What: PayPal Honey’s new agentic AI feature enables seamless, personalised shopping by integrating real-time recommendations and direct purchasing within the browser extension.

Why it is important: The integration addresses the conversion gap in AI-driven retail, aligning with industry data showing that agentic commerce is reshaping how consumers discover and purchase products.

PayPal’s integration of agentic AI into its Honey browser extension marks a significant evolution in the retail landscape, transforming the way consumers interact with online shopping tools. By embedding real-time product recommendations and direct purchasing capabilities, PayPal Honey bridges the gap between high engagement and low conversion rates that have historically challenged AI-driven retail traffic. This innovation arrives at a pivotal moment, as the 2024 holiday season saw a dramatic surge in generative AI traffic and a growing demand for convenience among time-strapped consumers, particularly parents and millennials. The new feature not only streamlines the shopping journey but also leverages PayPal’s trusted payment network to enhance consumer confidence and transactional security. As agentic commerce becomes a $96-160 billion opportunity, retailers are urged to invest in infrastructure and strategic partnerships to remain competitive. Ultimately, the success of these AI-driven solutions will depend on building trust, ensuring transparency, and delivering a seamless, personalised experience that meets evolving consumer expectations.

IADS Notes: The integration of agentic AI commerce, exemplified by PayPal Honey’s new feature, reflects a profound shift in retail as AI agents automate and personalise the shopping journey. This trend, highlighted in September 2025, is rapidly redistributing power from traditional retailers to digital intermediaries and requires brands to adapt their engagement models (Journal du Net, September 2025). With 38% of global consumers using AI shopping tools by early 2025 (Forbes, March 2025; BoF, January 2025), retailers must invest in infrastructure and partnerships to capture the agentic commerce opportunity, while balancing operational efficiency and customer satisfaction (Journal du Net, July 2025).

Holiday shopping made easier with PayPal Honey agentic AI feature

What: SM Group is rapidly expanding its beauty and wellness portfolio in the Philippines, launching over 1,000 brands, dedicated beauty hubs, and new experiential retail formats to meet surging consumer demand.

Why it is important: The move reflects a broader industry shift, as leading retailers invest in immersive experiences and wellness offerings to meet evolving consumer expectations and drive long-term loyalty.

SM Group is transforming the beauty and wellness landscape in the Philippines with an aggressive expansion strategy. SM Beauty now offers over 1,000 brands across 77 locations, including luxury names like YSL and Lancôme, and has introduced dedicated beauty hubs in select stores. These hubs provide experiential services such as hair colouring and makeovers, guided by professional advisers, elevating the in-store experience. The group’s wellness push is in line with global trends, as the Philippines ranks 13th worldwide in personal care and beauty, and the wellness economy is projected to reach $9 trillion by 2028. Watsons Philippines, another SM brand, is enhancing its offer with exclusive skincare lines, health services, and sustainability-focused innovations, appealing to socially conscious consumers. SM Group’s commitment to local adaptation, service, and innovation positions it as a leader in the booming Southeast Asian beauty and wellness market.

IADS Notes: SM Group’s transformation of its beauty and wellness portfolio, including the rollout of over 1,000 brands and experiential beauty hubs, reflects a broader trend in Asian retail toward experiential, service-driven, and wellness-focused strategies. As reported by Retail News Asia and Inside Retail in May 2025, SM Prime’s $9 billion expansion plan and the launch of beauty hubs demonstrate the group’s commitment to innovation and market leadership in the Philippines. Inside Retail in August 2025 and December 2024 highlighted SM Investments’ robust profit growth and the Philippines’ strong position in the global wellness economy, driven by a youthful, self-care-oriented population . Vogue Business in November 2024 and Fashion Network in September 2025 noted Watsons’ focus on exclusive lines, health services, and sustainability, aligning with rising consumer demand for social and environmental responsibility . Inside Retail in November and October 2024 described how SM Retail and other Philippine retailers are leveraging digital innovation, loyalty programs, and localized strategies to adapt to evolving consumer needs . Finally, Fashion Network in September 2025 and Vogue Business in November 2024 discussed the rise of experiential beauty retail, Gen Z engagement, and the competitive landscape with global players like Sephora and Ulta expanding in Asia .
SM Group expands in beauty and wellness 

What: Co-op’s cyber attack resulted in over £120 million in profit loss and £300 million in lost sales, exposing critical vulnerabilities in retail operations and supply chains.

Why it is important: Co-op’s experience underscores that prevention alone is no longer enough, with rapid recovery and contingency planning now essential for retail survival.

The Co-op’s recent cyber attack has laid bare the scale of risk facing modern retailers, with the business suffering more than £120 million in profit loss and £300 million in lost sales for the year. The breach, which affected up to 20 million individuals, forced the company to revert to manual order processing for weeks, disrupting supply chains and daily operations. This incident is emblematic of a broader trend in retail, where sophisticated, multi-stage attacks—often involving social engineering and third-party vulnerabilities—are becoming more frequent and costly. Ransomware now accounts for 30% of retail security incidents, and third-party breaches represent 41% of cases, according to recent industry data. As cyber insurance premiums rise and only a small fraction of retailers have comprehensive resilience measures, the sector is shifting from a prevention-only mindset to one that prioritises rapid recovery and robust contingency planning. The Co-op’s ordeal highlights the urgent need for integrated security strategies and a fundamental reassessment of risk management to ensure business continuity and protect consumer trust.

IADS Notes: The Co-op’s swing to a loss after its cyber attack mirrors a sector-wide escalation in digital threats, with similar incidents at Marks & Spencer and Harrods in 2025. The average cost per ransomware attack has reached £1.4 million, and 41% of breaches are linked to third-party providers. These events have driven a 10% rise in cyber insurance premiums and forced retailers to prioritise resilience and rapid recovery, as only 2% of businesses have comprehensive measures in place. The operational disruption experienced by Co-op, including weeks of manual processing, underscores the vulnerability of retail supply chains and the need for robust contingency planning.

‘Like a bomb threat’ – Co-op looks forward as it grapples with cyber attack fallout

What: Kohl’s launches FLX activewear for kids and pre-teens, reinforcing its focus on private label growth.

Why it is important: Expanding FLX to younger demographics strengthens Kohl’s proprietary brand portfolio, a key factor in its margin improvement and resilience.

Kohl’s is intensifying its focus on proprietary brands by expanding its FLX activewear line to include kids and pre-teens, both online and in 300 stores. This strategic move is designed to address a gap in the retailer’s active and athleisure offerings for younger generations, with plans for further rollout in the coming year. The FLX collection, initially launched for adults in 2021, is positioned to deliver style, comfort, and value, with prices ranging from $14.99 to $50. Executives emphasise that proprietary brands like FLX, Sonoma, Simply Vera Vera Wang, and LC Lauren Conrad are central to Kohl’s turnaround, offering greater value for shoppers and improved margins. The company’s leadership highlights that customers who purchase private labels tend to spend more, reinforcing the importance of these brands in driving productivity and differentiation. Despite ongoing sales declines, Kohl’s has reported margin gains and a raised profit outlook, attributing these improvements to disciplined cost controls, strategic partnerships, and a curated merchandise portfolio. The expansion of FLX is a clear signal of Kohl’s commitment to innovation and operational agility as it navigates a challenging retail landscape.

IADS Notes: Kohl’s expansion of FLX into the kids and pre-teens segment is emblematic of its broader turnaround strategy, which has produced margin gains and an improved profit outlook as of August 2025, despite continued sales declines. The focus on proprietary brands, alongside operational discipline and partnerships like Sephora, has been instrumental in the company’s resilience, even amid leadership changes and financial restructuring in May 2025. These efforts mirror the wider transformation strategies seen across US department stores, where innovation and agility are essential for survival, as noted in October 2024.
Kohl’s expands FLX private brand to kids and pre-teens

What: Siam Paragon invests over $39 million to launch three world-class attractions—Nextopia, MeLand, and Dining Phenomenal—transforming the Bangkok mall into a comprehensive entertainment and culinary destination.

Why it is important: Siam Paragon’s investment highlights the growing importance of immersive experiences and cross-industry partnerships in maintaining relevance and leadership in the competitive retail and tourism landscape.

Siam Paragon, one of Bangkok’s most-visited retail landmarks, is set to unveil three major attractions in the final quarter of 2025: Nextopia, a 15,000sqm prototype “world of tomorrow” co-created with 50 innovation partners; MeLand, a 5,000sqm indoor theme park from China with over 100 attractions and 500 edutainment experiences; and Dining Phenomenal, an enhanced culinary hub featuring more than 700 restaurants, cafes, and dessert bars. With a total investment exceeding $39 million and a marketing budget of $6 million, these initiatives aim to deliver extraordinary, multi-generational experiences and reinforce Siam Paragon’s status as Thailand’s most comprehensive entertainment destination. The launch coincides with the mall’s 20th anniversary and is expected to further boost its annual visitor count beyond 100 million, strengthening Bangkok’s position as a global tourism and retail hub. 

IADS Notes: Siam Paragon’s investment in Nextopia, MeLand, and the Dining Phenomenal hub marks a new phase in the evolution of Thai malls as global experiential destinations. As reported by Inside Retail in June 2025 and January 2025, Bangkok’s leading malls are increasingly blending retail, entertainment, and cultural programming to attract both international tourists and local visitors, with EM District and IconSiam serving as benchmarks for this transformation. The Bangkok Post in April 2025 and November 2023 highlighted the strategic expansion of food and beverage offerings, with over 700 restaurants and experiential dining concepts now central to customer engagement and differentiation . Monocle in September 2025 and Forbes in March 2025 emphasised the importance of cross-industry partnerships and mixed-use development, with innovation partners and community collaboration setting new standards for Asian malls and reinforcing Bangkok’s status as a global retail and tourism hub. Inside Retail in November 2024 and March 2025, along with The Nation in December 2024, provided context on the competitive landscape, noting that Central Pattana, The Mall Group, and Siam Piwat are all investing heavily in innovation, tourism, and lifestyle experiences to maintain leadership in Southeast Asian retail .

Siam Paragon invests US$39m to go experiential

What: Shopify merchants, including brands like Glossier and Steve Madden, will soon be able to sell directly through ChatGPT’s conversational interface via the new Instant Checkout feature.

Why it is important: The integration of instant checkout within ChatGPT highlights how AI platforms are becoming direct sales channels, challenging traditional e-commerce models and intensifying competition among tech giants.

OpenAI and Shopify have announced a partnership that will allow Shopify merchants to sell products directly through ChatGPT’s conversational interface using the new Instant Checkout feature. This initiative, launching first with select brands such as Glossier, Spanx, Vuori, Away, Stanley 1913, Skims, and Steve Madden, enables consumers to discover and purchase products in real time without leaving the chatbot environment. The move reflects Shopify CEO Tobias Lutke’s vision of enabling merchants to sell wherever AI conversations occur, and it positions both OpenAI and Shopify as leaders in the rapidly evolving landscape of AI-driven commerce. By embedding real-time pricing, inventory, and product images into chat, the partnership streamlines the shopping experience and creates a new revenue stream for OpenAI, while offering merchants another powerful channel for customer engagement. This development is part of a broader industry trend where conversational AI is reshaping how consumers discover and buy products, compelling retailers to rethink their digital strategies and adapt to new patterns of consumer behaviour.

IADS Notes: The partnership between OpenAI and Shopify, enabling instant checkout within ChatGPT, marks a pivotal moment in the evolution of digital commerce. As highlighted in Modern Retail (August–September 2025), this integration transforms AI platforms from research tools into direct sales channels, raising new questions about market fairness and access for smaller merchants. Forbes (September 2025) underscores the urgency for brands to adapt, as the rapid adoption of AI-driven shopping is outpacing retailer readiness, with consumer behavior shifting decisively toward conversational commerce. Journal du Net (September 2025) further details how AI agents are automating transactions and redefining the relationship between retailers, brands, and consumers, compelling companies to recalibrate their digital strategies for machine readability and engagement. The automation of shopping journeys and payments by AI agents, as explored in the same month, demands new standards of transparency and trust, while Google’s AI-powered shopping overhaul (October 2024) illustrates the broader industry trend toward personalized, efficient, and interactive experiences. Collectively, these developments signal a fundamental reconfiguration of retail, where the ability to engage consumers within AI-driven environments is becoming a critical competitive advantage.
OpenAI partners with Shopify for shopping without exiting the chatbot

What: GenAI is transforming retail supplier negotiations and operational processes, enabling data-driven decision-making and continuous improvement.

Why it is important: The integration of GenAI across retail operations is essential for sustained competitive advantage, as only a minority of companies have successfully scaled these solutions.

GenAI is fundamentally reshaping how retailers approach supplier negotiations and operational processes by providing the ability to rapidly synthesise complex data and generate actionable insights. This technological shift allows retailers to move away from rigid, manual planning cycles and instead adopt continuous, data-driven engagement with suppliers, resulting in more favourable cost management and improved service levels. Automation of planograms, pricing, and assortment strategies is now becoming standard, replacing outdated Excel-based systems and enabling more dynamic, responsive decision-making. However, the true value of GenAI is realised only when organisations redesign their workflows and foster a culture of innovation and adaptability. Despite the widespread enthusiasm for AI adoption, only a small fraction of retailers have managed to scale these solutions effectively, highlighting the importance of organisational change and robust implementation strategies. Early adopters are already seeing measurable gains in revenue and operational efficiency, signalling that the future of retail will be defined by those who successfully integrate GenAI across all facets of their business.

IADS Notes: As highlighted by BCG in November 2024, 87% of retailers implementing GenAI reported revenue increases of at least 6%, demonstrating the technology’s ability to overcome long-standing disadvantages in supplier negotiations by synthesising vast amounts of data and generating actionable insights. AI agents are revolutionising store supply chains, delivering measurable productivity gains and reducing procurement risk management time by 75%, as seen in February 2025. The shift from manual, Excel-based planning to AI-driven automation is now universal, with all surveyed retailers in April 2025 planning AI-enabled merchandise initiatives to address inefficiencies that previously cost up to 4.5% of gross sales. However, the full value of GenAI is only realized when organizations redesign work processes and foster employee-driven innovation, as only 10% of companies have successfully scaled these solutions according to BCG in September 2025. The challenge of integrating GenAI across end-to-end operations remains significant, with technical and behavioral hurdles persisting, yet early adopters continue to report substantial gains in both revenue and operational efficiency, confirming that strategic, organization-wide implementation is essential for sustained competitive advantage.

GenAI gives retailers an edge in supplier negotiations

What: Retailers are projecting the lowest level of holiday season hiring since 2008, shifting away from large-scale seasonal recruitment.

Why it is important: This shift signals a fundamental change in retail labour strategy, driven by economic pressures and the rise of automation.

As the 2025 holiday season approaches, retailers are taking an unprecedentedly cautious approach to seasonal hiring, with projections indicating the lowest level of holiday recruitment since the global financial crisis. This conservative stance is a direct response to economic uncertainty, persistent inflation, and the impact of new tariffs, all of which have dampened consumer sentiment and made companies wary of overcommitting to temporary staff. Instead, retailers are focusing on maximising the productivity of their permanent workforce, investing in training, and leveraging flexible labour models to fill gaps as needed. The rapid adoption of automation, artificial intelligence, and self-service technologies is further reducing the need for large waves of seasonal hires, allowing companies to streamline operations and control costs. While some retailers, such as Bath & Body Works and Spirit Halloween, continue to announce hiring plans, the overall trend is toward doing more with less. This strategic pivot reflects a broader transformation in retail labour management, prioritising operational resilience and long-term efficiency over short-term staffing surges.

IADS Notes: The 2025 holiday hiring slowdown is consistent with recent industry analysis, which shows a surge in retail layoffs and restructuring amid mounting economic and profitability pressures (March 2025). Retailers are responding to inflation, tariffs, and labor market uncertainty by adopting leaner inventory strategies and overhauling supply chains (September 2025). The shift toward automation and AI is accelerating, with leading companies achieving significant productivity gains and focusing on workforce augmentation rather than replacement (November 2024, March and September 2025). This evolution in labor strategy is enabling retailers to maintain flexibility and resilience in a volatile market environment.

Retailers say no, no, no to holiday season hires for Christmas rush

What: The launch of ChatGPT Instant Checkout signals a structural shift in retail, where AI agents now mediate product discovery, purchase, and brand visibility.

Why it is important: The development highlights the urgency for retailers to optimise for AI-mediated commerce, as traditional customer touchpoints and marketing tactics lose effectiveness.

ChatGPT Instant Checkout is ushering in a new era for retail, where AI agents fundamentally reshape how consumers discover and purchase products. By enabling direct transactions within the chat interface, the platform removes the traditional digital shelf and places algorithms at the center of brand visibility and consumer choice. Retailers now face the challenge of adapting to a landscape where being surfaced in AI recommendations is critical, and the absence of paid placements means brands must earn their place through credible data, sustainability credentials, and third-party validation. The loss of direct customer data, such as email addresses, disrupts established CRM and loyalty strategies, particularly for smaller retailers reliant on direct marketing. As AI-driven commerce becomes the new standard, retailers must prioritize generative engine optimization and rethink their digital strategies to remain relevant. Those who fail to adapt risk being rendered invisible in the answer economy, where AI, not consumers, determines which brands are part of the conversation.

IADS Notes: The introduction of ChatGPT Instant Checkout aligns with recent industry analysis from September 2025, which highlights the rapid shift of power from retailers to AI agents mediating the shopping journey. Reports from Modern Retail and Forbes in August and September 2025 confirm that AI-driven commerce is outpacing retailer readiness, with algorithms now controlling brand visibility and raising concerns about data access and market fairness. The loss of traditional customer touchpoints is compelling retailers to rethink engagement and loyalty, while leading players like Target are already investing in generative engine optimization to maintain relevance in this new landscape.
How ChatGPT Instant Checkout pushes retailers into the ‘answer economy’

What: Google is testing an “Ask Stores” AI chat feature in Google Shopping, enabling users to seek advice on products, trends, and brands through an interactive chatbot.

Why it is important: The launch of AI chat features by Google intensifies competition among major platforms and accelerates the shift toward personalised, interactive retail experiences.

Google’s rollout of the “Ask Stores” AI chat feature within Google Shopping marks a pivotal moment in the evolution of digital retail. This tool allows users to interact directly with an AI assistant for advice on hard-to-find items, styling, trending products, and brands, reflecting the industry’s broader embrace of AI-driven customer engagement. The integration of such technology is transforming the online shopping journey, making it more intuitive and tailored to individual preferences. As AI agents become more sophisticated, they not only streamline product discovery but also enhance operational efficiency and customer satisfaction, addressing the growing consumer demand for personalisation and immediacy. However, this shift also raises important questions about data privacy and transparency, as users expect clear communication about how their interactions are used. Google’s move positions it at the forefront of a competitive landscape where platforms are racing to deliver the most engaging and responsive retail experiences. The evolution of digital sales assistants is redefining the traditional retail model, pushing brands to innovate rapidly or risk falling behind. 

IADS Notes: Google’s introduction of the “Ask Stores” AI chat feature is part of a sweeping transformation in retail, as seen in sources from January, March, and July 2025, where AI agents have driven significant improvements in customer service and satisfaction. Platforms like Aesthetic and Perplexity have pioneered personalised shopping journeys, while responsible data use and transparency remain critical, with 75% of consumers expecting disclosure when interacting with AI (March 2025). Google’s AI-driven overhaul of Shopping and the launch of next-gen marketing tools (October and December 2024) reinforce its competitive positioning. The rise of digital sales assistants and autonomous AI agents, as observed in February and July 2025, is accelerating the shift away from traditional retail models, prompting brands to reassess their engagement and operational strategies.

Google Shopping tests 'Ask Stores' AI chat feature

What: Harrods has warned customers of a data theft after personal information was stolen from a third-party provider’s systems.

Why it is important: This incident reflects the growing threat of cyberattacks targeting retailers and the critical risks posed by third-party providers, as seen in recent industry cases.

Harrods has alerted customers to a data breach in which personal information, including names and contact details, was stolen from the systems of a third-party provider. The retailer emphasised that its own systems were not compromised and that the breach is the subject of an ongoing criminal investigation. This incident is part of a wider surge in cyberattacks affecting major UK retailers in 2025, with Marks & Spencer and Jaguar Land Rover also targeted. The reliance on external service providers has emerged as a significant vulnerability, with 41% of retail breaches now traced to third-party partners. For luxury retailers like Harrods, the operational and reputational risks are particularly acute, as customer trust and brand equity are central to their business models. The situation underscores the urgent need for robust vendor management, integrated security strategies, and transparent communication with customers to mitigate the fallout from such incidents and maintain confidence in an increasingly digital retail environment.

IADS Notes: The Harrods breach mirrors a critical escalation in retail cyber threats observed throughout 2025, with ransomware and third-party vulnerabilities responsible for substantial financial and reputational damage. Notable incidents at Marks & Spencer and Co-op have demonstrated how these attacks disrupt operations and erode customer trust, while the March 2025 Crowdstrike Falcon incident highlighted the sector’s deep exposure to third-party risks. Transparent crisis management, as practiced by M&S and Co-op, has proven essential for maintaining customer relationships and business continuity in the wake of such events (Retail Week, August 2025; Inside Retail, May 2025; Retail Week, July 2025; Inside Retail, September 2025; RH-ISAC, April 2025; WWD, September 2025; Financial Times, May 2025; Drapers, April 2025).

Harrods warns customers of data theft in latest IT breach

What: Hackers have contacted Harrods following a data breach involving customer information stolen from a third-party provider.

Why it is important: Harrods’ response illustrates the importance of human-centric crisis strategies in maintaining customer trust during cyber incidents.

Harrods’ latest data breach, in which hackers made direct contact with the retailer after accessing customer information via a third-party provider, exemplifies the escalating cybersecurity challenges in luxury retail. The breach has forced Harrods to confront not only the technical aspects of data protection but also the reputational and regulatory risks that accompany such incidents. The retailer’s decision to refuse engagement with the hackers and to communicate openly with affected customers reflects a crisis management strategy that prioritises transparency and trust. This event follows a series of cyberattacks across the retail sector, including a previous attack on Harrods in May 2025 and significant breaches at Marks & Spencer, which resulted in lawsuits and financial losses. These cases have underscored the vulnerability of retailers to third-party risks and the necessity of robust vendor management and integrated security measures. As regulatory scrutiny intensifies and customer expectations for data protection rise, Harrods’ experience demonstrates that effective crisis communication and a human-centric approach are essential for sustaining brand loyalty and operational resilience in the face of digital threats.

IADS Notes: The Harrods breach in September 2025 (BoF, Retail Week) mirrors a critical escalation in retail cyber threats observed throughout the year, with ransomware and third-party vulnerabilities causing substantial financial and reputational damage. Notable incidents at Marks & Spencer in May 2025 (Drapers, Financial Times) and a previous Harrods attack in May 2025 (Retail Week) have shown how these breaches disrupt operations, erode customer trust, and lead to legal consequences. Across these cases, transparent crisis management and robust vendor oversight have emerged as essential strategies for maintaining customer relationships and business continuity.

Hackers make contact with Harrods following data breach

What: Debenhams is entering the US market through a new department store partnership as part of its international expansion strategy.

Why it is important: This expansion demonstrates how digital-first strategies can enable traditional retailers to succeed in new international markets.

Debenhams’ decision to expand into the US market through a department store partnership underscores the brand’s evolution from a legacy retailer to a digitally driven, omnichannel leader. This strategic move follows a period of significant financial recovery, marked by a 65% surge in gross merchandise value and doubled EBITDA, which validated the effectiveness of its marketplace model. The rebranding from Boohoo Group to Debenhams Group in March 2025 signaled a renewed focus on operational efficiency, leadership renewal, and digital innovation. Investments in virtual try-on technology and the rollout of new beauty showrooms have further strengthened Debenhams’ omnichannel capabilities, blending digital convenience with immersive in-store experiences. These developments align with broader industry trends, where department stores are finding renewed relevance by prioritising experiential retail and strategic investment. Debenhams’ US expansion is thus both a culmination of its transformation journey and a forward-looking step that positions the brand at the forefront of modern retail, demonstrating how heritage brands can thrive by embracing innovation and international opportunity.

IADS Notes: Debenhams’ entry into the US market is the result of a sustained transformation, beginning with its 65% increase in gross merchandise value and doubled EBITDA reported in December 2024 (Fashion Network). The group’s rebranding from Boohoo to Debenhams in March 2025 (Drapers) marked a strategic pivot toward digital innovation and operational efficiency. This was further supported by the introduction of virtual try-on technology in May 2025 (Internet Retailing) and the expansion of beauty showrooms following the success of the London Soho location in June 2025 (Fashion Network). These developments align with the broader department store sector’s emphasis on experiential retail and strategic investment, as highlighted in April 2025 (The Retail Bulletin).

Debenhams to expand into US with department stores deal

What: Latin American department stores achieved 7% revenue growth and $1.235 billion in profits in the first half of 2025, with El Palacio de Hierro leading in growth and Liverpool facing a sharp profit decline.

Why it is important: This performance confirms the resilience of Latin American department stores, supported by digital transformation and operational efficiency, as seen in recent Notion reports.

Latin American department stores sustained their strong momentum through the first half of 2025, recording a 7% increase in revenue and reaching $23.3 billion in cumulative sales. The sector’s five largest groups—Falabella, Liverpool, Palacio de Hierro, Cencosud, and Ripley—demonstrated robust top-line growth, with El Palacio de Hierro standing out for its 12.4% year-over-year surge. Cencosud maintained its position as the region’s revenue leader, though its growth was the most modest at 3.8%. Falabella and Liverpool both posted growth just below double digits, while Ripley achieved a 5.4% increase. Despite the overall positive trajectory, profitability was uneven: the combined profit for the five giants reached $1.235 billion, but Liverpool’s profit dropped by 39%, highlighting ongoing operational challenges. In contrast, the Chilean groups, especially Ripley, saw triple-digit profit increases, with Ripley achieving its best result in seven years. These results underscore the sector’s ability to adapt and thrive amid shifting market dynamics, leveraging both digital and operational strategies to maintain relevance and profitability.

IADS Notes: The strong first-half performance of Latin American department stores builds on the 6.3% collective growth seen in Q1 2025, as reported by Modaes in May 2025 (“Latin American department stores gain momentum: 6.3% growth in Q1 2025”). El Palacio de Hierro led in revenue gains and widespread profitability improvements, except for Liverpool, whose ongoing profit challenges and margin pressures were also evident in April 2025 (“El Puerto de Liverpool Q1 sales increase by 10%, profits fell,” Modaes). Ripley’s record profitability in Chile and Peru, highlighted in May 2025 (“Ripley strengthens profitability in Chile and Peru,” Modaes), demonstrates the effectiveness of disciplined inventory and promotional strategies. The contrast with US department stores, as noted by McMillanDoolittle in May 2025 (“Department store retailing remains a bright spot in Mexico vs. the USA”), further emphasises the success of Mexican retailers in leveraging localisation, financial services, and digital transformation to outperform international peers.

Latin American department stores achieved 7% revenue growth in 2025 Q1

What: David Jones launches a flexible loyalty programme with Qantas, offering customers the choice to earn and redeem points across both brands.

Why it is important: By leveraging cross-industry collaboration and advanced personalisation, David Jones positions itself at the forefront of retail loyalty innovation.

David Jones has introduced a new loyalty programme in partnership with Qantas, marking a significant evolution in how department stores approach customer engagement and value creation. Unlike traditional points-based systems, this program allows members to seamlessly alternate between earning David Jones Rewards Points and Qantas Points, providing unprecedented flexibility and choice. The initiative is a core element of the retailer’s “Vision 2025+” transformation strategy, which also includes major investments in store refurbishments, e-commerce, and customer experience. By embedding itself within the broader lifestyle ecosystem of its customers, David Jones aims to drive repeat visits and gather valuable data to enhance personalisation and targeted services. The program’s hybrid structure satisfies both rational and emotional needs, offering points and perks while also fostering status and exclusive experiences such as fashion events and luxury touchpoints. This approach reflects a broader industry trend toward integrating digital innovation, emotional engagement, and customer-centricity, ensuring the retailer remains relevant in a rapidly changing retail landscape.

IADS Notes: David Jones’ loyalty strategy mirrors the transformation seen in leading department stores, as detailed by Inside Retail in May 2025, where Selfridges and Lane Crawford blend digital innovation with experiential rewards. The April 2025 Inside Retail report on Qantas’ loyalty success underscores the value of strategic partnerships, while BCG’s December 2024 analysis highlights the need for retailers to evolve loyalty programs to meet rising consumer expectations. Retail Dive’s October 2024 coverage of data-driven personalisation and Drapers’ May 2025 focus on AI-powered loyalty tools at Selfridges further illustrate the industry’s pivot toward flexible, emotionally resonant loyalty ecosystems.

Loyalty as strategy: How David Jones is reengineering value creation

What: Shinsegae Group has appointed 32 new executives, including its first female CEO, as part of a major leadership reshuffle focused on generational change and performance.

Why it is important: This leadership transformation reflects Shinsegae’s ongoing strategy to adapt to market challenges and strengthen competitiveness, as seen in recent restructuring and digital partnerships.

Shinsegae Group’s latest executive appointments mark a pivotal moment in the company’s evolution, with 32 new leaders—including its first female CEO—ushering in a new era of generational change and performance-driven management. The reshuffle follows the group’s strategic split between department store and E-Mart divisions, a move designed to address divergent business results and enable more specialized leadership. By promoting a significant number of executives in their 40s and replacing heads of underperforming affiliates, Shinsegae is signaling a clear commitment to rejuvenation and accountability. The integration of e-commerce expertise, particularly through the appointment of a new Gmarket CEO with a background at Alibaba’s Lazada, underscores the group’s focus on digital transformation and international collaboration. These changes are set against a backdrop of industry-wide challenges, with Shinsegae investing in premium concepts and operational efficiency to regain competitiveness. The group’s emphasis on diversity, innovation, and performance positions it to navigate Korea’s polarized retail market and drive sustainable growth in a rapidly evolving environment.

IADS Notes: Shinsegae’s executive overhaul builds on the strategic separation of its department store and E-Mart operations in November 2024, reflecting a need for specialized management and generational renewal (Donga, November 2024). This transformation is reinforced by operational restructuring and expansion into off-price and premium retail (The Chosun Daily, January 2025; Maeil Business Newspaper, February 2025), as well as the launch of a joint venture with Alibaba to strengthen digital capabilities (Inside Retail, September 2025; Fashion Network, January 2025). These moves are part of a broader industry trend, as Shinsegae invests in renovations and new concepts to regain competitiveness, while rivals like Lotte focus on efficiency (Korea JoongAng Daily, August 2025). The group’s commitment to diversity and digital innovation is positioning it for future growth in Korea’s challenging retail landscape.

Shinsegae appoints 32 new executives, including first woman CEO

What: The UK government unveils a £5bn investment programme to revitalise over 300 high streets, empowering communities and supporting local retail regeneration.

Why it is important: By prioritising local start-ups and heritage assets, the initiative offers a blueprint for sustainable retail revitalisation in response to ongoing high street decline.

The UK government has announced a landmark £5bn investment aimed at transforming more than 300 high streets across the country through its ‘Pride in Place’ programme. This initiative is designed to empower local communities, giving them a decisive role in how funds are allocated and ensuring that spending reflects the needs and aspirations of residents, local organisations, and social clubs. The programme introduces compulsory purchase powers to tackle derelict and boarded-up properties, enabling the redevelopment of abandoned sites and the creation of opportunities for new local start-ups. In addition to supporting retail infrastructure, the investment will help preserve vital community assets such as pubs and libraries, reinforcing the social fabric of neighbourhoods. By placing decision-making power in the hands of those who know their communities best, the government aims to reverse years of decline and foster lasting renewal. This approach not only addresses the visible challenges of high street decay but also sets a new standard for sustainable, community-driven retail revitalisation.

IADS Notes: The £5bn high street investment aligns with a wave of community-led regeneration efforts seen in the UK retail sector. Retail Week (September 2025) highlights the government’s focus on empowering local groups and supporting start-ups, while Oxford Street’s revival demonstrates the impact of coordinated public and private investment. British Land’s mixed-use developments (February 2025) and the reopening of Jolly’s in Bath (Drapers, March 2025) further illustrate how integrating community, heritage, and strategic funding can drive sustainable retail transformation.

UK government unveils GBP 5bn high streets investment boost

What: Vestiaire Collective launches its first men’s resale report and dedicated men’s platform, highlighting rapid growth and new consumer motivations in the luxury second-hand market.

Why it is important: The rise of men’s resale demonstrates how affordability, sustainability, and regional brand preferences are reshaping luxury retail and driving global engagement.

Vestiaire Collective is intensifying its focus on men’s fashion with the launch of its first men’s resale report and a dedicated shopping experience for men, reflecting a strategic response to rapidly growing demand in this segment. The platform’s men’s assortment has surged by 88% over the past three years, making it one of the fastest-growing categories. Key motivations for male shoppers include affordability, with 79% citing good deals as their primary reason for buying second-hand, as well as the appeal of rare and unique pieces and a growing emphasis on sustainability—20% of men highlight environmental benefits as a key driver. The report also reveals strong regional differences in brand popularity, with Louis Vuitton, Dior, Prada, Gucci, and Burberry leading in different markets. Vestiaire’s global approach, supported by influencer marketing and digital campaigns, is democratising access to luxury resale and fostering a vibrant international community of buyers and sellers. This evolution positions men’s resale as a pivotal force in the circular fashion economy.

IADS Notes: Vestiaire Collective’s men’s resale strategy aligns with broader market trends, as noted by Forbes (September 2025) and The Economist (March 2025), which highlight the $100 billion global second-hand market driven by affordability and sustainability. Inside Retail’s coverage of Japan and Australia (December 2024, February 2025) illustrates the global reach and regional nuances of second-hand adoption, while Retail Asia (December 2024) confirms that rising living costs and environmental awareness are accelerating second-hand shopping worldwide.

Vestiaire Collective launches men’s resale report in support of new men’s business

Vestiare Collective: Future of Resale Menswear Edition 2025 Report (French)

What: Amazon will pay $2.5 billion in fines and reimbursements to settle FTC allegations of deceptive Prime subscription practices, affecting 35 million customers.

Why it is important: The settlement underscores the need for transparency and customer trust in subscription models, reflecting broader industry trends in consumer protection.

Amazon has agreed to a $2.5 billion settlement with the Federal Trade Commission, resolving allegations that it misled millions of Prime subscribers through unclear sign-up and cancellation processes. The agreement includes $1 billion in fines and a $1.5 billion fund to reimburse around 35 million Prime customers, many of whom will automatically receive $51 if they signed up through certain offers and made little use of Prime benefits. The settlement, which does not require Amazon to admit wrongdoing, mandates clearer disclosures, easier cancellation, and a prominent opt-out button for subscriptions. While the FTC describes the outcome as a landmark win for consumer protection, the financial impact is minimal for Amazon, which generates $2.5 billion in sales every 33 hours. The case highlights the tension between aggressive subscription growth and customer trust, as well as the operational risks of failing to prioritise transparency. Despite these regulatory pressures, Amazon’s Prime programme remains deeply entrenched and continues to drive significant revenue and customer loyalty for the company.

IADS Notes: Amazon’s $2.5 billion FTC settlement follows a series of escalating legal and regulatory challenges, including UK lawsuits over market dominance (July 2025, Fashion Network) and warnings from German regulators about price controls (June 2025, Bloomberg). The industry-wide focus on consumer protection is further illustrated by Shein’s €40 million fine for misleading discounts (July 2025, Inside Retail). Amazon’s $1.1 billion in refunds for unresolved returns (May 2025, Bloomberg) and its ability to increase sales during a boycott (March 2025, Forbes) demonstrate both the operational risks and the enduring resilience of its Prime ecosystem.

Amazon fined USD 2.5 billion for duping Prime members

What: Marks & Spencer has made a key transformation hire in its fashion division to accelerate brand renewal and operational change.

Why it is important: Strategic talent appointments are central to M&S’s ongoing transformation, driving product innovation, digital resilience, and renewed market relevance.

Marks & Spencer’s appointment of a transformation leader in its fashion division underscores the retailer’s commitment to revitalising its brand and accelerating operational change. This move comes as M&S continues to recover from a major cyber-attack, investing £300 million in store modernisation and supply chain innovation while rebuilding customer trust and digital capabilities. The fashion division’s renewed focus on high-profile collaborations and in-house collections has already attracted younger shoppers and delivered a 4.7% sales increase in Clothing & Home, reinforcing the importance of fresh talent in driving innovation. By prioritising leadership transformation and agility, M&S is positioning itself to remain competitive in the dynamic UK fashion market, where consumer behaviours and expectations are rapidly evolving. The strategic integration of new talent is not only enhancing product assortment and customer experience but also supporting the retailer’s broader omnichannel and modernisation agenda, making M&S a benchmark for retail transformation in the sector.

IADS Notes: Marks & Spencer’s latest transformation hire in its fashion division is emblematic of the retailer’s ongoing strategy to revitalise its brand and accelerate operational change. As detailed by Drapers in September 2025, M&S has prioritised leadership transformation and digital resilience following a major cyber-attack, investing £300 million in store modernisation and supply chain innovation. The retailer’s renewed focus on high-profile collaborations and in-house fashion collections, highlighted by WWD in November 2024, has attracted younger shoppers and driven a 4.7% sales increase in Clothing & Home. Retail Week’s July 2025 coverage underscores M&S’s resilience, as it accelerates its store rotation programme and restores digital operations, demonstrating a robust commitment to omnichannel growth. In a highly competitive UK fashion market, M&S’s strategy of focusing on core categories and agility, as noted by Retail Gazette in November 2024, has helped the brand remain relevant amid shifting consumer behaviours. The Economist’s July 2025 analysis further emphasises that successful retail transformation hinges on effective talent integration and supportive organisational contexts, reinforcing the importance of strategic hires in driving innovation and sustained performance.

Marks & Spencer makes transformation hire at fashion division

What: Co-op has reported a financial loss after revealing the full extent of a cyber-attack that severely disrupted its operations and customer data security.

Why it is important: This event highlights the escalating financial and reputational risks of cyber-attacks in retail, reinforcing the urgent need for robust digital security and rapid recovery strategies.

Co-op’s recent disclosure of a financial loss following a major cyber-attack underscores the mounting challenges faced by retailers in an era of escalating digital threats. The attack not only disrupted daily operations but also compromised customer data, exposing the retailer’s vulnerability to sophisticated ransomware and third-party breaches. This incident is part of a broader pattern seen across the UK retail sector in 2025, with high-profile cases at Marks & Spencer and Harrods resulting in significant financial losses, operational paralysis, and a sharp decline in customer recommendation rates. The average cost per ransomware attack has reached £1.4 million, and the sector’s reliance on external providers has been implicated in 41% of breaches. As a result, retailers are shifting from a prevention-only mindset to prioritising rapid recovery and resilience, while cyber insurance premiums have risen by 10%. The Co-op’s experience highlights the urgent need for integrated security strategies and robust contingency planning to protect both business continuity and consumer trust in an increasingly digital retail landscape.

IADS Notes: The Co-op’s swing to a loss after the full impact of its cyber-attack reflects a sector-wide escalation in digital threats, as documented in Retail Week (August 2025) and Inside Retail (May and June 2025). In April 2025, Marks & Spencer suffered a £300 million profit impact and a £700 million market value loss due to a ransomware attack, with similar breaches at Harrods and Co-op soon after. These incidents, detailed in Financial Times (May 2025), have exposed the acute vulnerability of retail supply chains, with 41% of breaches traced to third-party providers and average losses per attack reaching £1.4 million. The Co-op breach alone compromised up to 20 million customer records, prompting a sector-wide shift from prevention to rapid recovery, as noted in Retail Week (May 2025). Customer trust has also been undermined, with recommendation rates for leading retailers dropping from 87% to 73%. This wave of attacks has driven a 10% rise in cyber insurance premiums and forced retailers to fundamentally reassess their risk management strategies, underscoring the urgent need for resilience and coordinated response across the industry.

Co-op swings to a loss as full impact of cyber-attack revealed

What: Debenhams has warned some suppliers of late payments, highlighting ongoing financial and operational challenges within the group.

Why it is important: The warning to suppliers signals the growing risks of liquidity management in retail, with potential consequences for brand reputation and operational continuity.

Debenhams’ recent warning to suppliers about late payments underscores the acute financial and operational pressures currently facing the group. Despite efforts to modernise through digital transformation and maintain access to a substantial credit facility, the company has struggled to meet its payment obligations, leaving suppliers in a precarious position. This situation is not isolated; it reflects a broader pattern of distress across the European retail sector, where weak consumer spending, margin compression, and tightening credit conditions have triggered widespread restructuring and layoffs. The experience of other major retailers, such as Saks Global, further illustrates how extended payment terms and aggressive cost-cutting measures can destabilise supplier relationships and erode trust. As retailers prioritise liquidity and survival, the risk of reputational damage and operational disruption grows, highlighting the delicate balance required to maintain both financial health and supply chain resilience in a challenging market environment.

IADS Notes: Debenhams’ warning to suppliers about late payments is emblematic of the mounting financial and operational pressures facing the European retail sector in 2025. As reported by Drapers in July 2025, Debenhams Group suppliers have experienced significant payment delays and communication breakdowns, despite the company’s ongoing digital transformation and access to a substantial credit facility. This situation mirrors broader industry challenges, with BoF (June 2025) highlighting that retail has become the most distressed sector in Europe, prompting widespread restructuring and layoffs. The experience of Saks Global, detailed by Retail Dive in August 2025 and WWD in June 2025, further illustrates how delayed payments and aggressive cost-cutting measures can erode supplier trust and destabilise retailer-supplier relationships, especially when extended payment terms are introduced. BoF’s February 2025 analysis of Saks’ new payment terms underscores the reputational risks and operational fallout that can arise when financial stress forces retailers to prioritise liquidity over partnership stability. Collectively, these developments reveal the complex interplay between liquidity management, supply chain resilience, and brand reputation in today’s retail landscape.

Debenhams warns some suppliers of late payments

What: Rackhams returns as an independently owned, online-only department store, reviving a heritage British retail brand with a digital-first model based in Sutton Coldfield.

Why it is important: Rackhams’ relaunch highlights the enduring value of local brand recognition and the potential for traditional department store formats to thrive online.

The Rackhams name is making a comeback in British retail as an independently owned, online-only department store under new ownership. With its headquarters in Sutton Coldfield, Rackhams Retail Ltd aims to leverage the heritage and local recognition of the Rackhams brand while embracing a digital-first approach. The move reflects a broader trend of reviving historic department store brands through e-commerce, allowing for greater agility, reach, and efficiency without the need for physical locations. This strategy taps into nostalgia and regional loyalty, positioning Rackhams to stand out in a crowded online market. The relaunch comes as other heritage department store brands, such as Lord & Taylor, have also found new life as digital-first businesses, demonstrating that traditional retail models can be successfully adapted to meet evolving consumer behaviors and the challenges of the UK retail landscape.

IADS Notes: Rackhams’ relaunch as an independently owned, online-only department store reflects the broader trend of heritage retail brands embracing digital transformation and new ownership models. As reported by The Business Desk in September 2025, Rackhams is leveraging its regional heritage and local brand recognition from its Sutton Coldfield headquarters to differentiate itself in the crowded UK e-commerce market . WWD in December 2024 and The Retail Bulletin in April 2025 highlighted similar digital-first revivals and experiential strategies by Lord & Taylor and Morleys, showing how legacy department store brands are adapting to changing consumer behaviors and the challenges of the UK retail landscape . Fashion Network in February 2025 and Retail Week in August 2025 noted the resilience of department store formats when combined with digital innovation, curated experiences, and strong customer engagement . Monocle in May 2025 and Vogue Business in August 2025 discussed how department stores like Liberty London are successfully blending heritage value with modern retail practices to remain relevant and competitive . Collectively, these developments illustrate how traditional department store brands are finding new life by embracing digital-first models, independent ownership, and a focus on brand storytelling and customer experience.

In the UK, Rackhams launches online department store under new ownership

What: Primark is piloting an in-store repair service in partnership with The Seam to make clothing repairs accessible and affordable for customers.

Why it is important: By integrating repair services in-store, Primark is responding to regulatory and market pressures for more sustainable retail practices, as highlighted in recent industry reports.

Primark’s collaboration with The Seam to introduce an in-store repair service pilot in Manchester signals a pivotal move in value fashion retail, making garment repairs more accessible and affordable for a broad customer base. This initiative, part of the ongoing ‘Love it for longer’ campaign, offers same-day repairs for all brands at subsidised rates, aiming to shift consumer behaviour toward extending the life of clothing. By prioritising in-store engagement, Primark not only supports independent makers but also creates a tangible, customer-centric experience that distinguishes its bricks-and-mortar presence. The pilot is structured to test operational feasibility, pricing, and consumer demand, with the intention of scaling if successful. This approach comes at a time when economic pressures and environmental awareness are prompting more consumers to choose repairs over replacement, reflecting a broader industry trend toward circular economy models. Primark’s strategy demonstrates how value retailers can lead in sustainability by removing barriers to repair and fostering new habits among shoppers.

IADS Notes: Primark’s repair service pilot is part of a wider movement in retail, with John Lewis’s nationwide repair rollout in April 2025 and Peek & Cloppenburg’s Berlin flagship launch in January 2025 both highlighting the centrality of in-store repair services to sustainability strategies. The Kearney CFX 2025 report in July and March’s analysis of circular retail strategies emphasize the regulatory and consumer pressures driving these changes, while December 2024’s data shows that 41% of consumers now opt for repairs over replacement, underscoring the timeliness of Primark’s initiative.

Primark to launch in-store repair service pilot