What: The forthcoming EU Circular Economy Act will set new standards for sustainable production, circular business models, and resource security, reshaping retail and e-commerce across Europe.

Why it is important: The Circular Economy Act will require retailers to adapt business models, supply chains, and compliance processes to meet new sustainability and resource efficiency standards.

The European Commission’s upcoming Circular Economy Act is poised to transform the retail landscape by establishing ambitious legislative standards for sustainability, circular business models, and resource security. With nearly 1,000 stakeholders participating in the consultation process, the Act is expected to prioritize re-use, refurbishment, repair, and recycling, accelerating the growth of recommerce and secondhand trading across the sector. A key focus will be the digitalisation and harmonisation of Extended Producer Responsibility (EPR) schemes, which will reduce administrative burdens and create a more level playing field for retailers and e-commerce platforms operating across the EU. The Act also aims to clarify definitions around circular economy activities, especially regarding re-use and the distinction between waste and secondary raw materials, while promoting product durability, repairability, and the free circulation of secondhand goods. As the EU moves toward mandatory textile waste management, digital product passports, and stricter platform liability, retailers will need to invest in new compliance processes, supply chain transparency, and circular innovation to remain competitive and resilient in a rapidly evolving regulatory environment.

IADS Notes: The forthcoming EU Circular Economy Act is accelerating a major transformation in retail, as highlighted by The Retail Bulletin (March 2025) and Financial Times (February 2025). The Act’s focus on sustainable production, re-use, refurbishment, and harmonized Extended Producer Responsibility (EPR) schemes aligns with a broader industry shift toward circular economy strategies, as demonstrated by leaders like IKEA and John Lewis (Forbes, January 2025; Drapers, October 2025). These retailers are pioneering buy-back programs, resale platforms, and closed-loop initiatives, responding to both regulatory pressure and changing consumer behavior—41% of shoppers now choose repairs over replacement, and 24% actively purchase secondhand items (Retail Asia, December 2024). The EU’s comprehensive approach, including mandatory textile waste management, digital product passports, and stricter e-commerce platform liability, is setting new benchmarks for environmental accountability and resource optimization (Financial Times, February 2025; The Robin Report, November 2025). The sector’s rapid adaptation is further evidenced by significant investments in recycling infrastructure and the mainstreaming of circular business models, with the global secondhand market projected to reach $350 billion by 2028. These developments underscore the convergence of regulatory, business, and consumer drivers making circularity a strategic imperative for retail survival and growth.

Ecommerce Europe gives its opinion on the Circular Economy Act

What: Thailand’s leading retailers are intensifying 11.11 campaigns with omnichannel strategies, livestreaming, and loyalty programs to boost year-end sales.

Why it is important: By combining experiential digital tactics with in-store rewards, Thai retailers are setting a precedent for holistic, omnichannel retail strategies that enhance customer value and loyalty.

As the 11.11 shopping event becomes a major year-end battleground, Thailand’s top retailers are deploying fully integrated omnichannel campaigns to drive consumer spending and reclaim lost sales. Department stores and specialty chains are moving beyond simple price competition, focusing instead on seamless, multi-platform shopping experiences that blend livestreaming, social commerce, and personalized loyalty programs. Central Retail Group and The Mall Group are leading the charge, leveraging their apps, social channels, and in-store activations to convert digital engagement into real-time sales and revive foot traffic. Specialty retailers are also capitalizing on the momentum by expanding across major e-commerce platforms and embracing community commerce. These strategies reflect a broader shift in Southeast Asian retail, where data-driven personalization, cross-channel promotions, and experiential marketing are now central to capturing consumer attention and building long-term loyalty.

IADS Notes: Thailand’s 11.11 retail campaigns exemplify the region’s rapid evolution toward omnichannel integration, experiential marketing, and data-driven personalization. Central Retail’s aggressive expansion and digital transformation, as detailed by Inside Retail (November 2024, March 2025), have been key drivers of sales growth, leveraging new stores, tourism recovery, and advanced digital tools such as smart carts and AI-powered personalization. The Mall Group’s award-winning influencer campaigns and digital strategies (Press Release, October 2025) further highlight the importance of high-quality content, social commerce, and omnichannel engagement in reviving footfall and boosting sales. BCG (November, December 2024) underscores the measurable ROI of personalization and the growing expectations for loyalty programs that are digitally integrated and experiential. The convergence of physical and digital retail is transforming Thai malls into cultural and lifestyle destinations, as seen with IconSiam and Central Chidlom (Inside Retail, June 2025), and is supported by significant investments in experiential retail (Inside Retail, September 2025). The 11.11 event itself has become a regional battleground, with Southeast Asia emerging as a key Singles’ Day market (South China Morning Post, November 2024), as retailers and e-commerce platforms leverage livestreaming, social commerce, and cross-channel promotions to capture consumer attention and drive year-end sales.

Thailand retailers wage all-out war for 11.11 shopping surge

What: Primark faces leadership instability and slowing sales as ABF explores a demerger, with analysts divided on whether the move will unlock value or expose new risks.

Why it is important: The demerger reflects the challenges and opportunities facing legacy retailers as they adapt to shifting consumer behavior, digital disruption, and increased competition from online and second-hand platforms.

Associated British Foods’ proposal to split Primark from its food business marks the group’s most significant structural change in decades, coming at a time of leadership uncertainty and sluggish sales in Primark’s core UK and Ireland markets. The move has surprised analysts and investors, who are divided on whether a standalone Primark can close its valuation gap with rivals like Inditex and H&M, given current performance and intensifying competition from fast fashion disruptors such as Shein, Temu, and second-hand platforms like Vinted. Primark’s revenues have stagnated, and like-for-like sales in key markets have declined, even as the company continues to expand in the US and Gulf regions. The demerger is seen as an attempt to unlock value and sharpen strategic focus, but it also exposes both Primark and ABF’s food division to greater scrutiny and operational risk. The outcome will hinge on Primark’s ability to stabilize leadership, innovate, and adapt to evolving consumer preferences and sustainability pressures in a rapidly changing retail landscape. 

IADS Notes: ABF’s proposed demerger of Primark from its food business represents a watershed moment for both the conglomerate and the UK retail sector, reflecting a broader trend of global retailers seeking to unlock value and sharpen strategic focus through structural change (Times of India, May 2025). The move comes at a time of leadership instability at Primark, with the abrupt departure of its CEO in April 2025 (Fashion Network), and amid slowing sales in its core UK and Ireland markets, where competition from online fast fashion and second-hand platforms is intensifying (Retail Gazette, November 2024). Analysts remain divided on whether Primark, as a standalone entity, can close its valuation gap with peers like Inditex and H&M, given current performance and market headwinds (Fashion Network, November 2024). Despite these challenges, Primark continues to innovate with new category launches such as Primark Home (Fashion United, January 2025) and to expand internationally, particularly in the US and Gulf markets, where franchise opportunities and store openings have shown strong consumer demand (Fashion Network, November 2024; Retail Week, November 2024). The demerger will expose both businesses to greater scrutiny and risk, but also offers a window for Primark to adapt its model, focus on international growth, and respond to evolving consumer sentiment and sustainability pressures.

Primark spin-off plan gets cool reception

What: Shein’s move from online-only to a physical presence in a major Parisian department store highlights the risks and complexities facing digital-native brands in Western markets.

Why it is important: Shein’s challenges illustrate the importance of local adaptation, transparency, and stakeholder engagement for global brands seeking to bridge digital and physical retail.

Shein’s attempt to establish a permanent boutique in a prominent Paris department store was intended as a milestone in its global expansion, but instead has exposed the brand to intense regulatory, operational, and reputational challenges. The initiative triggered protests, government scrutiny, and calls for a ban, as well as backlash over controversial third-party products and compliance with European laws. These events underscore the difficulties digital-native brands face when transitioning to physical retail in established Western markets, where public sentiment, regulatory frameworks, and local partnerships play a critical role. Shein’s reliance on customs loopholes, ultra-fast fashion algorithms, and marketplace diversification has come under fire from both authorities and the public, leading to fines, temporary suspensions, and delays in its IPO plans. The episode highlights the need for global brands to prioritize transparency, adapt to local expectations, and engage proactively with stakeholders to navigate the complexities of cross-border retail expansion.

IADS Notes: Shein’s attempt to establish a permanent physical presence in Parisian department stores, notably BHV Marais, marks a pivotal moment in the brand’s global expansion strategy but has triggered intense regulatory, operational, and reputational challenges. As detailed by Fashion Network (October 2025), Shein’s move aligns with SGM’s broader transformation of department stores and leverages the brand’s strong online penetration in France, where it counts 23 million customers. However, this expansion has been met with fierce opposition from French brands, unions, and authorities, leading to staff protests, the withdrawal of local labels, and Galeries Lafayette’s decision to block Shein’s entry into SGM-affiliated stores (Inside Retail, October 2025). The controversy has been compounded by a €40 million fine for deceptive pricing (Fashion Network, July 2025), the temporary suspension of Shein’s marketplace in France (Le Monde, November 2025), and new EU customs and platform liability reforms (Inside Retail, July 2025; Financial Times, February 2025). The brand’s marketplace diversification has exposed it to further reputational risk, as seen in the recent scandal over prohibited products and the expulsion of partners like Pimkie from industry associations (Inside Retail, November 2025). Meanwhile, Shein faces mounting pressure from both Chinese authorities—who are resisting supply chain diversification (Inside Retail, April 2025)—and Western regulators, forcing the company to delay its IPO and slash its valuation to $50 billion (Reuters, February 2025; Inside Retail, February 2025). These developments underscore the complex interplay of innovation, compliance, and public perception as digital-first brands navigate the evolving landscape of global retail.

Shein: who is Xu Yangtian?

What: NRF forecasts U.S. holiday retail sales will surpass $1 trillion for the first time in 2025, with growth of 3.7% to 4.2% over last year despite economic headwinds.

Why it is important: The shift toward experiential and curated retail strategies is essential as traditional discounting loses effectiveness in a saturated market.

The US retail sector is poised to reach a significant milestone in 2025, with holiday sales expected to exceed $1 trillion for the first time, reflecting a projected growth rate of 3.7% to 4.2% over the previous year. This achievement comes despite a challenging economic environment marked by persistent inflation, rising tariffs, and the threat of a federal government shutdown. Consumers remain fundamentally resilient, continuing to drive economic activity even as they become more value-conscious, prioritising holiday gifts while seeking savings in nonessential categories. Retailers are responding to these pressures by streamlining operations and scaling back seasonal hiring, with projections for temporary workers at their lowest since 2008. The evolving landscape is further complicated by generational shifts in spending, as younger consumers cut back while older generations maintain or increase their holiday budgets. These dynamics underscore the adaptability of both retailers and consumers, as the industry navigates volatility while still achieving record-breaking sales.

IADS Notes: Industry sources from NRF and Deloitte in November and September 2025 confirm the historic sales milestone and continued consumer resilience, while Forbes highlights the impact of tariffs, inflation, and reduced seasonal hiring on retail strategies. PwC’s September 2025 report emphasises generational divides and the growing importance of value-driven, cautious spending, illustrating how retailers are adapting to economic uncertainty while maintaining strong holiday performance.

NRF expects holiday sales to surpass $1 trillion for the first time in 2025

What: Liverpool has partnered with commercetools to launch agentic commerce, enabling customers to interact, receive recommendations, and purchase seamlessly through AI assistants.

Why it is important: The move highlights how early investment in conversational AI and data discipline can accelerate growth and brand control as agentic commerce becomes mainstream.

Liverpool, Mexico’s largest and oldest department store chain, is pioneering the adoption of agentic AI in Latin American retail through a new partnership with commercetools. This initiative shifts the customer journey from traditional search-and-scroll to a conversational, “ask and act” model, where shoppers can interact with AI assistants to get personalized recommendations and complete purchases in a single flow. The integration of agentic AI is expected to boost operational efficiency, streamline decision-making, and enhance the overall customer experience by reducing friction and enabling 24/7 engagement. As agentic commerce becomes the new standard, Liverpool’s early investment positions it to maintain brand control, ensure data discipline, and accelerate growth in an increasingly competitive digital landscape. The move also reflects a broader industry trend, with leading retailers worldwide embracing AI-driven innovation to deliver seamless, omnichannel experiences and set new benchmarks for customer satisfaction and operational agility. 

IADS Notes: Liverpool’s adoption of agentic AI through its partnership with commercetools positions the retailer at the forefront of a global shift toward conversational, AI-driven shopping journeys. As highlighted by Forbes (February 2025) and BoF (January 2025), the retail industry is rapidly transitioning from traditional search-and-scroll to “ask and act” behaviors, with 38% of global consumers already using AI shopping tools and 80% reporting positive experiences. This transformation is being accelerated by leading retailers and tech companies, who are developing autonomous AI agents capable of handling complex shopping tasks, automating transactions, and delivering highly personalized recommendations. The shift to agentic commerce is not only enhancing operational efficiency—demonstrated by Klarna’s AI assistant reducing customer resolution times from 11 to 2 minutes—but also redefining the relationship between brands, retailers, and consumers, as AI agents increasingly mediate product discovery and purchasing decisions (Journal du Net, September 2025; Financial Times, November 2025). However, this evolution brings new governance challenges, as retailers must ensure data discipline, brand control, and compliance in AI-led journeys (Forbes, October 2025; McKinsey, July 2025). Liverpool’s move mirrors broader industry trends, with Frasers Group and others also integrating agentic commerce to set new standards for omnichannel experiences, operational agility, and customer satisfaction (Fashion Network, October 2025; BCG, January 2025).

Liverpool department store deploys agentic AI shopping experience

What: Ikea and Best Buy are partnering to create in-store planning and shopping experiences, blending furniture, appliances, and expert advice across 10 U.S. locations.

Why it is important: This collaboration reflects a broader industry trend of strategic partnerships and experiential retail, enabling brands to reach new audiences and enhance customer engagement.

Ikea has entered into its first U.S. shop-in-shop partnership with Best Buy, launching curated planning and shopping experiences in 10 stores across Texas and Florida. These in-store Ikea shops feature immersive vignettes that combine Ikea’s home furnishings with Best Buy’s appliances, allowing customers to design kitchen and laundry spaces while receiving guidance from both Ikea and Best Buy staff. Select locations also serve as free pick-up points for Ikea products purchased online, enhancing omnichannel convenience. This collaboration exemplifies the growing trend of retailers leveraging strategic partnerships and store-in-store concepts to drive foot traffic, differentiate their offerings, and create engaging, cross-category experiences. The initiative coincides with Best Buy’s holiday push, which includes immersive tech showcases and AI-powered experiences, intensifying competition for consumer attention and setting new standards for experiential retail in the U.S.

IADS Notes: Ikea’s partnership with Best Buy to launch shop-in-shop concepts across 10 U.S. locations marks a significant evolution in retail collaboration, blending home furnishing expertise with technology leadership to create a comprehensive, cross-category shopping experience (Retail Dive, August 2025). This initiative is part of Ikea’s broader strategy of retail format innovation and urban accessibility, as seen in its major investments in city-center locations like London’s Oxford Street and experiential pop-ups such as the ‘Hus of Frakta’ (Financial Times, May 2025; Fashion United, November 2024). The collaboration mirrors a wider industry trend of retailers leveraging partnerships and store-in-store models to drive foot traffic, differentiation, and mutual growth, as illustrated by Magasin du Nord’s Lindex shop-in-shop (Press Release, March 2025). These developments are underpinned by the growing importance of omnichannel integration and experiential retail, with smart store technologies and engaging environments now central to customer experience and operational efficiency (Journal du Net, January 2025; The Robin Report, January 2025). The timing of the Ikea-Best Buy partnership, coinciding with Best Buy’s holiday innovation push and the sector’s competitive race for digital engagement, highlights the strategic value of such alliances in today’s rapidly evolving retail landscape (Store Brands, November 2025).

Best Buy opens first-ever in-store Ikea shops in select locations 

What: Macy’s is redefining the Golden Quarter by combining immersive experiences, new products, and emotional engagement to stand out amid widespread discounting.

Why it is important: The shift toward experiential and curated retail strategies is essential as traditional discounting loses effectiveness in a saturated market.

As the Golden Quarter extends and discount fatigue sets in, Macy’s is setting a new standard for holiday retail by blending immersive experiences, product innovation, and emotional engagement. Rather than relying solely on early and aggressive promotions, Macy’s “100 Days to Christmas” campaign introduces a significant proportion of new products and transforms stores into festive destinations, complete with pop-ups, food vendors, and interactive events. This approach positions Macy’s as the emotional heart of the season, offering customers reasons to visit beyond just price. In a climate where economic pressures and promotional saturation make it difficult for any single discount to stand out, Macy’s strategy demonstrates the power of combining value with exclusivity, curated assortments, and memorable experiences. Loyalty programmes and personalised perks further enhance customer engagement, helping the retailer maintain margins and foster long-term loyalty. The evolving holiday landscape shows that retailers who prioritise experience and differentiation are best positioned to succeed when every competitor is on sale.

IADS Notes: Recent industry coverage, including Inside Retail and Retail Dive in November and September 2025, highlights Macy’s leadership in experiential and product-focused holiday strategies. Nordstrom’s holiday campaign and BCG’s December 2024 analysis confirm that traditional loyalty programs and discounting are losing impact, while PwC’s September 2025 report emphasises the need for value, meaning, and flexible engagement to win over today’s consumers.

What retailers can learn from Macy’s approach to the Golden Quarter

What: Amazon’s legal action against Perplexity’s AI agents signals a power struggle over the future of automated commerce.

Why it is important: The dispute underscores the risks and opportunities of agentic AI, aligning with documented shifts in retail power structures and customer engagement.

Amazon’s cease and desist letter to Perplexity over its AI purchasing agents marks a defining confrontation in the evolution of retail. As AI agents automate shopping tasks and mediate transactions, they threaten to disintermediate retailers, shifting the customer relationship from platform to agent. Amazon’s resistance is rooted in the desire to maintain control over the shopping journey, data, and monetisation through ads and upsells, while Perplexity argues for user empowerment and seamless automation. This legal standoff highlights broader industry trends: the rapid adoption of agentic commerce, the reconfiguration of retail power structures, and the growing importance of transparency and trust. Retailers are compelled to rethink their digital strategies, optimise for AI-driven discovery, and address new operational and legal risks. Despite the promise of improved customer satisfaction and efficiency, the sector faces significant challenges in scaling these technologies and safeguarding brand identity. The outcome of this dispute will shape the standards and strategies for AI-driven retail in the years ahead.

IADS Notes: In November 2025, the Financial Times highlighted how agentic commerce is shifting retail power from traditional platforms to AI intermediaries, forcing brands to reconsider their digital strategies and customer engagement. September 2025 articles from Journal du Net examined the reconfiguration of retail power structures and the automation of e-commerce transactions by AI agents, emphasising the urgent need for trust and transparency. The same month, Journal du Net also explored the operational and legal challenges of scaling agentic AI, while in January 2025, Hugging Face detailed the complexities of implementing these technologies in retail. Finally, July 2025 coverage from Journal du Net confirmed that agentic AI is improving customer satisfaction and service efficiency, even as the sector navigates significant risks and the need for responsible innovation.

Amazon vs. Perplexity: Welcome to the battle for the future of commerce

What: As generative search and agentic commerce reshape discovery, retailers must optimise content for AI visibility, schema markup, and earned media that LLMs actually cite.

Why it is important: The shift to AI-driven discovery means that only brands with machine-readable, authoritative content will be surfaced in consumer journeys, making technical adaptation and strategic PR critical.

The emergence of AI-powered answer engines and generative search is fundamentally changing how brands are discovered and referenced in the retail landscape. Traditional PR and content strategies focused on driving website traffic are becoming less effective, as AI systems now prioritise authoritative, structured, and machine-readable content for citations in consumer decision journeys. Retailers and brands must adapt by optimising owned content with schema markup, FAQ formats, and targeting the platforms that feed dominant LLMs such as ChatGPT and Google. Earned media remains crucial, but PR teams must identify and focus on the specific publications and content types that AI systems actually cite for their industry. As AI-driven discovery becomes the norm, new metrics—such as citations, mentions, and share of voice in AI answers—are replacing traditional web traffic and impressions as key indicators of brand authority and influence. Those who fail to adapt risk losing relevance and visibility in an increasingly AI-mediated marketplace.

IADS Notes: The shift toward AI-powered answer engines and generative search is fundamentally transforming how brands are discovered, cited, and referenced in retail. As highlighted by Retail Dive (September 2025), Target’s focus on generative engine optimisation (GEO) and agent-to-agent commerce reflects a broader industry move to optimise for AI-driven discovery and contextual product recommendations. The Robin Report (December 2024) and Financial Times (November 2025) confirm that 38% of shoppers are already using AI tools for purchase decisions, with 80% reporting positive experiences, and that agentic commerce is rapidly shifting power from traditional websites to AI platforms. BoF (May 2025) and Inside Retail (September 2025) emphasise the need for retailers to rethink content strategy, prioritise schema markup, and ensure their data is machine-readable to remain visible in an AI-mediated answer economy. The rise of AI influencers and generative AI marketing tools, as reported by the Financial Times (September 2025), further underscores the importance of balancing innovation with authenticity and transparency. Collectively, these developments signal a new era where PR and content strategies must focus on citations, mentions, and share of voice within AI-driven platforms, rather than traditional web traffic, to maintain relevance and authority in the evolving digital landscape

AI: the new gatekeepers

What: Walmart has introduced a suite of AI-driven features—including in-store savings, AR shopping, and digital party planning—to enhance customer convenience and engagement both online and in stores.

Why it is important: By integrating advanced AI and AR capabilities, Walmart is redefining the holiday shopping journey and raising consumer expectations for both online and in-store retail.

Walmart is transforming the holiday shopping experience with a comprehensive rollout of AI-powered tools designed to make gift-giving faster, easier, and more personalized. The retailer’s latest features include an in-store savings tool that highlights local deals, enhanced search and navigation for real-time product availability, and wish list management that organizes shopping trips by aisle. AI-driven innovations such as the Sparky digital assistant for party planning, audio summaries of product reviews, and immersive AR-powered 3D shopping scenes further elevate the customer journey, blending convenience with inspiration. Walmart’s partnership with ChatGPT enables contextual, multimedia, and conversational commerce, moving beyond traditional search bars to proactive, agentic shopping experiences. Data shows that app users spend 25% more per trip, underscoring the commercial impact of digital engagement and personalization. As these technologies become central to both online and physical retail, Walmart is setting a new standard for customer experience and intensifying competition across the sector.

IADS Notes: Walmart’s launch of AI-powered shopping tools and its landmark partnership with OpenAI in October 2025 mark a pivotal shift in retail, as the company moves beyond traditional search bars to embrace personalized, conversational, and agentic commerce (Retail Week, October 2025; Retail Dive, October 2025). This strategic alliance exemplifies the sector’s broader pivot toward AI-driven innovation, with major retailers racing to adopt generative AI solutions that transform product discovery, customer engagement, and operational efficiency. Walmart’s integration of features such as Instant Checkout within ChatGPT, hyper-personalization, AR/VR, and AI-powered party planning reflects the industry’s rapid evolution toward seamless, multimedia, and predictive shopping experiences (Inside Retail, March 2025; The Robin Report, December 2024). These developments are driving measurable commercial impact, with digital engagement and AI-driven personalization contributing to record-breaking results, increased e-commerce penetration, and higher average spend among app users (WWD, February and November 2025). The competitive landscape is intensifying as retailers like Nordstrom also invest in digital innovation for the holiday season, underscoring the urgency for robust digital adaptation and strategic tech partnerships to remain relevant and capture consumer attention in an AI-first retail environment.

Walmart Rolls Out New AI Tools

What: Marks & Spencer’s profits fell 55% after a cyber-attack shut down its online business for six weeks.

Why it is important: This case demonstrates the severe financial and operational risks cyber-attacks pose to major retailers, reinforcing the need for robust digital resilience.

Marks & Spencer experienced a dramatic 55% drop in profit before tax for the first half of 2025, falling to £184.1m, following a cyber-attack that forced the closure of its online business for six weeks. The disruption led to a significant decline in fashion, home, and beauty sales, with online operations only fully restored by August. CEO Stuart Machin initially estimated the attack would cost the business £300m, though recovery efforts and insurance are expected to offset some losses. Despite the setback, M&S continued to invest in new stores, supply chain modernisation, and technology infrastructure, aiming to restore profitability by year-end. Food sales, less affected due to their in-store nature, rose by 7.8%, while the Ocado food delivery partnership posted a small loss. The phased recovery of online services and the return of third-party brands highlighted the complexity of restoring digital operations. The incident, linked to organised cybercrime groups, also resulted in customer data theft, underscoring the persistent threat to retail security.

IADS Notes: The M&S cyber-attack, which led to a £136mn profit hit and a six-week online shutdown, reflects a broader trend in retail, as seen in sector reports from May to November 2025. The Financial Times (November 2025) details the financial and reputational damage to M&S, while Retail Week (September and July 2025) and Retail Insight Network (May 2025) highlight similar incidents at Co-op and Harrods, exposing acute financial and operational risks from cybercrime and third-party vulnerabilities. Inside Retail (June 2025) emphasises the sector’s shift toward resilience and rapid recovery, with robust cybersecurity and technology investment now essential for business continuity and customer trust.

M&S cyber-attack slashed Q1 profits, 55% drop in profit before tax

What: Sandra Swiderski, with extensive experience in international fashion retail, has taken over as general manager of KaDeWe, succeeding Oliver Kramny.

Why it is important: Appointing a leader with cross-market and process optimization expertise is crucial for legacy retailers facing market challenges and evolving consumer expectations

KaDeWe, Berlin’s iconic luxury department store, has named Sandra Swiderski as its new general manager, following the departure of Oliver Kramny for health reasons. Swiderski brings nearly two decades of experience in international fashion retail, including leadership roles at Peek & Cloppenburg and PVH Brands Austria, where she was responsible for sales, strategy, and operational optimization across multiple markets. Her appointment comes at a time of ongoing transformation for KaDeWe, which has faced significant operational and legal challenges in the wake of its former owner’s insolvency and subsequent acquisition by Central Group. Swiderski’s cross-market expertise and focus on process improvement are expected to support KaDeWe’s efforts to drive performance, enhance customer experience, and maintain its position as a leading destination in the competitive luxury retail sector. This leadership renewal reflects a broader trend among European department stores to bring in seasoned executives capable of navigating market shifts and fostering innovation. 

IADS Notes: KaDeWe’s appointment of Sandra Swiderski as general manager comes at a pivotal time for the Berlin luxury department store, following a period of significant operational and legal challenges linked to the collapse of its former owner, Signa Group, and the subsequent acquisition by Central Group (Fashion Network, December 2024). This leadership renewal reflects a broader trend in European department stores, where experienced executives with cross-market expertise are being brought in to drive transformation, operational optimization, and brand repositioning, as seen at Breuninger, Le Bon Marché, and Galeries Lafayette throughout 2025. The sector’s ongoing evolution underscores the importance of leadership stability, succession planning, and the integration of sales, strategy, and process optimization skills to navigate market challenges and shifting consumer expectations. These developments highlight how legacy retailers are leveraging new management talent to sustain relevance, foster innovation, and ensure resilience in a rapidly changing retail landscape.

KaDeWe: New general manager appointed, joining from PVH

What: Saks Off 5th will close nine stores in early 2026, focusing on high-performing locations and optimising its retail footprint.

Why it is important: This move reflects a broader trend of luxury retailers optimising store networks and reallocating resources to high-potential locations.

Saks Off 5th, the off-price division of Saks Global, is set to close nine of its 79 stores beginning in January 2026, following a comprehensive review of market dynamics, lease expirations, and customer behaviour. The closures are part of a broader strategy to concentrate on high-performing and high-potential locations, with the company emphasising ongoing investments in these stores to enhance customer experience and drive performance. The decision to vacate the 57th Street Manhattan location was influenced by impending construction and property redevelopment, reflecting the increasing impact of real estate changes on retail strategies. Saks Off 5th is offering transfer opportunities and severance packages to affected employees, demonstrating a commitment to workforce management during this transition. These store closures coincide with recent management changes at Saks Global, including the appointment of Genny Siller as senior vice president and general manager, and the shift of Kim Miller to chief customer officer, following the departure of Emily Essner. The company’s actions underscore a deliberate approach to optimising its store footprint and adapting to evolving market conditions.

IADS Notes: Saks Off 5th’s store closures and the vacating of its 57th Street location mirror Saks Global’s post-merger strategy to rationalise its retail network, as highlighted in WWD (September 2025). These actions are consistent with the closure of other flagship stores, such as Palm Beach (The Sun, January 2025), and reflect a broader industry shift toward consolidating store networks and investing in high-performing sites, as discussed in WWD (February 2025). The operational changes are supported by significant organisational restructuring and leadership transitions reported in WWD (April 2025; October 2025), illustrating Saks Global’s commitment to long-term transformation and efficiency.

Saks Off 5th to close nine stores

What: Shein’s first permanent physical store in Paris sparked both shopper excitement and public protest, exposing the complexities of digital-native brands entering Western retail.

Why it is important: Shein’s experience in Paris demonstrates how public sentiment, compliance demands, and ethical concerns can quickly escalate, impacting partnerships and long-term brand reputation.

The opening of Shein’s first permanent physical store at BHV Marais in Paris was met with a striking mix of enthusiasm from bargain hunters and fierce opposition from protesters, unions, and local authorities. The event highlighted the polarizing nature of fast fashion’s global expansion, as Shein’s affordability and accessibility attracted crowds, while its labor practices, environmental impact, and controversial marketplace products drew sharp criticism. The backlash led to staff protests, the withdrawal of independent brands from BHV, and a €40 million fine for deceptive pricing, as well as the temporary suspension of Shein’s marketplace in France. The episode underscores the heightened scrutiny and operational risks digital-native brands face when transitioning to physical retail in established Western markets, where public sentiment, regulatory compliance, and stakeholder engagement are critical to long-term success.

IADS Notes: Shein’s launch of its first permanent physical store at BHV Marais in Paris, as detailed by Fashion Network (October 2025), marks a pivotal evolution in the brand’s omnichannel strategy but has triggered significant operational, reputational, and regulatory challenges. The partnership with SGM, intended to revitalize city centers and attract younger shoppers, has instead sparked widespread backlash from French brands, unions, and authorities, leading to staff protests, the withdrawal of local labels, and Galeries Lafayette’s decision to block Shein’s entry into SGM-affiliated stores (Inside Retail, October 2025). The controversy has been compounded by a €40 million fine for deceptive pricing (Fashion Network, July 2025), the temporary suspension of Shein’s marketplace in France (Le Monde, November 2025), and the loss of public funding for BHV’s real estate acquisition due to the Shein feud (Fashion Network, October 2025). These events underscore the growing influence of political, ethical, and sustainability considerations in shaping retail partnerships and investment decisions. The operational risks for department stores are further highlighted by supplier tensions, financial instability, and the reputational fallout from aligning with disruptive fast-fashion brands (Inside Retail, October 2025). The episode demonstrates the critical importance of local adaptation, transparent practices, and stakeholder engagement for digital-native brands seeking to bridge online and offline retail in highly regulated Western markets.

Inside Shein's Paris store opening: Huge lines, protests — and prices that surprised shoppers

What: JD.com’s $2.5 billion acquisition of Ceconomy, parent of MediaMarkt and Saturn, positions the Chinese e-commerce giant to reshape Europe’s consumer electronics retail sector and directly challenge Amazon’s dominance.

Why it is important: This acquisition demonstrates the growing influence of Chinese e-commerce in Europe and signals a major shift in the region’s retail power dynamics, as confirmed by recent expansions and regulatory responses.

JD.com $2.5 billion bid for Ceconomy, which owns MediaMarkt and Saturn, marks a transformative moment for European consumer electronics retail. By integrating its advanced logistics and digital infrastructure with Ceconomy’s extensive store network, JD.com aims to redefine the omnichannel experience and accelerate innovation in a sector facing structural challenges. This move is part of JD.com’s broader international strategy, following its recent expansion into France and ongoing efforts to compete with Amazon. The acquisition comes at a time when European authorities are tightening regulations in response to the influx of Asian e-commerce, introducing new customs fees and stricter compliance measures. Meanwhile, the European retail sector, particularly in Germany, is experiencing significant financial distress due to weak consumer spending and increased competition. JD.com’s entry not only intensifies the competitive landscape but also tests the adaptability of both Chinese and European retail models in an era of rapid digital transformation and regulatory scrutiny. 

IADS Notes: JD.com’s international expansion, highlighted by its strong financial results and the Ceconomy acquisition, reflects a wider trend of Chinese e-commerce platforms entering Europe, as noted in March 2025 (“JD.com reports USD 1.4 billion profit as Chinese consumer spending rises,” Tech in Asia) and October 2025 (“To compete with Amazon, China's JD.com launches its e-commerce site in France,” LSA Conso). The competitive landscape is rapidly evolving, with JD’s logistics and digital strengths challenging Amazon’s position, while regulatory responses to the influx of Asian e-commerce are intensifying, as seen in April 2025 (“Asian parcel invasion: Europe under pressure, France prepares its response,” Journal du Net) and August 2025 (“When geopolitics hits the shopping cart – how trade disputes are changing retail,” GDI). These developments are unfolding as the European retail sector faces record levels of financial distress, particularly in Germany, as reported in June 2025 (“Retail emerges as most distressed sector in Europe,” BoF), underscoring the urgency for innovation and adaptation in the face of global competition and regulatory change.

JD.com to take over Ceconomy, the parent company of German giants MediaMarkt and Saturn

What: M&S is expanding its partnership with Zalando to use the ZEOS logistics solution for its entire online direct-to-consumer business in continental Europe.

Why it is important: The move highlights the growing importance of scalable, capital-light models and technology-driven logistics in international retail expansion.

M&S is set to deepen its collaboration with Zalando by adopting the ZEOS logistics platform for all its direct-to-consumer online operations across continental Europe. This strategic shift follows a period of rapid online growth, with M&S reporting a 131% year-on-year increase in Zalando-facilitated sales. By integrating ZEOS, M&S aims to streamline inventory management through a unified stock pool and advanced order management system, covering fashion, home, and beauty products. The partnership is expected to enhance the customer experience by reducing delivery times by up to three days and improving returns processes. M&S anticipates that these operational improvements will drive a sales uplift of up to 30%, halve logistics costs, and boost operating margins. This move is central to M&S’s ambition to build a global omnichannel business using scalable, capital-light models and leveraging the expertise of strategic partners to support international growth and operational efficiency.

IADS Notes: The expanded logistics partnership between M&S and Zalando, leveraging the ZEOS B2B solution, reflects a broader acceleration in cross-border e-commerce logistics across Europe, as highlighted by Zalando’s 2024 results and its ongoing fulfilment innovation with Next (March 2025). This move is emblematic of a wider industry trend, with the European E-commerce Report (October 2025) noting that technology-driven logistics and AI-powered inventory management are delivering tangible gains in profitability and customer experience, though only a select group of retailers have managed to scale these solutions effectively. M&S’s strategy to build a capital-light, scalable omnichannel business is further underscored by its focus on digital resilience and supply chain modernisation following a significant cyber-attack, as detailed in Drapers (September 2025) and Retail Week (July 2025). The partnership with Zalando not only positions M&S to cut delivery times and improve margins but also aligns with the industry’s shift toward intelligent operations and collaborative models that drive operational efficiency and international growth.

M&S taps Zalando’s B2B unit to handle European orders

What: Following French prime minister suspension proceedings,Shein has temporarily suspended its marketplace in France to review compliance and strengthen consumer protection following government scrutiny.

Why it is important: The news reflects the growing importance of brand reputation management in the face of legal and consumer challenges.

Shein has decided to temporarily suspend its marketplace in France, a move prompted by heightened government scrutiny and a commitment to reinforcing consumer protection. The company’s French director of external relations, Quentin Ruffat, emphasised that this decision allows Shein to strengthen its responsibility mechanisms and ensure all products meet legal and safety standards. The suspension is being overseen by Shein’s Marketplace Integrity Taskforce, which is conducting a comprehensive audit of product listings, enhancing vendor controls, and increasing platform surveillance. This pause is intended to guarantee full compliance with French legislation and the highest level of consumer protection, while also opening a dialogue with French authorities to address their concerns. The decision follows a series of regulatory actions and public controversies, underscoring the operational and reputational risks faced by global e-commerce platforms operating in increasingly regulated environments. Shein’s proactive approach signals a broader shift in the industry, where compliance and consumer trust have become central to sustaining market presence and brand credibility. 

IADS Notes: Shein’s marketplace suspension in France is part of a wider trend of regulatory scrutiny and reputational challenges. In July 2025, French authorities fined Shein €40 million for deceptive pricing and misleading discounts (Fashion Network, Inside Retail). This was compounded by a June 2025 complaint from the EU consumer group BEUC over manipulative digital tactics (Inside Retail), and further public and legislative backlash in November and October 2025 regarding Shein’s business model and store launches (Inside Retail). These developments illustrate the mounting legal and operational pressures on fast-fashion platforms to prioritise compliance, transparency, and consumer protection.

Shein’s marketplace temporarily suspended in France

What: Cybercriminals are using OpenAI’s API as a covert command channel to deploy persistent backdoors and evade detection in retail digital environments.

Why it is important: The abuse of trusted AI APIs for cyberattacks exposes new vulnerabilities in retail IT, requiring urgent updates to security and vendor oversight.

The discovery of the SesameOp backdoor, which utilises OpenAI’s API as a stealthy command-and-control channel, marks a significant escalation in the sophistication of cyber threats targeting retail digital environments. By exploiting legitimate AI APIs, attackers can maintain persistent, covert access to compromised systems, bypassing traditional security measures and blending in with normal network activity. This approach leverages trusted developer tools and advanced obfuscation techniques, making detection and remediation particularly challenging for retail IT teams. The campaign’s focus on long-term espionage and operational control raises serious concerns about data security, customer privacy, and the integrity of retail operations. As AI-powered integrations and third-party APIs become increasingly embedded in retail workflows, the sector faces heightened risks from both external and supply chain attacks. These developments underscore the urgent need for retailers to strengthen cybersecurity governance, enhance vendor oversight, and implement continuous monitoring of all AI and API-driven processes to protect against emerging threats and safeguard business continuity.

IADS Notes: The Robin Report (August 2025) and BCG (August 2025) both highlight how AI systems and APIs introduce new vulnerabilities, with 41% of breaches linked to third-party providers and average losses exceeding £1.4 million. RH-ISAC (April 2025) and Retail Week (August 2025) document the rise of sophisticated, AI-driven cyberattacks on retail, while Trustwave (May 2025) details the evolving tactics of advanced cybercrime groups exploiting both traditional and AI-powered vectors.

Microsoft detects "SesameOp" backdoor using OpenAI's API as a stealth command channel

What: French lawmakers and retailers are intensifying opposition to Shein’s business model and online content, as the brand faces regulatory threats and public backlash during its physical retail expansion.

Why it is important: The mounting backlash against Shein highlights the operational, reputational, and regulatory risks facing fast-fashion platforms and their partners in Europe’s evolving retail landscape.

Shein’s attempt to establish a permanent retail presence in France has ignited unprecedented resistance from lawmakers, retailers, and regulators, fueled by a scandal involving the sale of childlike sex dolls and broader concerns over its ultra-fast fashion model. French authorities have threatened market bans, citing repeated violations and the risk of further reputational harm, while industry bodies have expelled partners like Pimkie for aligning with Shein. Staff protests and the withdrawal of key brands from BHV Marais illustrate the operational and financial instability that can result from such controversial partnerships. The surge of low-value Asian imports has prompted France and the EU to introduce new customs and compliance measures, aiming to level the playing field for domestic retailers and address sustainability and consumer protection. Regulatory scrutiny has intensified, with Shein fined €40 million for deceptive pricing and environmental claims, signaling a shift toward stricter oversight of fast-fashion business practices. This evolving landscape reflects a broader transformation in European retail, where ethical, legal, and sustainability considerations are increasingly shaping market access and competitive strategies.

IADS Notes: In October 2025, Shein’s Paris store launch at BHV Marais triggered sector-wide backlash, with Galeries Lafayette blocking Shein’s entry and Pimkie expelled from retail associations after its Shein alliance (Inside Retail, Fashion Network). Staff protests and financial instability at BHV Marais mirrored these tensions, while the April 2025 surge in Asian e-commerce imports led to new customs and compliance measures (Journal du Net). Regulatory scrutiny peaked in July 2025 with a €40 million fine for deceptive pricing, reinforcing the growing influence of ethical and legal standards in retail partnerships.

Shein’s fast-fashion fight in France goes up a gear with sex doll scandal

What: The rise of ultra-cheap, frictionless global marketplaces is forcing local retailers to adapt through curation, agility, and new value propositions.

Why it is important: The success of global marketplaces underscores the importance of regulatory adaptation, strategic partnerships, and a renewed focus on customer experience for local players.

The rapid expansion of global e-commerce platforms such as Temu, Shein, and Amazon is fundamentally altering the competitive landscape for local retailers. These digital-first giants leverage scale, supply chain innovation, and aggressive pricing to deliver unprecedented convenience and affordability, setting new consumer expectations for speed and value. Local retailers, constrained by higher costs, regulatory burdens, and limited reach, are challenged to differentiate themselves through curated assortments, storytelling, and superior service. As regulatory changes—such as the closure of tax loopholes—begin to level the playing field, local players have an opportunity to reclaim market share by emphasizing quality, ethics, and unique experiences. The most resilient retailers are those who adapt quickly, embrace collaboration, and leverage marketplace infrastructure to enhance their offerings. In this evolving environment, success depends on the ability to innovate, build trust, and deliver value that goes beyond price alone, ensuring relevance and resilience amid global digital disruption.

IADS Notes: The rapid rise of global e-commerce platforms like Temu and Shein is fundamentally reshaping retail competition, pricing, and consumer expectations, as seen in their capture of 3.6% of South Africa’s retail clothing market and 37.1% of e-commerce fashion sales within just five years (Inside Retail, August 2025). Their disruptive, digital-first strategies—built on ultra-low pricing models and supply chain innovation—have challenged both local and international players, but also face increasing regulatory scrutiny, as detailed by The Diplomat (March 2025). The impact of regulatory changes is evident in the US, where the elimination of the $800 duty-free threshold led to a dramatic drop in user engagement for Shein and Temu, creating new opportunities for domestic retailers and established platforms like Amazon (Financial Times, June and February 2025). In response, local retailers are focusing on supply chain agility, curation, and storytelling to differentiate themselves, as highlighted by Forbes (August 2025), while also redefining value to emphasize quality, trust, and experience over price alone (BoF, January 2025). The most resilient retailers are those who adapt by integrating new revenue streams, leveraging marketplace infrastructure, and embracing collaboration, as shown in BCG’s June 2025 analysis. These developments underscore the need for continuous innovation, strategic adaptation, and a renewed focus on customer value in the face of global digital disruption.

Does outrage over Shein and Temu miss the real retail lesson?

What: Shein’s expansion into French department stores has sparked fierce opposition from lawmakers, retailers, and regulators over its fast-fashion model and market practices.

Why it is important: This development underscores the growing tension between digital disruptors and traditional retail, echoing recent regulatory and industry responses in France.

Shein’s attempt to establish a permanent presence in French department stores has ignited significant backlash from lawmakers, retail associations, and regulators, who argue that its low-cost, fast-fashion model undermines local businesses and jobs. The controversy has led to coordinated campaigns by politicians to block Shein’s expansion, including direct interventions with department store executives and public institutions. French authorities have imposed substantial fines on Shein for deceptive pricing and data violations, while new legislation targeting platforms that introduce thousands of new items daily is set to further restrict its operations. The company’s partnerships with local retailers, such as SGM and Pimkie, have resulted in reputational damage and industry expulsions, illustrating the risks for French brands aligning with global fast-fashion giants. At the same time, the removal of customs exemptions for low-value imports and heightened scrutiny of market dumping signal a broader shift in European retail policy. These developments reflect the mounting pressure on digital-first brands to adapt to evolving regulatory and ethical standards in France’s retail sector.

IADS Notes: Shein’s expansion in France has intensified resistance from lawmakers and retailers, as seen in Fashion Network (October 2025), with sector-wide protests, regulatory fines, and the withdrawal of key partners. The introduction of new customs and compliance measures, highlighted in Journal du Net (April 2025), alongside the expulsion of brands like Pimkie from industry associations (Fashion Network, September 2025), underscores the reputational and operational risks for both Shein and its French collaborators. These events, also covered in Inside Retail (November 2025), illustrate the broader challenge of balancing innovation, competition, and sustainability in the European retail landscape.

Inside Shein’s fast-fashion fight in France

What: M&S suffered a £136mn profit hit after a cyber attack forced a seven-week suspension of online sales and disrupted its digital operations.

Why it is important: This incident demonstrates how cyber attacks can cause severe financial and reputational damage, echoing recent patterns of escalating risk and operational disruption in retail.

Marks & Spencer’s recent cyber attack has exposed the acute vulnerabilities and far-reaching consequences of digital threats in the retail sector. The breach, which forced the suspension of online sales for seven weeks, resulted in a £136mn profit hit and nearly £700mn wiped from the retailer’s market value. The disruption to daily digital sales and click-and-collect services not only impacted revenue but also led to a 7% drop in share price and a marked decline in customer recommendation rates, falling from 87% to 73%. The incident, traced to human error at a third-party supplier, highlights the risks associated with complex supply chains and the increasing frequency of breaches originating from external partners. M&S’s phased recovery, including the restoration of third-party brands to its website, reflects the broader sector’s shift toward accelerated technological transformation and resilience. With average losses from cyber attacks now reaching £1.4mn per incident and 41% of breaches linked to third-party providers, the retail industry faces mounting pressure to invest in robust cybersecurity and rapid response strategies to safeguard operations, reputation, and customer trust.

IADS Notes: In April 2025, M&S’s cyber crisis resulted in a suspension of online operations, a £700mn market value loss, and a 7% share price drop (Financial Times). By May 2025, customer recommendation rates had fallen sharply, highlighting reputational risks (Retail Week). The profit impact, attributed to a third-party supplier breach, reached £300mn (Financial Times, May 2025). Recovery efforts in June 2025 included restoring third-party brands, underscoring the need for technological transformation (Retail Week). By August 2025, the sector’s vulnerability to cybercrime was further emphasized, with 41% of breaches linked to third-party providers and average losses of £1.4mn per attack (Retail Week).

M&S takes £136mn profit hit from cyber attack

What: Singapore retail sales rose 2 per cent in September, with growth moderating from previous months and online channels accounting for 17.6 per cent of sales.

Why it is important: The moderation in growth and divergence across categories reflect a maturing retail market, with digital transformation and evolving consumer priorities shaping sector performance.

Singapore’s retail sector experienced a 2 per cent year-on-year increase in September, marking a slowdown from August’s 4.7 per cent rise and reflecting a broader trend of fluctuating but resilient growth throughout 2025. The estimated retail sales value reached SG$3.5 billion, with online channels accounting for 17.6 per cent, underscoring the ongoing digital transformation of the market. Watches and jewellery continued to outperform, posting a 16.6 per cent year-on-year increase, while recreational goods and supermarkets also saw notable gains. In contrast, petrol service stations and apparel and footwear retailers recorded declines, highlighting the polarisation between essential and discretionary categories. Food and beverage services faced further pressure, with sales falling 1.6 per cent, driven by a weak restaurant sector, and 26.3 per cent of F&B sales occurring online. These results illustrate the evolving nature of consumer demand and the importance of digital channels, as well as the need for retailers to adapt strategies to sector-specific trends and shifting market dynamics.

IADS Notes: In July 2025, Singapore’s retail sales rose 4.1 per cent, led by technology, jewellery, and supermarkets, with online channels at 15.5 per cent (Inside Retail). June and May 2025 saw modest or flat growth, with online penetration steady at 14–16 per cent and sector performance diverging. March 2025 highlighted watches and jewellery as a growth leader, while December 2024’s 4 per cent decline underscored the polarisation between categories and the acceleration of digital adoption (Inside Retail).

Singapore retail sales see moderating growth in September