What: Marks & Spencer has chosen to stay in the Philippines, shifting to a new partnership model to adapt to local market conditions.

Why it is important: M&S’s move demonstrates the resilience of established brands and the importance of local alliances in navigating competitive and evolving retail landscapes.

Marks & Spencer has reaffirmed its commitment to the Philippine market by transitioning to a new local partnership, signalling a strategic adaptation rather than withdrawal. This decision comes shortly after speculation about a potential exit, highlighting the volatility and complexity of international retail operations in Southeast Asia. By restructuring its approach, M&S aims to better align with local consumer preferences and market dynamics, leveraging the strengths of a new partner to sustain its presence. The Philippine retail sector remains attractive, with robust growth and significant investments from major players, making it a competitive environment for global brands. M&S’s experience reflects the broader challenges and opportunities faced by international retailers, where resilience and flexibility are essential for long-term success. The move also mirrors the company’s previous strategy shifts in other markets, demonstrating a willingness to evolve operational models in response to changing conditions and to maintain relevance in diverse retail landscapes.

IADS Notes: M&S’s decision to remain in the Philippines with a new local partner in February 2026 (Inside Retail) marks a significant pivot in its international strategy, coming just days after reports suggested a potential exit from the market after more than thirty years (Inside Retail, February 2026). This move underscores the complexities and volatility of operating in Southeast Asia, where international brands must continually adapt to shifting consumer preferences and competitive pressures. The Philippine retail landscape remains highly attractive, as evidenced by SM Investments’ robust profit growth in November 2025 and SM Prime’s $9 billion expansion plan announced in May 2025, both of which highlight the market’s resilience and the importance of strategic alliances. M&S’s approach mirrors its experience in Australia, where it transitioned from direct retail to a partnership model to better align with local realities (Inside Retail, July 2025). By choosing to restructure rather than withdraw, M&S demonstrates both brand resilience and a commitment to adapting its operational and partnership models to sustain its presence in a dynamic and competitive environment.

M&S says it will stick with the Philippines – with a new partner

What: Dillard’s delivered stable sales and only a slight decline in net income for fiscal 2025, maintaining strong margins and expanding selectively despite sector headwinds.

Why it is important: The company’s performance demonstrates how strong margins and selective expansion can drive resilience even as broader industry challenges persist.

Dillard’s fiscal 2025 results reflect a resilient approach to retail, with the company maintaining flat sales and only a modest 3.9% decline in net income despite a turbulent market environment. The retailer’s ability to sustain a retail gross margin of 40.8% highlights disciplined inventory management and expense control, enabling it to reward shareholders with its largest-ever dividend while preserving a robust cash position. Dillard’s continued investment in selective expansion, such as the opening of a new store in Ohio and the revitalisation of regional malls, signals confidence in the enduring relevance of brick-and-mortar retail in key markets. While the company’s regional footprint limits its national reach compared to larger competitors, its focus on operational fundamentals and community-centric retailing has allowed it to remain profitable and relevant. Dillard’s experience underscores the importance of prudent management and tailored strategies for regional retailers navigating ongoing sector disruption and consolidation.

IADS Notes: Dillard’s resilience and operational discipline are supported by WWD (May 2025), The Robin Report (December 2025), and Retail Dive (August 2025), which document the company’s strong margins, selective expansion, and commitment to retail fundamentals. These strategies have enabled Dillard’s to sustain profitability and relevance, even as the broader department store sector faces volatility and competitive pressures.

Dillard’s posts ‘respectable’ performance in fiscal year

What: Sephora is expanding in the U.K. with new boutique stores designed for convenience, digital integration, and discovery of trending brands.

Why it is important: The move highlights how leading retailers are reimagining store formats to drive local engagement and adapt to changing consumer behaviors.

Sephora’s launch of smaller boutique stores in the U.K. marks a strategic evolution in its retail approach, responding to growing consumer demand for convenience, curated assortments, and digital integration. The new high-street locations in London, measuring under 2,700 square feet, are designed to offer a “pop-in” experience, blending the thrill of discovery with speed and personalization. These boutiques will feature a mix of Sephora favorites, TikTok-viral brands, and exclusive collections, alongside immersive services such as personalized consultations and beauty scan technology. This initiative aligns with broader trends among leading U.K. retailers, who are investing in refreshed, experiential spaces and innovative formats to engage local shoppers and offset declines in tourist spending. The boutique format complements Sephora’s ongoing expansion strategy, which aims for 20 stores across the country by the end of 2026, and reflects the brand’s commitment to making premium beauty accessible and relevant in a rapidly evolving retail landscape.

IADS Notes: Sephora’s boutique strategy is supported by WWD (January 2026), Retail Week and Fashion Network (October 2025, June 2025), and Glossy (November 2025), which document the shift toward experiential, curated, and digitally integrated retail formats among leading beauty and department store players. These developments underscore the importance of local engagement, convenience, and trend-driven assortments in maintaining competitiveness and driving growth in the beauty sector.

Sephora to unveil a smaller retail format in the U.K.

What: Sadiq Khan is moving forward with plans to pedestrianise Oxford Street, aiming to transform it into a more accessible and vibrant retail destination.

Why it is important: The pedestrianisation of Oxford Street demonstrates how coordinated policy and private investment can drive retail recovery and enhance competitiveness among global shopping streets.

Sadiq Khan’s decision to advance the pedestrianisation of Oxford Street marks a pivotal moment for London’s retail landscape. By restricting vehicle access and prioritising pedestrian movement, the initiative is designed to boost foot traffic and create a more inviting environment for shoppers and retailers alike. This transformation is expected to attract further investment, encourage the arrival of new flagship stores, and support the evolution of Oxford Street into a destination that blends retail with vibrant public spaces. The move follows a period of strong public and business support, with major retailers endorsing the plan as a catalyst for economic revival. The project also addresses logistical challenges, balancing accessibility for deliveries with the need for a seamless shopping experience. Ultimately, the pedestrianisation of Oxford Street is positioned as a strategic response to shifting consumer habits and the competitive pressures facing urban retail, setting a precedent for similar initiatives in other major cities.

IADS Notes: The push for Oxford Street’s pedestrianisation, championed by Sadiq Khan, reflects a coordinated effort between public authorities and private stakeholders to revitalise London’s flagship retail corridor. By May 2025, vacancy rates had dropped to a historic low of 0.5%, driven by over £300 million in private investment and the arrival of major international brands (“Oxford Street vacancies are at historic lows,” Fashion Network, May 2025). The confirmation of the pedestrianisation plan in June 2025, supported by two-thirds of public and business respondents, underscored widespread backing for transforming the area into a more accessible and vibrant destination (“In London, Oxford Street pedestrianisation gets green light,” Retail Gazette, June 2025). Experiential initiatives, such as the one-day pedestrianisation preview in September 2025, demonstrated the potential for increased footfall and retail engagement (“London’s Oxford Street to get one-day pedestrianisation preview,” Fashion Network, September 2025). Infrastructure improvements, notably the Elizabeth Line, have further enhanced accessibility and sales, supporting the area’s revival (“How British Land plans to create a ‘fantastic location’ for central London retail,” Retail Week, February 2025). This strategic alignment of urban policy, investment, and innovative retail concepts has reversed Oxford Street’s decline and set a benchmark for urban regeneration and competitive positioning among global shopping destinations.

Sadiq Khan pushes ahead with Oxford Street pedestrianisation

What: Coupang’s sales and profitability have been hit by a major data breach, resulting in revenue falling below analysts’ expectations and triggering losses.

Why it is important: The incident demonstrates the growing vulnerability of e-commerce platforms to cyberattacks and the critical need for robust security and crisis management.

Coupang has reported a significant decline in sales and profitability following a major data breach that compromised millions of customer records. The breach not only eroded consumer trust but also led to revenue figures that missed analysts’ forecasts, ultimately resulting in financial losses for the company. This incident highlights the acute risks faced by e-commerce retailers, where the consequences of cybersecurity failures can be immediate and severe, impacting both operational performance and brand reputation. The fallout from the breach has prompted increased regulatory scrutiny and raised questions about Coupang’s crisis management and data protection protocols. As online retail continues to expand, the need for comprehensive cybersecurity measures and transparent communication with stakeholders becomes ever more critical. Coupang’s experience serves as a cautionary example for the sector, illustrating how quickly a single incident can undermine customer confidence and disrupt business momentum.

IADS Notes: The Coupang data breach, which exposed over 33 million customer records and triggered executive resignations and regulatory investigations in February 2026 (Inside Retail), epitomises the escalating risks and consequences of cyber incidents in the retail sector. This event follows a year marked by high-profile breaches at major retailers such as M&S, Harrods, and Co-op, where operational disruptions, financial losses, and reputational damage have become increasingly common (The Retail Bulletin, August 2025; Retail Week, September 2025). The sector’s vulnerability is compounded by the fact that only 18% of retailers possess mature digital core security, leaving most exposed to sophisticated attacks and third-party risks. The Co-op’s experience, with over £120 million in profit loss and £300 million in lost sales, underscores the operational and supply chain vulnerabilities that can arise from such incidents (Retail Week, September 2025). Meanwhile, Harrods’ transparent communication and human-centric crisis management highlight the growing importance of trust and resilience in recovery strategies (Retail Week, September 2025). Collectively, these cases demonstrate that cybersecurity is now a core business risk, demanding executive accountability, robust vendor management, and integrated crisis response to protect both operations and customer trust.

Data breach eats into Coupang sales, triggering loss

What: Investor groups are challenging Target’s management and board structure amid declining sales, reputational fallout from DEI policy shifts, and heightened competition.

Why it is important: Target’s situation illustrates how governance decisions and social policy shifts can directly impact financial health and investor confidence in retail.

Target is under mounting pressure from multiple investor groups who are questioning the company’s management decisions, board structure, and response to reputational challenges. The retailer’s rollback of diversity, equity, and inclusion initiatives, following political shifts, has led to consumer boycotts and a notable decline in customer loyalty, which CEO Brian Cornell acknowledged as a factor in falling sales. Over the past five years, Target’s profit has dropped 14%, and its market value has halved to $52 billion, while competitors like Walmart and Costco have seen significant gains. The transition to new CEO Michael Fiddelke has brought further scrutiny, with investors demanding greater accountability and independent board leadership. These governance concerns are compounded by operational issues such as out-of-stock merchandise and long checkout lines, eroding Target’s once-strong brand reputation. As activist investors and major pension funds push for structural changes, Target’s leadership faces the challenge of restoring growth and trust in a highly competitive and rapidly evolving retail environment.

IADS Notes: Target’s current turmoil, as reported by Reuters in February 2026, reflects the convergence of investor activism, reputational risk, and strategic missteps that have defined the retailer’s recent trajectory. The company’s rollback of DEI initiatives, detailed by Forbes in December 2025, triggered widespread consumer boycotts and a sharp decline in store visits, leading to a $10 billion loss in valuation and persistent challenges in regaining customer trust. Bloomberg’s January 2026 analysis underscores how Target’s muted response to social controversies, such as the ICE incident, compounded reputational damage and fueled shareholder lawsuits, highlighting the volatility that arises when corporate actions misalign with public sentiment. Amid these pressures, CNN Business in August 2025 chronicled the leadership transition from Brian Cornell to Michael Fiddelke, a move intended to restore confidence but criticised for perpetuating internal groupthink. Meanwhile, ESG Dive in April 2025 contextualises Target’s experience within a broader industry trend, noting that while most anti-DEI shareholder proposals have failed at other major retailers, Target’s governance structure and strategic direction remain under intense scrutiny as it navigates a rapidly evolving retail landscape.

Target's management under fire as investors agitate for change

What: Roblox has become the fastest-growing commerce channel for Gen Z, surpassing TikTok in order volume growth and expanding into physical goods sales.

Why it is important: The shift to platforms like Roblox and TikTok signals a fundamental change in retail, where digital engagement and peer-to-peer commerce drive growth.

Roblox’s rapid ascent as the leading commerce channel for Gen Z marks a significant transformation in the retail landscape, as young consumers increasingly favour immersive, community-driven digital platforms over traditional shopping environments. With Gen Z making an average of 20 purchases on Roblox in the past year—a 54% year-on-year increase—this platform has outpaced TikTok in order volume growth, even as TikTok remains the leader in total transactions. The expansion of Roblox from digital-only to physical goods sales further broadens its retail relevance, attracting both established brands and new audiences. This trend is part of a broader evolution in social commerce, where platforms like Whatnot and TikTok are also vying for Gen Z’s attention through live streaming and influencer-driven engagement. Retailers and brands are now compelled to rethink their strategies, leveraging digital self-expression, peer-to-peer interaction, and authentic community experiences to connect with the next generation of shoppers and remain competitive in a rapidly changing market.

IADS Notes: Roblox’s rise is supported by BCG/WWD (October 2025), Forbes (February 2026), Digiday (December 2025), and The Robin Report (February 2026), which highlight Gen Z’s preference for digital engagement, authenticity, and community-driven commerce. Initiatives like Ikea’s virtual product launches on Roblox (Retail Week, January 2026) further illustrate how retailers are experimenting with immersive platforms to reach younger audiences and adapt to the new dynamics of social and digital commerce.

Roblox is fastest-growing commerce channel for Gen Z

What: Thailand’s leading retail groups, Makro-Lotus and Big C, are facing stagnant growth in 2025 due to falling tourist arrivals and sluggish consumer demand.

Why it is important: These developments illustrate the challenges of sustaining profitability in a tourism-dependent retail market, echoing concerns raised in recent IADS data.

Makro-Lotus and Big C, two of Thailand’s largest retail conglomerates, have reported lackluster results for 2025, with both companies attributing their subdued performance to persistent economic headwinds. The decline in international tourist arrivals, down by 7.2%, has compounded already weak domestic consumption, creating a challenging environment for revenue growth. Makro-Lotus saw only a marginal increase in total revenues, with its wholesale segment outperforming retail, largely due to new store openings and a focus on fresh food and private-label products. However, retail sales at Lotus’s stagnated, and same-store sales declined, further impacted by a cybersecurity incident. Meanwhile, Big C experienced a 2.4% drop in annual sales, citing external factors such as border conflicts and flooding, as well as internal challenges like outdated stores and less competitive merchandising. Both companies highlighted the growing importance of omnichannel sales and mall rental income as stabilizing factors, but neither expects a rapid turnaround in 2026, given the uncertain outlook for tourism and domestic demand. 

IADS Notes: Thailand’s retail sector is experiencing a period of heightened uncertainty as both macroeconomic and geopolitical pressures converge, mirroring the challenges faced by Makro-Lotus and Big C. Throughout 2025 and into 2026, sources consistently highlight the sector’s vulnerability to declining tourism, with international arrivals down by 7% and forecasts revised downward, directly impacting retail revenues and same-store sales. The central bank’s warnings of a tough year ahead underscore the risks of over-reliance on tourism, as weak domestic demand and high consumer debt further erode profitability. Retailers such as Central have reported falling same-store sales and profits, despite ongoing expansion and investments in tourist-centric retail formats. The situation is compounded by external shocks, including border conflicts and intensifying regional competition, particularly from Vietnam, which has surpassed pre-pandemic retail levels. Mall operators and retailers are responding with strategic adaptations, such as experiential retail and digital integration, but the need for resilience, operational efficiency, and a more balanced approach between local and tourist-driven demand is increasingly evident. These dynamics, as documented from July 2025 to January 2026, illustrate the complex environment Thai retailers must navigate to sustain growth and profitability.

What lies ahead for Thailand’s retail conglomerates?

What: TikTok Shop has become a major driver of demand for Amazon by leveraging social commerce, influencer content, and integrated shopping experiences.

Why it is important: The rise of TikTok Shop highlights the need for brands and retailers to adapt quickly to new digital sales channels.

TikTok Shop’s emergence as a powerful commerce engine is redefining the dynamics of online retail, particularly in its relationship with Amazon. By seamlessly integrating entertainment and shopping, TikTok Shop leverages the influence of content creators and viral trends to drive product discovery and conversion, especially among younger consumers. This model not only fuels demand on its own platform but also stimulates sales on Amazon, as users often transition from TikTok’s engaging content to established e-commerce sites for purchase. The platform’s evolution from a bargain-focused marketplace to one that attracts mainstream brands and higher price points signals a broader shift in consumer expectations and retail strategy. As more legacy brands and retailers, such as Marks & Spencer, embrace TikTok Shop’s shoppable content and live engagement features, the boundaries between content, commerce, and community continue to blur. This transformation underscores the urgency for brands and retailers to innovate and adapt, ensuring they remain relevant in an increasingly digital and socially-driven retail environment.

IADS Notes: TikTok Shop’s rapid evolution has fundamentally altered the competitive landscape of global retail, positioning itself as a formidable demand engine not only for its own marketplace but also as a catalyst for Amazon’s commerce ecosystem. As explored in Forbes (February 2026), TikTok Shop’s integration of entertainment and commerce, powered by influencer-driven content and viral trends, has enabled it to attract a significant share of first-time buyers, particularly among Gen Z. The Robin Report (February 2026) underscores how this shift compels traditional retailers to adapt, as TikTok Shop’s expansion into new markets and its maturation from a bargain-focused platform to one that accommodates mainstream brands and higher price points signals the growing influence of social commerce. Digiday (December 2025) highlights the influx of established brands and rising prices, while Journal du Net (March 2025) details TikTok Shop’s entry into France, demonstrating its ability to transform the entire purchasing journey through a fully integrated social commerce model. The experience of Marks & Spencer, as reported by Drapers (November 2025), exemplifies how legacy brands are leveraging TikTok Shop’s shoppable content and live engagement to reach digitally native consumers and drive conversion.

How TikTok Shop is Amazon’s most powerful commerce demand engine

What: Shein’s regional openings in BHV stores drew limited crowds and mixed reactions, highlighting the challenges of translating online popularity into offline retail success.
Why it is important: The muted response and backlash highlight the reputational and operational challenges of fast-fashion partnerships for traditional retailers.
Shein’s attempt to expand its physical presence through regional openings in BHV department stores has exposed the difficulties digital-native brands face when entering established retail environments. While the brand’s Paris debut at BHV Marais generated significant attention and controversy, the subsequent launches in provincial cities attracted only modest crowds and revealed consumer disappointment with higher prices and a more limited assortment compared to the online offer. The partnership has led to operational disruptions at BHV, including staff protests, the withdrawal of independent brands, and a sharp 45% decline in Shein’s French sales. Local retailers and unions have voiced concerns about aggressive pricing and the potential impact on city-centre commerce, while regulatory scrutiny and public backlash have intensified. This experience underscores the reputational and operational risks for both fast-fashion platforms and department stores, highlighting the need for careful adaptation and stakeholder engagement when blending disruptive e-commerce models with legacy retail.
IADS Notes: Shein’s regional expansion into BHV stores and its aftermath are documented in Reuters and Ouest France (February 2026), Business Insider (November 2025), Fashion Network (December 2025), and Inside Retail (October 2025). These sources detail the operational challenges, sales declines, and reputational risks that have accompanied the partnership, illustrating the complexities of integrating digital-native fast-fashion brands into traditional retail and the heightened scrutiny such moves attract in the French market.

Shein’s expansion into provincial BHV locations faced muted consumer response

What: Central Phuket’s new development aims to elevate the island’s status as a premier hub for luxury shopping and international tourism.

Why it is important: The development highlights how Southeast Asian retail hubs are leveraging large-scale investments to reshape regional tourism and luxury consumer behaviour.

Central Phuket’s ambitious expansion project is set to transform the island into a premier destination for luxury retail and international tourism. By introducing new high-end retail spaces, exclusive brand partnerships, and integrated lifestyle offerings, the development aims to attract affluent travelers and position Phuket alongside leading luxury shopping destinations in Asia. This initiative is part of a broader trend in Southeast Asia, where major retail operators are investing heavily in mixed-use developments that blend shopping, hospitality, and cultural experiences to capture both local and international demand. The expansion not only enhances Phuket’s appeal to global luxury brands but also stimulates the local economy by creating jobs and increasing tourism revenue. As competition intensifies among luxury malls in the region, Central Phuket’s strategy underscores the importance of experiential retail and strategic positioning in attracting discerning consumers. The project reflects a shift in consumer expectations and reinforces the island’s role as a key player in the evolving landscape of luxury retail in Asia.

IADS Notes: Central Phuket’s expansion reflects the strategic investments made by Central Pattana, as reported in Inside Retail in March 2025 and October 2025, where large-scale mixed-use projects have strengthened Bangkok’s position as a luxury retail hub. Siam Piwat’s efforts to position Thailand as a global luxury destination, highlighted in Business of Fashion in February 2026, further illustrate the country’s focus on experiential malls and international partnerships. The influx of international luxury brands into emerging markets, discussed in The Robin Report and WWD in January 2026, and the emphasis on immersive experiences in Thai malls, as covered by Inside Retail in June 2025, underscore how Phuket’s development is both a response to and a catalyst for the evolving luxury retail landscape in Southeast Asia.

Central Phuket unveils major expansion to cement island’s luxury retail status

What: Coupang is confronting the fallout from a massive data breach that has severely impacted consumer trust and triggered regulatory scrutiny.

Why it is important: Coupang’s experience underscores the competitive risks and operational disruptions that follow major breaches, reinforcing the importance of digital resilience for retailers.

Coupang, one of Korea’s leading e-commerce platforms, is grappling with the aftermath of a significant data breach that has shaken consumer confidence and placed the company under intense regulatory examination. The breach, which compromised the personal information of millions of customers, has not only led to a sharp decline in public trust but also prompted swift action from authorities and internal leadership changes. As the company works to address the fallout, it faces mounting legal challenges and the threat of financial penalties, all while striving to restore its reputation in a highly competitive market. The incident has exposed vulnerabilities in Coupang’s cybersecurity infrastructure, highlighting the broader risks faced by digital-first retailers operating in an environment of increasing cyber threats. This situation serves as a stark reminder of the operational, legal, and reputational consequences that can arise from inadequate data protection, emphasising the critical need for robust security measures and transparent crisis management in the retail sector.

IADS Notes: The Coupang data breach stands as a pivotal event for the retail sector, mirroring a year of intensifying cyber threats and their far-reaching consequences. In January 2026, Inside Retail reported that Coupang’s exposure of over 33 million customer records led to a US securities class action, executive resignations, and regulatory investigations, underscoring the industry’s heightened focus on executive accountability and transparent crisis management. Further analysis by Inside Retail in December 2025 highlighted how failures in disclosure and leadership response can rapidly erode consumer trust and attract increased scrutiny from regulators and investors. The Retail Bulletin’s August 2025 report revealed that only 18% of retailers have mature digital core security, leaving most vulnerable to operational and reputational harm. By February 2026, Harvard Business Review noted a shift toward collective resilience and industry-wide collaboration, emphasising the necessity of rapid recovery and coordinated defense for business continuity. Additionally, Retail Week’s October 2025 coverage of Marks & Spencer’s termination of a tech contract following a cyberattack illustrated the growing trend of reassessing third-party technology partnerships and prioritising robust vendor management in response to digital risk.

Coupang set to declare fallout from massive Korean data breach

What: Saks Global is making progress with vendors, resuming shipments and restoring inventory flow after bankruptcy with the support of new funding and leadership.
Why it is important: The renewed flow of goods and vendor engagement signals cautious optimism but also reveals the challenges of restoring confidence after financial distress.
Saks Global’s efforts to rebuild vendor relationships and resume shipments mark a pivotal step in its post-bankruptcy recovery, as the company works to restore operational stability and customer trust. With the support of a $1 billion bankruptcy loan and a new leadership team led by Geoffroy van Raemdonck, Saks Global has prioritised transparent communication and timely payments to vendors, resulting in a gradual normalisation of inventory flow. Over 380 brands have resumed shipping, and 75% of planned first-quarter receipts are now confirmed, reflecting cautious optimism among suppliers. However, the company continues to face significant challenges, including stricter payment terms, ongoing concerns about outstanding debts, and the loss of key talent to competitors. The renewed engagement from vendors is essential for Saks Global’s survival, but the situation underscores the fragility of recovery and the operational discipline required to sustain relevance in the luxury retail sector.
IADS Notes: Saks Global’s recovery is documented in WWD (January 2026), Reuters (February 2026), and Inside Retail (August 2025), which detail the company’s financial restructuring, leadership overhaul, and efforts to repair supplier relationships. The renewed flow of merchandise and vendor engagement are positive indicators, but persistent concerns about payment terms and operational viability highlight the ongoing risks and complexities of restoring confidence after financial distress.

Saks Global execs: ‘We’re making progress with vendors’

What: Liverpool’s profits fell by 25% in 2025 despite a 7% increase in revenue, as the company launched a new wholesale business and expanded digital and international partnerships.

Why it is important: Liverpool’s results illustrate the challenges of sustaining profitability amid macroeconomic pressures and the need for diversification in modern retail.

Liverpool’s 2025 performance underscores the complexities facing department store groups in emerging markets, as the company reported a 25% decline in net profit despite achieving nearly 7% revenue growth. The retailer’s results reflect the impact of a consumption slowdown in Mexico and shifting tariff policies in the United States, which have squeezed margins and increased operational costs. In response, Liverpool is diversifying its business model, launching a new wholesale distribution division with an exclusive Dockers license through a long-term agreement with Authentic Brands. This move is designed to drive revenue growth, improve profitability, and broaden the company’s reach beyond its traditional retail and digital channels. Online sales now account for over 30% of Liverpool’s business, highlighting the importance of digital transformation in maintaining competitiveness. The group’s multi-segment strategy, spanning retail, financial, and real estate divisions, demonstrates a commitment to resilience and adaptation in a volatile economic environment. Liverpool’s evolving approach positions it as a forward-thinking leader in the Mexican retail sector.

IADS Notes: Liverpool’s 2025 results mirror broader industry trends, with margin pressures and operational challenges noted throughout the year (Modaes, April/October 2025). The company’s diversification into wholesale, digital expansion, and international partnerships—including the Dockers license and a stake in Nordstrom—reflects efforts to offset traditional retail weaknesses (Modaes, January 2026; WWD, February 2026; Digital 360, November 2025). These strategies underscore the importance of innovation, digitalisation, and multi-segment growth for sustained resilience in modern retail.

Liverpool cuts its profits by 25% despite increasing revenue by 7% in 2025

What: Falabella’s profit tripled and revenue grew by 9% in 2025, driven by asset revaluation, operational improvements, and strong retail performance.

Why it is important: Falabella’s success underscores the importance of diversified business models and regional investment for resilience in Latin American retail.

Falabella closed 2025 with record financial results, achieving a 9% increase in revenue and tripling its net profit, largely due to the revaluation of its real estate assets and robust operational performance. The company’s retail division was a key driver, benefiting from improved inventory management, reduced promotional activity, and enhanced profitability in its online channel. Non-banking businesses also contributed significantly, with revenues rising 10% year over year. Falabella’s EBITDA climbed by 34%, reflecting strong gross profit growth and disciplined cost control. The group’s strategic focus on integrating traditional and digital retail formats, along with its expansion in Peru and Chile, further strengthened its market position. Looking ahead, Falabella plans to invest $900 million in 2026, targeting new store openings, renovations, technology, and logistics, and restoring pre-pandemic investment levels. This approach not only supports continued growth but also reinforces Falabella’s leadership and resilience in the competitive Latin American retail landscape.

IADS Notes: Falabella’s 2025 results and investment plans are supported by Modaes reports from February, May, January, and September 2025–2026, which highlight the group’s consistent profit and revenue growth, operational improvements, and commitment to expanding both physical and digital infrastructure across Latin America. These strategies illustrate how diversified business models and regional investment underpin resilience and sustained success in the sector.

Falabella grows by 9% in 2025 and triples its profit 

What: Top luxury brands, including Burberry, LVMH, and Kering labels, have restarted shipments to Saks Global, signalling renewed confidence during its bankruptcy recovery.

Why it is important: The partnership demonstrates how established brands are rethinking store formats and in-store experiences to remain competitive in a shifting retail landscape.

Saks Global’s ability to resume merchandise shipments from leading luxury brands such as Burberry, LVMH, and Kering marks a pivotal moment in its efforts to recover from bankruptcy and restore its position in the high-end retail sector. After a period of halted deliveries and strained vendor relationships, the renewed flow of goods reflects a cautious but growing confidence among suppliers, who are now reassured by Saks Global’s recent financial restructuring and leadership changes. The company, under CEO Geoffroy van Raemdonck, has prioritised transparent communication and timely payments, recognising that the restoration of brand partnerships is essential for both operational stability and customer experience. However, the bankruptcy has also prompted many luxury brands to reconsider their distribution strategies, with some shifting toward direct-to-consumer and speciality retail models to maintain greater control over inventory and brand presentation. This evolving dynamic underscores the need for department stores to innovate and adapt their in-store experiences and business models to remain relevant in a rapidly changing retail landscape.

IADS Notes: The resumption of shipments to Saks Global is supported by recent reports of brands cautiously restarting deliveries after the company secured a $1 billion bankruptcy loan and addressed vendor concerns (WWD, January 2026; Reuters, February 2026). The new executive team’s focus on vendor trust and transparent communication has been critical, but the bankruptcy has also accelerated a shift among luxury brands toward alternative distribution models, as detailed in WWD’s January 2026 analysis.

Saks Global CEO says top brands are shipping despite bankruptcy

What: Retail brands like Revelyst and J.Crew are adopting AI for coding, data analysis, and customer engagement, overcoming initial employee apprehension through training and organisational alignment.

Why it is important: These developments illustrate the growing necessity for retailers to integrate AI into core business processes to remain competitive, as documented in the past year’s IADS data.

Retailers such as Revelyst, J.Crew, and PopSockets are rapidly integrating artificial intelligence into their operations, moving beyond initial skepticism among employees to widespread adoption across departments. At Revelyst, AI is now embedded in coding, data analysis, and app development, with leadership emphasizing early team involvement, regular training, and transparent communication to ease concerns about job security. J.Crew’s experience highlights the importance of data quality, as the company invested in gathering and cleaning customer reviews before implementing AI-driven summaries, ensuring meaningful insights for both customers and internal teams. PopSockets has leveraged AI to optimize advertising, building systems that analyze thousands of ad variations for maximum impact. Across these brands, the focus has shifted from flashy AI experiments to practical applications that streamline workflows, enhance customer experience, and deliver measurable business value. The journey underscores that successful AI integration requires not only technological investment but also organizational alignment, robust data management, and a commitment to continuous learning. 

IADS Notes: The rapid integration of artificial intelligence across retail operations, as seen with Revelyst, J.Crew, and PopSockets, reflects a sector-wide transformation documented throughout 2025 and early 2026. Industry sources consistently report that AI adoption is driving measurable gains in efficiency, customer experience, and revenue, with 71% of retail employees now using AI tools weekly and 15–30% improvements in service efficiency observed by July 2025. However, these benefits are contingent on robust data quality, organizational alignment, and comprehensive training, as only 36% of retail workers feel adequately prepared for AI-driven change. Leadership commitment and systematic upskilling have emerged as critical success factors, with companies that invest in both technology and people achieving the most significant operational and commercial advantages. The shift from experimental AI projects to domain-specific, production-scale implementations is enabling retailers to automate workflows, enhance personalization, and optimize advertising, but persistent challenges in integration and workforce readiness remain. As AI becomes central to retail strategy, the sector’s future competitiveness will depend on the ability to balance digital innovation with human expertise and operational resilience, as highlighted in IADS sources from March 2025 to February 2026.

Brands share lessons on the ‘messy middle’ of building AI tools

What: Hong Kong’s K11 Musea recorded record footfall and sales during Golden Week, with luxury brands and experiential initiatives fueling growth.

Why it is important: This performance signals renewed confidence in Hong Kong’s luxury sector, with international brands and mall operators benefiting from the return of high-spending tourists.

K11 Musea’s exceptional Golden Week results mark a turning point for Hong Kong’s luxury retail landscape. The harbourfront mall achieved record footfall and a 60% surge in tourist spending compared to the previous year, with standout sales in watches, jewellery, and international luxury brands. Experiential programming, such as festive events and dining e-voucher campaigns, played a crucial role in attracting visitors and driving high-value transactions, while digital payment partnerships like Alipay further boosted conversion rates. Member sales climbed 54% year on year, and food and beverage tenants reported near-full bookings, underscoring the broad-based recovery across categories. The momentum is expected to continue into upcoming holiday periods, reflecting renewed confidence among both consumers and brands. As Hong Kong reasserts itself as a premier luxury destination, K11 Musea’s strategy demonstrates the power of combining tourism, experiential retail, and digital innovation to capture growth in a competitive market.

IADS Notes: K11 Musea’s record-breaking Golden Week performance is a clear reflection of Hong Kong’s luxury retail rebound, driven by the return of mainland Chinese tourists and resilient premium spending. Inside Retail Asia (October 2025) confirms that K11 Musea achieved double-digit sales growth during Golden Week, with luxury categories and experiential marketing initiatives playing a pivotal role. South China Morning Post (January 2026) highlights that luxury malls like K11 Musea and Harbour City led the city’s retail recovery in late 2025, benefiting from increased tourist arrivals and a surge in high-value transactions. Retail in Asia (December 2025) details how K11 Musea’s partnerships with Alipay and the rollout of e-voucher campaigns successfully boosted both footfall and transaction values during festive periods. Related news from The Standard (January 2026) and HKEJ (November 2025) further underscores the sector-wide momentum, with watches, jewellery, and F&B emerging as standout categories and luxury malls across Hong Kong reporting record sales as tourism returns. Collectively, these developments illustrate how a combination of experiential programming, digital payment integration, and the revival of international tourism is fueling a new phase of growth for Hong Kong’s premium retail destinations.

K11 Musea posts record Golden Week traffic, luxury sales jump

What: Marks & Spencer is preparing to exit the Philippines after more than thirty years of operations.

Why it is important: Marks & Spencer’s withdrawal underscores the need for legacy retailers to realign their operations amid evolving market dynamics in the region.

Marks & Spencer’s anticipated departure from the Philippines after over three decades signals a significant shift in the regional retail landscape. Despite recent successes in its home market, including record customer turnout during the 2025 Christmas season, the brand has struggled to maintain its foothold in Southeast Asia. This move reflects the broader challenges faced by legacy retailers as they navigate complex consumer preferences, increased competition, and shifting economic conditions in emerging markets. M&S’s experience in Australia, where it transitioned from direct retail to a wholesale partnership, further illustrates the necessity for international brands to adapt their strategies to local realities. The Philippine retail sector, meanwhile, continues to demonstrate resilience, with local conglomerates like SM Investments reporting profit growth despite external pressures. Ultimately, M&S’s exit highlights the importance of strategic flexibility and local adaptation for global retailers seeking sustainable growth in dynamic markets.

IADS Notes: In January 2026, Retail Week reported that Marks & Spencer achieved record customer numbers during the Christmas season in the UK, underscoring the brand’s adaptability and investment in omnichannel retail. Inside Retail’s July 2025 analysis of M&S’s strategy in Australia emphasised the importance of local partnerships and tailored product offerings for British retailers expanding abroad. In October 2025, Inside Retail detailed Central Retail’s decision to withdraw from Europe and refocus on Southeast Asia, reflecting a broader trend of strategic realignment among global retailers. The Diplomat’s March 2025 coverage highlighted shifting investor sentiment and ongoing volatility in Southeast Asia, while Inside Retail’s November 2025 report on SM Investments demonstrated the resilience and profit growth of Philippine retail conglomerates, even as international brands like M&S reconsider their market presence.

Marks & Spencer looks set to exit the Philippines

What: Retailers are investing heavily in AI, but measurable productivity gains and widespread operational transformation remain limited.

Why it is important: This situation underscores the gap between technological promise and practical results, echoing recent findings on AI’s uneven impact in retail.

Despite significant investment and enthusiasm for artificial intelligence, the retail sector has yet to experience a broad-based productivity boom. While AI has generated pockets of operational improvement and some leading retailers report notable gains, the majority of companies struggle to achieve measurable results at scale. Many retailers face persistent obstacles in integrating AI into core business processes, with only a small fraction successfully transforming workflows or realising substantial returns on their investment. Workforce adaptation remains a challenge, as employees—especially those in entry-level roles—often feel unprepared for the changes AI brings, and upskilling initiatives have not kept pace with technological advancements. Meanwhile, consumer adoption of AI-powered shopping tools is rising, contributing to incremental improvements in customer service and sales efficiency, but these advances have not yet translated into the sweeping productivity gains once promised. The current landscape highlights the complexity of turning technological innovation into tangible business outcomes, as retailers navigate the realities of implementation and organisational change.

IADS Notes:
As reported in Forbes (March 2025), leading retailers achieved notable productivity gains through AI, but most companies have not realised broad benefits. The Wall Street Journal (December 2025) highlighted that only 25% of retailers report substantial returns on AI investment, with just 10% successfully scaling initiatives. BCG (June 2025) emphasised ongoing challenges in workforce upskilling and workflow redesign, while Le Monde (October 2025) noted that only 36% of retail employees feel prepared for AI-driven change. Despite these hurdles, Forbes (March 2025) documented growing consumer engagement with AI-powered shopping, which has led to some operational improvements and efficiency gains, underscoring the persistent gap between AI’s potential and its realised impact in retail.

The AI productivity boom is not here (yet)

What: Dayna Ziegler has left Saks Global to join Macy’s as senior vice president and general merchandise manager for women’s ready-to-wear.

Why it is important: This move highlights the ongoing talent shifts and leadership changes shaping the future of major retail organisations.

Dayna Ziegler’s transition from Saks Global to Macy’s as senior vice president and general merchandise manager for women’s ready-to-wear signals a pivotal moment in the evolving landscape of retail leadership. Ziegler, who previously oversaw multiple women’s and kids categories for Saks Fifth Avenue and Neiman Marcus, joins Macy’s at a time when the company is intensifying its focus on brand elevation and customer experience. Her appointment follows a period of significant restructuring at Saks Global, where the consolidation of buying teams and ongoing bankruptcy proceedings have led to notable executive departures and organisational shifts. At Macy’s, Ziegler will report to chief merchandising officer Nata Dvir, contributing her expertise to the retailer’s efforts to strengthen its ready-to-wear assortment and enhance its brand portfolio. Macy’s broader strategy, including investments in luxury and experiential retail, underscores the importance of experienced leadership in navigating industry transformation and driving growth. Ziegler’s move exemplifies how talent mobility and leadership renewal are central to the ongoing reinvention of major retail organisations.

IADS Notes: Dayna Ziegler’s move reflects a broader trend of executive turnover and restructuring in the retail sector, as seen in Saks Global’s consolidation of buying teams and workforce reductions in April 2025 (WWD) and further executive exits at Bergdorf Goodman in November 2025 (Retail Dive). Macy’s strategic recruitment of experienced leaders, such as Daniel Leppo in March 2025 (WWD), and its continued leadership evolution have supported its “Bold New Chapter” strategy, driving operational improvements and luxury segment growth as highlighted in January and December 2025 (Press Release, WWD).

Dayna Ziegler leaves Saks Global for Macy’s

What: Gen Z’s postmaterialist values are driving a fundamental shift in retail, prioritising experiences, ethics, and authenticity over traditional material consumption.

Why it is important: Gen Z’s values are accelerating the decline of traditional retail models and prompting innovation in digital and experiential offerings.

Gen Z is quietly but powerfully disrupting the retail industry by shifting away from materialism and embracing postmaterialist values. This generation’s focus on experiences, ethical consumption, and authenticity is forcing retailers to rethink their strategies and product offerings. Brands are increasingly challenged to demonstrate genuine commitments to sustainability and social responsibility, as Gen Z consumers scrutinise corporate practices and demand transparency. The traditional allure of status-driven luxury goods is giving way to a preference for meaningful experiences and digital engagement, prompting both mass-market and luxury retailers to innovate rapidly. Retailers that fail to adapt risk losing relevance, as Gen Z’s digital fluency and desire for community-driven, personalised experiences reshape the competitive landscape. The industry’s response to these evolving values is not only redefining what is considered essential but also accelerating the adoption of new business models that prioritise purpose and connection over possession.

IADS Notes: In May 2025, WWD reported that Gen Z and Millennials are redefining what items are considered necessities, with a growing emphasis on experiences and digital services over traditional goods. By October 2025, BCG and WWD highlighted how Gen Z’s demand for authenticity, digital engagement, and product value was transforming retail strategies, moving away from conventional brand loyalty. Retail Week in February 2025 emphasised the urgency for retailers to adapt to Gen Z’s projected $13 trillion spending power by 2030, underscoring the need for strategic change. Also in October 2025, Retail Wire discussed the generational divide in department stores, noting Gen Z’s preference for digital convenience and experiential retail. Finally, BoF in November 2025 examined how luxury brands in emerging markets, particularly India, are adapting to Gen Z’s digital fluency and desire for authenticity, reflecting a global transformation in retail engagement.

Gen Z postmaterialism is quietly disrupting the retail industry

What: Shein will increase its physical retail presence in France through new store openings inside BHV department stores.

Why it is important: The expansion highlights the growing influence of fast-fashion e-commerce players in traditional retail environments, intensifying competition and operational challenges.

BHV’s decision to open additional Shein stores across more French cities marks a significant evolution in the country’s retail sector. By deepening its collaboration with Shein, a digital-native fast-fashion giant, BHV is not only responding to shifting consumer preferences but also embracing the convergence of online and offline retail. This move is expected to reshape the competitive landscape, as Shein’s entry into physical retail spaces challenges both local and international fashion retailers. The partnership underscores the strategic necessity for traditional department stores to innovate and adapt, particularly as digital disruptors seek greater market penetration. However, this expansion is not without controversy, as it raises concerns about operational disruptions, reputational risks, and the broader implications for established retail models. The integration of Shein into BHV’s network reflects a broader trend toward omnichannel strategies, where legacy retailers leverage partnerships with global e-commerce leaders to remain relevant in a rapidly changing market.

IADS Notes: The expansion of Shein stores within BHV and other French department stores marks a pivotal moment for the retail sector, reflecting both the opportunities and deep challenges of integrating digital-native fast-fashion brands into traditional retail environments. As Shein’s partnership with BHV has unfolded, it has triggered significant operational disruption, including staff protests, brand departures, and sharp declines in sales, particularly in secondary cities, as reported in February 2026. This collaboration is emblematic of a broader trend, highlighted in October 2025, where department stores seek revitalisation through alliances with disruptive e-commerce players, yet face heightened regulatory scrutiny and reputational risks. The backlash from unions, local brands, and authorities underscores the complexity of such partnerships, with established groups like Galeries Lafayette actively resisting Shein’s entry to protect their brand values and contractual integrity. Meanwhile, Shein’s rapid growth and strong rural penetration, documented in March 2025, challenge the traditional urban-centric retail model and intensify competition for both local and international players. These developments collectively illustrate the volatility and strategic dilemmas facing French retail as it navigates the convergence of digital innovation and legacy business models.

French department store BHV to open new Shein stores in more French cities

What: IKEA will host Decathlon in its Croydon store as part of a new strategy to rent space to third-party retailers and attract more shoppers.

Why it is important: The partnership demonstrates how established brands are rethinking store formats and in-store experiences to remain competitive in a shifting retail landscape.

IKEA’s decision to rent space to Decathlon within its Croydon store marks a significant evolution in its approach to physical retail, as the company seeks to boost footfall and better monetise its expansive store network. This initiative is part of a broader strategy to adapt to changing consumer behaviours and economic pressures, moving beyond the traditional “blue-box” model to embrace collaborative, multi-brand environments. By welcoming Decathlon—a leading sports retailer—into its UK location, IKEA is not only diversifying its in-store offering but also creating new reasons for customers to visit and engage with its products. This shift is complemented by IKEA’s ongoing investments in smaller urban stores, digital services, and price adjustments to appeal to value-driven shoppers. The partnership with Decathlon, alongside similar collaborations with other retailers, signals a willingness to innovate and experiment with store formats, ensuring IKEA remains relevant and competitive as retail dynamics continue to evolve.

IADS Notes: IKEA’s partnership with Decathlon reflects a broader trend of strategic collaborations and experiential retail, as seen in its in-store shop launches with Best Buy in the U.S. (Chainstore Age CSA, November 2025; Retail Dive, August 2025). Decathlon’s move toward compact, urban formats (Fashion United, August 2025) and IKEA’s investment in urban flagships like Oxford Street (Financial Times, May 2025) underscore the importance of proximity and convenience. The closure of larger stores in China in favour of smaller, digitally integrated formats (Fashion Network, January 2026) further highlights the need for established brands to rethink store formats and in-store experiences to stay competitive.

IKEA to host Decathlon as it opens space to other retailers