What: Ralph Lauren expands its experiential retail footprint with its first cafe in Thailand at CentralWorld Bangkok.

Why it is important: This opening reflects the growing trend of luxury brands using F&B concepts to create immersive brand experiences in high-growth Asian markets. Ralph Lauren is set to enhance its presence in Thailand's luxury market with the opening of its first Ralph's Coffee location at CentralWorld Bangkok on December 20.

The cafe, situated on the first level of the shopping centre, joins the brand's existing network of successful coffee establishments across Hong Kong, China, and Japan. Following the characteristic white and dark green colour scheme and colonial interior style that defines Ralph's Coffee globally, this new location maintains brand consistency while expanding into a promising market. The move builds upon Ralph Lauren's successful coffee concept, which originated in New York City in 2014 and has since evolved to include both permanent locations and mobile coffee trucks in key global markets. This expansion follows the brand's successful entry into Singapore's cafe scene last year, demonstrating its continued commitment to developing its presence in strategic Asian markets through experiential retail concepts.

IADS Notes: Ralph Lauren's strategic decision to open its first Thai cafe at CentralWorld aligns with significant developments in Thailand's luxury retail landscape. According to November 2024 data, Thailand's luxury market is poised for substantial growth, targeting US$3.6 billion by 2029, making it an opportune time for premium brand expansion. This move mirrors a broader trend seen in October 2024 with Louis Vuitton's Le Café concept at Heathrow, where luxury brands are leveraging F&B experiences to deepen customer engagement. The timing is particularly relevant given Central Group's recent 4-billion-baht transformation of Central Chidlom, reported in June 2024, which demonstrates Bangkok's readiness for elevated retail experiences. This cafe opening also follows successful luxury F&B integrations observed in August 2024, where premium coffee concepts have proven effective in enhancing customer dwell time and brand loyalty in Asian markets.

Ralph Lauren to open first cafe in Thailand 

What: Macy's reports Q3 net sales decrease of 2.4%, and adjusts guidance while highlighting success in its "First 50" locations, Bloomingdale's, and Bluemercury.

Why it is important: This development reflects both the challenges and progress in Macy's transformation strategy, as the company balances operational oversight with strategic initiatives while facing pressure from activist investors.

Macy's has completed its investigation into USD 151 million in delivery expense accounting errors, determining that a former employee intentionally made erroneous entries between Q4 2021 and Q3 2024. The company reported Q3 net income declined to USD 28 million from $41 million year-over-year, with net sales decreasing 2.4% to USD 4.7 billion. Despite overall declines, bright spots emerged with the "First 50" locations showing 1.9% comparable sales growth, while Bloomingdale's and Bluemercury reported positive comparable sales of 3.2% and 3.3% respectively. The company raised its annual sales guidance to USD 22.3-22.5 billion but lowered earnings expectations to USD 2.25-2.50 per share. These results come as Macy's faces new pressure from activist investors urging consideration of spinning off Bloomingdale's and Bluemercury.

IADS Notes: While the USD 151 million delivery expense error shows no material impact, the company's "Bold New Chapter" strategy continues to show promise, particularly in its "First 50" locations. This comes amid new pressure from activist investors to consider spinning off Bloomingdale's and Bluemercury, highlighting the tension between transformation initiatives and shareholder demands.

Macy’s Q3 net sales decreased by 2.4%, cuts its annual profit forecast

What: Le Bon Marché announces "Je t'aime comme un chien," a comprehensive dog-themed exhibition running from February to April 2025, featuring store-wide installations, exclusive brand collaborations, and interactive experiences for both pets and their owners.

Why it is important: The initiative capitalises on the post-Covid surge in pet ownership and societal trends, transforming a traditional retail space into an experiential destination that engages customers through both commercial and emotional connections.

Le Bon Marché's upcoming exhibition "Je t'aime comme un chien" will transform the department store into a dog-celebrating space from February to April 2025. The store-wide transformation includes converting the iconic escalators into giant bones and incorporating playful dog-themed motifs throughout. Nearly 200 brands are participating, with two distinct approaches: specialised pet brands offering accessories and care products, and traditional fashion houses creating their first pet-related items or dog-inspired products for humans. The initiative includes interactive elements such as a café collaboration with Bâtard Magazine and Casa del doggo, grooming services, and live portrait sessions for dogs and owners.

IADS Notes: Following successful partnerships with Collector Square and its recent private label rebranding, this initiative demonstrates Le Bon Marché's commitment to creating engaging, themed environments. The exhibition aligns with broader industry trends where experiential retail and unique programming help differentiate department stores in a competitive market.

Le Bon Marché’s next exhibition will be about dogs and their owners 

What: Oxford Street is undergoing a £300+ million transformation through major retail developments and strategic store openings, reducing vacancy rates to below 5% despite ongoing challenges.

Why it is important: This transformation marks a strategic shift from traditional department store dominance to a mixed-use retail approach, balancing flagship stores with experiential retail concepts and modernised shopping environments.

Oxford Street is experiencing a significant renaissance driven by substantial private sector investments and strategic developments. The street's vacancy rate has dropped to below 5%, marking a dramatic improvement from recent years when vacant units were dominated by American candy stores. The eastern end has gained momentum through developments like the Future Stores concept and the Elizabeth Line's impact, while the western end is set for revitalisation with M&S's approved redevelopment of its Marble Arch store. IKEA's innovative approach to maintaining presence through a temporary concept store, while preparing for their main store opening in spring 2025, demonstrates creative solutions to development delays. The street's transformation is further supported by John Lewis's investment in revamping its flagship store and potential pedestrianisation plans. Despite remaining challenges, including crime concerns and competition from other London retail destinations, the coordinated efforts of major retailers and property developers suggest a promising future for London's premier shopping street.

IADS Notes: Oxford Street's revival is gaining momentum through significant private sector investments and strategic developments. In December 2024, M&S secured approval for its £150 million Marble Arch redevelopment , marking a crucial turning point for the western end of the street. This complements the £132 million transformation of the former House of Fraser building announced in February 2024, which aims to diversify the street's offering through a mixed-use approach. The eastern end has already shown signs of regeneration with the October 2024 launch of the £20 million Future Stores concept , introducing a tech-driven retail experience targeting younger consumers. IKEA's strategic approach to maintaining presence through its 'Hus of Frakta' pop-up demonstrates innovative interim solutions while preparing for permanent store openings. These developments are supported by broader market indicators, as evidenced by Westfield London's positive performance report in February 2024, showing increased footfall and sales, suggesting a broader recovery in London's retail landscape. The commitment of major retailers like John Lewis, with its substantial investment announced in October 2024, further reinforces confidence in Oxford Street's future as a premier shopping destination.

The renaissance of London’s Oxford Street is underway – but still has a long way to go

What: Ulta Beauty collaborates with Zuru Toys to launch 68 miniature replicas of popular beauty products, targeting children as young as six years old through collectible mystery balls, raising concerns about age-appropriate marketing in the beauty industry.

Why it is important: This strategic move highlights the growing tension between retailers' need to secure future customers and ethical concerns about marketing adult beauty products to increasingly younger demographics.

Ulta Beauty's introduction of USD10 mystery balls containing miniature replicas of popular products represents a calculated effort to engage younger consumers. While containing no actual cosmetics, these toys are driving interest in real products among children, as evidenced by 10-year-old Skyla's desire to purchase Caffeine Energizing Hydrogel Eye Patches after playing with the toy version.

The initiative has shown early success, with products frequently selling out and generating significant social media engagement among young girls. However, this strategy has raised concerns from parents and the Children's Advertising Review Unit about age-appropriate marketing, particularly regarding products containing ingredients like retinol and hyaluronic acid. Despite these concerns, Ulta plans to expand its toy offerings, viewing Gen Alpha as potentially more engaged beauty enthusiasts than previous generations.

IADS Notes: While facing competition from Sephora, this move aligns with the company's efforts to capture Gen Z and Gen Alpha consumers. However, concerns about age-appropriate marketing highlight the delicate balance between early customer acquisition and responsible retail practices.

Ulta is selling toys to hook young kids on make-up

What: SM Supermalls announces plans to open three new regional malls in Laoag, La Union, and Zamboanga by 2025, while simultaneously undertaking major renovations of existing properties, as part of its strategy to reach 100 locations by 2027.

Why it is important: This development underscores the continuing viability of shopping malls in Southeast Asia, particularly when operators balance new market penetration with the modernization of existing assets to meet changing consumer expectations.

SM Supermalls is embarking on an ambitious expansion plan with three confirmed mall openings planned for 2025 in Laoag, La Union, and Zamboanga. The company's president, Steven Tan, revealed that the Zamboanga location will feature a gross floor area larger than the existing SM Mindoro's 38,000 square meters. This expansion is part of a broader strategy to reach 100 malls by 2027, with additional openings planned for 2026 and 2027. Simultaneously, the company is investing in more than ten renovation and redevelopment projects, including significant upgrades to flagship properties. The Mall of Asia renovation is nearing completion, with plans to unveil a distinctive sky park featuring a FIFA-sized football field. The dual approach of new development and renovation of existing assets demonstrates SM's commitment to both market expansion and maintaining the relevance of its current portfolio.

IADS Notes: SM Supermalls' latest expansion announcement builds upon a year of strategic growth and portfolio optimisation throughout 2024. The company's plan to open three new malls in Laoag, La Union, and Zamboanga aligns with their successful regional expansion strategy, evidenced by their strong performance outside Metro Manila as reported in April 2024 . This regional focus is complemented by significant investments in existing assets, as demonstrated by the Mall of Asia renovation project. The approach mirrors the company's larger mixed-use development vision, exemplified by September 2024's announcement of the $2.6 billion SM Smart City project in Pasay City. The strategy of parallel expansion and renovation is proving successful, with March 2024 data showing plans for 440,000 square meters of new retail space, while the mall division reported a 9% increase in rental income by July 2024. This balanced approach to growth and asset enhancement positions SM Supermalls strongly in their pursuit of 100 locations by 2027.

SM to open three new malls next year, eyes 100 locations by 2027

What: H Mart launches its largest-ever food hall at American Dream mall, featuring a 16,680-square-foot space offering diverse Asian cuisine options from dim sum to Korean barbecue.

Why it is important: The development showcases how specialty grocers can leverage their cultural expertise to create immersive dining experiences, bridging the gap between retail and hospitality while capitalising on the growing demand for authentic Asian cuisine.

H Mart's strategic expansion at American Dream mall marks a significant milestone in retail dining evolution with its largest food hall to date. The 16,680-square-foot space offers an extensive array of Asian cuisine, from dim sum and Korean barbecue to Japanese curry, complemented by a customisable Wok Bar and draft beer selections. This development builds upon the existing H Mart grocery store within the mall, creating a comprehensive Asian food destination. According to grocery chain president Stacey Kwon, food halls are "iconic staples" of H Mart stores, making this expansion a natural progression of their retail strategy. The initiative aligns with a broader trend of malls upgrading their traditional food courts into sophisticated food halls, offering fast-casual dining options that combine the convenience of quick service with sit-down restaurant quality. This transformation is part of a larger movement in American retail, exemplified by developments like Garden State Plaza's food hall and American Dream's multiple dining venues, which cater to diverse consumer preferences from casual meals to upscale dining experiences.

IADS Notes: The launch of H Mart's largest food hall at American Dream mall reflects a convergence of US and Asian retail trends observed throughout 2024. In the US market, the Mall of America's experiential initiatives in May 2024 revealed that 60% of Gen Z consumers view malls as social destinations, whilst American Dream's success in November 2024 demonstrated the viability of reducing traditional retail space in favour of dining and entertainment. Meanwhile, Asian markets have been pioneering the food hall concept, as evidenced by SM Supermalls' July 2024 report showing food tenants tripling their footprint to 30% of leased areas, and Shinsegae's Sweet Park food hall achieving a remarkable 201% year-on-year sales increase in March 2024, particularly among younger consumers. H Mart's 16,680-square-foot food hall strategically bridges these two retail cultures, bringing Asian food hall expertise to the American market while aligning with US consumers' growing appetite for diverse, experiential dining destinations.

Upscale New Jersey malls elevate their fine dining offering

What: Prada and Miu Miu expand their digital presence through Snapchat's Bitmoji platform, creating a new virtual handbag category that democratizes luxury brand access for younger consumers.

Why it is important: This strategic digital expansion bridges the accessibility gap for Gen Z consumers while maintaining brand prestige, reflecting a broader trend of luxury brands adapting to virtual retail environments without compromising their premium positioning.

Prada Group has launched an innovative partnership with Snapchat's Bitmoji platform, enabling users to outfit their digital avatars with designer items from both Prada and Miu Miu brands. The collaboration introduces a new handbag category featuring iconic styles like Prada's Small Galleria Bag and Miu Miu's Wander Bag, available for virtual purchase using Snap Tokens. This digital initiative makes luxury accessories accessible at a fraction of their physical counterparts' cost, with virtual items priced under USD 10 compared to traditional retail prices exceeding USD 1,000. The partnership builds upon Prada Group's previous digital ventures, including their 2021 Bag Try-On AR Lens, and follows Valentino's pioneering luxury Bitmoji collection launched earlier this year. While industry experts debate the impact on brand premium, Prada Group maintains its commitment to enhancing brand visibility and desirability through strategic digital presence where younger shoppers congregate.

IADS Notes: Prada and Miu Miu's Snapchat Bitmoji initiative aligns with broader luxury retail trends observed throughout 2024. In October 2024, research showed that luxury brands are increasingly embracing lo-fi content and social commerce to engage younger audiences , while Gen Z's substantial USD 360 billion spending power demands seamless integration between digital and physical experiences . This strategy gains further relevance as November 2024 data revealed the success of integrating metaverse technologies into physical retail, exemplified by Valentino Beauty's smart mirror pop-up generating significant foot traffic and sales . The initiative particularly resonates with the emerging 'chaotic customisation' trend identified for 2025, where Gen Z consumers seek personalised, digitally-enhanced brand experiences . This multi-faceted approach to digital engagement demonstrates how luxury brands are strategically balancing accessibility with exclusivity to capture next-generation consumers.

How Prada and Miu Miu are tapping into a younger crowd through Snapchat Bitmoji

What: China reaches 230 million generative AI users in retail, with Baidu's Ernie Bot leading at 11.5% market share, showcasing the country's rapid adoption of AI-powered shopping solutions.

Why it is important: The dominance of domestic AI platforms in China's retail sector, surpassing global tech giants, reveals the growing competitiveness of local AI solutions and their potential to reshape international retail technology standards.

China's generative AI landscape has reached a significant milestone with 230 million users, representing one in six users in the world's largest internet market. Baidu's Ernie Bot has emerged as the market leader with an 11.5% share, outperforming international competitors like ChatGPT and Google's Gemini, which hold 7% and 3.8% respectively, despite not being officially available in mainland China. The adoption patterns reveal distinct user preferences, with nearly two-thirds of users employing AI for question-answering services and one-third utilising it for work-related tasks such as meeting transcripts and presentations. The market's maturity is evidenced by the registration of over 309 GenAI products with Chinese regulators, with Beijing and Shanghai emerging as primary innovation hubs. This widespread adoption has led to the commercial availability of more than 190 services, demonstrating China's robust AI ecosystem and its growing influence in shaping global retail technology trends.

IADS Notes: The rapid adoption of AI in China's retail sector, with 230 million users, mirrors broader global trends in AI integration. As noted in March 2024, Adobe's research demonstrated strong consumer acceptance with 58% recognising AI's positive impact on shopping experiences, particularly in clothing purchases . This consumer enthusiasm has driven industry-wide adoption, with a June 2024 Lucidworks study revealing that the retail sector leads in AI deployment, as nearly half of retailers report increased revenue and cost savings from their AI initiatives . The momentum continued through November 2024, when BCG's survey showed 38% of global consumers actively using GenAI during major sales events, with 80% reporting positive experiences. This progression suggests that China's extensive AI user base represents not an isolated phenomenon but part of a global shift toward AI-enhanced retail experiences.

China's retail AI adoption hits 230M users

What: Kiabi launches retail media network through Valiuz Adz partnership, offering advertisers access to its customer base through online and in-store channels.

Why it is important: This strategic move into retail media reflects a growing trend among retailers to monetise their customer data and physical/digital assets, as the sector is projected to reach $100 billion by 2027 in the US alone.

Kiabi is venturing into the retail media landscape through a strategic partnership with Valiuz Adz, a specialist company launched by the Mulliez group. This initiative enables the fashion retailer, which generates €2.2 billion in annual sales, to monetise its customer relationships by offering advertising opportunities to third-party brands across both digital and physical touchpoints. The programme already includes prominent advertisers such as Damart, Bébé Confort, RougeGorge, and Future Home, who can leverage Kiabi's customer data for targeted advertising campaigns. Managed internally by Valentin Tourelle, the initiative encompasses various formats including online videos, banner advertisements, and in-store activations. The retailer is testing event-based advertising initiatives with external brands at its laboratory store in Lezennes, near Lille, while also allowing marketplace sellers to showcase their products for testing. This development aligns with broader industry trends, as other retailers like Marionnaud, But, and Conforama have recently established their own retail media operations, while rumours suggest potential collaborations between Auchan and Intermarché in this space.

IADS Notes: As noted in March 2024 , retail media advertising is experiencing unprecedented growth, with projections reaching $100 billion in the US market by 2027. This trend is exemplified by Walmart's success, which reported in August 2024 a 30% growth in its advertising business. The timing of Kiabi's initiative aligns with a broader industry shift, as highlighted in July 2024 , where retail media networks are demonstrating potential to more than double retailers' margins from 1.7% to 4.3%. The partnership with Valiuz Adz mirrors successful implementations seen in October 2024 , where retailers like Boots have effectively leveraged their customer data through loyalty programmes.

French discounter Kiabi ventures in retail media

What: Ripley introduces cafes and beauty salons in its flagship Lima stores as part of a strategic initiative to transform its retail spaces into comprehensive lifestyle destinations, following the closure of two locations in Peru.

Why it is important: The initiative represents a strategic pivot in retail space utilisation, where department stores evolve beyond traditional shopping to create immersive destinations that meet modern consumers' lifestyle needs. This development highlights the retail industry's shift toward experiential offerings, as department stores seek to maximise profitability by integrating services that encourage longer store visits and increased customer engagement.

Ripley's transformation of its stores in Lima's Miraflores and San Isidro districts introduces new experiential elements through strategic partnerships. The Gourmet Xperience café, operated by Soanpro group, combines dining with a curated gift shop offering premium wines and accessories. The Shoppe beauty salon provides hair and nail services, particularly popular during high-traffic periods like the Christmas season. These additions follow the closure of locations in Jirón de la Unión and Plaza del Sol Piura, demonstrating Ripley's focus on enhancing remaining stores rather than maintaining wider coverage. The company plans to expand these concepts to other locations, including Plaza San Miguel, while also incorporating themed activations like 'Santa's House' to create memorable family experiences.

IADS Notes: While some retailers focus on enhancing omnichannel capabilities, Ripley's approach emphasises creating multifunctional spaces that complement traditional retail. This strategy aligns with successful experiential retail initiatives and responds to evolving consumer preferences, demonstrating how department stores can maximise space utilisation while enhancing customer engagement.

Ripley reinvents its stores with new experiences

What: China's retail sales grew 3% year-on-year to 4.38 trillion yuan in November, with rural areas outperforming urban regions and household appliances leading category growth at 22.2%.

Why it is important: The success of trade-in programs in driving durable goods sales while luxury categories decline signals a fundamental shift in Chinese consumer priorities, challenging traditional assumptions about the market's development.

China's retail sector demonstrated continued growth in November, with consumer goods sales reaching 4.38 trillion yuan, marking a 3% year-on-year increase. The performance revealed interesting geographical variations, with rural regions growing at 3.2% to reach 616.7 billion yuan, slightly outpacing urban areas which grew 2.9% to 3.76 trillion yuan. The government's trade-in program has significantly influenced consumer behaviour, particularly in durable goods categories. Household appliances and audiovisual equipment led the growth at 22.2%, followed by furniture at 10.5% and automobiles at 6.6%. In contrast, traditional luxury categories showed decline, with cosmetics down 1.3% and gold, silver, and jewelry falling 3.3%. The first eleven months of the year saw total retail sales reach 44.3 trillion yuan, up 3.5%, with online retail sales showing particular strength at 14 trillion yuan, representing a 7.4% increase. These figures reflect a broader transformation in Chinese consumer preferences and spending patterns.

IADS Notes: China's November 2024 retail sales growth of 3% aligns with broader trends observed throughout the year. As noted in October 2024, retail sales showed a more robust 4.8% increase, boosted by government initiatives encouraging consumers to replace old goods , a strategy that continues to drive significant growth in categories like household appliances (22.2%) and furniture (10.5%). The regional dynamics highlighted in November 2024 reveal persistent variations across China, with major cities like Shanghai and Shenzhen demonstrating stronger performance . This urban-rural divide is reflected in the latest figures, showing rural areas slightly outperforming urban regions (3.2% vs 2.9%), suggesting that consumption patterns are evolving differently across geographical segments, influenced by both government stimulus programs and local economic conditions.

China's retail sales up 3 pct in November

What: Mexico's antitrust regulator fines Walmex 93 million pesos for anti-competitive supplier practices, even as the retailer maintains strong market growth and accelerates its digital transformation initiatives.

Why it is important: This regulatory action reveals the growing tension between maintaining dominant market positions and ensuring fair competition in retail markets undergoing digital transformation, particularly in Latin America.

Mexico's Federal Economic Competition Commission (Cofece) has imposed a 93 million peso fine on Walmex for alleged anti-competitive practices with suppliers, particularly regarding their relationships with Amazon. This ruling comes after a four-year investigation sparked by reports of Walmex pressuring suppliers to withdraw products from competing e-commerce platforms. Despite these regulatory challenges, Walmex continues to demonstrate strong market performance, with revenue growth of 6.4% and e-commerce sales increasing by 19%. The company's strategic response includes expanding its digital capabilities through initiatives like Digital Landscapes for supplier analytics and Multichannel Solutions for fulfillment services. The case reflects broader industry dynamics as traditional retail leaders face increased competition from digital players like Shein, forcing adaptation of supplier relationships and marketplace strategies. While Walmex contests the ruling, citing legal misapplications, investor confidence remains strong, as evidenced by a 5% rise in share price following the announcement. This situation highlights the complex balance between maintaining market leadership and ensuring competitive practices in an evolving retail landscape.

IADS Notes: The Mexican antitrust ruling against Walmex highlights the complex balance between market dominance and competitive practices in evolving retail landscapes. While facing a 93 million peso fine for alleged anti-competitive supplier practices, Walmex continues to demonstrate strong market performance, with Q2 2024 showing 6.4% revenue growth and significant digital expansion . The company's evolving supplier relationship strategy, evidenced by the launch of Digital Landscapes analytics suite and Multichannel Solutions , reflects its attempt to modernise vendor partnerships while maintaining market control. This transformation comes amid intensifying competition in the Mexican retail sector, particularly from digital players like Shein , forcing traditional retailers to adapt their supplier and marketplace strategies. The contrast between Walmex's robust financial performance, including a 19% increase in e-commerce GMV , and regulatory scrutiny of its supplier practices underscores the challenges dominant retailers face in balancing growth with fair competition practices, especially as digital transformation reshapes traditional retail-supplier dynamics.

Walmart’s Mexican arm fined for anti-competitive conduct

What: Amazon reports its biggest-ever Black Friday Week and Cyber Monday, with record sales driven by electronics, beauty, and toys, while independent sellers contributed over 60% of total sales during the 12-day period.

Why it is important: The success demonstrates Amazon's ability to leverage its pricing power and vast seller network to capture consumer spending during a critical shopping period, despite economic uncertainties and increased competition. This record-breaking event underscores Amazon's dominance in e-commerce, particularly in attracting value-conscious consumers through a combination of competitive pricing and broad product selection from both independent sellers and direct retail.

Amazon's Black Friday Week and Cyber Monday event, running from November 21 to December 2, achieved unprecedented sales volumes across its platform. Electronics, beauty, and toys emerged as the top-selling categories, with specific items like Beats headphones, Samsung TVs, and Barbie products leading consumer demand. The event marked a significant milestone for independent sellers, who generated more than 60% of total sales. According to e-commerce analytics firm Profitero, Amazon maintained its competitive edge by offering prices averaging 14% lower than other leading US retailers. CEO Doug Herrington emphasised the company's focus on customer savings, noting that shoppers saved billions during the event, with plans for additional savings opportunities throughout the holiday season.

IADS Notes: While global online sales reached $74.4 billion during Black Friday, Amazon's success was particularly notable due to its strategic pricing approach and effective use of AI for personalised shopping experiences. This comprehensive strategy helped maintain its market leadership during the crucial holiday shopping period.

Amazon reports record-breaking Black Friday week & Cyber Monday

What: Walmart acknowledges it will miss its 2025 and 2030 emissions reduction targets due to infrastructure and technology limitations, while maintaining its 2040 net-zero goal.

Why it is important: As the world's largest retailer, Walmart's climate target revision signals broader industry challenges in balancing growth with sustainability commitments, potentially influencing how other retailers approach their environmental goals.

Walmart, the world's largest company by revenue, has announced it will likely miss its ambitious climate targets for both 2025 and 2030, citing challenges in energy policy, infrastructure, and low-carbon technology availability. The retailer had committed to reducing greenhouse gas emissions from its operations by 35% by 2025 and 65% by 2030, compared to 2015 levels. Despite this setback, Walmart maintains its ultimate goal of achieving zero emissions across global operations by 2040. The company's business expansion, including new store openings and increased shipping activities, has complicated its emissions reduction efforts, with operating emissions rising 3.9% to 15.1mn tonnes in 2023 despite revenue growing by 6%. Particular challenges include a 5.3% increase in refrigerant emissions due to ageing equipment and a 10% rise in transport fuel emissions from an expanded trucking fleet. The company's scope 3 emissions, encompassing its supply chain and customer product use, reached 618.9mn tonnes in 2023, highlighting the magnitude of the challenge ahead.

IADS Notes: Walmart's recent announcement about missing its climate targets reflects broader challenges in retail sustainability, particularly in managing complex supply chain emissions. In September 2024, the company demonstrated its commitment to addressing these challenges through a strategic partnership with Unilever aimed at reducing a 'gigaton' of emissions from their shared value chain . However, despite technological advances, including the October 2024 implementation of AI-driven operational efficiencies , Walmart's scope 3 emissions increased by 5.3% to 618.9mn tonnes in 2023. This struggle occurs against a backdrop of intensifying regulatory pressure for comprehensive sustainability reporting, highlighting the complex balance between business growth and environmental commitments that major retailers face. The company's acknowledgment of delays in meeting its targets, while maintaining its 2040 net-zero goal, suggests a realistic reassessment of the technological and infrastructural challenges involved in large-scale emissions reduction.

Walmart pushes back climate change targets

What: Global holiday shopping hits record levels with $74.4 billion in online sales, while increased in-store visits and AI adoption demonstrate evolving consumer behavior across multiple shopping channels.

Why it is important: This multi-channel success reveals a fundamental shift in retail, where digital innovation and physical retail experiences are no longer competing but complementing each other to drive overall growth.

The 2024 holiday shopping season has demonstrated remarkable strength across both digital and physical channels, with global online sales reaching $74.4 billion, marking a 5% year-over-year increase. Consumer behavior shows increasing sophistication in channel usage, with in-store visits growing to 126 million from 121.4 million in 2023, while maintaining strong digital engagement. Technology played a pivotal role in this year's success, with 38% of consumers utilising AI tools for deal-hunting and retailers adopting AI-driven pricing strategies. Mobile commerce continued its dominance, accounting for 55% of online spending and showing a 12.1% year-over-year increase. The season also revealed evolving promotional strategies, with retailers moving away from traditional mass discounts toward more precise, targeted approaches that better serve both digital and in-store shoppers.

IADS Notes: The 2024 holiday shopping season demonstrates significant evolution in retail dynamics, with global Black Friday online sales reaching $74.4 billion, marking a 5% year-over-year increase. This growth reflects a sophisticated hybrid shopping pattern, as consumers embrace both digital and physical channels, evidenced by in-store visits growing to 126 million from 121.4 million in 2023. The increased adoption of AI technologies has transformed the shopping experience, with 38% of consumers utilising AI tools for deal-hunting, while retailers leverage AI-driven pricing strategies to navigate inflationary pressures. Consumer behavior continues to evolve in response to extended promotional periods, with retailers moving away from traditional mass discounts toward more precise, targeted approaches. The dominance of mobile commerce, accounting for 55% of online spending with a 12.1% year-over-year increase , underscores the growing consumer comfort with digital shopping platforms. This multi-faceted growth, combining strong online performance with increased in-store visits, suggests retailers' successful adaptation to changing consumer preferences through strategic use of technology and omnichannel approaches.

The holiday shopping spirit is still alive – consumers are spending!

What: Altavia, the global retail marketing leader, launches Kazaar, an AI-powered platform that automates offline marketing campaigns from brief to delivery, revolutionizing traditional print marketing processes while incorporating sustainability considerations.

Why it is important: This innovation addresses a critical gap in retail marketing automation, as print campaigns remain essential for in-store activation while requiring modernization to meet current efficiency and sustainability demands.

Altavia has launched Kazaar, an AI-powered platform designed to modernize print marketing campaigns for retailers. Operating across 45 countries and serving over 1,000 brands, Altavia's new solution automates the entire campaign process, from initial briefing to final delivery. The platform features two key AI agents: one for generating creative concepts and another for project management guidance.

These agents help optimize decision-making while maintaining human oversight for quality control. Kazaar also integrates sustainability considerations by automatically calculating CO₂ emissions and recommending environmentally friendly options. This development addresses the growing need for efficient marketing solutions in physical retail, where print materials and point-of-sale advertising continue to play crucial roles in customer engagement. The platform's unified approach streamlines communication between stakeholders, including agencies, creative studios, and logistics partners, while reducing manual tasks.

IADS Notes: Kazaar's launch comes amid significant retail technology developments in 2024. Recent industry research shows that retailers implementing AI solutions have seen notable improvements in efficiency and revenue, with 87% reporting increased earnings . The platform follows successful AI implementations in retail marketing, such as Hyundai Department Store's advertising automation , which doubled engagement rates. This trend toward automation reflects the retail sector's broader move away from manual processes , as companies seek to enhance operational efficiency while maintaining quality control .

Altavia creates a start-up dedicated to campaign automation

What: Global Black Friday online sales reached $74.4 billion in 2024, with mobile commerce and AI-driven solutions reshaping the shopping landscape.

Why it is important: The record-breaking performance validates retailers' investments in AI and mobile technology, while highlighting the growing importance of digital transformation in meeting evolving consumer expectations.

The 2024 Black Friday shopping event marked a historic milestone in retail, with global online sales reaching $74.4 billion, representing a 5% increase from the previous year. The momentum began on Thanksgiving, which saw $33.6 billion in global online spending. In the U.S. market, different tracking methodologies revealed significant growth, with Adobe reporting $10.8 billion in sales (up 10.2% year-over-year) and Salesforce estimating $17.5 billion (up 7%). Mobile commerce dominated the landscape, accounting for 55% of all online spending, equivalent to $5.9 billion, demonstrating a 12.1% year-over-year increase. The integration of AI technologies played a crucial role, with retail sites experiencing an 1,800% increase in traffic from GenAI chatbots compared to the previous year. Notably, 20% of surveyed consumers reported using chatbots for deal-finding and shopping recommendations, indicating a growing acceptance of AI-assisted shopping experiences. Peak shopping hours between 10 a.m. and 2 p.m. Eastern saw spending rates of $11.3 million per minute, highlighting the event's intensity and consumers' enthusiasm for holiday bargains.

IADS Notes: The record-breaking Black Friday 2024 performance, with $74.4 billion in global online sales, represents the culmination of several key trends observed throughout the year. In March 2024, Adobe's research predicted this surge by revealing that 58% of consumers embraced AI-enhanced shopping experiences . This consumer openness to AI technology was further validated in November 2024, when a BCG study showed that 38% of shoppers were actively using GenAI tools during major sales events . The dominance of mobile commerce, accounting for 55% of Black Friday 2024's online spend, builds upon the trend identified in December 2023, when mobile transactions reached 59% of online sales . Supporting these developments, retailers' adoption of AI-driven pricing strategies in November 2024  proved crucial in managing the delicate balance between consumer demand and profitability during the holiday season.

Black Friday hits a record $74.4B in sales online, up 5% on last year

What: M&S secures government approval for its long-delayed Marble Arch store redevelopment plan, marking a significant step in its commitment to rejuvenate Oxford Street through a retail-led regeneration project.

Why it is important: This approval represents a pivotal moment in Oxford Street's transformation, demonstrating the government's support for retail-led regeneration while addressing the challenges of modernising historic retail spaces. This milestone project could set a precedent for how major retailers can modernise their flagship stores while contributing to the broader revitalisation of traditional shopping districts.

After more than three years of challenges, M&S has received approval from Angela Rayner, the secretary of state for housing, communities and local government, to proceed with its Marble Arch redevelopment. The project, first proposed in March 2021, involves demolishing the existing five-floor flagship to create a 10-storey building featuring retail space, offices, and a gym. Despite initial approval from Westminster City Council in November 2021, the project faced setbacks including a government-ordered public inquiry and opposition from environmental and historic building campaigners. CEO Stuart Machin emphasised the project's role in rejuvenating the UK's premier shopping street, highlighting its potential to support 2,000 jobs and set new sustainability standards.

IADS Notes: Following significant delays and opposition, this approval aligns with M&S's broader store modernisation strategy and successful turnaround efforts. The project represents a crucial step in the retailer's vision to transform Oxford Street into a leading global shopping destination.

Louis Vuitton replicated its iconic trunks for a 240ft NYC facade

What: P&G leverages China's fastest-growing shopping app Douyin to rebuild market share, restructuring its influencer network and brand messaging to appeal to value-conscious consumers.

Why it is important: The move highlights the increasing importance of platform-specific strategies in China, as traditional retail channels give way to social commerce and livestreaming platforms for consumer engagement.

Procter & Gamble is revitalising its presence in China through a comprehensive marketing overhaul on Douyin, focusing on enhanced influencer partnerships and strategic brand messaging. Following a 15% revenue decline in the quarter ending September 30, P&G has been actively revamping its marketing approach and influencer roster, with particular success for its Pantene brand in the haircare category. The company is expanding its presence across multiple e-commerce platforms, building dedicated brand houses on Douyin, and strategically employing influencers like Ni Bi Yi and Chou Dan to promote products. This digital transformation extends beyond Pantene to other brands like Olay, which offers significant discounts through livestream shopping events. The strategy reflects P&G's adaptation to changing Chinese consumer behaviour, where traditional brick-and-mortar retail is increasingly giving way to social commerce platforms that offer both entertainment and competitive pricing.

IADS Notes: P&G's strategic pivot to Douyin reflects broader shifts in Chinese retail observed throughout 2024. As noted in February 2024, social media has become crucial in transforming China's retail landscape, with interest-based e-commerce increasingly driving consumer engagement. This aligns with findings from October 2024 showing how brands are successfully leveraging social commerce platforms for customer acquisition. The company's focus on influencer partnerships and livestreaming corresponds with January 2024 research identifying user retention on e-commerce platforms as a key trend. P&G's approach particularly resonates with evolving Chinese consumer preferences, as April 2024 data showed increasing prioritization of entertainment in retail experiences. This digital transformation comes at a critical time when Chinese consumers are becoming more value-conscious and selective in their brand choices, making P&G's enhanced digital strategy on Douyin crucial for rebuilding market share.

Procter & Gamble turns to TikTok to reverse China sales slump

What: SM Supermalls expands its China footprint with two new malls in Fujian province by 2027, while simultaneously pursuing ambitious growth targets in the Philippines.

Why it is important: This expansion demonstrates retail groups' continued confidence in China's regional markets despite economic headwinds, while showcasing how Asian retail leaders are successfully managing multi-market growth strategies.

SM Supermalls is set to strengthen its presence in China's Fujian province with two new mall developments, scheduled to open in Xiamen and Fuzhou by 2027. The expansion comes despite China's economic slowdown, with the company expressing optimism about resilient consumer spending in the region. SM Supermalls president Steven Tan revealed that the Xiamen location will be strategically positioned in the city's outskirts, leveraging its proximity to their Chinese headquarters for operational efficiency. The Fuzhou development represents their entry into the provincial capital, responding to government-offered opportunities. Additionally, the company is enhancing its existing presence through the SM City Xiamen Phase 4 expansion, which includes plans for a boutique hotel in partnership with Intercontinental Hotels Group. This growth in China complements SM's broader expansion strategy, which includes plans to reach 100 stores in the Philippines by 2027.

IADS Notes: The announcement of two new malls in Fujian province by December 2024 marks a significant milestone in SM Supermalls' dual-market strategy. While the company has been aggressively expanding in its home market, with plans for three new Philippine malls announced in December 2024 and a target of 100 locations by 2027, it has maintained a strategic focus on China with eight existing malls. The choice of Xiamen and Fuzhou for expansion demonstrates SM's calculated approach to regional development, particularly evidenced by selecting Xiamen's outskirts for its proximity to their Chinese headquarters. This balanced growth strategy is supported by strong performance indicators across both markets, with the mall division reporting a 9% increase in rental income as of August 2024 and a 21% rise in foot traffic in their Philippine operations. The integration of a boutique hotel through the potential IHG partnership at SM City Xiamen Phase 4 further reflects the company's evolution toward creating comprehensive retail destinations in both markets.

SM to open two new malls in Fujian, China, by 2027 

What: The retail industry faces a pivotal moment in DEI strategy as legal challenges and market pressures force companies to reevaluate their approach to social initiatives, leading to a fundamental shift in how diversity and inclusion are implemented.

Why it is important: With Target's lawsuit and Walmart's strategic pivot highlighting potential risks and rewards, retailers must carefully navigate DEI initiatives to protect shareholder value while maintaining authentic commitment to inclusion.

The retail industry's approach to DEI initiatives is transforming amid mounting legal challenges and market pressures. Target's lawsuit over DEI-related risk disclosures and subsequent $10 billion valuation loss following its Pride campaign has exposed potential vulnerabilities. In contrast, Walmart's approach of removing demographic considerations while maintaining broader inclusion goals offers an alternative strategy. Companies are shifting toward more integrated, less explicit DEI approaches as they balance stakeholder expectations with business performance. The divergent outcomes between Target's challenges and Walmart's success with higher-income customers highlights the complex relationship between social initiatives and market results.

IADS Notes: The retail industry's DEI landscape is shifting dramatically in 2024. Target's lawsuit and valuation loss following its Pride campaign  has prompted strategic responses, with Walmart leading a recalibration of approaches while maintaining inclusion goals. Market performance varies significantly, as Target faces challenges while Walmart expands its customer base. Corporate culture is moving toward integrated approaches and universal belonging, evidenced by Walmart's elimination of "DEI" terminology. This reflects the industry's broader challenge of balancing stakeholder expectations amid changing social pressures.

Is Target’s DEI investor lawsuit a warning sign for other retailers?

What: Nordstrom's prospects for going private in 2024 look promising, with improved financial results, favorable interest rates, and regulatory environment supporting the $3.8 billion buyout offer from the Nordstrom family and Liverpool.

Why it is important: The potential success of this privatisation bid could signal a broader shift in how traditional department stores approach transformation, balancing the need for immediate results with long-term strategic planning.

The Nordstrom family's $23-per-share privatisation bid, totaling $3.8 billion, shows increased potential for success compared to their failed 2017 attempt at $50 per share. The company's financial results are improving, and executives have effectively managed expectations while benefiting from lower interest rates and a more favorable regulatory environment. The Nordstrom family, along with Mexican retailer Liverpool, aims to acquire all outstanding shares they don't already own, requiring more than 50% of voting shares to complete the privatisation. While the process could take months, industry experts note that market conditions are more conducive to such deals, with available capital and improving business performance creating a more favorable environment for private ownership.

IADS Notes: Following the September 2024 offer with Liverpool, improved financial results and lower interest rates have increased the likelihood of success. However, as retail experts note, while going private may not solve fundamental challenges faced by department stores, it could provide the flexibility needed for long-term transformation.

Weighing Nordstrom’s chances of going private

What: Amazon successfully conducts its first drone delivery test in Italy using the MK-30 drone, marking the beginning of its planned European expansion of Prime Air service, with launches targeted for Italy and the UK by the end of 2024.

Why it is important: This milestone represents Amazon's first step in expanding its innovative delivery technology to Europe, potentially transforming last-mile logistics in key markets while setting new standards for automated delivery systems. This development signals a significant advancement in retail logistics technology in Europe, as Amazon brings its proven US drone delivery capabilities to new markets, potentially reshaping consumer expectations for delivery speed and efficiency.

mazon has completed its initial drone delivery test in Italy, marking a crucial step in its European expansion plans. The test, conducted on December 4, 2024, utilised the company's new MK-30 drone, featuring advanced AI-powered computer vision systems designed to avoid obstacles and protect people, animals, and property. The technology also enables the drones to navigate safely alongside other devices in delivery areas. Currently operational in select cities in Texas and Arizona since December 2022, Prime Air is set to expand to Italy and the UK by the end of 2024. The company is working with Italian authorities to secure necessary approvals, while in the UK, Amazon's project is one of six selected by aviation regulators for testing drone delivery services.

IADS Notes: While other retailers explore various delivery innovations, Amazon's Prime Air service, already operational in the US since December 2022, represents a more advanced approach. The company's focus on AI-powered safety features with its MK-30 drone demonstrates its commitment to technological innovation in delivery services.

Amazon successfully tests drone delivery in Italy