What: Walmart is leveraging generative AI to enhance its product catalogue, improve customer search experiences, and assist marketplace sellers, aiming to stay ahead in the competitive retail landscape.

Why it is important: By incorporating AI across multiple facets of its operations, Walmart is positioning itself as a tech-forward retailer, improving efficiency, enhancing customer experience, and supporting marketplace sellers, which could significantly bolster its competitive edge against rivals like Amazon.

Walmart is significantly investing in generative AI to optimize various aspects of its business, from refining its extensive product catalogue to improving customer interactions and supporting marketplace sellers. CEO Doug McMillon highlighted how AI has already facilitated the creation or improvement of over 850 million pieces of data in Walmart’s catalogue, streamlined customer searches, and is being tested to provide seamless assistance to sellers. As Walmart continues to integrate AI into its operations, it aims to grow profitably by offering advanced tech-driven solutions that benefit both customers and sellers.

Walmart banks on generative AI to revolutionize customer and seller experiences

What: TJX invests USD 360 million for a 35% stake in Dubai-based off-price retailer Brands for Less, while raising its full-year profit guidance.

Why it is important: This strategic investment expands TJX's global footprint and strengthens its position in the growing off-price retail market, reflecting confidence in continued consumer demand for value-driven shopping.

TJX Cos. Inc. has announced a USD 360 million investment to acquire a 35% stake in Dubai-based off-price retailer Brands for Less, expanding its international presence. The investment is expected to be slightly accretive to earnings by Fiscal 2026 and highlights TJX’s strategy to grow its global reach through partnerships. Alongside this investment, TJX reported strong second-quarter results, with a net income increase of 11.1% to USD 1.1 billion and a 5.6% rise in net sales. Following these results, the company raised its full-year earnings guidance, reflecting confidence in its business model and consumer demand. TJX also celebrated the milestone of opening its 5,000th store and plans further expansion, aiming to grow to 6,300 stores in its current markets.

# TJX boosts global reach with USD 360M stake in Dubai's Brands for Less, raises full-year guidance

What: Coin is struggling with its debt and looking for new financial partners.

Why it is important: This is the only alternative to La Rinascente in Italy when it comes to department stores.

Coin SpA, an Italian retailer, is currently addressing significant financial challenges, including high inflation and reduced consumer spending, which have contributed to a substantial debt burden. The company disclosed that a Venice court has approved its entry into a "negotiated composition" procedure, as authorized by Italian law. This legal measure allows businesses with stable revenues and profits to negotiate debt repayment plans with creditors efficiently. Coin's current debt, primarily owed to banks, exceeds 230 million euros and is due by year-end. Despite these financial pressures, Coin SpA reported 280 million euros in sales for 2023, with net profits of EUR 15 million and an EBITDA of EUR 8 million. The retailer is actively seeking investors to stabilize its financial position and has engaged KPMG to develop a new business strategy and attract investment from private equity and industrial sectors. About 10 potential investors have shown interest, bolstered by the security offered through the "negotiated composition" procedure that ensures ongoing business operations.

Coin operates 37 stores directly and oversees 119 Coincasa homeware stores both in Italy and internationally. Additionally, it manages Coin Excelsior premium contemporary department stores in key Italian cities. Coin was acquired in 2018 by Centenary SpA from BC Partners and saw further investment in 2019 when Marco Marchi, founder of Liu Jo, purchased a 15% stake. Marchi serves as president alongside CEO Ugo Turi, appointed in 2023. Founded in 1916 by Vittorio Coin, the retailer has undergone various ownership changes, including a public listing in 1999 and acquisitions by Pai Partners in 2005 and BC Partners in 2007, which later delisted the company.

Heavily indebted retailer Coin opening up to new investors

What: JC Penney is integrating artificial intelligence (AI) and machine learning into its supply chain operations as part of a broader strategy to modernize its legacy systems and improve productivity.

Why it is important: The adoption of advanced technology like AI and machine learning is crucial for JC Penney to remain competitive in the rapidly evolving retail landscape, enhancing both customer and employee experiences while improving operational efficiency.

As part of its USD 1 billion investment plan through fiscal year 2025, JC Penney is heavily focusing on modernizing its supply chain with AI and machine learning technology. Under the leadership of Chief Information Officer Sharmeelee Bala, the retailer has begun implementing new tools for pricing, assortment planning, and logistics optimization, including the use of automated warehouse management systems like the Joey Pouch sorting system at its Reno distribution centre. These upgrades aim to reduce manual processes, improve delivery times, and consolidate data across the business, ensuring that the company is prepared for future challenges. Bala emphasizes the importance of balancing modernization with efficiency, prioritizing AI and machine learning to create a more effective and competitive supply chain.

JC Penney leverages AI and machine learning to modernize supply chain

What: Macy's is experiencing strong demand for its real estate assets, leading to an increase in planned store closures and sales from 50 to 55 this fiscal year, as part of its "Bold New Chapter" turnaround plan.

Why it is important: The strong demand for Macy's real estate assets could provide significant financial resources to fund its ongoing transformation efforts.

Macy's is reporting strong interest in its real estate assets, prompting an increase in planned store closures and sales from 50 to 55 this fiscal year. This is part of Macy's "Bold New Chapter" turnaround plan, which aims to close 150 stores through fiscal 2026 and monetize real estate holdings to optimize its fleet and improve profitability.

CEO Tony Spring emphasized that while these locations underperform relative to the total fleet, they remain valuable real estate assets.

This strategy reflects broader trends in retail, where department stores are reducing their footprints due to challenges from e-commerce, discounters, and changing consumer behaviors. Despite these challenges, Macy's properties remain attractive to buyers, partly due to the low U.S. retail vacancy rate of about 4%.

Macy's is focusing on its 350 top-performing "go-forward" locations while monetizing other holdings. The company aims to obtain $750 million from property sales through fiscal 2026. This approach allows Macy's to divest underperforming stores while reinvesting in customer service, staffing, and merchandise at remaining locations.

The strong demand for Macy's properties could benefit other department store chains, their landlords, and lenders looking to dispose of similar assets. Past buyers have repurposed these spaces by dividing them, redeveloping for other uses, or demolishing them entirely.

While executing this real estate strategy, Macy's is also implementing other initiatives, such as improving its "First 50" stores, which are outperforming the rest of the chain. However, the company faces ongoing challenges, including declining overall sales and pressure from activist investors.

Macy’s Sees Demand for Its Stores on sale

What: Saks Fifth Avenue launches its first high jewellery collection, featuring over 200 luxury pieces with options for customization.

Why it is important: This marks a significant expansion of Saks Fifth Avenue's jewellery department, showcasing the retailer's commitment to offering unique, personalized luxury experiences and enhancing its position as a premier destination for high-end jewellery.

Saks Fifth Avenue has introduced its inaugural high jewellery collection, offering more than 200 exquisite pieces, including standout items like a 100-carat pear-shaped diamond necklace. The collection is designed to provide customers with a highly personalized shopping experience, including private appointments and custom diamond-cutting services. This new collection will initially be available at Saks' New York flagship store and will expand to locations in Beverly Hills and Naples, Florida, later this fall. The launch reflects Saks' dedication to luxury and personalized service, aiming to appeal to a broad range of style preferences.

Saks Fifth Avenue unveils inaugural high jewellery collection

What: John Lewis has launched its online Christmas shop, responding to early shopper interest in festive decorations.

Why it is important: The early launch taps into rising consumer demand for holiday preparations, with John Lewis highlighting emerging trends like oversized wreaths, bows, and larger Christmas trees, alongside popular brand offerings like Jellycat.

John Lewis has opened its online Christmas shop as early shopper interest in festive decorations surges, with searches for Christmas tree decorations and baubles up 30% from last year. The retailer predicts trends like 'doorscaping' with oversized wreaths and bows will be popular this season, and it has reintroduced its 8ft Christmas tree due to demand. Additionally, the Jellycat brand will feature in the Christmas shop for the first time. John Lewis’s curated Christmas themes aim to bring joy and a celebration of contrasts into homes this festive season.

John Lewis launches online Christmas shop

What: Selfridges celebrated the opening of Tiffany & Co.'s newly revamped 3,788-square-foot space at its London flagship store on Oxford Street.

Why it is important: This redesign enhances Tiffany & Co.'s brand presence and customer experience, showcasing its latest design concepts and luxurious offerings in a prominent retail location.

Selfridges commemorated the opening of Tiffany & Co.'s redesigned space at its Oxford Street flagship, transforming the store’s façade with a brief blue illumination. The 3,788-square-foot area on the ground floor features the latest design inspired by Tiffany's Fifth Avenue flagship, incorporating elements like tributes to window designer Gene Moore, the Vanderbilt Gate, and an interactive digital display of St. James’s Park. The store offers a range of Tiffany's signature jewelry collections and includes bespoke artistic installations by Nancy Lorenz and Jason Bruges, as well as a private salon adorned with a Damien Hirst painting.

Selfridges turns blue for Tiffany & Co.’s redesigned store

What: Thailand's Central Retail sees 5.3% revenue growth in Q2, driven by store expansion and omnichannel sales.

Why it is important: It highlights the uneven recovery in Southeast Asian retail, with varying performance across different segments and geographies.

Central Retail, Thailand's retail giant, reported a 5.3% year-on-year revenue increase to 63.2 billion baht in Q2 2023. Omnichannel sales grew by 10%, now accounting for 20% of total sales. The company's performance varied across segments and geographies. Fashion showed strength with a 3% same-store sales growth, while food and hardlines segments struggled. Vietnam operations lagged, with a 0.8% sales decline and a 4% drop in same-store sales.

The company continues its expansion strategy, operating 3,744 stores across three countries with 3.6 million square meters of net selling space. Notable developments include the launch of Luxe Galerie at Central Chidlom and the expansion of the Go Wholesale concept. Central Retail is also enhancing its brand offerings, exemplified by the Super Spots 3.0 sporting goods concept.

Tourism recovery is significantly impacting Central Retail's performance, with tourists now accounting for 8% of total sales. This boost comes as domestic consumers face challenges due to weak household balance sheets. The company's diverse portfolio and ongoing store renovations aim to address varying market conditions and consumer preferences across its operating regions.

Central Retail's mixed results highlight Vietnam's drag on growth and strategic expansions

What: JD Sports is driving its global growth through international expansion, upgrading its stores, and staying ahead of trends in the sports-fashion market.

Why it is important: JD Sports’ strategic focus on international expansion, enhancing store experiences, and its agile approach to capitalising on emerging trends are critical to its success in becoming a leading global sports-fashion powerhouse. These strategies allow the retailer to outperform competitors and secure its position in key markets worldwide.

JD Sports is aggressively pursuing global growth through three primary strategies. First, the retailer is expanding its international footprint by opening 250 to 350 stores annually, with a significant focus on under-penetrated markets such as the US and Europe. Second, JD Sports is enhancing its store experience by revamping existing locations, with the Westfield Stratford store becoming its highest turnover and footfall shop globally. The retailer plans to roll out similar upgrades across other major flagships. Third, JD Sports leverages its global presence and multi-brand model to stay ahead of trends, as evidenced by its early investment in Adidas Samba, which became a top-selling product in the US. These efforts are central to JD Sports' goal of achieving double-digit sales growth and increasing market share in key regions.

How JD Sports is driving global growth: Key strategies

What: Frasers Group is in the process of acquiring Fremlin Walk, an outdoor shopping centre in Maidstone, from M&G Real Estate as part of its ongoing expansion in the retail property market.

Why it is important: This acquisition is part of Frasers Group's strategic push to dominate the retail property sector, enabling the company to create anchor department stores and multi-brand retail spaces, thus enhancing its market presence and profitability.

Frasers Group, owned by Mike Ashley, is expanding its property portfolio by acquiring Fremlin Walk in Maidstone, a 350,000 sq ft shopping centre that generates an annual income of GBP 4.3 million. The acquisition continues Frasers' aggressive property acquisition strategy, following recent purchases of other shopping centres such as Frenchgate in Doncaster and The Mall in Luton. The group's CEO, Michael Murray, has highlighted the company's plan to use these acquisitions to create more productive and integrated retail destinations by combining various Frasers brands, including Flannels, Sports Direct, and its gym business, within the same locations.

Frasers Group expands retail property portfolio with Fremlin Walk acquisition

What: Hong Kong government does not forecast an improvement of the retail situation in the coming months.

Why it is important: Retail is shifting in terms of regional balance in South East Asia.

The Hong Kong government has issued a caution regarding the near-term challenges facing the territory's retail sector, despite some emerging signs of stabilization. According to the latest data from the Census and Statistics Department, retail sales in June dropped by 9.7% year-on-year, following a revised 11.4% decline in May. The first half of the year saw an overall decrease of 6.6% in retail sales.

A government spokesman attributed the decline to shifts in consumption patterns among visitors and residents and the impact of a strong Hong Kong dollar. However, there was a noted month-on-month seasonally adjusted increase of 2.3% in June, suggesting early signs of recovery in retail activities.

Looking forward, the government remains optimistic, citing the central government's supportive measures and the SAR government’s efforts to boost the retail sector through events and local support initiatives. These include promoting a mega event economy and supporting small- and medium-sized enterprises. Additionally, the Hong Kong Trade Development Council is launching the inaugural Hong Kong Shopping Festival on Mainland e-commerce platforms to enhance the visibility of Hong Kong brands and assist local enterprises in expanding their e-commerce presence.

Despite the overall downturn, online domestic transactions in June saw a rise, accounting for 7.8% of total retail sales, up 5.2% from the previous year. However, significant declines were noted in specific sectors: jewellery and watches fell by 23.1%, apparel by 13.2%, and department store sales by 18.6%. Conversely, the medicines and cosmetics sector experienced a growth of 3.4%.

Government warns Hong Kong retailers ‘challenges’ will endure

What: John Lewis has launched a pre-owned designer handbag section on its website and expanded its second-hand jewellery range through a partnership with Sign of the Times, following the success of their pop-up at Peter Jones in Chelsea.

Why it is important: This move highlights John Lewis's commitment to sustainability by promoting the reuse and recycling of luxury items, meeting the growing consumer demand for eco-friendly shopping options. It also taps into the rising market for premium pre-owned goods, enhancing John Lewis’s appeal to fashion-conscious and sustainability-minded customers.

John Lewis has introduced a pre-owned designer handbag collection online and expanded its second-hand jewellery offerings through a collaboration with Sign of the Times. This initiative follows a successful pop-up at Peter Jones in Chelsea, which saw significant sales of luxury items from brands like Chanel, Christian Dior, and Gucci. The new offering aims to meet the increasing demand for sustainable shopping options and prolong product life through resale, rentals, and repairs. Additionally, John Lewis is launching a pop-up with childrenswear rental and resale brand The Little Loop at its Oxford Street store, furthering its commitment to sustainability. Customers can bring in or arrange collections of their designer products for resale through Sign of the Times.

John Lewis expands pre-owned designer handbag offering with Sign of the Times partnership

What: The department store enters the competitive arena of art-retail fusion with a month-long exhibition featuring global and local artists.

Why it is important: This initiative reflects a growing trend in the retail industry to integrate cultural experiences, particularly targeting VIP customers interested in art.

Galleria Department Store is boldly entering the art-retail fusion space with its inaugural "Galleria Art Week," running until October 12th across its major locations including luxury galleries, Gwanggyo, and Time World stores. This large-scale cultural event, coinciding with Korea's largest art festival, features collaborations with global pop artist David Gulstein and local cultural institutions.

The theme, "Love Beyond Color," is brought to life through 136 of Gulstein's vibrant works, priced between 3 to 20 million won. A standout piece, "Graffiti Heartist XL," will be prominently displayed in Seoul's Luxury Hall, expected to become a social media hotspot. The event extends beyond mere display, offering artist lectures and selling rare works to VIP customers. Galleria is leveraging its spaces creatively, with art installations in central passages, pop-up galleries, and even on its media facade. The initiative also includes collaborations with local institutions like the Daejeon Museum of Art, showcasing emerging artists.

VIP lounges across stores will feature works by renowned artists such as Kusama Yayoi and David Hockney, curated in partnership with "Print Bakery." This strategic move aims to enhance VIP customer satisfaction and position Galleria as a premier destination for luxury retail and cultural experiences. Galleria plans to make this an annual event, introducing varied premium cultural content to continually engage its high-value clientele, marking a significant shift in its retail strategy.

Galleria department store joins the competition to combine distribution and art

What: Return policies, once characterized by no-questions-asked approaches, have evolved significantly due to the rise of e-commerce and the need to balance customer experience with financial prudence. Retailers like L.L. Bean have adapted their policies to address misuse and protect their bottom line.

Why it is important: Return policies are a critical component of customer experience (CX), influencing customer satisfaction, brand perception, and trust. Clear, fair, and practical return policies can enhance customer loyalty, manage financial risks, and provide valuable feedback for improving product offerings.

Retailers are reshaping their return policies to balance customer satisfaction with financial efficiency. Historically, no-questions-asked policies, like that of L.L. Bean, were popular for their flexibility. However, the surge in e-commerce and associated return fraud has prompted a shift towards more controlled return processes. This evolution aims to protect against fraud and manage reverse logistics costs while still maintaining a positive customer experience. Effective communication and practical implementation of return policies are crucial, as customers are more understanding of necessary standards if they are clear and reasonable. Future trends suggest a focus on reducing returns through enhanced product information and making the returns process seamless, including innovations like curbside returns and transparent policy communication.

How return policies fit into retail customer experience

What: As consumers increasingly seek bargains, Walmart and other budget-friendly retailers are benefiting from this trend, while Macy's, with its higher price points, faces challenges despite efforts to revitalize its stores.

Why it is important: The shift in consumer behaviour towards trading down highlights the pressures on mid-tier retailers like Macy’s, which struggle to compete on price with big-box stores and fast-fashion brands. This trend underscores the importance of strategic positioning, where budget retailers gain ground, and more premium brands must innovate or pivot to maintain their market share.

In a market where consumers are increasingly trading down to find better bargains, budget retailers like Walmart are seeing revenue growth, reflecting their ability to capture cost-conscious shoppers. Conversely, Macy's is working hard to reverse its decline by refreshing stores and improving its merchandise mix, but it faces a tough battle against lower-priced competitors. Amer Sports, another company in the retail space, is also trying to capture more market share by expanding its direct-to-consumer channels and boosting brand visibility, particularly with brands like Arc’teryx and Salomon. However, its success may be tempered by economic slowdowns in key markets like China.

Retailers winning as customers trade down

What: Target has grown its food and beverage business to USD 24 billion in sales, adding more than USD 8 billion since 2019 through a mix of digital growth, private label development, and strategic changes in assortment and labour.

Why it is important: Target's success in the grocery sector highlights how traditional retailers can revamp underperforming categories by focusing on consumer needs, e-commerce integration, and private label innovation, demonstrating a significant shift in its market position.

Target has successfully transformed its grocery segment into a USD 24 billion business, growing sales by over USD 8 billion since 2019. This growth has been driven by a combination of e-commerce expansion, strategic investments in private-label products like Good & Gather, and targeted leadership changes. The company’s approach to integrating national brands with exclusive partnerships and private labels has resonated with consumers, with food and beverage items now featuring in more than 55% of customer baskets. As Target continues to innovate and adapt, it positions itself for sustained growth in the highly competitive grocery market.

Target's grocery expansion: A USD 24 billion success

What: Youngor Group has transformed the former Barbie flagship in Shanghai into Hai550, a sustainability-focused, multi-level retail project in collaboration with JNBY.

Why it is important: This initiative marks a significant move towards sustainability in retail, revitalizing a historic yet underutilized space on Huaihai Road, and targeting a younger, environmentally-conscious consumer base.

Youngor Group, a Chinese fashion retailer known for its investments in brands like Alexander Wang, has revitalized the former Barbie flagship on Huaihai Road in Shanghai with a new sustainability-focused retail project called Hai550. The 77,000-square-foot space, vacant for over 12 years, has been transformed into an eight-story retail complex in collaboration with JNBY. Designed to promote sustainable urban living, Hai550 features a variety of local fashion, beauty, and lifestyle brands, including pop-ups and exhibitions centered on eco-friendly practices. This project not only rejuvenates a historic shopping district but also positions Youngor to attract a younger, sustainability-minded audience.

Youngor revitalizes former Shanghai Barbie flagship with sustainability-focused retail concept

What: Frasers Group has rebranded House of Fraser's website and app to Frasers as part of a major overhaul of the business.

Why it is important: This rebranding signifies Frasers Group's strategic shift towards a premium retail concept, moving away from the traditional department store model.

Frasers Group has rebranded House of Fraser's digital presence, including its website and app, to Frasers. This change is part of a comprehensive transformation of the business, aimed at consolidating the group's various brands under one roof. The rebranded platform now offers customers access to all brands in the Frasers Group portfolio across fashion, beauty, and home categories.

This rebranding comes as House of Fraser has been steadily disappearing from the British high street, with only 15 stores remaining from the 59 it had when Mike Ashley's Frasers Group acquired it in 2018. The company's CEO, Michael Murray, has previously warned that House of Fraser could completely vanish from the high street as part of this mass rebrand.

Frasers Group's strategy involves moving away from the traditional department store model in favor of a premium concept called Frasers, which will feature the group's own suite of brands. The company plans to open five new Frasers stores this financial year, including transforming its former House of Fraser store in Maidstone, Kent.

This transformation is not limited to House of Fraser. Frasers Group has been actively acquiring and rebranding various retail chains and properties. Recent acquisitions include premium menswear retailer John Anthony, luxury e-tailer Matches, and several shopping centers. The group is also expanding internationally, with acquisitions like Dutch sports retailer Twin Sport, as it aims to become the leading sports goods retailer in the EMEA region.

House of Fraser website and app rebranded to Frasers

What: Saks’ parent company, HBC, apologized to vendors for delayed payments, linking the delays to the ongoing acquisition of Neiman Marcus Group, which is expected to close by the end of the fiscal year.

Why it is important: The resolution of these delayed payments is crucial for maintaining vendor relationships and ensuring the smooth operation of Saks and Saks Off 5th. The successful closure of the Neiman Marcus acquisition, along with new financing and asset sales, is expected to stabilize financial flows and restore normal payment schedules, which is essential for vendor confidence and future business operations.

HBC, the parent company of Saks, has acknowledged delays in vendor payments, which have been exacerbated by the acquisition of Neiman Marcus Group. Company executives assured vendors that the financial challenges are temporary and tied to broader business issues, particularly those affecting Hudson's Bay in Canada. The acquisition of Neiman Marcus is expected to close by the end of the fiscal year, with new financing and asset sales improving liquidity and normalizing payment flows. Despite the challenges, Saks’ executives expressed confidence in the long-term benefits of the acquisition and committed to better communication and transparency with vendors going forward.

Saks apologizes for delayed vendor payments amid Neiman Marcus deal

What: Marks & Spencer (M&S) has introduced "The Parent Hood," its first-ever baby club exclusively for members of its Sparks loyalty program, offering savings and personalized offers across various categories.

Why it is important: The launch of "The Parent Hood" allows M&S to strengthen its relationship with family-oriented customers by offering a unique, value-driven proposition that encourages cross-purchasing and increases shopping frequency across multiple product categories. This initiative positions M&S to capture a larger share of the family market by meeting the needs of parents with tailored offers and fostering a sense of community.

Marks & Spencer has launched "The Parent Hood," a baby club exclusively for Sparks loyalty members, designed to bring together the best of M&S across clothing, home, beauty, food, and more. The free-to-join club offers parents significant savings, including 10% off baby grows for 12 months and personalized offers across a wide range of products. By fostering a community and offering tailored advice, inspiration, and exclusive deals, M&S aims to grow its market share and deepen engagement with new and existing family customers.

M&S launches 'The Parent Hood': A new baby club for Sparks members

What: Traditional transactional models in retail are becoming outdated as consumers increasingly demand meaningful experiences and genuine connections with brands, rather than just simple transactions.

Why it is important: The shift away from purely transactional models is crucial for retailers to foster lasting customer loyalty, as modern consumers prioritize brands that offer personalized, ethical, and engaging experiences. This evolution is reshaping the retail landscape, making it essential for businesses to adapt in order to remain competitive and relevant.

The retail industry is udergoing a significant transformation as traditional transactional models are proving insufficient in building lasting customer loyalty. Today’s consumers seek more than just products; they desire meaningful interactions and authentic connections with the brands they support. To meet these evolving expectations, retailers must focus on creating personalized and value-driven experiences, leveraging technologies like AI and hyper-personalization, and integrating strategies such as interactive content and gamification. By embracing these approaches, businesses can strengthen customer loyalty, enhance brand engagement, and secure long-term success in an increasingly competitive market.

Why traditional transactional models no longer work in retail

What: Kohl’s raised its annual profit forecast after surpassing second-quarter earnings expectations, driven by tight cost management and leaner inventories.

Why it is important: This highlights Kohl's strategic focus on cost control and inventory management as key drivers of profitability in a challenging retail environment marked by cautious consumer spending and economic uncertainty.

Kohl’s has increased its annual profit forecast following a stronger-than-expected second quarter, where effective cost controls and reduced inventories helped boost earnings. Despite a decline in comparable sales, particularly in apparel and accessories, the retailer saw improved margins and benefited from its partnership with Sephora. The company's leaner inventory approach allowed it to offer fresher products during the spring shopping season, contributing to its better-than-expected financial performance. However, Kohl’s still faces challenges in differentiating itself in a competitive retail market and addressing vulnerabilities to shifts in consumer spending.

Kohl’s boosts profit forecast amid effective cost controls and inventory management

What: The resignation and flight of Bangladesh’s prime minister amid violent protests have severely disrupted the country's garment manufacturing sector, a crucial supplier for major fashion brands like H&M, Inditex, and Walmart.

Why it is important: Bangladesh is the world's second-largest garment exporter, and the current political instability threatens to delay orders, increase costs, and disrupt supply chains for some of the world's biggest fashion retailers, potentially impacting their sales and inventory management during critical periods.

The sudden resignation of Bangladesh's prime minister Sheikh Hasina and the ensuing political chaos have significantly disrupted the garment industry, which is vital to the country's economy and a key supplier to global fashion brands such as H&M, Inditex (owner of Zara), and Walmart. The unrest began with student protests and escalated due to harsh crackdowns, resulting in curfews, communication blackouts, and factory torches, causing an estimated USD 150 million daily loss in the garment sector. Companies like Hula Global have redirected orders to other countries to avoid disruptions, while others, like Puma, have maintained their sourcing from Bangladesh. The ongoing instability poses significant challenges for brands relying on Bangladeshi manufacturing, particularly with the upcoming holiday season orders.

Bangladesh Crisis disrupts global fashion supply chains