What: H&M is enhancing its retail presence by incorporating new technologies and localising store assortments to better cater to specific communities.

Why it is important: This strategy aims to improve customer experience and competitiveness in a challenging market, particularly against fast-fashion rivals like Zara and Shein.

H&M is actively transforming its retail approach to become more consumer-centric and innovative. The Swedish retailer is investing significantly in its stores, particularly in New York City, where all 12 Manhattan locations will undergo major changes, including full rebuilds, refreshes, relocations, or new openings. This initiative is part of H&M's broader strategy to enhance the shopping experience through technology and localized assortments.

In response to flat sales and increased competition, H&M is focusing on improving its fashion offerings and retail environments. The company is also experimenting with pop-up stores to test new concepts. For instance, a pop-up boutique in Manhattan's NoLIta neighbourhood will feature a vintage archival collection and signature styles tailored for the local trend-setting crowd. This pop-up will also offer personalised essential oils, showcasing H&M's commitment to unique customer experiences.

H&M's expansion strategy includes opening new stores in key locations across the U.S. and internationally. The retailer plans to upgrade about 10% of its U.S. stores this year, with another 10% slated for upgrades next year. These upgrades will incorporate technology improvements such as RFID readers for stock transparency and handheld devices for faster checkout processes.

By empowering sales associates with technology, H&M aims to enhance human interaction in stores, offering personalised style advice and buying suggestions. This approach reflects H&M's confidence in the U.S. market and its commitment to elevating both in-store and online experiences.

H&M innovates with technology and localised assortments

What: Shinsegae launches an innovative AI-based multilingual service at its flagship store, offering real-time voice and text translation for international shoppers.

Why it is important: This technological advancement signifies a shift in how department stores are adapting to serve an increasingly diverse international customer base, potentially setting a new standard for customer service in the retail industry.

Shinsegae Department Store has introduced an AI-based simultaneous interpretation service at its headquarters in Seoul, supporting an impressive 38 languages. The service, launched on May 20th, provides real-time voice translation and text translation simultaneously. It's installed at the information desk and customer counselling room, allowing foreign customers to select their native language on a tablet PC and receive responses on a transparent LED display. The system is designed to learn frequently used terms, enhancing its ability to communicate effectively with foreign tourists about store services, events, and promotions.

Within three weeks of implementation, over 2,000 foreigners have utilized the service, indicating a strong initial response. The extensive language support, including various forms of Chinese, English, German, Japanese, French, Spanish, Vietnamese, and Malay, makes it the most comprehensive in the industry. Shinsegae plans to expand the service to other locations, particularly targeting areas popular with foreign shoppers.

This initiative comes as the number of foreign tourists and their spending in South Korean department stores are on the rise. From January to September this year, Shinsegae Department Store's foreign customer sales increased by 148% year-on-year, reflecting the growing importance of international shoppers in the Korean retail landscape.

IADS Notes: Shinsegae's AI-based interpretation service aligns with a broader trend of AI adoption in South Korean retail. In April 2024, Lotte Department Store launched a similar service supporting 13 languages . Lotte further expanded its AI use into internal operations in July 2024, implementing chatbots and AI-driven security systems . These innovations are part of a larger transformation in Japanese and Korean department stores, as they adapt to changing consumer behaviors and economic challenges. Retailers are focusing on creating experiential offerings and leveraging technology to attract younger generations and remain competitive in an increasingly digital retail environment .

Shinsegae deploys real-time AI-powered translation for foreign tourists

What: John Lewis has reintroduced personal loans for its customers through a partnership with digital bank Zopa.

Why it is important: This move expands John Lewis's financial services, providing customers with quick access to loans and enhancing the retailer's competitive edge in the financial sector. It reflects a broader trend among retailers to offer flexible credit solutions to meet customer demands.

John Lewis has revived its personal loan offerings by partnering with digital bank Zopa, allowing customers to access loans ranging from GBP 1,000 to GBP 35,000 directly through its website. These loans, which can be processed in less than two hours, are available for terms of one to seven years with fixed monthly repayments. This initiative marks John Lewis's return to providing direct loans after ending its partnership with HSBC in 2022. Alongside personal loans, John Lewis offers credit cards, insurance, and a buy now, pay later option for specific products. This development aligns with a trend among retailers like Currys, which recently relaunched its flexible payment services to cater to customer preferences for manageable payment options.

John Lewis reintroduces personal loans with Zopa partnership

What: Gartner predicts significant AI-driven organisational changes by 2029, including the elimination of 50% of middle management positions, increased employee monitoring, and AI-guided board decisions, highlighting both opportunities and challenges for the retail sector.

Why it is important: These predictions underscore the urgent need for retailers to prepare for AI's transformative impact on organisational structures, employee relations, and decision-making processes, while addressing potential risks to workforce well-being.

Gartner's strategic predictions for IT organisations through 2029 outline a transformative roadmap for AI adoption in retail. By 2027, the analysis suggests that 20% of organisations will use AI to flatten their organisational structure, potentially eliminating more than half of current middle management positions as AI takes over routine tasks like scheduling and performance monitoring. The predictions also indicate that by 2028, 40% of large enterprises will deploy AI to measure employee behaviors and moods for profit optimisation, while 70% of organisations will implement anti-digital policies to address technological immersion and social isolation concerns. The forecasts extend to corporate governance, with 10% of global boards expected to use AI guidance for material business decisions by 2029. Additionally, the predictions address workplace privacy, with 70% of new employee contracts expected to include AI-related licensing and usage clauses by 2027, reflecting the growing intersection of AI technology with workforce management.

IADS Notes: Gartner's predictions about AI's impact on organisational structures and workforce management align with current industry trends and challenges. The forecast that 20% of organisations will eliminate half of their middle management positions reflects existing preparedness gaps, as evidenced by Deloitte's January 2024 finding that only 20% of executives feel equipped to address AI skills needs. However, the technology's potential for positive impact is demonstrated by Google Cloud's October 2024 survey, showing 87% of retail executives reporting significant revenue increases after AI adoption . Organisations are actively addressing these challenges, as seen with IKEA's April 2024 initiative to train 3,000 workers and 500 leaders in AI literacy. This aligns with LinkedIn CEO's December 2023 emphasis on redefining jobs as skill collections rather than titles, suggesting a fundamental shift in how organisations will structure and manage their workforce in response to AI integration.

Gartner unveils top predictions for IT organizations and users in 2025 and beyond

What: Aesthetic has introduced a new AI platform, likened to "Shazam for Clothes," enabling users to shop and discover fashion directly through social media.

Why it is important: This innovation bridges the gap between inspiration and purchase, offering a personalised shopping experience and empowering tastemakers to monetise their influence, potentially transforming the e-commerce landscape.

Aesthetic, a new e-commerce technology company, has launched an AI platform that allows users to shop for fashion directly through social media platforms like Instagram. The platform uses a proprietary algorithm called Alma, part of Google Cloud’s AI start-up program, to identify and recommend fashion items based on user preferences. Users can send content to the Alma bot and receive instant shopping links. The platform has attracted over 80,000 waitlist sign-ups and is expanding to TikTok and other platforms. Aesthetic aims to map the "human style genome," offering tailored recommendations and bridging the gap between inspiration and purchase. It also supports tastemakers—stylists, creators, designers—by sharing revenue from sales influenced by their content. This approach allows tastemakers to monetise their style fully. The company has received investment from notable figures in fashion and tech, with plans to revolutionise how personal taste is shared and monetised.

Aesthetic launches AI platform for fashion discovery

What: Commercial property giant Hammerson completes 'transformational' disposal of its interest in Value Retail, operator of designer outlet villages including Bicester Village.

Why it is important: The sale represents a major shift in Hammerson's portfolio strategy, providing substantial cash proceeds to fund new investments and adapt to changing retail trends amidst broader economic challenges

Hammerson has finalized the sale of its interest in Value Retail, which operates 12 international discount designer malls including Bicester Village, to Silver Bidco, an affiliate of US private equity company L Catterton. This disposal generates approximately £600 million in cash proceeds, which Hammerson describes as "transformational" for its ability to accelerate growth and unlock value-enhancing opportunities.

The company plans to use these funds for organic investment in its core portfolio, consolidation of ownership in core assets and adjacent markets, and accelerating value realization from its strategic land holdings. Hammerson CEO Rita-Rose Gagné emphasized that this marks a significant moment for the company, delivering on a promised turnaround initiated three years ago.

The immediate deleveraging effect of the disposal allows Hammerson to move faster on its strategic priorities. As a result of this transaction, Moody's has upgraded Hammerson's investment grade credit rating from Baa3 to Baa2, while Fitch has updated its outlook to Positive. Additionally, Hammerson successfully refinanced the secured debt on its interests in the Dundrum mall in Dublin.

IADS Notes: While Hammerson is making a significant strategic shift by selling its interest in Value Retail, other players in the retail property sector are showing varied performances. For instance, Unibail-Rodamco-Westfield reported positive results for its UK operations in 2023, with increased tenant sales, improved footfall, and reduced vacancy rates in its London Westfield malls. This contrast highlights the diverse strategies and outcomes within the retail property market. Westfield UK's success, particularly in terms of sales growth and lower vacancies, indicates a robust recovery and growing consumer confidence in certain segments of the retail sector post-Covid, showcasing the resilience and appeal of some physical retail spaces despite broader market challenges.

Hammerson completes sale of Value Retail share

What: Saks is launching a campaign to encourage its customers to participate in voting.

Why it is important: This initiative by Saks highlights the role of businesses in promoting civic engagement and emphasizes the importance of voting as a fundamental democratic right.

Saks is actively encouraging its customers to participate in the electoral process through a new campaign aimed at increasing voter turnout. By leveraging its platform, Saks seeks to raise awareness about the importance of voting and motivate its customer base to engage in civic activities. This effort underscores Saks' commitment to social responsibility and its belief in the power of individual voices in shaping the future. The campaign aligns with broader trends where businesses are taking a more active role in promoting civic engagement and addressing societal issues.

Saks encourages customers to get out and vote

What: Klarna partners with Adyen to expand buy now, pay later services into physical retail stores across Europe, North America, and Australia.

Why it is important: The move highlights the growing convergence of fintech and traditional retail, offering consumers more flexible payment options and challenging retailers to adapt their financial services in an increasingly competitive market.

Swedish fintech Klarna is partnering with Dutch payments provider Adyen to bring its popular buy now, pay later (BNPL) service into physical retail stores. This collaboration will make Klarna's payment products available across more than 450,000 Adyen payment terminals in brick-and-mortar locations, initially launching in Europe, North America, and Australia.

Klarna's BNPL service allows users to spread the cost of purchases over interest-free instalments, a feature primarily associated with online shopping. By expanding into physical stores, Klarna aims to offer consumers the ability to use their service "at any checkout, anywhere," according to David Sykes, Klarna's chief commercial officer.

This move comes as Klarna and other BNPL firms seek to expand their reach beyond e-commerce. The partnership builds on a previous arrangement between Klarna and Adyen for online payments. It also aligns with Klarna's recent strategic shifts, including the sale of its online checkout solution and the introduction of a checking account-like product.

While BNPL services have faced criticism over concerns about promoting overspending, regulators are pushing for rules to bring this fast-growing payment method into regulation.

IADS Notes: The adoption of Buy Now, Pay Later (BNPL) services and flexible payment options is rapidly expanding across the retail sector. As seen with Sainsbury's introduction of BNPL options through Klarna for its Argos, Habitat, and Tu clothing brands, major retailers are embracing these payment solutions to enhance customer flexibility. This trend is supported by research showing that instalment plans linked to credit cards significantly boost sales and customer satisfaction, with 76% of merchants expecting increased use of these plans. However, as BNPL services mature, they face challenges, including profitability concerns, rising interest rates, and growing regulatory scrutiny. The sector is also broadening its user base beyond younger consumers, indicating a wider acceptance of these payment methods. These developments reflect changing consumer payment preferences and the retail industry's adaptation to meet evolving financial needs.

Klarna brings buy now, pay later into physical stores

What: Flagship stores in Japan are playing a crucial role in boosting retail tourism.

Why it is important: This trend highlights the significance of flagship stores in attracting international tourists, which is vital for Japan's retail sector and overall economic growth.

Japan's flagship stores are increasingly becoming pivotal in driving retail tourism, serving as key attractions for international visitors. These stores not only offer unique shopping experiences but also showcase the essence of Japanese culture and innovation. As tourism rebounds, these flagship locations are instrumental in revitalizing the retail sector, drawing tourists who contribute significantly to the economy. The success of these stores underscores their strategic importance in enhancing Japan's global retail reputation and supporting economic recovery post-pandemic.

Japan's retail tourism: Flagship stores drive growth

What: Marks & Spencer (M&S) and ITV have partnered to create a new reality TV show called "The Secret Menu."

Why it is important: This collaboration represents an innovative marketing strategy for M&S, aiming to enhance brand engagement and reach a broader audience through popular media channels.

Marks & Spencer has teamed up with ITV to launch a reality TV show titled "The Secret Menu." The show is designed to showcase M&S's food offerings in a unique and entertaining format, potentially attracting new customers and increasing brand visibility. By leveraging the popularity of reality TV, M&S aims to connect with viewers in a novel way, enhancing its marketing efforts and strengthening its presence in the competitive retail market.

Reality TV partnership: M&S and ITV collaborate on new show

What: Marks & Spencer (M&S) has introduced an AI-powered tool to assist customers in making fashion choices.

Why it is important: This initiative showcases M&S's commitment to leveraging technology to enhance customer experience, potentially setting a new standard in personalized shopping and increasing customer satisfaction and engagement.

Marks & Spencer has launched an AI tool designed to help shoppers with fashion advice, aiming to improve the personalization of the shopping experience. This tool is part of M&S's broader strategy to integrate technology into its retail operations, enhancing customer interaction and satisfaction. By using AI, M&S seeks to offer more tailored recommendations, thereby improving the overall shopping experience for its customers.

M&S integrates AI for fashion advice

What: Cartier has launched a pop-up store at Selfridges, showcasing a range of accessories.

Why it is important: This collaboration enhances Cartier's visibility and accessibility in a prestigious retail environment, potentially attracting a diverse customer base and boosting brand engagement.

Cartier has opened a pop-up store at Selfridges, emphasizing its collection of accessories. This initiative is part of Cartier's strategy to expand its footprint and engage with customers in dynamic retail spaces. The pop-up offers an immersive shopping experience, allowing customers to explore Cartier's diverse range of products in an exclusive setting. By partnering with Selfridges, Cartier leverages the department store's reputation and customer base to increase its brand presence. This move reflects a broader trend in luxury retail, where brands seek innovative ways to connect with consumers and enhance their market reach through strategic partnerships and unique retail experiences.

Cartier unveils exclusive pop-up at Selfridges

What: The John Lewis Partnership is transforming a former warehouse in Reading into affordable housing units.

Why it is important: This initiative reflects John Lewis Partnership's commitment to addressing housing shortages and repurposing unused properties for community benefit, showcasing a sustainable approach to real estate development.

The John Lewis Partnership is undertaking a project to convert a former warehouse in Reading into affordable housing. This development is part of the company's broader strategy to utilize its existing property assets to address housing shortages and support local communities. By repurposing the warehouse, John Lewis aims to provide much-needed housing while also contributing to sustainable urban development. This move highlights the potential for retail companies to innovate in property management and community engagement.

John Lewis partnership converts former warehouse into affordable housing

What: Macy's has introduced a new men's private label brand called Mode of One.

Why it is important: This launch represents Macy's strategy to strengthen its menswear offerings and capture a larger share of the men's fashion market, potentially boosting sales and attracting a younger demographic.

Macy's has unveiled Mode of One, its latest men's private label brand, aimed at enhancing its menswear portfolio. The collection features a range of casual and dressy styles, including shirts, pants, and outerwear, designed to appeal to modern, style-conscious men. By introducing this new brand, Macy's seeks to diversify its product offerings, cater to evolving consumer preferences, and reinforce its position in the competitive retail landscape.

Macy's launches new men's private brand: Mode of One

What: Chinese e-commerce giant JD boosts its fashion segment with significant investment and partnerships.

Why it is important: It signals intensifying competition in China's e-commerce fashion market, potentially reshaping the industry landscape.

JD, the Chinese e-commerce giant, has announced a RMB 1 billion (USD 141 million) investment to expand its apparel business. This strategic move aims to broaden and enhance its fashion offerings, benefiting both domestic and international brands. The investment combines financial capital and market resources to support various initiatives.

The company plans to introduce new products through simultaneous launches from thousands of brands on its platform, supported by enhanced marketing efforts, celebrity and designer partnerships, and cross-industry collaborations. As part of this strategy, JD will implement a '10-billion-yuan Discount' program, offering customers a RMB 30 discount on purchases of RMB 300 or more.

JD's fashion expansion is further evidenced by its collaboration with platforms like Vogue and Xiaohongshu to unveil upcoming fall and winter fashion trends. The company has already seen significant growth in its fashion segment, with a 60% increase in leading apparel and footwear brands and a 200% increase in third-party apparel merchants since the beginning of the year. JD has also secured partnerships with major fashion groups such as Inditex, H&M, and Gap, and now offers selections from over 90% of global luxury brands.

JD invests USD 141 million in building fashion platform

What: US department store shopping declines, but Kohl's and Macy's maintain leadership with strong apparel sales.

Why it is important: The shift in shopping patterns and category preferences provides crucial insights into consumer behavior, helping retailers adapt their offerings and marketing strategies in a competitive market.

Coresight Research's latest survey reveals a decline in US department store shopping, with 58.6% of consumers making purchases in the three months ending August 2024, down 9.8 percentage points from May. Despite this overall decline, Kohl's and Macy's maintain their leadership positions, capturing 50.0% and 44.9% of department store shoppers respectively.The product category landscape has shifted, with men's clothing (47.5%) overtaking women's clothing (41.9%) as the most popular category. Footwear has seen increased popularity in 2024, with purchase rates around 43-45%, up from about 30% in late 2023.Luxury department stores experienced higher purchase rates in March 2024, possibly due to post-holiday sales events. However, beauty and home categories have seen the steepest declines since then, dropping 18.7 and 10.0 percentage points respectively.Consumer sentiment has turned pessimistic, with a net 1.0% expecting their household financial situation to worsen and 6.5% anticipating a decline in the US economy over the next 12 months. These trends underscore the challenges department stores face in attracting customers and maintaining sales in an evolving retail landscape.

IADS Notes: The US department store sector continues to face significant challenges. Recent data shows the sector's market share has plummeted from 14% of total retail sales in 1993 to less than 3% today . Major players like Macy's and Nordstrom are exploring privatization and restructuring to combat falling revenues and adapt to changing retail landscapes . Kohl's has identified a $2 billion sales opportunity, focusing on under-penetrated categories and partnerships like Sephora . Department stores are increasingly seeking to differentiate through unique brand offerings and targeting younger demographics . Despite these efforts, the sector faces ongoing pressure from e-commerce, changing consumer preferences, and economic uncertainties.

Department Stores in Focus—Kohl’s and Macy’s Lead the Way

What: French department stores and variety stores experienced a decline in sales in July.

Why it is important: This downturn highlights the ongoing challenges faced by brick-and-mortar retailers in adapting to changing consumer preferences and the competitive landscape dominated by e-commerce.

In July, French department stores and variety stores reported a drop in sales, reflecting the difficulties these traditional retail formats face in maintaining their market share. Factors contributing to this decline include shifts in consumer behaviour towards online shopping and economic pressures affecting discretionary spending. The trend underscores the need for these retailers to innovate and adapt to remain competitive in the evolving retail environment.

French department stores and variety stores struggled in July

What: Oslo emerges as a new international luxury shopping destination, driven by currency devaluation and climate change effects.

Why it is important: The success of Steen & Strøm demonstrates the potential for traditional department stores to thrive through adaptation and investment.

Steen & Strøm, the world's oldest continuously operational luxury department store in Oslo, reported a 14% sales growth in H1 2024. This growth is attributed to Norway's tax-free shopping policy and the 'coolcationing' trend, where tourists seek cooler destinations due to extreme heat in traditional holiday spots.

The Norwegian Krone's devaluation has made the country more accessible to international tourists. Tax-free shopping at Steen & Strøm increased by 32%, with top visitors coming from the US, China, Britain, Australia, and Indonesia.

Steen & Strøm, part of Oslo's Promenaden fashion district, has benefited from significant investment by Mark Capital Management. Recent improvements include a $33 million refurbishment in 2021 and the opening of Norway's first Tech Hall, designed to engage the creative community.

The store's e-commerce sales surged by 318%, with plans to expand its online brand offerings. This success reflects broader trends in luxury retail adapting to changing consumer preferences and global conditions, potentially reshaping the European luxury shopping landscape.

Sales Soar At Norway’s Steen & Strøm As Global Shoppers Flock To Buy Tax-Free

What: Nearly 39% of consumers return online purchases monthly, costing retailers $25−$30 per return.

Why it is important: The trend highlights the need for innovative solutions in e-commerce logistics and customer service.

A Narvar survey of over 1,900 consumers reveals that nearly 39% return online purchases at least monthly, costing retailers USD 25 − 30 per return. The study also found a significant increase in fake returns, with 52% of respondents admitting to this practice at least once, up from 36% last year. These trends coincide with the rise of online shopping, as 87% of shoppers make at least half their purchases online.

Returns have become a critical issue for retailers, with total merchandise returns amounting to USD 743 billion last year. However, 60% of consumers are open to exchanges or store credit instead of full refunds if the process is convenient, presenting an opportunity for retailers to mitigate costs and build customer loyalty. Consumer preferences vary by demographics, with 62% of men preferring immediate store credit and half of women willing to wait for credit card refunds. Return policies significantly influence shopping decisions, with 82% of consumers choosing retailers based on these policies. As U.S. online retail sales are predicted to grow 9.8% to USD 1.2 trillion this year, retailers like Amazon are adapting their return processes to balance customer satisfaction and operational efficiency.

In the US, nearly 40% of consumers return an online purchase ‘at least’ once a month

What: Nordstrom has launched a dedicated shop for the French fashion brand Jacquemus in its men's store located in New York City.

Why it is important: This collaboration highlights Nordstrom's strategy to enhance its fashion offerings and attract a trendy, fashion-forward clientele by partnering with popular and influential brands like Jacquemus.

Nordstrom has opened a Jacquemus shop within its men's store in New York City, marking a significant collaboration with the renowned French fashion brand. This move is part of Nordstrom's efforts to diversify and elevate its fashion portfolio, appealing to a younger and more style-conscious demographic. The shop offers a curated selection of Jacquemus' latest collections, showcasing the brand's unique aesthetic and expanding its presence in the U.S. market

Nordstrom opens Jacquemus shop in New York City

What: WHSmith is partnering with Toys 'R' Us to expand its toy offerings in the UK.

Why it is important: This collaboration allows WHSmith to diversify its product range and enhance its appeal to families, while Toys 'R' Us gains a stronger presence in the UK retail market through WHSmith's extensive network.

WHSmith has announced a partnership with Toys 'R' Us to expand its toy retail offerings across the UK. This strategic collaboration will see Toys 'R' Us products integrated into WHSmith stores, providing customers with a wider selection of toys and games. The partnership aims to capitalize on WHSmith's established retail footprint and customer base, while revitalizing the Toys 'R' Us brand in the UK market. By joining forces, both companies seek to leverage their strengths to attract more families and boost sales. This initiative reflects WHSmith's commitment to diversifying its product offerings and enhancing the shopping experience for its customers.

WHSmith partners with Toys 'R' Us for UK expansion

What: Frasers Group is expanding its operations into the Benelux region, which includes Belgium, the Netherlands, and Luxembourg.

Why it is important: This expansion signifies Frasers Group's strategic move to increase its market presence in Europe, potentially boosting its growth and competitiveness in the retail sector.

Frasers Group has announced plans to expand its operations into the Benelux region, encompassing Belgium, the Netherlands, and Luxembourg. This strategic move is part of the company's broader efforts to strengthen its foothold in the European market. By entering the Benelux region, Frasers Group aims to tap into new customer bases and enhance its brand visibility across Europe. The expansion is expected to involve opening new stores and possibly acquiring existing retail spaces to establish a strong presence in these countries. This initiative aligns with Frasers Group's growth strategy of international expansion and diversification, which could lead to increased revenues and market share in the competitive retail industry.

Frasers Group expands into Benelux Region

What: Temu, a fast-growing e-commerce platform owned by PDD Holdings, is encountering significant challenges as it expands globally, facing market saturation, legal issues, and increased competition.

Why it is important: The struggles of Temu highlight the difficulties faced by e-commerce platforms in maintaining rapid growth amid fierce competition and regulatory scrutiny. Understanding these challenges provides insight into the broader dynamics of the global retail market and the strategies companies must adopt to sustain success.

Temu, owned by PDD Holdings, has rapidly ascended in the global fast-fashion market but is now facing significant hurdles. Despite its initial success, marked by high-profile advertising campaigns like the Super Bowl ads, Temu's growth is stalling due to market saturation and increased competition from platforms like Amazon and TikTok Shop. The company is also dealing with legal challenges, including lawsuits and potential regulatory changes that threaten its cost advantages. Internally, Temu faces unrest from merchants alleging unfair practices. Despite these issues, Temu continues to offer a unique value proposition with ultra-low prices, but it must adapt to sustain its growth in a competitive and evolving market

Temu faces challenges in global expansion

What: John Lewis revives 'Never Knowingly Undersold' pledge with AI support, sees positive initial results.

Why it is important: This move highlights the importance of pricing strategies and customer loyalty in the current retail environment.

John Lewis has reintroduced its 'Never Knowingly Undersold' price match promise, which was dropped two years ago. New CEO Peter Ruis reported an "exceptional" response within the first week, with 55,000 more daily organic visits to the website and strong sales across various product categories.

Unlike the previous iteration, which relied on manual price checking, the revived pledge uses AI technology to match prices with 25 major retailers, including M&S, Next, Boots, and AO.com. This update addresses the inefficiencies that led to the policy being discontinued in 2022.

In addition to the price match initiative, John Lewis Partnership is preparing to launch a joint loyalty program with Waitrose. CEO Nish Kankiwala announced that customers will soon see offers spanning both brands online and in apps, marking the first step in a pan-partnership loyalty scheme.

These initiatives come as John Lewis aims to enhance its customer offer and competitiveness in the market, particularly as it approaches the crucial golden quarter of retail.

John Lewis hails ‘exceptional’ response to Never Knowingly Undersold return