What: Bergdorf Goodman’s 2025 holiday campaign, The Bergdorf Soirée, combines cinematic storytelling, exclusive events, and curated gifting to create an immersive luxury retail experience.

Why it is important: Bergdorf Goodman’s strategy highlights the importance of designer partnerships and curated gifting in driving holiday sales and reinforcing brand prestige.

Bergdorf Goodman’s 2025 holiday campaign, The Bergdorf Soirée, is a celebration of New York’s holiday glamour, brought to life through cinematic storytelling and immersive experiences. The campaign features a diverse cast, including senior vice president Linda Fargo and designer Willy Chavarria, and unfolds as a narrative journey from invitation to dawn, showcasing the excitement of a festive evening in the city. Exclusive events, such as designer appearances and live performances, are paired with curated gift assortments and the annual holiday book, which offers fashion stories, jewelry highlights, and a comprehensive gift guide. The campaign is amplified across Bergdorf’s digital channels, app, and social media, with behind-the-scenes content and personal recommendations from campaign talent. In-store, the experience is further enhanced by themed gifting edits and playful touches, such as elevator quotes and etiquette tips. The return of the Breakfast With Santa series and support for Culture for One through the Bergdorf Goodman Foundation Fund reinforce the brand’s commitment to tradition and community engagement, making the holiday season both memorable and meaningful. 

IADS Notes: Bergdorf Goodman’s campaign reflects a broader movement in luxury retail, as seen in October 2025 with Nordstrom’s holiday campaign (Press Release), Saks Fifth Avenue’s ‘Holiday Your Way’ campaign (WWD), Neiman Marcus’s The Perfect Gift campaign (Press Release), and Bloomingdale’s ‘Happy Together’ campaign featuring Burberry (WWD), where immersive experiences, curated gifting, and designer collaborations are central to holiday strategies. These approaches, also evident in Bergdorf’s February 2025 “New York Style” campaign (WWD), underscore the industry’s focus on authentic storytelling and experiential retail to elevate brand prestige and drive engagement.

Bergdorf Goodman reveals The Bergdorf Soirée holiday campaign

What: Amazon is set to lay off 14,000 employees, signaling a major restructuring driven by automation and AI.
Why it is important: This development underscores how AI and automation are accelerating workforce reductions across the retail sector, as seen in recent industry reports.

Amazon’s decision to lay off 14,000 employees (and possibly 30,000) marks its largest workforce reduction since 2022 and signals a new era in which artificial intelligence and automation are fundamentally reshaping the retail sector. The layoffs, which will primarily affect support functions such as human resources, logistics, cloud services, and gaming, reflect Amazon’s ongoing efforts to adjust its cost structure and remain competitive against rivals like Microsoft and Google in the cloud and AI arenas. While the company’s warehouse and delivery operations remain untouched for now, internal documents and public statements from leadership highlight a strategic shift toward automating up to 75% of operations by 2033. This transformation is expected to significantly increase productivity but also reduce future hiring, potentially eliminating up to 600,000 jobs that would otherwise have been created. The move has not dampened investor enthusiasm, as Amazon’s stock price rose in anticipation of strong quarterly results. However, the scale and speed of these changes are fueling new anxieties about job security and the evolving nature of work in retail, with AI poised to impact nearly every role in the industry.

IADS Notes: Amazon’s restructuring aligns with the March 2025 report in India Economic Times on 14,000 managerial layoffs and the Forbes analysis of a sevenfold increase in retail sector job losses. The October 2025 Le Monde article and September 2025 BCG report both highlight how AI and automation are accelerating workforce changes, especially for entry-level and white-collar roles. The competitive push in cloud and AI technology among retail giants, as noted in Bloomberg (November 2024) and the Financial Times (February 2025), is further reshaping employment and operational strategies across the industry.

Will the wave of layoffs at Amazon be the first of the AI era?

What: More than 100,000 retail jobs could be lost due to a proposed hike in business rates, according to industry groups.

Why it is important: he warning highlights the direct impact of government policy on retail employment and the viability of high street businesses.

Industry groups have issued a stark warning that a proposed increase in business rates could put over 100,000 retail jobs at risk, underscoring the precarious position of the sector amid rising operational costs. The potential hike would significantly affect the ability of retailers to sustain employment and maintain their presence on the high street, where many businesses are already grappling with economic pressures. This threat comes as department stores and supermarkets face mounting costs, with some, like Beales, forced to close due to unsustainable financial burdens. The prospect of higher business rates has also led major retailers to reconsider expansion plans, while a surge in layoffs has already been observed as companies adjust to the challenging environment. The situation has prompted calls for government intervention, with a recent £5 billion investment in high streets aiming to counteract the negative effects and support local economies. The debate over business rates thus remains central to the future of retail employment and the health of high street communities.

IADS Notes: The Industry in September 2025 reported that department stores and supermarkets are bracing for significant cost increases from business rates, threatening their role as high street anchors. Retail Week in July 2025 highlighted Frasers Group’s warning that a £1.7 billion rates hike could halt store expansion. Drapers in February 2025 detailed Beales’ closure due to reduced relief and higher costs, while Forbes in March 2025 noted a surge in retail layoffs. In response, Retail Week in September 2025 covered the government’s £5 billion high street investment to support local retail and employment.

UK retail bodies say over 100,000 jobs at risk if chancellor hikes business rates

What: Fortnum & Mason unveils a double helix staircase as a centrepiece of architectural innovation and experiential retail.

Why it is important: The staircase exemplifies how heritage retailers are modernizing physical spaces to remain relevant and competitive in today’s retail landscape.

Fortnum & Mason’s introduction of a double helix staircase marks a significant step in the evolution of department store design, serving as both a functional centerpiece and a symbol of architectural ambition. This initiative is part of a wider movement among heritage retailers to modernize their physical environments while preserving their unique brand identities. By integrating innovative structures and creative visual elements, Fortnum & Mason not only enhances the in-store experience but also signals its commitment to remaining a destination for discerning shoppers. The staircase complements recent efforts, such as the use of recycled materials in window displays, to blend tradition with contemporary values and sustainability. Across the sector, leading department stores are investing in experiential retail, intuitive layouts, and curated environments to attract and engage customers, demonstrating that physical retail spaces remain vital for brand differentiation and customer loyalty. These strategies collectively reinforce the enduring relevance of flagship stores in an increasingly digital world.

IADS Notes: In October 2025, Harvey Nichols’ launch of its “125” space showcased how curated design and art installations can modernise a flagship. Fortnum & Mason’s September 2025 window display illustrated the power of creative reuse and experiential merchandising. The Retail Bulletin in April 2025 emphasised that department stores investing in experiential modernisation are thriving, while Printemps’ March 2025 focus on dwell time in New York and Harrods’ November 2024 reorganisation both highlighted the importance of blending heritage with innovation to meet evolving customer expectations.

Fortnum & Mason unveils double helix staircase

What: El Puerto de Liverpool reported 4.4% quarterly revenue growth, driven by digital expansion, new store formats, financial services, and real estate development.

Why it is important: Liverpool’s performance demonstrates the ongoing challenge of balancing digital growth and profitability.

El Puerto de Liverpool achieved a 4.4% increase in consolidated revenue for the third quarter of 2025, with digital channels, financial services, and real estate all contributing to this growth. Retail revenue rose by 2.9%, while financial services surged 15.7%, supported by a growing credit portfolio and an expanding cardholder base. The company’s digital ecosystem continued to evolve, with digital GMV up 21.9%, a higher digital share of sales, and increased app engagement for both Liverpool and Suburbia. Physical expansion remained a priority, as evidenced by the opening of new Liverpool Express stores, Livestore boutiques, and the first standalone Disney Stores in Latin America. Real estate revenue grew 7.3%, driven by the expansion of Galerías Metepec and improved rental income. Despite these advances, Liverpool faced margin pressure due to logistics costs and higher provisions for bad debts, resulting in a 14.8% decrease in EBITDA and a 10.5% drop in net income. The company remains focused on operational efficiency, inventory management, and omnichannel growth to sustain its competitive position. 

IADS Notes: El Puerto de Liverpool’s third-quarter performance aligns with trends observed in March 2025 (“El Puerto de Liverpool achieves 9.2% revenue growth,” Modaes), April 2025 (“El Puerto de Liverpool Q1 sales increase by 10%, profits fell,” Modaes), May 2025 (“Latin American department stores gain momentum: 6.3% growth in Q1 2025,” Modaes), and September 2025 (“Latin American department stores achieved 7% revenue growth in 2025 Q1,” Modaes). These sources highlight robust revenue growth accompanied by margin and profit pressures as the company balanced digital transformation, physical expansion, and operational efficiency. The expansion of new store formats and real estate investments mirrors broader sector strategies, while the ongoing challenge of sustaining profitability amid rapid digital and financial services growth remains a central theme.

El Puerto de Liverpool reports 4.4% revenue growth in 2025 Q3

What: Marks & Spencer ended a tech partnership in response to a cyber breach that disrupted its operations and digital services.

Why it is important: The move highlights the critical risks associated with third-party technology partnerships in retail, reinforcing the importance of vendor oversight and contingency planning.

Marks & Spencer’s decision to end a technology partnership following a significant cyber attack illustrates the acute vulnerabilities facing retailers in today’s digital landscape. The breach not only disrupted online operations and digital services but also exposed the retailer’s dependence on external technology providers. This incident resulted in substantial operational setbacks and financial losses, underscoring the reputational and commercial risks that accompany data breaches. The retailer’s swift action to terminate the contract signals a broader industry trend toward reassessing technology partnerships and strengthening digital risk management. As retailers increasingly rely on integrated digital systems, the need for robust vendor oversight and agile contingency planning becomes paramount. The episode serves as a stark reminder that cybersecurity is no longer just an IT concern but a core business risk that can directly impact market value and consumer trust. Marks & Spencer’s response reflects a growing recognition within the sector that resilience and rapid recovery are essential in the face of escalating cyber threats.

IADS Notes: In April 2025, Marks & Spencer suffered a major cyber attack that led to a £700 million market value loss and operational disruption, emphasising the vulnerability of digital systems and third-party partnerships (Financial Times, April 2025). The Scattered Spider group’s attack disrupted daily digital sales and highlighted the sector’s reliance on external providers, with 41% of breaches linked to third-party vendors (Retail Week, May 2025). As M&S restored digital services in June 2025, the challenges of managing technology partnerships post-breach became evident (Retail Week, June 2025). Coordinated attacks on major retailers in early 2025 prompted a shift from prevention to rapid recovery, making cybersecurity a core business risk (Inside Retail, May 2025). By September 2025, agile vendor management and contingency planning had become essential for retail resilience (Inside Retail, September 2025).

Marks & Spencer axes tech contract following cyber attack

What: UK retail sales outperformed expectations in September, driven by increased demand for fashion, jewellery, and seasonal products.

Why it is important: This growth signals renewed consumer confidence and supports retailer optimism for the upcoming holiday season.

UK retail sales volumes rose by 0.5% in September, defying economists’ predictions of a decline and marking the fourth consecutive month of growth. This unexpected increase was led by strong performances in fashion and jewellery, as consumers responded to new season trends and discretionary purchases. Despite a wetter September, shoppers continued to spend, buoyed by a slight rise in consumer confidence, which reached its joint-highest level in over a year. Industry experts noted that while retail sales volumes are still below pre-pandemic highs, the current momentum is encouraging for both retailers and the government ahead of the Autumn Budget. Seasonal factors, such as the shift to autumnal purchases and preparations for upcoming holidays, played a significant role, with notable spikes in sales of advent calendars, wreaths, and ornaments. Retailers are optimistic for the peak shopping season, although many consumers remain budget-conscious, setting clear spending caps. The sector’s outlook is positive, with businesses focusing on sharp pricing, enhanced service, and robust stock management to capture further growth. 

IADS Notes: The unexpected rise in UK retail sales volumes in September 2025 aligns with the Financial Times’ report from October 2025, which highlighted sector resilience and shifting consumer behaviour. Retail Week’s March 2025 coverage confirmed strong non-food and department store performance, particularly in fashion and jewellery, while their September 2025 analysis emphasised the impact of weather and seasonal trends on sales. Strategies for the holiday season, including flexible staffing and AI-driven pricing, were detailed in BCG’s September 2025 report and WWD’s November 2024 article, underscoring the sector’s focus on agility and customer-centric innovation.

September UK retail sales in surprise rise

What: Ruby Liu’s attempt to revive 25 former Hudson’s Bay stores was blocked by a Canadian court, leaving the future of these prime retail sites uncertain.

Why it is important: The decision reflects a broader trend of landlords and investors seeking more secure, proven operators for large-format retail properties.

Ruby Liu’s ambitious plan to transform 25 shuttered Hudson’s Bay stores into a new national department store chain was halted when a Canadian bankruptcy court rejected her $120 million proposal, citing concerns from landlords and major institutional investors about her financial and operational capacity. The court’s decision, influenced by the objections of some of Canada’s largest pension funds, underscores the reluctance of property owners to enter long-term commitments with unproven retail operators. While Liu retains control of three locations within her own malls, the fate of the remaining high-profile sites remains unresolved, highlighting the broader challenges of repurposing large-format retail spaces in a changing market. The episode also marks a significant moment in the decline of Hudson’s Bay, North America’s oldest corporation, whose liquidation was driven by weak consumer spending, trade tensions, and declining foot traffic. With Canadian Tire Corporation acquiring the Hudson’s Bay brand and intellectual property, the legacy may continue in new formats, but the era of the traditional department store appears to be ending.

IADS Notes: The collapse of Hudson’s Bay in March 2025 (WWD) marked a turning point for Canadian retail, as chronic underinvestment and shifting consumer habits led to bankruptcy. Inside Retail (March 2025) highlighted the widening gap between luxury and traditional department stores, while CBC (August and July 2025) detailed the legal and financial complexities of Ruby Liu’s failed bid to revive the chain, reflecting landlords’ preference for proven operators. Canadian Tire’s acquisition of the brand in May 2025 (WWD) suggests that historic retail names may survive through new models rather than legacy store formats.

Ruby Liu court blow leaves future of 25 Hudson’s Bay stores in doubt

What: Globus, now solely owned by Central Group, is facing mounting financial pressures, leadership changes, and a move away from its premium positioning.

Why it is important: The shift in Globus’ strategy and leadership reflects broader trends of internationalization and restructuring in the retail sector, with implications for profitability and brand identity.

Following the collapse of its former partner Signa, Central Group has become the sole owner of Globus, the Swiss department store chain founded in 1907. This transition has brought significant financial challenges, including the inheritance of pandemic-era debt and ongoing high operating costs, particularly for its flagship Zurich store. Despite substantial investments in recent years, Globus has struggled to return to profitability. Under the new leadership of Pierluigi Cocchini, who headed La Rinascente in Italy, the retailer has shifted from a premium positioning to a strategy focused on aggressive discounting and frequent thematic sales. This approach, while intended to drive traffic and sales, risks eroding the brand’s luxury image and training customers to wait for promotions.

IADS Notes: Central Group’s full takeover of Globus following the collapse of Signa reflects a broader trend of strategic investors acquiring prime European department store assets amid ongoing sector turbulence. As detailed by Vindobona in August 2025, the redistribution of Signa’s retail properties, including Globus, has attracted experienced operators seeking to stabilize and reposition these iconic stores. The aftermath of Signa’s bankruptcy has been marked by legal and financial complexities, with Central Group also acquiring KaDeWe and navigating the fallout from its former partner’s collapse (Fashion Network, December 2024). The arrest of Signa founder René Benko in January 2025 (Fashion Network) further underscores the sector’s volatility and the heightened scrutiny facing new owners. Globus’ recent shift from a premium positioning to aggressive discounting and thematic sales mirrors industry-wide moves toward more targeted, margin-aware promotional strategies, as seen at Amazon and LuisaViaRoma (WWD, July 2025). Meanwhile, the financial instability at Globus, including unresolved debt and potential downsizing, aligns with broader restructuring trends in the department store sector, as illustrated by Lindex’s strategic review (placera.se, December 2024) and Saks Global’s cost-cutting maneuvers (WWD, August 2025). High real estate costs, particularly for flagship locations, continue to challenge profitability, echoing the “downtown flagship store downturn” documented by The Robin Report (March 2025) and BoF (December 2024).

Globus is struggling to be back to black

What: Economic pressures and changing habits are driving consumers to choose high-quality ready meals and food delivery over traditional restaurant visits.

Why it is important: Growing demand for premium ready meals and delivery highlights the need for both supermarkets and restaurants to adapt quickly to evolving economic and social trends.

Amid rising inflation and economic uncertainty, consumers in the UK and US are increasingly opting for premium ready meals and food delivery as alternatives to dining out. Brands such as Charlie Bigham’s, along with supermarket chains like Waitrose and Tesco, are launching high-end, “restaurant quality” meal ranges to attract customers deterred by the escalating costs of eating out. The rapid expansion of the food delivery market, with players like DoorDash and Deliveroo consolidating their positions, further reinforces this shift. As households reduce discretionary spending, middle-income consumers are trading down, prioritizing value and convenience at home over restaurant visits. This has led to a notable decline in restaurant footfall, especially in the casual and fast-food segments, and a wave of closures among mid-market chains. Restaurants are responding by focusing on immersive, unique experiences and higher quality to justify the value of dining out. The evolving “eat-at-home” economy is fundamentally altering how both retailers and restaurants compete for consumer attention and spend. 

IADS Notes: The rise of premium ready meals and “restaurant quality” supermarket offerings directly competing with traditional dining out reflects a broader transformation in both retail and hospitality. Wegmans’ launch of the Next Door fine-dining restaurant in its Manhattan flagship (Grocery Business, August 2025) exemplifies how retailers are integrating high-end foodservice and experiential elements to attract both shoppers and diners, blurring the lines between retail and hospitality. This trend is echoed by Harrods’ strategic pivot away from celebrity chef partnerships toward in-house dining concepts (The Standard, August 2025), as well as Liberty London’s new restaurant initiative (The Standard, March 2025), both of which highlight how heritage retailers are leveraging distinctive dining destinations to complement the shopping experience. Economic pressures and inflation are further accelerating this shift, with recent analyses from McKinsey (June 2025), Visa (March 2025), and Forbes (September 2025) documenting how value-conscious consumers are increasingly opting for at-home consumption and delivery, forcing retailers and restaurants alike to innovate. The rapid growth of quick commerce and food delivery, as seen in the expansion of Reliance Retail’s dark stores (Inside Retail, October 2025) and Amazon’s entry into 15-minute grocery delivery (Fashion Network, December 2024), underscores the importance of convenience and operational agility. Meanwhile, experiential retail strategies—such as those described in the Los Angeles Times (March 2025), Inside Retail (January 2025), and The Robin Report (January 2025)—demonstrate that both retailers and restaurants must now deliver unique, immersive experiences to justify dining out and maintain customer engagement in a cost-conscious, post-pandemic environment.
The rise of the eat-at-home economy

What: The alliance between BHV Marais and Shein triggers a cascade of brand exits, loss of key partnerships, and mounting political and reputational challenges.

Why it is important: The alliance between BHV Marais and Shein triggers a cascade of brand exits, loss of key partnerships, and mounting political and reputational challenges.

BHV Marais is experiencing a significant crisis following its decision to partner with Shein, a move that has triggered a wave of negative consequences for the historic Parisian department store. The fallout began with Disneyland Paris withdrawing from a major holiday collaboration, followed by a cascade of brand departures and the loss of support from key stakeholders such as Banque des territoires. These developments have been compounded by mounting criticism from unions, industry peers, and government officials, all concerned about Shein’s reputation for unfair competition, environmental harm, and questionable labor practices. The situation has exposed deep divisions within the French retail sector over the presence of ultra-fast fashion brands and has placed BHV’s management under intense scrutiny. Despite assurances from SGM, the store’s operator, that new brands will join in 2026, skepticism remains high among employees and industry observers. The crisis at BHV Marais underscores the complex challenges facing legacy retailers as they attempt to modernise while navigating heightened ethical, political, and reputational risks. 

IADS Notes: The crisis at BHV Marais reflects a broader pattern observed in October 2025 and September 2025, where partnerships with Shein have led to staff protests, brand withdrawals, and the loss of public funding. For example, “Paris department store staff livid over Shein being given a floor” (Inside Retail, October 2025) and “Why France is pushing back against Shein’s physical store launch” (Inside Retail, October 2025) detail the operational and reputational fallout. “SGM loses public funding to buy the BHV real estate over the Shein feud” (Fashion Network, October 2025) highlights the financial consequences, while “Pimkie expelled from French retail associations” (Fashion Network, September 2025) and “Galeries Lafayette Group wants to block Shein’s entry into its SGM-affiliated stores” (Fashion Network, October 2025) illustrate the industry’s regulatory and competitive concerns.

Disneyland Paris has given up on collaborating with BHV for Christmas 

What: UK retail sales unexpectedly increased in September 2025, reflecting shifting consumer behaviour and sector resilience.

Why it is important:  The unexpected growth underscores the importance of accurate data and flexible planning, as seen in recent revisions and weather-driven sales shifts.

UK retail sales saw an unexpected 0.5% increase in September 2025, signalling renewed sector resilience amid economic uncertainty and anticipation of the upcoming Budget. This positive result follows a summer characterised by evolving consumer preferences, with a notable shift toward in-store shopping and greater adoption of technology, as reported in July 2025. Despite inflationary pressures, a significant portion of shoppers indicated plans to increase spending, supporting the sector’s recovery. Earlier in the year, non-food and department stores led growth, although food sales remained subdued due to pricing challenges. However, the retail landscape has been marked by volatility, with sales growth slowing in May as consumers became more selective and regulatory costs rose. The reliability of retail data has also been questioned, with the Office for National Statistics revising down first-half figures in September, complicating forecasting and planning. Additionally, favorable weather in August boosted sales in seasonal categories, highlighting the increasing impact of climate on retail performance. These developments underscore the need for retailers to remain agile and responsive to rapidly shifting market dynamics.

IADS Notes: In July 2025, Retail Week highlighted increased in-store shopping and technology use, while March 2025 saw growth in non-food categories. By June, sales growth slowed as discretionary spending tightened. The Financial Times in September 2025 reported on ONS data revisions, and Retail Week emphasised the impact of favourable weather on sales, reinforcing the sector’s need for agility and robust data strategies.

UK retail sales unexpectedly rose by 0.5% in September

What: JD.com launches Joybuy in France, positioning itself as a premium e-commerce alternative to Amazon and low-cost Chinese platforms.

Why it is important: This move intensifies competition in French e-commerce, reflecting the growing influence of Asian platforms and the strategic response of established players.

JD.com’s introduction of Joybuy in France marks a pivotal moment in the evolution of the country’s e-commerce landscape. By positioning Joybuy as a premium alternative to both Amazon and low-cost Chinese marketplaces like Temu and AliExpress, JD.com is targeting consumers seeking quality assurance, curated product selections, and reliable logistics. The platform’s promise of same-day delivery in the Paris region and rapid service across France leverages JD.com’s established European logistics network, setting a new standard for fulfillment speed. Joybuy’s focus on premium Asian brands at competitive prices further differentiates it from its rivals, appealing to a segment of the market underserved by existing platforms. This launch comes amid Amazon’s continued dominance and investment in France, as well as broader trends of consolidation and innovation within European retail. JD.com’s interest in acquiring Ceconomy, a major shareholder of Fnac Darty, underscores the potential for further transformation and heightened competition in the sector.

IADS Notes: JD.com’s launch of Joybuy in France in October 2025 directly challenges Amazon’s dominance, leveraging its logistics expertise and premium positioning. This move follows Amazon’s continued investment in logistics and new initiatives to counter low-cost Chinese platforms, as reported in January and May 2025. Joybuy’s strategy of quality assurance and fast delivery aligns with recent trends in Asian retail expansion and logistics innovation, highlighted by partnerships and infrastructure growth in October and April 2025. JD.com’s acquisition interest in Ceconomy, noted in March 2025, signals potential consolidation, echoing similar moves by Zalando and Central Group in December 2024 and September 2025.

To compete with Amazon, China's JD.com launches its e-commerce site in France

What: Nordstrom’s holiday campaign combines digital innovation, value-driven gifting, and experiential retail to attract and engage customers.

Why it is important: The campaign highlights the competitive advantage gained by integrating AI, value, and memorable in-store moments, as seen in recent market developments.

Nordstrom is redefining its holiday retail approach by merging digital innovation, curated value, and immersive in-store experiences. The retailer’s 2025 campaign features an expansive holiday catalogue, interactive online gift finders, and AI-powered recommendations, ensuring customers can easily discover over 110,000 gifting options both online and in-store. Each Nordstrom location is transformed with festive gift shops offering 1,000 curated gifts, with a strong emphasis on affordability and exclusivity. The campaign also introduces Santa in every store, free photos for cardholders, and a robust calendar of over 1,500 festive events, all designed to create memorable shopping moments. Flagship stores in New York and Seattle offer unique experiential activations, including custom gift boxing and personalisation stations. The marketing campaign, led by Golden Globe winner Kyle MacLachlan and developed with Invisible Dynamics, infuses playful energy and warmth, positioning Nordstrom as a joyful, seamless gifting destination. This comprehensive strategy underscores the retailer’s commitment to customer engagement and differentiation in a competitive holiday landscape. 

IADS Notes: Nordstrom’s 2025 holiday strategy reflects a wider industry movement toward experiential retail and digital integration, as seen in its November 2024 app enhancements (“Nordstrom makes holiday shopping magical with new app features,” Press Release, November 2024) and January 2025 sales growth (“Nordstrom holiday sales gain 5.8%, lifts sales guidance,” WWD, January 2025). The adoption of AI-powered personalisation and curated, value-driven assortments has proven effective, with U.S. holiday sales reaching $1 trillion in December 2024 (“How Generative AI Shopping Trends Boost Holiday Sales,” The Robin Report, December 2024). Macy’s and Neiman Marcus have also embraced immersive experiences and exclusive campaigns, highlighting the importance of innovation and differentiation in holiday retail (“Macy’s kicks off ‘100 Days to Christmas’ with new merchandise, curated gift ideas,” Retail Dive, September 2025; “Neiman Marcus unveils The Perfect Gift holiday campaign,” Press Release, October 2025).

Nordstrom unveils the holiday campaign

What: UK retail and hospitality wage growth slowed as employers cut hours and limited pay increases to offset higher payroll taxes and minimum wage hikes.

Why it is important: The narrowing gender pay gap and decline in low-paid jobs signal ongoing structural changes in the retail workforce, aligning with recent data on pay equity and diversity.

UK retail and hospitality sectors have experienced a notable slowdown in wage growth over the past year, with employers taking decisive action to manage rising labour costs triggered by increases in national insurance contributions and the minimum wage. While median weekly earnings for full-time retail employees rose by 3.8% and by 3.9% in accommodation and food services, these gains lagged behind the 5.3% average across all sectors. To offset these cost pressures, businesses not only reduced headcount but also cut weekly working hours—down 2% in retail and accommodation and 3.8% in food service—while limiting pay increases for higher-earning staff. Despite these constraints, the proportion of low-paid jobs in the UK has reached a record low, and the gender pay gap has continued to narrow, with the difference in median hourly pay between men and women falling to 6.9%. These shifts reflect both the immediate impact of fiscal policy and a longer-term trend toward greater pay equity and workforce diversity in retail.

IADS Notes: The recent slowdown in UK retail and hospitality wage growth, as employers respond to higher national insurance contributions and minimum wage hikes, is mirrored by sector-wide profitability pressures reported by John Lewis in September 2025 (Drapers), where increased National Insurance costs contributed to operating losses despite rising sales. This financial strain is further underscored by the £7 billion in additional regulatory costs facing retailers, as highlighted in June 2025 (Retail Week), prompting many to adopt cost-containment strategies such as reducing headcount and weekly hours. The surge in retail layoffs and restructuring, with job losses seven times higher than the previous year, was documented in March 2025 (Forbes), while Frasers Group’s targeted workforce reductions in March 2025 (Drapers) and the lowest projected holiday hiring since 2008 in September 2025 (Forbes) illustrate the sector’s shift toward leaner labor models. Amid these changes, the narrowing gender pay gap and the push for pay equity remain central, as discussed in April 2025 (ESG Dive) and July 2025 (ESG Dive), with flexible work arrangements increasingly recognised as essential for workforce retention and equality. Meanwhile, the broader trend of declining low-paid jobs is reflected in El Corte Inglés’s August 2025 (El Economista) salary increases and the October 2025 (LEADNetwork) report showing slow but steady progress in gender diversity at senior levels, even as underrepresentation persists.

Retail and hospitality wage growth hit as UK employers offset tax rise

What: Despite growing referral traffic from ChatGPT, e-commerce sales remain low compared to established channels, though innovations such as Instant Checkout are expected to enhance performance.

Why it is important: ChatGPT’s low conversion rates highlight persistent barriers to AI adoption in retail, despite increasing traffic and technological advancements.

A recent study analyzing 12 months of data from nearly a thousand e-commerce sites reveals that while ChatGPT is generating more referral traffic, its conversion rates remain significantly lower than those of traditional channels like Google Search, email, and affiliate links. Although ChatGPT accounts for over 90% of all e-commerce traffic from large language models, its share is still less than 0.2% of total traffic, and affiliate links and organic search continue to outperform it in both conversion and revenue per session. The research points to a lack of consumer trust as a key factor, with shoppers often using ChatGPT for research but turning to other sources before making a purchase. However, conversion rates from ChatGPT referrals have shown steady improvement over the past year, and new features such as OpenAI’s Instant Checkout—already active for Etsy and soon expanding to Shopify and Walmart—could help close the gap. Retailers like Princess Polly are embracing these tools for both sales and deeper consumer insights, but the overall impact remains limited by trust and adoption challenges.

IADS Notes: Recent industry analysis from September and October 2025 confirms that retailers are being pushed to adapt to the “answer economy,” where AI agents mediate shopping journeys and require new digital strategies. Trust remains a central issue, as highlighted in November 2024 and October 2025, with privacy and the loss of direct brand interaction slowing adoption. The integration of Instant Checkout with major platforms like Shopify and Walmart marks a significant step, but its success depends on overcoming these trust barriers. Early adopters, particularly Gen Z–focused brands, are leveraging AI for both sales and consumer insights, while OpenAI’s transaction-based monetization strategy continues to spark debate about fair competition and access, as noted in January 2025.

E-commerce sites see low sales from ChatGPT traffic, new study finds

What: Saks Fifth Avenue’s ongoing financial struggles have resulted in delayed supplier payments and heightened speculation about a potential Chapter 11 filing.

Why it is important: Accepting cryptocurrencies reflects a broader shift in retail toward innovative, seamless payment experiences, aligning with global trends in retail.

Saks Fifth Avenue, a storied American department store brand with roots dating back to 1902, is facing significant financial challenges that threaten its future. Over the past year, the company has consistently paid its vendors late, with Days Beyond Terms (DBT) figures remaining well above the industry average—ranging from 27 to 41 days late, compared to the typical 10–12 days. These persistent delays have raised concerns about Saks’ liquidity and its ability to secure holiday inventory, putting further strain on supplier relationships and operational stability. While the company has not publicly commented on a potential Chapter 11 bankruptcy filing, industry analysts and credit agencies have flagged the sustained payment delinquency as a red flag for underlying cash flow distress. The situation at Saks mirrors the broader struggles of century-old department stores, many of which have either disappeared or been absorbed by larger chains, underscoring the immense pressures facing legacy retailers in today’s rapidly evolving retail landscape.

IADS Notes: Saks Fifth Avenue’s ongoing financial distress is emblematic of the broader challenges facing legacy department stores in the U.S. Despite reporting $350–400 million in liquidity in April 2025, Saks Global has strled with persistent vendor payment delays and aggressive cost-cutting measures following its December 2024 merger with Neiman Marcus (WWD, April 2025). These liquidity issues have led to credit downgrades and refinancing deals viewed as tantamount to default, with S&P’s September 2025 scorecard highlighting the company’s fragile financial health and the operational disruptions caused by extended payment terms (WWD, September 2025). The crisis has been compounded by high debt and declining sales, as detailed in August 2025, when overdue payments reached $275 million and vendors began halting shipments (Financial Times, August 2025). This situation mirrors the existential threats facing other century-old retailers, as explored in June 2025, where the Saks-Neiman Marcus merger was cited as a test case for the survival of heritage brands in a rapidly evolving retail landscape (Fashion Network, June 2025). The closure of historic downtown flagships, such as Neiman Marcus in Dallas and Macy’s in Philadelphia, further underscores the sector’s retreat from traditional retail models in favor of operational efficiency and real estate monetization (Forbes, March 2025; The Robin Report, March 2025).

And here we are… rumors of Saks’ chapter 11 are surfacing

What: Le Bon Marché, under Patrice Wagner, exemplifies how department stores can thrive by fusing art, culture, and exclusive retail experiences.

Why it is important: The strategy demonstrates how heritage retailers can rem

Le Bon Marché, led by Patrice Wagner, stands as a benchmark for the modern transformation of heritage department stores. Wagner’s radical leadership has redefined the store’s purpose, turning it into a vibrant cultural destination that merges commerce with art, music, and immersive experiences. By prioritizing curated exclusivity and frequent newness, Le Bon Marché continually surprises and engages its customers, offering more than just products but also a sense of discovery and belonging. The store’s commitment to local identity, seen in its celebrated food hall and event-driven programming, ensures it remains the preferred choice for Parisians while attracting a global audience. Wagner’s philosophy centers on risk-taking, innovation, and a human-centric approach, empowering teams to shape the store’s future and fostering a culture of creativity and collaboration. This blend of heritage and forward-thinking strategy not only sustains the store’s relevance but also sets a new standard for experiential retail in the luxury sector.

IADS Notes: Patrice Wagner’s leadership at Le Bon Marché reflects a wider industry movement, as highlighted in March 2025 (“LVMH reunites Le Bon Marché and La Samaritaine in new division,” WWD) and April 2025 (“Why community might be the missing piece to revive department stores,” Forbes), where LVMH’s restructuring and community-driven initiatives have repositioned department stores as experiential and locally relevant destinations. The launch of curated spaces and a renewed focus on inclusivity and sustainability, noted in December 2024 (“Le Bon Marché rethinks its private label,” WWD) and February 2025 (“Le Bon Marché launches a permanent California-inspired fashion space,” Fashion Network), underscore the importance of innovation and exclusive offerings in maintaining customer engagement and global appeal.

Le Bon Marché’s CEO on department store transformation 

What: Amazon introduces an AI-powered tool, “Help Me Decide,” to recommend products to shoppers overwhelmed by choices.

Why it is important: Amazon introduces an AI-powered tool, “Help Me Decide,” to recommend products to shoppers overwhelmed by choices.

Amazon’s new “Help Me Decide” feature leverages artificial intelligence to simplify product selection for shoppers who feel inundated by options. By analysing a customer’s browsing and purchase history, the tool presents a single, tailored recommendation, aiming to reduce decision fatigue and streamline the shopping process. Available initially to millions of randomly selected US consumers via Amazon’s app and mobile browser, the tool uses large language models to match individual preferences with product descriptions and reviews. This innovation builds on Amazon’s established use of algorithms for personalised ads and recommendations, and follows the rollout of its AI chatbot assistant, Rufus, to all US customers in 2024. The move comes as technology companies and retailers increasingly experiment with AI to transform online shopping, shifting from traditional search engines to conversational and personalized experiences. With more than a third of shoppers now using AI tools for product research and recommendations, Amazon’s initiative underscores the growing importance of advanced technology in shaping consumer behaviour and maintaining a competitive edge in the retail sector. 

IADS Notes: Amazon’s launch of “Help Me Decide” exemplifies the rapid integration of AI-powered recommendation engines and chatbots across retail, as seen in March and July 2025 (“AI-powered shopping growing dramatically, Adobe reports,” Forbes, March 2025; “The end Of Amazon, Walmart, Best Buy? AI-driven retail unbundling,” Forbes, July 2025), with 38% of global shoppers using AI tools and major retailers reporting significant revenue gains. The rivalry between Amazon and Walmart is intensifying, with both deploying proprietary AI agents and personalised interfaces to redefine online shopping (“How AI-driven hyper-personalisation is transforming retail,” Inside Retail, March 2025; “AI agents to reshape finding and buying products online,” BoF, January 2025). As hyper-personalisation becomes standard and 71% of consumers expect tailored interactions, the industry is moving beyond traditional models, while many brands still struggle to adapt to these new operational demands (“ChatGPT and AI chatbots will reshape shopping: almost no one is ready,” Forbes, September 2025).

Amazon launches new AI shopping tool in US for the indecisive

What: Kering continues aggressive cost-cutting and portfolio streamlining as Gucci outperforms expectations, despite persistent group revenue declines.

Why it is important: Kering’s actions demonstrate the necessity of rapid restructuring and regional rebalancing to maintain competitiveness in a challenging luxury environment.

Kering is intensifying its restructuring efforts, focusing on cost reductions, store closures, and the sale of noncore assets as it seeks to restore profitability and reduce debt. Despite a 10 percent drop in group revenues in the third quarter, the company saw a glimmer of hope as Gucci’s sales decline slowed to 14 percent, outperforming market expectations and marking an improvement from previous quarters. The group’s new CEO, Luca de Meo, is preparing to unveil further radical measures, including continued network rationalization and a strategic partnership with L’Oréal following the sale of Kering’s beauty division. These moves are designed to streamline operations and refocus on core brands, with Gucci’s creative leadership generating renewed digital engagement and positive consumer response. Regional performance remains mixed, with North America showing signs of recovery and Asia-Pacific stabilizing, although Chinese demand is still subdued. Kering’s approach underscores the importance of agility and decisive action in navigating ongoing uncertainty in the luxury sector.

IADS Notes: Kering’s current strategy is a continuation of decisive cost-cutting and asset management measures seen throughout 2025, including major store closures and the sale of The Mall Luxury Outlets (WWD, July 2025; WWD, January 2025). These actions, prompted by profit declines and Gucci’s earlier struggles (BoF, April 2025; WWD, February 2025), reflect a broader industry trend toward operational efficiency and regional rebalancing. The group’s pivot to the US market and ongoing portfolio streamlining align with sector-wide responses to persistent weakness in China and Japan, as documented in Inside Retail, January 2025.

Kering Q3 2025: 10% drop in group revenues, cost cuts and glimmers of hope

What: Bealls Inc. now accepts over 99 cryptocurrencies for in-store payments through a partnership with Flexa, marking its 110th anniversary.

Why it is important: Accepting cryptocurrencies reflects a broader shift in retail toward innovative, seamless payment experiences, aligning with global trends in retail.

Bealls Inc., a 110-year-old department store chain operating more than 660 stores across 22 U.S. states, has begun accepting cryptocurrency payments in partnership with Flexa. This integration allows customers to pay with over 99 cryptocurrencies, including Bitcoin, Ethereum, and stablecoins like USDC, using more than 300 wallet apps. The move positions Bealls as the first national retailer in the U.S. to enable crypto payments across all its locations, reinforcing its commitment to innovation and customer service. The adoption of Flexa’s digital payment infrastructure ensures fast, flexible, and secure transactions, both in-store and via mobile. This strategic decision coincides with Bealls’ 110th anniversary, highlighting the company’s ongoing efforts to modernize and remain relevant in a rapidly evolving retail landscape. By embracing digital currencies, Bealls aims to attract tech-savvy consumers and prepare for the future of commerce, demonstrating how legacy retailers can leverage technology to sustain their market presence and appeal to new generations. (Word count: 167)

IADS Notes: Bealls Inc.’s move to accept cryptocurrency payments through Flexa mirrors recent innovations in the department store sector, as seen when Printemps became Europe’s first department store to accept cryptocurrencies in partnership with Binance Pay and Lyzi (WWD, November 2024). This trend is further analyzed in BCG’s Global Payments Report, which noted the rapid adoption of stablecoins and digital currencies by major retailers and department stores, emphasizing near-zero transaction fees and new payment models (BCG, September 2025). The transformative impact of stablecoins on retail payments, including lower fees and increased accessibility, was also highlighted in “How stablecoins will eat payments, and what happens next” (a16z, January 2025). The evolution of payment terminals and the rise of alternative payment methods, including cryptocurrencies, were explored in “Smart, Secure, Seamless: Payment Methods 2025” (Journal du Net, January 2025). Additionally, department stores have used milestone anniversaries to blend heritage with innovation, as demonstrated by Liberty London’s 150th anniversary (Fashion United, October 2025) and Galeries Lafayette’s 130th anniversary (Paris Select Book, November 2024), reinforcing their relevance for new generations of customers.

110-year-old U.S. retailer chain accepts crypto

What: Alibaba introduced a free AI chatbot and announced the launch of Quark AI Glasses, expanding its AI-driven consumer product lineup.

Why it is important: This move highlights the intensifying competition in AI-powered retail services and the strategic importance of consumer engagement through advanced technology.

Alibaba has unveiled a new AI chatbot assistant integrated into its Quark app, marking a renewed effort to capture consumer interest in a market where ByteDance and Tencent currently dominate. The chatbot, accessible via text or voice, leverages Alibaba’s latest Qwen3 models to provide real-time information and enhanced reasoning capabilities. This launch is part of Alibaba’s broader strategy to reposition Quark as its flagship consumer application, embedding advanced AI features to drive user engagement and retention. In addition to the chatbot, Alibaba announced the upcoming release of Quark AI Glasses, priced at 4699 yuan, which will be available for pre-sale on Tmall and begin shipping in December. These smart glasses represent Alibaba’s entry into the wearable AI device market, aligning with global trends set by companies like Meta. Despite previous challenges in achieving widespread adoption for its Tongyi AI assistant, Alibaba’s latest initiatives underscore its determination to compete in the rapidly evolving landscape of AI-driven retail technology.

IADS Notes: Alibaba’s October 2025 launch of its AI chatbot and Quark AI Glasses reflects a year of significant AI-driven transformation. In January 2025, Retail Week reported that Alibaba’s Accio AI search engine achieved rapid adoption and a 30% increase in conversion rates, while Journal du Net highlighted Alibaba Cloud’s advancements in language models and the ModelScope platform, reinforcing the company’s global AI ambitions. By December 2024, SCMP noted that China’s retail sector had reached 230 million AI users, with Alibaba, Baidu, and Tencent leading adoption and shaping international standards. In September 2025, Bloomberg detailed Alibaba’s $52 billion AI investment and strategic pivot toward in-house AI platforms and hardware, underscoring its commitment to leading both consumer-facing and foundational AI innovation in retail.

Alibaba launches AI chatbot service to broaden consumer appeal

What: Muji suspended its online sales in Japan after a ransomware attack on its logistics partner Askul disrupted operations and customer services.

Why it is important: The disruption demonstrates how third-party breaches can rapidly escalate into major operational and reputational risks for retailers, as seen in recent sector analyses.

Muji, the Japanese retail giant known for its minimalist household goods, clothing, and furniture, was forced to suspend its online sales in Japan following a ransomware attack on its logistics partner, Askul. The incident caused a complete halt to Muji’s digital retail operations, affecting not only online purchases but also customer access to order histories and certain web content. While Muji’s physical stores and international operations remained unaffected, the company faced the challenge of identifying impacted shipments and communicating transparently with customers about potential data breaches. Askul, a major logistics and office supplies company owned by Yahoo! Japan Corporation, also suspended its services and began investigating the scope of the attack, including possible data leaks. This event underscores the profound operational vulnerabilities that arise when supply chain partners are targeted, highlighting the need for robust cybersecurity measures and contingency planning in the retail sector.

IADS Notes: The ransomware attack on Muji’s logistics partner Askul closely mirrors recent sector disruptions. In December 2024, a ransomware incident at Blue Yonder disrupted supply chains for thousands of retailers worldwide. RH-ISAC’s April 2025 report revealed that 41% of retail cyber incidents stem from supply chain breaches, with average losses of $1.4 million per attack. The September 2025 Co-op attack and the May 2025 breaches at M&S and Harrods further illustrate the sector’s acute vulnerability to third-party risks and the necessity for rapid recovery protocols and transparent customer communication.

Retail giant Muji halts online sales after ransomware attack on supplier

What: Michael Steinberg’s leadership transformed Macy’s West into a $4 billion upscale retail powerhouse and left a lasting impact on the department store industry.

Why it is important: His legacy in leadership and private label development continues to influence Macy’s strategies and the broader department store landscape.

Michael Steinberg, who passed away at 97, was instrumental in transforming Macy’s West into a $4 billion business with a distinct upscale image, setting it apart from regional competitors. His tenure was marked by a focus on elevating Macy’s private labels into recognised brands, introducing in-store shops, and professionalising sales teams, all of which contributed to sustained revenue growth and brand prestige. Steinberg’s leadership style, characterised by mentorship and a passion for broadening his team’s horizons, left a profound mark on future retail leaders such as Terry Lundgren and Allen Questrom. His career spanned several major department store chains, including Bullock’s, Foley’s, and Bloomingdale’s, reflecting the consolidation and evolution of the U.S. department store sector. Beyond his executive roles, Steinberg remained influential as a consultant and board member, supporting both retail innovation and philanthropic causes. His multifaceted legacy continues to shape Macy’s current strategies and the wider department store industry.

IADS Notes: Michael Steinberg’s transformative leadership at Macy’s West is echoed in Macy’s recent “Bold New Chapter” strategy, which emphasizes customer experience, store optimization, and luxury division growth (Forbes, September 2025; Yahoo! finances, November 2024). The expansion of private brands, highlighted by the launch of Arch Studio (Press Release, March 2025), builds on Steinberg’s early initiatives. The mentorship culture he fostered continues to influence Macy’s leadership, as noted in WWD (October 2025), while the sector’s ongoing consolidation and real estate strategies reflect challenges and opportunities similar to those Steinberg navigated (Articles, December 2024; The Robin Report, March 2025).

Michael Steinberg, former Macy’s West CEO, passed away