What: Indonesia’s government has asked Google and Apple to block the Chinese e-commerce firm Temu from their local app stores, fearful of the economic impacts of its consumer-to-factory model.

Why is it important: The Indonesian government is concerned about unhealthy competition that may affect its small and medium enterprises given Temu’s model of connecting consumers directly with factories in China, giving them access to an array of cheap products.

Rapidly growing, Indonesia’s e-commerce sector was worth USD 62 billion in 2023, and is projected to expand to around USD 160 billion by the end of the decade. This move is the latest in a series of regulations aimed to “create a fair, healthy and beneficial electronic commerce ecosystem.” Last year, the government banned e-commerce transactions on social media platforms - a move that was widely seen as a response to the sudden popularity of TikTok Shop. It was also recently announced that the Indonesian government will impose import tariffs on a range of consumer goods including textiles, electronics, and cosmetics from China.

Indonesia asks Apple, Google to block Chinese e-commerce app Temu

What: John Lewis Partnership and customer data specialist Dunnhumby launched a new insights platform designed to provide real-time insights to partner brands as well as to the retailer.

Why it is important: The platform will help the John Lewis Partnership and brands better understand shopper loyalty and repeat purchase behaviour, allowing ”more responsive strategic decisions”. It will also help inform the brand’s retail media plans.

The launch of the improved platform follows a pilot scheme that is already delivering a “more tailored and rewarding shopping experience” and increasing brands’ sales. It complements retail media initiatives underway as insights gained through Dunnhumby are used to better understand growth opportunities for brands and suggest a relevant retail media strategy.

John Lewis and Dunnhumby unveil real-time customer insight platform to boost retail media plans

What: Walgreen is closing 1,200 stores.

Why it is important:  It highlights the financial struggles of Walgreens and the broader retail pharmacy industry, driven by online competition and declining prescription drug profits. The store closures reflect a major shift in how traditional pharmacies must adapt to changing consumer behaviors and market pressures.

Walgreens is closing around 1,200 locations by 2027 as it struggles to compete with online retailers and faces declining prescription drug payments. The company, which plans to close 500 stores in the next year alone, is implementing these changes as part of a multi-year optimisation program. While sales increased by 6% in the past quarter, Walgreens reported a USD 3 billion loss due to a writedown of a Chinese pharmaceutical chain and CareCitrix, a home care provider. Retail analysts, like Neil Saunders, see these closures as a sign that the company is trying to correct years of poor store operations and underperformance.

The closures reflect broader challenges within the drugstore industry, as major chains like CVS and Rite Aid also face shrinking profits from filling prescriptions and increased competition from companies like Amazon. On top of prescription struggles, Walgreens and others are being pressured by large retailers such as Target and Dollar General, particularly in rural areas. Walgreens recently slashed prices to attract cost-conscious shoppers but acknowledges that the financial turnaround will take time. However, some analysts see the closures as an admission of past failures in the company’s business strategy.

Walgreens is closing 1,200 stores

What: Walmart unveils Wallaby, a retail-specific AI model suite, as part of its "Adaptive Retail" strategy to revolutionise personalised shopping and customer service.

Why it is important: The introduction of Wallaby highlights the retail industry's move towards more sophisticated, brand-specific AI solutions, which could reshape customer interactions and internal operations across the sector.

Walmart has debuted Wallaby, a set of retail-specific AI models designed to power the company's "Adaptive Retail" era. These large language models (LLMs) have been trained on decades of Walmart data, incorporating company-specific knowledge about customers, employees, terminology, corporate values, and brand-specific information. Walmart plans to integrate Wallaby with other AI models based on specific application goals. In addition to Wallaby, Walmart is developing a "content decision platform" that uses AI to understand customers and a generative AI-powered tool to predict content for each shopper on Walmart's website. The company has also created an AR platform called Retina for engaging customers in virtual spaces. Walmart aims to release new Wallaby-enabled customer experiences in the U.S. by the end of 2025, with plans to use the platform for personalised product recommendations in Canada and Mexico. Wallaby builds upon Walmart's existing foundation of multiple LLMs designed to assist employees and shoppers. The company is currently testing the system internally, with a focus on understanding Walmart's products and brands to ensure accurate communication with customers.

IADS Notes: Walmart's introduction of Wallaby and related AI initiatives aligns with its ongoing strategy to leverage artificial intelligence across its retail operations. The company has been progressively integrating AI into various aspects of its business, from improving product catalog data quality to enhancing search functionalities and empowering frontline employees . Walmart's AI-powered personalised homepages, set to launch by the end of 2025, demonstrate the company's commitment to creating tailored shopping experiences . These developments reflect Walmart's position at the forefront of retail technology, setting new standards for the industry in personalised shopping experiences and data-driven decision-making.

Walmart unveils Wallaby AI for personalised shopping

What: Harrods has partnered with Scayle to launch a new digital platform, enhancing its e-commerce capabilities.

Why it is important: This collaboration aims to deliver a state-of-the-art online shopping experience, boosting Harrods' global reach and customer engagement through advanced customisation and personalisation features.Harrods, the luxury London department store, has introduced a revamped digital platform in partnership with Scayle. This initiative focuses on providing a premium e-commerce service that enhances the online purchasing journey for customers. The platform covers a wide range of products including fashion, beauty, jewellery, watches, food, beverages, and home living. It offers high flexibility for customisation and personalisation through systems like Product Information Management (PIM), Shop Management, and an Order Management System (OMS). Scayle has also developed custom brand landing pages and integrated various systems to ensure seamless operation. Caitlin Innes, Harrods' Chief Digital and Customer Officer, emphasised the commitment to delivering top-tier customer experiences through innovative partnerships. Future enhancements include an upgraded mobile app to extend this experience across multiple regions such as the US, Middle East, and Asia.

Harrods and Scayle enhance e-commerce platform

What: M&S announces plans to install self-checkout systems in changing rooms across 180 clothing stores by 2028, aiming to streamline the shopping experience while maintaining staff presence for security and customer service.

Why it is important: This strategic move reflects the retail industry's ongoing challenge of modernizing store operations while maintaining security measures, particularly as middle-class shoplifting concerns increase with self-service technology.

Marks & Spencer has unveiled plans to implement self-checkout systems in changing rooms across its 180 clothing stores, with over 100 locations scheduled for completion by early 2028. This initiative aims to eliminate the inconvenience of double queuing for customers while maintaining security through dedicated staff "hosting" the changing room areas. Operations director Sacha Berendji emphasized that the technology would provide customers with the choice to either walk straight into fitting rooms without queuing and pay there, or opt for traditional service methods. The rollout has already begun, with 28 recently refurbished sites, including the Fosse Park flagship in Leicester, already featuring the new system. This development comes despite previous concerns raised by M&S chairman Archie Norman about increased middle-class shoplifting associated with self-checkout technology. The initiative is part of a broader store revamp strategy encompassing home, food, and clothing ranges, as well as individual food halls.

IADS Notes: M&S's plan to add self-checkouts to changing rooms across 180 clothing stores by 2028 aligns with their broader store modernization strategy, but comes amid mixed industry experiences with such technology. While the retailer is pursuing digital transformation, as evidenced by their March 2024 "superapp" development , the self-checkout initiative must navigate challenges highlighted by industry data from December 2023, which revealed customer frustrations and increased staff responsibilities with such systems . Target's March 2024 decision to limit self-checkout to 10 items demonstrates the industry's growing recognition of the need to balance efficiency with customer service. However, M&S's approach appears more targeted, as shown by their successful store modernization efforts, including the August 2024 launch of their innovative clothing-only concept at Battersea Power Station , suggesting a more strategic implementation of self-service technology within their overall retail experience enhancement.

Marks & Spencers adds self checkouts to changing rooms

What: Neiman Marcus will honour Leonard A. Lauder with its 2024 Award for Distinguished Service in the Field of Fashion.

Why it is important: Lauder, the chairman emeritus of the Estée Lauder Cos., is being honoured for his legacy of taking a family business and growing it to be a global leader in beauty and innovation.

The Estée Lauder Cos. and Neiman Marcus have a long and storied relationship. It was one of the early retailers of the Estée Lauder line, was the exclusive retailer for Tom Ford Beauty in the U.S. upon its launch, and today counts a number of Estée Lauder Cos. brands among its assortment, including La Mer, Jo Malone, Aerin and By Killian. The ceremony will be held on November 13 in New York City, and the Lauder company will be invited to create an exclusive activation especially for Neiman Marcus customers, to launch in the next six to eight months

Neiman Marcus to honour Leonard A. Lauder

What: Shopify is aggressively targeting larger companies, successfully attracting clients from Salesforce by offering lower prices and flexible e-commerce solutions.

Why it is important: This strategic move by Shopify signifies a shift in the e-commerce landscape, challenging Salesforce's dominance and potentially reshaping the competitive dynamics between these major platforms. Shopify Inc., traditionally known for supporting small businesses, is now making a bold move into the enterprise sector by targeting larger companies and enticing them away from Salesforce Inc. This shift comes as Shopify aims to boost growth following a slowdown after the pandemic-driven e-commerce surge. Shopify has successfully attracted hundreds of Salesforce clients, including big names like Mattel Inc., Toys R Us, and Casper, by offering lower prices and a flexible suite of e-commerce services. This approach contrasts with Salesforce's more comprehensive but expensive offerings, which include customer service and the ability to handle traffic surges. The rivalry between the two companies has intensified, with Shopify criticising Salesforce's expensive client acquisition strategies. Meanwhile, Salesforce maintains its position by highlighting its broader functionality and integration capabilities. As Shopify continues to enhance its platform to appeal to larger retailers, it is betting on increased order volumes from these new clients to drive growth. This competition reflects a significant shift in the e-commerce market dynamics, as both companies vie for dominance in serving large-scale retailers.

Shopify's Strategic Shift: Targeting Salesforce Clients

What: Austrian investor Georg Stumpf has acquired the unfinished "Lamarr" luxury department store project in Vienna from the insolvent Signa Group.

Why it is important: This acquisition marks a significant development in Vienna's retail landscape, potentially transforming a high-profile, yet incomplete, project into a new commercial venture, while also highlighting the ongoing restructuring within the Signa Group's assets.

Austrian investor Georg Stumpf has taken over the "Lamarr" project, an unfinished luxury department store located on one of Vienna's prime shopping streets. The project was initially developed by the now-insolvent Signa Group, led by entrepreneur René Benko, and was modelled after Berlin's renowned KaDeWe department store. The acquisition by the Stumpf Group is pending approval from the insolvency court, with no disclosed purchase price. Originally, the Lamarr was intended to house both a luxury department store operated by the KaDeWe Group and a hotel. However, the Stumpf Group has not yet revealed its plans for the building's future use. A new concept is being developed in collaboration with the City of Vienna. This transaction is part of a broader shift in ownership within Signa's portfolio, as the Thai conglomerate Central Group has already taken over operations of KaDeWe and other major department stores in Germany. The potential involvement of Central Group in the Lamarr project remains uncertain.

Austrian investor acquires Vienna's unfinished luxury department store

What: Luxury brands are adapting to the evolving digital landscape by leveraging lo-fi content, meme culture, and social commerce, as highlighted in the latest Vogue Business Index.

Why it is important: This shift is crucial for luxury brands to maintain relevance and engagement in a market dominated by platforms like TikTok, where lo-fi content and social commerce are gaining traction.

The latest Vogue Business Index shows significant changes in how luxury brands engage digitally. Louis Vuitton has overtaken Dior in digital engagement by leveraging global ambassadors and viral content. Smaller brands like Loewe and Marc Jacobs are gaining traction on TikTok and other social media platforms by balancing lo-fi, internet-coded content with traditional high-fashion efforts.

Social commerce is also emerging as a key area, particularly in Western markets. Despite low adoption rates, platforms like TikTok Shop offer opportunities for resale and direct purchasing. In China, social commerce is well-established, with many luxury consumers already purchasing secondhand luxury items through social media.

The integration of AI tools is assisting brands in navigating the complex social media landscape, though it raises privacy concerns. Brands like Loewe and Marc Jacobs are successfully balancing engagement with social media trends while maintaining their high-fashion status.

Lo-fi content and social commerce drive digital success for luxury brands

What: Frasers Group has opened a new department store in Fremlin Walk Shopping Centre, Maidstone, Kent, offering a curated mix of premium, lifestyle, and sports brands.

Why it is important: This opening underscores Frasers Group's commitment to regional community investment and sets a new standard for retail by providing access to top-tier brands and creating over 40 new jobs, enhancing the local economy.

Frasers Group has launched its latest department store in Maidstone's Fremlin Walk Shopping Centre, Kent. The 70,000 square foot store spans two floors and features a variety of premium, lifestyle, and sports brands. It includes sections for Sports Direct, Jack Wills, USC, Evans Cycles, GAME, and Sofa.com. Notably, the Sports Direct area alone covers 35,000 square feet, while the upscale Flannels multibrand space occupies 5,000 square feet. This expansion has created over 40 new jobs in the region.

The "next-generation" store offers ready-to-wear collections from a wide range of premium and lifestyle brands for men, women, and children. Brands featured include Lauren by Ralph Lauren, Barbour International, BOSS, Tommy Hilfiger, New Balance, and UGG. Flannels provides a curated selection of luxury designer clothing and accessories for all ages from renowned fashion names.

Additionally, the accessories hall showcases trend-setting and timeless pieces from Marc Jacobs, Coach, and Tory Burch. The Beauty Edit section features an evolving selection of beauty brands across skincare, make-up, fragrance, beauty tools, and accessories from Estée Lauder to Dior and Tom Ford.

Lauren Barrie, Group Head of Luxury and Premium at Frasers Group, highlighted the company's ongoing efforts to reinvent retail by offering regional communities access to premium brands and creating engaging retail spaces.

Frasers Group opens latest department store in Maidstone

What: SM Prime Holdings has underlined its regional development strategy in the archipelago with the grand opening of a new mall in Mandaue City, Cebu on October 25.

Why it is important: SM Prime is committed to concentrating more resources in regional areas outside metropolitan Manila, where more than 40% of the company’s mall floorspace already resides.

The opportunity for regional growth in consumer spending comes partly as a result of government regional development programs, in much the same way as is occurring in Thailand (shifting economic development from Bangkok to the provincial capitals), Vietnam (emphasising growth outside of Ho Chi Minh City and Hanoi) and China (investing more in cities inland from the first-tier coastal metro areas). In the Philippines, SM Prime is well equipped to drive the development process because it develops its own ‘lifestyle cities’, or what it calls ‘integrated developments’ that include retail, residential, office, hotel, convention and entertainment uses.

A new mall for Cebu: Why SM Prime remains committed to regional expansion

What: The International Product Safety Week (IPSW) took place in Brussels gathered academia, experts, companies and stakeholders from all over the world to discuss pressing issues around product safety and compliance.

Why it is important: The concrete implementation of the General Product Safety Regulation (GPSR), will enter into application on 13 December 2024.

The IPSW held two high-level panels with representatives from the European Commission, European Parliament, OECD and consumer organisations. The first panel was on the application of product safety requirements for second hand products. Stakeholders discussed the importance of appropriate risk assessments in the process of making safe circular economy products available to consumers. The second panel also held discussions regarding risk assessment of product, applied this time to new technology, and specifically AI. According to some speakers, AI can present a real threat to consumers, both physically and mentally, and these stakeholders stressed the importance of anticipating and mitigating those risks by having a tailored and holistic approach.

Takeaways from the International Product Safety Week 2024

What: Primark is set to open its first Manhattan store on 34th Street, strategically located across from Macy's Herald Square, by 2026.

Why it is important: This expansion marks a significant step in Primark's U.S. growth strategy, enhancing its brand visibility and competitiveness in a prime retail location.

Primark, the value-oriented fashion retailer, has signed a lease for its first Manhattan location at 150 West 34th Street, currently occupied by Old Navy. The 75,000-square-foot space will feature 54,000 square feet of selling space across four levels and is expected to open in 2026. This strategic location places Primark amidst a competitive retail environment, directly across from Macy's Herald Square and near other major retailers like Target, H&M, and Zara.

The move is part of Primark's broader U.S. expansion plan, which aims to increase its store count from 27 to 60 by 2026. The retailer has been gradually building its presence in the U.S. since opening its first store in Boston in 2015. Primark's strategy involves taking over vacated retail spaces, such as former Sears and JCPenney locations, and focusing on high-traffic areas with complementary retailers and entertainment options.

Primark's Manhattan flagship will emphasise fashion-forward offerings, particularly licensed products related to the NBA, NFL, Disney, and Netflix. This focus aligns with the retailer's recent U.S. brand campaign, "That's So Primark," highlighting its commitment to affordable fashion.

The new store will further solidify Primark's presence in New York State, where it currently operates nine stores. Additionally, Primark plans to expand into Texas and Tennessee in the coming years.

Primark expands U.S. presence with first Manhattan store

What: Marks & Spencer to launch collaboration with designer Bella Freud.

Why it is important: It highlights a significant collaboration between Marks & Spencer and designer Bella Freud, showcasing how major retailers are partnering with fashion icons to expand their offerings and reach a broader audience.

Marks & Spencer is set to unveil its exclusive collaboration with fashion designer Bella Freud, launching on Thursday both online and in 31 UK stores. Richard Price, the retailer's managing director of home and beauty, emphasised that Freud is renowned for her iconic statement sweaters, and this collaboration aims to provide a fun and authentic experience while introducing her designs to a broader audience. The 27-piece collection showcases Freud's signature style, incorporating high-quality materials synonymous with M&S, featuring items such as cashmere sweaters, a pin-striped suit, pleated miniskirt, denim jeans, bow shirts, scarves, and tote bags.

Freud expressed her desire for everyone to own a piece from the collection, stating that it brings her joy to see people wearing her designs without knowing who she is. The collaboration highlights the intersection of Freud's distinct aesthetic and M&S's commitment to quality and value, creating an accessible fashion line that appeals to a diverse range of customers. This partnership is not just about retail but also about fostering a sense of connection through fashion.

Marks & Spencer to launch collaboration with designer Bella Freud

What: Macy's new innovation strategy, led by CEO Tony Spring, is beginning to show promising results in revitalising the department store's business model.

Why it is important: As the retail sector faces intense competition from online and discount retailers, Macy's efforts to innovate are crucial for its survival and relevance. The strategy aims to transform Macy's into a modern retail entity, leveraging small-format stores and innovation incubators to drive growth and customer engagement.

Macy’s is implementing a bold innovation strategy under CEO Tony Spring to counteract declining sales and market share in the department store sector. The strategy involves segmenting its stores into "go-forward" locations for investment and closing underperforming sites. Key initiatives include expanding small-format Macy’s stores, opening new Bloomie’s and Bloomingdale’s locations, and leveraging Bluemercury's growth. A significant aspect of this plan is the "First 50" stores acting as innovation incubators to test new concepts and merchandising strategies. These stores have shown early success, outperforming other locations in sales and customer service metrics. Despite a slight revenue decline in the first half of the year, Macy's remains committed to its transformation plan, with expectations for more substantial results in the coming year. The strategy reflects a necessary shift towards radical transformation in department store retailing to meet evolving consumer expectations.

Macy’s innovation strategy shows promise amidst retail challenges

What: Boots, Co-op, and Very are enhancing their retail media networks to leverage customer data and improve brand engagement, aiming to boost sales and create new revenue streams.

Why it is important: The development of retail media networks allows retailers to utilise customer data more effectively, providing personalised marketing opportunities and enhancing customer loyalty, which is crucial for maintaining a competitive edge in the retail industry.

Retail media networks are gaining traction as a significant growth area for retailers, with companies like Boots, Co-op, and Very taking strategic steps to expand their capabilities.

Boots: With over 17 million active Advantage Card users, Boots is leveraging its extensive customer data to enhance its media network. The focus is on creating cohesive campaigns that align with Boots' objectives while providing transparency to brands. This strategy aims to boost the omnichannel experience and introduce new revenue streams by collaborating with emerging brands. Boots is gearing up for its largest Christmas campaign yet, promising innovative partnerships and opportunities for brands.

Co-op: Since launching its retail media network in January, Co-op has prioritised convenience as its core offering. The introduction of digital screens in high-footfall urban locations aims to better target customers and increase brand engagement. Co-op's strategy has received positive feedback, with improvements in execution speed, error reduction, and brand performance. The retailer plans to expand its media channels into social media platforms, websites, and streaming services.

Very Group: Very has reimagined its retail media network by integrating its in-house team with SMG and Criteo's commerce media platform. This integration allows Very to combine customer data with a new creative platform to showcase brands effectively. The focus is on bespoke, data-driven campaigns that deliver strong returns on investment. Very plans to expand its technology over the next year to provide real-time data to brands, enhancing campaign effectiveness.

Several retailers are expanding their media networks

What: Amazon has introduced five new visual search features to enhance the shopping experience, including visual suggestions, product videos, and the ability to add text and isolate items within Amazon Lens image searches.

Why it is important: These features aim to speed up and precision-target product searches, reflecting Amazon's ongoing investment in improving its search capabilities and responding to the significant increase in visual search queries, which have risen by 70% globally year over year.

Amazon has recently unveiled a suite of new visual search features designed to make product searches faster and more precise. The "more like this" feature displays products similar to the search term entered by the user, allowing shoppers to quickly find comparable items. Additionally, shoppers can now view product videos without clicking on the product page, enhancing the discovery process.

The Amazon Lens image search has been enhanced to allow users to add text to their searches and isolate specific items within an uploaded image by circling them. These updates follow Amazon's previous investments in search capabilities, including the rollout of its generative AI shopping tool, Rufus, in July. Rufus enables shoppers to view previous orders, request product updates, and see detailed product information.

Amazon's visual search queries have seen a 70% global increase year over year, indicating strong user adoption of these new features. The company plans to gather feedback to continue enhancing these visual search capabilities.

Amazon launches suite of visual search features

What: Generative artificial intelligence has crossed the threshold from hyped novelty to a high-powered business tool with a significant portion of management deploying it to drive demonstrable results across their organisations.

Why it is important: These insights come from a Google Cloud survey of 376 senior executives in global retail and consumer packaged goods companies with at least USD 10 million or more in revenue.

87% of executives that have adopted generative AI reported an increase of six percent or more in overall annual revenue. The top areas for generative AI deployment were found to be customer service and experience, product search and styling, employee productivity and marketing, and security. These findings have significant implications for the retail sector.

Where to use Gen AI to boost retail and brands

What: Louis Vuitton has opened a new store at Heathrow Airport, featuring the brand's first café concept in the UK.

Why it is important: This innovative store blends luxury retail with dining, enhancing the shopping experience and marking a strategic move to attract travellers by offering a unique environment.

Louis Vuitton has unveiled a stunning new hybrid store at London Heathrow Airport Terminal 2, incorporating the brand's first UK café concept. The store spans over 300 square meters and features a futuristic design by Marc Fornes of Theverymany, with a dome-shaped exterior in shades of blue and white. Inside, the space is accented with colours like red, yellow, blue, and white. The luxury offerings include a wide range of leather goods, accessories, fragrances, shoes, and clothing. The café, named Le Café, offers an all-day menu crafted by renowned French chef Cyril Lignac. This concept follows the successful Louis Vuitton Lounge by Yannick Alléno at Hamad International Airport. The Heathrow store's unique blend of retail and dining is an airport first for Louis Vuitton and has already garnered attention for its innovative approach to luxury shopping.

Louis Vuitton debuts hybrid store with first UK café at Heathrow

What: Hurr has achieved a significant milestone by renting GBP 100 million of fashion items since its launch in 2018.

Why it is important: This milestone highlights the growing acceptance and success of the fashion rental model, emphasising a shift towards sustainable consumption and the potential for expansion in the circular economy.

Hurr, a circular clothing platform known for promoting "access over ownership," has reached a significant milestone by renting GBP 100 million of fashion clothing since its inception in 2018. The platform operates peer-to-peer and brand-to-consumer rental models, partnering with over 130 brands, including Net-a-Porter, Selfridges, Ganni, Nensi Dojaka, and Coperni. Hurr's proprietary technology facilitates the rental of more than 85,000 luxury fashion items on its site and extends this capability to its partners' businesses.

CEO Victoria Prew views this achievement as proof of the viability of fashion rental as a business model, offering retailers and consumers an alternative way to engage with fashion. The platform also launched "Hurr Flex," a credit system allowing longer-term rentals, reflecting consumer demand for more flexible options. This initiative indicates a shift from occasion wear to everyday clothing rentals.

Hurr's business model includes resale opportunities, where items are listed for resale after being rented approximately 20 times. The company is also expanding into new categories like outerwear and skiwear, supported by investors such as Octopus Ventures and Praetura Ventures. The platform's success comes amid increasing public interest in sustainable fashion practices and rental as an alternative to traditional ownership.

Fashion rental platform Hurr reaches GBP 100 million milestone

What: Next-gen materials are becoming more important.

Why it is important:  It highlights a significant shift in the fashion industry towards sustainable materials, which is crucial for reducing the industry's environmental impact and achieving long-term sustainability goals.

The latest fashion season has seen a significant shift towards next-gen materials, with an increased focus on sustainable innovations like recycled textiles, seaweed fibers, and mycelium. Major brands such as Burberry and Ganni are now incorporating these materials into their regular collections, marking a departure from previous years when material innovations were mainly limited to proof-of-concept products or capsule collections. This change is crucial for reducing fashion’s environmental footprint, as raw materials account for the majority of a brand’s emissions. Despite setbacks, like the bankruptcy of Renewcell earlier this year, the momentum around sustainable materials is gaining pace.

Several designers showcased new material innovations during fashion month, with Circ, Ecovative, and other startups collaborating with established brands to integrate sustainable fabrics into their collections. Christian Siriano, Patrick McDowell, and Karoline Vitto, among others, featured garments made from biotech and plant-based fibers. Brands are now beginning to scale up production, moving beyond limited runs, but challenges remain in making these materials widely available. With initiatives from designers like Stella McCartney and partnerships such as Ganni’s Fabrics of the Future, there’s hope that these next-gen materials will become mainstream, pushing the industry closer to its sustainability goals.

With new brand partnerships, next-gen materials are picking up steam

What: IKEA opens its first standalone high street restaurant in London's Hammersmith, offering Swedish cuisine including meatballs and breakfast at competitive prices in a 75-seat venue.

Why it is important: The standalone restaurant format demonstrates how retailers can leverage established brand elements, like IKEA's popular Swedish food offerings, to create new customer touchpoints in high-traffic urban locations.

IKEA has launched its first standalone restaurant on King Street in London's Hammersmith, marking a significant expansion of its food service concept beyond traditional store locations. The 75-seat venue, formerly a Wasabi restaurant, offers a comprehensive menu featuring IKEA's signature Swedish dishes, including both meat and plant-based meatballs served with mashed potatoes, along with other options such as fish and chips, pasta, and salmon with couscous. The restaurant maintains IKEA's value-focused approach with competitively priced breakfast options starting at £2.75 for a small breakfast and £3.75 for a regular size. To promote the new venue, IKEA's Hammersmith store is offering a £5 discount to IKEA Family Members who spend £5 or more at the restaurant through November 30. The location aims to serve both as a dining destination and a place for customers to take a traditional Swedish 'fika' break with coffee and treats.

IADS Notes: IKEA's launch of its first standalone restaurant in Hammersmith represents a natural evolution of its urban retail strategy. Since 2019, the company has been refining its city-center approach, as evidenced by its Paris location's expansion from 1,000 to 2,600 products to meet spontaneous shopping needs . This food service expansion aligns with IKEA's broader urban presence strategy, demonstrated by significant property acquisitions like Churchill Square in Brighton and the announcement of a major Fifth Avenue location in New York . The standalone restaurant concept mirrors similar initiatives by other retailers, such as Fenwick's exploration of independent restaurant locations , suggesting a growing trend of retailers leveraging their food service expertise to create new revenue streams in high-traffic urban locations.

IKEA opens its first standalone restaurant on a UK high street

What: Kering is intensifying cost-cutting measures, including layoffs and store closures, following a significant drop in profits and missed forecasts for Gucci.

Why it is important: This move highlights the challenges faced by luxury brands amid global economic uncertainties, particularly in key markets like China and Japan, impacting their financial performance and strategic decisions.

Kering, the French luxury conglomerate, is deepening austerity measures due to a projected 50% drop in operating profit for the year. The company plans layoffs, store closures, and contract renegotiations after a challenging third quarter. Gucci, Kering's flagship brand, missed sales expectations, particularly in China and Japan, contributing to a 15% revenue decline to EUR 3.79 billion. Gucci's organic sales fell by 25%, while other brands like Saint Laurent and Balenciaga also saw declines. However, Bottega Veneta showed growth with a 5% increase in sales.

Kering's CEO, François-Henri Pinault, emphasised the need for sustainable growth and tighter cost control. The company expects recurring operating income of EUR 2.5 billion in 2024, down from EUR 4.75 billion last year. Despite some improvement in trends, Kering anticipates continued pressure on gross margins and plans to maintain flat advertising spending.

Gucci is undergoing a turnaround under new creative leadership and aims to boost sales with new handbag lines. However, retail revenue has dropped significantly in Asia-Pacific and other regions. Kering is also downsizing its store network and renegotiating supplier contracts to improve efficiency.

The company's fortunes are closely tied to China's economic conditions, with revenues from Chinese nationals down 35%. Kering's efforts to optimise costs are part of a broader strategy to navigate the current luxury market slump.

Kering implements austerity measures amid profit decline