayette Marseille Prado new store

see video of the construction of galeries lafayette marseille prado store

One of USA's largest department store companies, Bon-Ton Stores Inc., plans to liquidate all 256 of its stores. The Bon-Ton Stores, a chain of department stores that traces its origins to 1854, applied for Chapter 11 bankruptcy protection in February but failed to find a buyer –it  initially planned to close only about 40 locations. It has now received a winning bid from a joint venture, including Great American Group and Tiger Capital Group, to wind down its operations. Bon-Ton's stores are expected to close within the next 10 to 12 weeks, and going-out-of-business sales begin Friday 20 April in 212 stores and e-commerce websites under the Bon-Ton, Bergner's, Boston Store, Carson's, Elder-Beerman, Herberger's and Younkers nameplates.

But Bon-Ton is not alone. Toys "R" Us filed for Chapter 11 bankruptcy last year and is liquidating and closing its 735 stores in the US, and Sears has lost billions of dollars since 2010.

Ikea has begun opening smaller stores in Southeast Asia's regional cities. By 2021, Ikea will have compact stores in Chiang Mai, Pattaya, Udon Thani, and other Thai cities with populations mostly under 200 000. The stores do not hold full stock. Some items ordered are delivered from larger stores in major cities. The store already operating in Phuket has 2600m² of space and cost one third of the cost of the full-size store operating in the outskirts of Bangkok. There exist similar stores in the UK and Canada but the idea was not successful in Japan with the 1500m² store in Kumamoto to close at the end of July.

The first Manhattan full-line store of Nordstrom is opening on 12 April at 57th and Broadway. The first part is a three-floor men's clothing and grooming supplies unit. According to commentators, the store, arriving in New York just as other retailers are leaving the city, will stand as a test case for the future of department stores. The aim is to combine cutting-edge technology with old-school in-store service. If a customer needs a tie at 2 in the morning, he can order it online and a Nordstrom employee will meet him at a store entrance — no matter the hour. Returns can be made by simply scanning an item at a digital kiosk and depositing it in a bin — no human interaction needed.

The store offers a number of exclusives such as Jack Erwin, Cole Haan NYCH, Strong Suit by Ilaria Urbinati as well as proprietary styles from more widely distributed brands. There is also a coffee shop and a « clubhouse » bar/restaurant overlooking Columbus Circle.

An even larger women's store will be opened across the street in autumn 2019, a totally new building on 30 000 m². The total cost of the project is estimated at $500m.

read more about Nordstrom's menswear opening in NYC

The Danish concept Søstrene Grene, named after the sisters Grene who founded the retailer in Aarhus in 1973, offers home accessories, kitchenware, gifts and stationery in Scandinavian design style at low prices. The 183 stores covering 15 countries, are shaped like labyrinths and play classical music. The largest countries for the group are Denmark, Norway, Germany and France. It is also developing in Japan. The company is now operated by two brothers Mikkel and Cresten, children of the founders, who own the firm 50/50. In spite of low prices, ethical responsibility is a part of the company brand. There is no online business.

In a provocative piece, Canadian futurist Doug Stephens, argues that to save retail, we must let it die. Disruptive innovation is sometimes difficult to accept, as was illustrated by Ron Johnson's efforts to save JC Penney in 2011. Stephens claims that customers, shareholders and the board of Penney did not have the stomach to see though the changes proposed by Johnson. Change is now happening suddenly: e-commerce will soon drive the majority of sales; products will replenish themselves; and physical retail will no longer be a channel for buying. This will require a new business model. As was quoted in the IADS statistical presentation in October 2017, we need to "stop thinking products, and start thinking productions".

See full article: "To save retail, let it die"

Marui department store in Tokyo has cancelled a photography exhibition called "The World of Women's Thighs" after questions were raised about the subject matter as well as about whether minors were used as models. The exhibition was scheduled to be held at the company's Ikebukuro Station store from 9 March to 26 March and was to include 500 photographs taken by Yuria showing thighs of women. There had already been an eruption on social media when a press notice about the exhibition was released last month.

According to a report in the Dutch press, the Hudson's Bay stores in the Netherlands have a high brand awareness but are not performing up to expectations. Although customers are open to the brand, they find the format too expensive, according to Retail Intelligence Lab. Hudson's Bay opened the first store in Amsterdam in September and now operates 12 stores including 2 Saks Off Fifth stores. Another three locations have been announced for this year. Customers are aware of the brand in part because Hudson's Bay took over many locations of the bankrupt V&D chain. However, the current stores have little in common with V&D.

After over one year of searching, Liberty of London has appointed a new CEO Adil Mehboob-Khan, a beauty industry veteran who has held top posts at Procter & Gamble, Wella, and more recently at Luxottica. His predecessor was Ed Burstell who left in 2016. Liberty, owned by Blue Gem, has been preparing for an IPO and it is clear that Mehboob-Khan's experience with publicly listed companies would serve him well in any potential flotation of Liberty. But the company has not been idle while searching for a CEO: it has relaunched its women's wear department last October, expanded men's last summer with the addition of around 20 new brands, introduced a denim department, as well as a grooming department.

Harvey Nichols in London will become the first department store to work with Farfetch from the second quarter of this year. The store will benefit from the Farfetch e-commerce and logistics expertise, and customers will use services such as in-store returns and same-day delivery. Currently Harvey Nichols makes around 10% of its sales online. This is expected to grow as well as to extend the international reach of the business. This solution would be less attractive to businesses which already have scale and an infrastructure in place. However, for Harvey Nichols, which operates eight stores in the UK and Ireland, it certainly broadens the market. Potential pressure on margins coming from a Farfetch cut of sales and fulfilment charges is expected to be outweighed by the increase in sales.

read article:"Farfetch: is the future for department stores online?"

For ten years, Parkson of Malaysia enjoyed success and profitability in Vietnam. At its peak, it was operating nine stores and was one of the largest chains in the country. It now has only six stores and reported a loss of VND 24 bn in the first half of the 2017-2018 fiscal year. Parkson has been taking losses for the last six quarters. The last centre to close was in Hanoi in 2016. The company has now announced the closure of the centre in Flemington, Ho Chi Minh City. Since 2011, the business model has apparently become less popular than shopping malls which have multi-functional areas integrating distribution and entertainment services.

Cyber policies are forecast to rise from $35bn this year to $8bn - $10bn by 2020. A number of recent incidents have brought concern over cyberattacks to the fore. For example, the after-effects of the attack on Merck pharmaceuticals last year cost the company $260m in loss of sales, $320m on additional marketing and production, and the company says it will lose another $200m this year. Insurance is estimated to cover around $275m. Since other well-publicised attacks (see earlier news items) by WannaCry, NotPetya, the breaches at Equifax, and Target among others, companies are buying insurance in ever greater numbers. Retail is estimated to account for some 12% of total cyber insurance claims. The insurance industry is happy with the growth (17 insurers selling $350m of cover in 2007, and 65 today selling $3.5bn) but struggling with the unpredictability (models have yet to be built and insurers fear aggregation, that is, the simultaneity of attacks). GDPR regulation to be introduced in Europe in May with substantial fines, is also raising awareness and fear.

See article from financial times: cyber attacks, the risks of pricing digital cover

From 9 April to 24 June, Galeries Lafayette will celebrate music through its operation Music Machines. From stunning scenography displayed in the department store windows, to live music performances instore, the exciting programme of events was developed in collaboration with Pedro Winter, a French DJ and music producer among other talents. Twelve Galeries Lafayette stores in France will host this festive operation.

see press release

At the same time, precisely end of April, Marine Serre, winner of the Hyères International Festival of Fashion and Photography, will launch a capsule collection at Galeries Lafayette. Items include striped shirtdresses, sheer drawstring raincoats and printed bodysuits, with prices going from 49 to 149 euros. It will be launched in Galeries Lafayette Haussmann and BHV Marais flagships in Paris, on the retailer's web site and in 17 Galeries Lafayette stores across France. Serre graduated from Belgian school La Cambre in 2016 and works in the design studio at Balenciaga.

read newsnote in French

Nordstrom has acquired BevyUp, a digital start-up which allows shoppers to share information with each other and browse items together online. It also gives the opportunity to sales associates to communicate with each other on the back end. Nordstrom has also bought MessageYes, which offers brands the opportunity to text their customers, leveraging artificial intelligence and integrated payments. Nordstrom will use it to send customers more personalised notifications. Nordstrom acquired HauteLook, a members only shopping website, in 2011.

According to a GS1 report called "Measuring the Impact of RFID in Retailing", all retailers surveyed saw a positive impact from implementing RFID. One of these, Marks & Spencer, has pioneered the use of RFID in the UK. Retailers reported an increase in sales between 1.5% and 5.5% through improved stock availability. Inventory accuracy improved by more than 50% with retailers reporting 93 -99% accuracy with RFID, and six of the ten companies were able to reduce total stock holding between 2% and 13%.

Macy's department stores has opened their first Backstage outlet store in Minnesota in Maplewood, the St. Paul suburb with a concentration of value stores. The new outlet centre will not displace the Last Act clearance sections in the men's, women's, handbags and shoe departments of Macy's store. No departments were removed to make space for the 18,500 square feet Backstage on Macy's first floor. All of the items are purchased specifically for the outlet by a Macy's buying team that only selects items for Backstage. None of the merchandise comes from the full-line Macys, but prices are usually discounted 50% or more from the suggested retail price. Many categories of items sold in Backstage are new to Macy's, including toys, kids shoes, "grab and go" gourmet packaged foods, pet accessories and small electronics, which all complement the full-line store.

Macy's chose the Maplewood area because of the value-driven customers in the area. Earlier this year, the company announced it would open an additional 100 Backstages in 2018.

Mike Ashley's Sports Direct has increased its stake in Debenhams department store by upping its share from 23% to 29.7%. When the share of voting rights (currently at 27.6%) reaches 30%, it will have to launch a takeover bid. Shares in Debenhams, which had slumped 44% over the past year, took off at the announcement. Sports Direct, valued at £1.9 bn and falling, operates concessions inside Debenhams. Sports Direct sees "huge value for both companies in a strategic partnership".

In separate news, there is apparently some speculation that Mike Ashley might increase his stake in House of Fraser whose Chinese owners are seeking to offload shares in the troubled department store chain.

Department store chain Macy's unveiled new features coming to its mobile app, including Mobile Checkout, which lets customers scan and pay for products with a smartphone. That feature is expected to be available nationwide in all of Macy's full-line stores by the end of this year.

Customers will need to download the app, which is available for Android and iOS devices, and once in the store, they must join Macy's free Wi-Fi network. When a customer finds an item they want to buy, they can scan the item's price tag with their smartphone's camera. The app will let shoppers apply any discounts or loyalty plan rewards to their purchase and pay via the credit card registered within the app. However, unlike Amazon Go, Macy's shoppers using the mobile-pay option will still proceed to special Mobile Checkout counters near the exit to have their purchase verified, security tags removed from their purchases and all their goods bagged. Most merchandise in stores will be available for mobile checkout, with the exception of a few product categories such as fine jewelry where a sales associate must manage the sale.

Below: see press release and read full article to get more insights on Macy's other mobile app features such as augmented furniture feature and virtual-reality furniture experience (videos included).

See press release of Macy's Mobile Checkout launch

read full article on Macy's Mobile Checkout launch

Nordstrom Rack outlet launches in Canada, with an opening in Toronto's Vaughan Mills big outlet center. The 35,000-square-foot store promises savings of up to 70 per cent on apparel, accessories, home, beauty and travel items from 38 of the top 50 brands already sold in its Canadian department stores. The Canadian Rack store is outfitted with a few differences, when compared with their American counterparts: around 30 per cent of their merchandise comes from its full-line Nordstrom stores, compared to 15 per cent in the U.S. It also groups some items by size rather than product because "one of the biggest off-price learnings we have from Canadians is that they like to shop by size and category instead of by brand," company spokesperson Meliz Andiroglu said.

The location is part of the Seattle-based retailer's plans to roll out as many as 15 Rack stores across the country. It didn't provide a definitive timeline for the expansion, but its next location in Canada will open in downtown Toronto's tony Yorkville neighbourhood later this year.

>> Below: read two press releases and watch the pictures of the new store

press release: Nordstrom Rack To Open At Vaughan Mills In Toronto

press release: Nordstrom Rack To Open At Heartland Town Centre In Mississauga

An article in the Financial Times argues for the value of multi-brand groups in luxury fashion and accessories. Taking Gucci and the Kering group as a central case, it argues that it is the presence of other brands in the group which allowed Kering to "save" the Gucci brand when it was overstretched. Its current results demonstrate the effectiveness of the strategy. The approach is also validated by struggling US brands Coach and Michael Kors which have recently acquired Kate Spade and Jimmy Choo respectively. The former has renamed itself Tapestry so that Coach is one of several brands under the Tapestry umbrella.

read full article

Located in White City Westfield mall, the new outpost is the 50th John Lewis store. Based over four floors and covering a 230,000sq-ft floorspace, John Lewis White City has been tailored for west London shoppers and features a strong focus on own-brand and branded home, fashion and technology products. It includes 23 bespoke services ranging from bra fitting, technical support, personal styling for men and women, home design service, beauty spa treatments and smart home product advice. There is also a demonstration kitchen, in-house opticians and three places for food and drink, including a 182-cover Place to Eat restaurant. Among the unique features at the branch are Loved & Found - a standalone boutique for new and contemporary brands - and John Lewis's spa concept & Beauty. The fashion floor showcases a new look including a dedicated personal styling studio. It has an Experience Desk where staff is able to help customers plan their visit: customers will be able to get booked into one of the 23 different services, or book a space to learn a new skill in the 'Discovery Room'.

The shop is the first large format John Lewis designed to respond to customer demand for more leisure experiences.

>> Below: watch the pictures of the new store

U.S. department store Kohl's, which is shrinking the size of roughly a dozen stores, will lease the newly opened space at several locations to Aldi, the German discount grocery chain that has been making an aggressive push into the U.S. The grocer will not set up shop inside the Kohl's stores but will be right next door, in a pilot that Kohl's says will include 5 to 10 locations. Aldi is planning to open 900 more stores in the U.S. in the next five years, the typically 12,000 square foot supermarkets take up less space than traditional groceries, with only enough room for about five aisles. Kohl's meanwhile gets to cut costs by shrinking its store footprint, and potentially gain new customers who may want to browse its aisles after they finish their grocery shopping. Kohl's says that it might seek out other supermarkets, or different types of retailers, to occupy the newly adjacent spaces.

Monoprix variety store of France has acquired Sarenza. Sarenza, the French online shoe retailer, was created in 2005 and, with sales of €250m (before returns) in 30 countries, had probably got as far as it could go on its own. Low margins aggravated by high delivery costs and returns as well as fierce competition from the likes of Asos of the UK, La Redoute, Zalando of Germany (which has recently opened a new DC in France) and others, including most recently Amazon, created the need for a larger partner for investment purposes. Monoprix, now part of giant Casino group, has sales of around €5bn from 800 stores. Some 14% of sales come from textiles but only 1% are achieved online. It is stronger online with food where it has a partnership with Ocado. The plan is to develop a separate website for non-food with Sarenza. The network of stores should also lower the last mile delivery costs of Sarenza.

A piece in the Financial Times looks at some of the economic characteristics of millennials as a group in the UK and the effect on the economy. Arguably, some of those observations may be pertinent more widely. For this section of the population, home ownership rates have collapsed, wages have dropped and degrees have become wildly expensive. The shifts in pensions, housing, and employment have transferred more risk and instability onto the shoulders of young people. Ironically, the best-educated generation ever, who can, furthermore, start companies from their bedrooms, are more risk-averse, will move less far and less frequently, and are therefore using these opportunities less. The consequences for retail need to be drawn out.

see article