What: LVMH-backed private equity fund L Catterton is set to acquire Hammerson’s 42% stake in Value Retail, valuing the business at GBP 1.5 billion (USD 1.94 billion) and providing Hammerson with GBP 600 million (USD 775 million) in cash proceeds.

Why it is important: The acquisition aligns with LVMH’s strategy to enhance its selective retail portfolio and leverage Value Retail’s growth potential, while Hammerson plans to reduce debt and reinvest in higher-yielding assets.

LVMH’s private equity fund, L Catterton, will acquire Hammerson’s 42% stake in Value Retail, the parent company of The Bicester Collection, for GBP 600 million. This strategic move values Value Retail at GBP 1.5 billion and marks LVMH’s intent to bolster its retail offerings. The deal allows Hammerson to exit from a low-yield investment, using the proceeds to reduce debt, reinvest in core assets, and buy back shares. Value Retail’s high-quality portfolio and luxury reputation are expected to benefit from L Catterton’s expertise, while potentially creating synergies with LVMH’s selective retail arm. The acquisition signifies LVMH’s commitment to expanding its influence in the luxury retail market.

LVMH expands retail portfolio with acquisition of Value Retail stake

What: Unibail-Rodamco-Westfield (URW) reported a strong first-half performance with increased tenant sales and rising Retail Media revenues.

Why it is important: URW's robust performance underscores the resilience of its shopping centers amid challenging market conditions, highlighting significant growth in Retail Media revenues and increased tenant sales, which outpaced footfall.

Unibail-Rodamco-Westfield (URW) announced a strong first-half performance, driven by a 4.2% increase in tenant sales and a 24.7% rise in Retail Media revenues, particularly from Westfield Rise. The company's like-for-like EBITDA grew by 5.8% to EUR 1.195 billion, with shopping center vacancies reduced and net rental income up 5.3%. URW’s growth was bolstered by dynamic leasing activity and significant sales performance across various sectors, including fitness, health & beauty, fashion, and food & beverage.

Unibail-Rodamco-Westfield reports strong H1 performance with rising tenant sales

What: Lotte Department Store in South Korea is integrating artificial intelligence (AI) into its internal operations to boost productivity and enhance customer service.

Why it is important: This initiative aims to streamline various operational aspects and improve customer experiences through advanced technology, aligning with Lotte Group's strategic emphasis on AI for competitive advantage.

Lotte Department Store has announced plans to integrate AI across all its internal operations. This move follows Chairman Shin Dong-bin's directive to enhance the conglomerate's competitive edge using AI. The initial phase involves deploying a conversational AI chatbot to streamline information retrieval from over 100 internal work manuals, reducing search time by over 90%. The chatbot, integrated with ChatGPT, will assist with tasks like generating advertising copy, customizing emails, and translating documents. Additionally, Lotte is utilizing generative AI for creating visual content and will implement AI-based cleaning robots in 18 locations by July. Further enhancements include AI-driven intelligent CCTV systems for security and trial operations of AI quadrupedal patrol robots. The department store also launched South Korea's first AI interpretation service in retail at its Jamsil branch, offering real-time translation in 13 languages.

Lotte Department Store introduces AI for internal operations

What: Brown Thomas Arnotts, part of the Selfridges Group, is upgrading its CRM and Sales Audit systems with Aptos technology to enhance customer engagement and omnichannel capabilities.

Why it is important: The upgrade aims to consolidate transaction data across multiple sales channels, enabling a holistic view of customer preferences and behaviours, which is crucial for driving loyalty and providing a seamless shopping experience.

Irish luxury department store group Brown Thomas Arnotts has partnered with Aptos to install advanced CRM and Sales Audit solutions. The new system, delivered via SaaS, will streamline the processing of transaction data across various channels, facilitating better customer engagement and loyalty. Paul Baguley, Director of IT and Digital at Brown Thomas Arnotts, emphasized that the holistic view provided by the upgraded CRM system will help the group create consistent and delightful shopping experiences across all touchpoints.

Brown Thomas Arnotts upgrades CRM tech with Aptos

What: Inside Retail reviews the current situation in Japan, which heavily depends on tourism.

Why it is important: Don’t call it bullish optimism, caution remains generalized.

June's sales figures from large Japanese companies reveal strengths in the retail sector, particularly in areas benefiting from increased tourism. The Ministry of Economy, Trade and Industry (METI) noted a 3.0% increase in sales for May year-over-year, marking a moderate but noteworthy growth given the tough comparison with last year's post-COVID-19 recovery. However, expectations for the remainder of the year are tempered, with anticipated growth ranging from low to mid-single digits.

Department stores, particularly those located in tourist-accessible areas, are outperforming other retail formats. For instance, Takashimaya reported a significant 17.2% sales growth in June, driven by high spending from affluent customers and a notable increase in sales per visitor, rather than traffic alone. Similarly, J. Front Retailing recorded an 18.9% increase in June sales across its department stores, with particularly strong performances in women's wear, cosmetics, and jewellery.

On the other hand, Isetan Mitsukoshi experienced mixed results across its network, with strong sales in its Tokyo stores but declines in some regional locations. Fast Retailing, the parent company of Uniqlo, also reported a robust 14.9% increase in same-store sales for June, attributed to heightened customer traffic and larger transaction sizes, buoyed by favourable weather conditions boosting seasonal sales.

While these figures suggest pockets of robust activity, the overall sentiment for Japan's retail landscape remains cautiously optimistic, reflecting mixed expectations for the latter half of the year, with ongoing challenges like consumer confidence and high operational costs influencing broader market conditions.

How solid is the Japanese retail market?

What: Harrods is partnering with Loro Piana for a festive takeover to celebrate the brand's 100th anniversary.

Why it is important: This collaboration not only marks Loro Piana's centenary but also highlights Harrods' tradition of high-profile partnerships and grand festive displays, enhancing its reputation as a premier luxury retailer and creating a memorable shopping experience.

Harrods is teaming up with Italian luxury brand Loro Piana for a Christmas-themed takeover to commemorate the brand's 100-year history. The takeover, running from November 7 to January 2, will feature elaborate installations and animations on Harrods' Brompton Road façade and 36 windows. Additionally, two permanent Loro Piana stores, one for kids and one for interiors, will open at Harrods. This initiative coincides with Harrods' 175th anniversary and follows a similar Burberry takeover earlier this year. Alex Unitt, partnerships director at Harrods, promises a "showstopping" Christmas display.

Harrods and Loro Piana collaborate for centenary Christmas takeover

What: The style gap between Gen-Z and Millennials is widening, but brands should focus on making their assortments accessible to all rather than choosing sides.

Why it is important: Concentrating too much on generational differences can be a trap for brands; instead, focusing on inclusivity and accessibility in their product offerings can cater to a broader audience and ensure long-term loyalty.

As Gen-Z enters their mid-20s, their fashion preferences diverge further from Millennials, leading to playful debates on platforms like TikTok. Brands like Ssense and Nuuly are capitalizing on this by not taking sides but instead showcasing a variety of styles to engage both generations. This approach helps brands avoid alienating either group and ensures a diverse, inclusive shopping experience. Marketing strategies are evolving to meet the preferences of both generations, with a focus on inclusivity and flexibility in fashion choices.

Retailers should stop worrying about the gen-z versus millennial divide

What: Decathlon has launched a subsidiary named Pulse to drive growth through new business concepts, start-up investments, and acquisitions.

Why it is important: This initiative represents a strategic shift for Decathlon, focusing on long-term growth and innovation to remain competitive in the thriving sports and wellness markets.

Decathlon, a leading French sporting goods retailer, has unveiled its subsidiary Pulse, aimed at developing new business concepts, investing in innovative start-ups, and acquiring established brands and retailers. This move aligns with Decathlon's broader strategy to explore new growth avenues and sustainable business models. Pulse, led by Franck Vigo and overseen by Decathlon CEO Barbara Martin Coppola, will function as a distinct entity yet share Decathlon's mission to enhance the sporting experience. The initiative follows Decathlon's previous diversification efforts, such as the JUMP support program and investments in companies like Alltricks, Bergfreunde, and Recyc'Elit.

Decathlon launches Pulse for strategic diversification

What: An increase in the duty-free quota for Chinese tourists visiting Hong Kong aims to bolster the city's retail sector.

Why it is important: The measure is part of efforts by China and Hong Kong to attract more mainland tourists to support Hong Kong's struggling retail industry, which faces challenges such as high costs, a strong local currency, and changing consumer behavior.

The Hong Kong and China governments have increased the duty-free shopping quota for Chinese tourists to Hong Kong from 5,000 yuan to 15,000 yuan per trip via six land border points starting July 1, with an expansion to all border control points from August 1. This initiative aims to boost retail sales in Hong Kong, potentially adding between HK$8.8 billion and HK$17.6 billion in shopping spending. Despite this effort, Hong Kong retailers face ongoing challenges, including high rents, manpower costs, and competition from more affordable mainland markets. Additionally, changing consumption trends among Chinese tourists, who are increasingly cost-conscious, present further obstacles to retail recovery.

Hong Kong retailers bank on duty-free quota hike to boost sales

What: Saudi Arabia’s Public Investment Fund (PIF) has offered to increase its stake in the British retailer Selfridges to 50 percent.

Why it is important: This potential acquisition highlights the strategic investment interests of Saudi Arabia's PIF in global luxury retail markets and signals a significant shift in ownership structure for one of the UK’s iconic department stores.

Saudi Arabia’s Public Investment Fund (PIF) is looking to increase its stake in Selfridges to 50 percent by purchasing an additional 40 percent from Signa Prime’s property unit, which recently fell into insolvency. PIF already owns 10 percent of Selfridges’ properties and is conducting due diligence with advisors. This deal would also reduce PIF's claims against Signa by GBP 52 million and involve Bangkok Bank waiving EUR 733 million in claims related to Selfridges’ Oxford Street site. The other half of Selfridges is owned by Thai retail conglomerate Central Group, which has already taken over the store's operating business.

Saudi wealth fund offers to boost stake in Selfridges

What: Enrique Ostalé, CEO of Falabella's parent company, highlighted the transformative impact of Artificial Intelligence (AI) on consumer behavior and marketing strategies during the XXXI Chilean Marketing Congress of Icare.

Why it is important: AI is revolutionizing how companies understand and anticipate customer needs, enabling more personalized and efficient marketing strategies. This transformation will significantly influence consumer purchasing decisions and overall behavior, shaping the future of marketing.

Enrique Ostalé, CEO of Falabella's parent company, emphasized the profound impact of AI on consumers during his speech at the XXXI Chilean Marketing Congress of Icare. He highlighted that AI is changing how purchasing decisions are made, with search engines and recommendation systems becoming more tailored to user preferences. Ostalé noted the significant role of voice assistants and AI-driven data analysis in understanding consumer behavior, enabling companies to make data-based decisions and create personalized marketing campaigns. He stressed that AI allows businesses to be proactive in predicting customer preferences and trends, enhancing the customer experience. Ostalé concluded that AI represents a paradigm shift similar to the advent of the Internet, urging caution in over-relying on so-called experts due to the nascent stage of AI's development.

Falabella's parent company CEO predicts profound impact of AI on consumer behaviour

What: In Canada, extreme weather forced department stores to close.

Why it is important: Climate change is a reality with economic consequences, not just a customer fad.

Hudson's Bay has temporarily closed several store locations across Canada due to strains on their HVAC systems amid a severe heat wave. The closures include stores in Vancouver, West Vancouver, downtown Victoria, Prince George, two in Winnipeg, and one in Windsor, Ontario. The heat has led to temperatures surpassing 40°C in parts of British Columbia, exacerbating the stress on cooling systems in these locations. Hudson's Bay emphasized that the well-being of customers and associates is a priority and the company is aiming to reopen the affected stores as soon as possible. The reopening will be assessed on a store-by-store basis, reflecting the fluid nature of the situation. This development comes at a time when the parent company of Hudson's Bay has completed a significant acquisition of U.S.-based Neiman Marcus, which retail strategist David Ian Gray suggests could have broader implications for the future of Canadian retail.

Hudson's Bay closes several stores across Canada during heat wave

What: M&S is expanding its convenience store footprint by opening 10 new stores and renewing 50 existing locations across the UK.

Why It Is Important: This expansion and renewal strategy aims to bolster M&S's GBP 1 billion convenience business, enhancing customer experience and increasing accessibility in high-traffic areas such as train stations, hospitals, and airports.

Marks & Spencer (M&S) has announced plans to strengthen its convenience store segment by opening at least 10 new stores and refurbishing up to 50 existing ones across the UK this year. This initiative is part of a strategic move to grow its GBP 1 billion convenience business, focusing on high-traffic locations like train stations, hospitals, and airports. The recent reopening of the Liverpool Street Station Mezzanine store, featuring updated sections and additional self-service tills, exemplifies the retailer's commitment to enhancing customer experience. M&S Food MD Alex Freudmann emphasized that the renewal program aims to provide the same high-quality shopping experience in convenience stores as in its larger Foodhalls, catering to both immediate consumption and meal prep needs.

M&S to expand convenience stores with 10 new openings and 50 renewals

What: Nike and Jacquemus have turned Selfridges’ Wonder Room into a metallic gym locker display to celebrate their collaboration and the 2024 Paris Olympics.

Why it is important: The collaboration blends high fashion with sportswear, creating a unique and engaging retail experience that highlights the synergy between athletic performance and style, and attracts attention during the high-profile Olympic season.

In celebration of the 2024 Paris Olympics, Nike and Jacquemus have taken over Selfridges' Wonder Room with an eye-catching pop-up installation that mimics a silver gym locker room. The display features an enormous red Le Swoosh bag and larger-than-life gym equipment such as a silver dumbbell, skipping rope, and shake bottle. The Selfridges window on Orchard Street mirrors the theme, making it one of the year's most whimsical displays at the retailer. Designer Simon Porte Jacquemus drew inspiration from Paris, Nike athletes, and vintage Nike collections to create items like the metallic twist on Nike’s Air Max One sneakers. The campaign features icons such as Serena Williams, celebrating their achievements and influence.

Nike and Jacquemus transform Selfridges' Wonder Room into Olympic-themed silver gym locker

What: Harrods is celebrating its 175th anniversary with a year-long series of brand partnerships and exclusive collaborations, culminating in a grand Christmas display.

Why it is important: This milestone celebration highlights Harrods' enduring legacy and its ability to innovate and partner with top luxury brands to create memorable experiences, reinforcing its position as a leading luxury retailer.

Harrods is marking its 175th anniversary with a series of high-profile brand partnerships and exclusive collaborations designed to celebrate its rich history and future vision. Partnerships director Alex Unitt is spearheading the celebrations, which began with a month-long Burberry takeover that included customised store facades and digital elements like a Roblox activation. The campaign emphasises innovative approaches to collaborations, with more than 40 brands participating in unique ways throughout the year. The Harrods Bear, a mascot first introduced in 1906, is also central to the festivities with limited-edition releases from various designers. The celebrations are timed with Harrods' strong financial performance, reflecting a successful post-pandemic recovery. The grand finale will be a spectacular Christmas display, ensuring the year ends on a high note.

How Harrods is bringing ‘175 years of exceptional’ to life

What: Costco has announced the first increase of their membership fee in 7 years

Why it is important: 52 million memberships are affected.

Costco has announced an increase in its membership fees, the first adjustment since 2017. Effective September 1, the annual fees for U.S. and Canada Gold Star, business, and business add-on members will rise from 60 to 65 USD. Additionally, the executive membership plan will now cost 130 USD, up from 120 USD, with the reward cap increasing to 1,250 from 1,000 USD. This change impacts approximately 52 million memberships, over half of which are executive. The decision comes shortly after Gary Millerchip assumed the role of finance chief, under whom the company anticipates enhancing its digital growth strategies while maintaining its traditional values. This strategy aligns with Costco's consistent practice of increasing prices roughly every five years, affecting 35 million members in the last round. Despite the increase, Costco continues to perform robustly with a 9% rise in total revenue to 58.5 billion USD and net income growing to 1.68 billion USD in the recent quarter, boosting its shares by 2.6% in after-hours trading and a total of 34% year-to-date.

Costco to Lift Membership Fees for First Time in Seven Years

What: The grand department stores of Paris, once centers of opulent consumerism and urban life transformation, now serve as a historical reflection and potential guide for modern retail challenges.

Why it is important: Understanding the historical significance and the strategic innovations of Paris's department stores can provide valuable insights for today's struggling retailers, offering potential solutions for revitalizing customer engagement and redefining the retail experience in an era dominated by digital commerce.

Paris's grand department stores, like La Samaritaine, were once revolutionary spaces that transformed urban life and consumer behavior through their opulent designs and innovative retail strategies. These stores offered not just products but experiences, encouraging customers to linger and socialize, thus fostering a sense of community. However, in today's retail landscape, these once-thriving centers face declining footfall and competition from e-commerce. An exhibition at the Musée des Arts Décoratifs highlights the history and cultural impact of these stores, suggesting that modern retailers could learn from their past by creating engaging, community-focused environments that go beyond mere shopping. This reflection on the past could inspire a new vision for retail spaces, turning them into modern urban hubs of activity and interaction.

Paris’s department stores: Lessons for reviving today’s retail experience

What: The Housing Authority of Hong Kong is launching the Wellbeing Start-up program, offering rent-free shop spaces to entrepreneurs aged 35 and below for seven months.

Why it is important: This initiative aims to foster innovation among young entrepreneurs by providing them with cost-free retail spaces and support, enhancing the diversity of the local shopping experience and stimulating economic growth.

The Housing Authority of Hong Kong is introducing the Wellbeing Start-up program, a seven-month initiative starting in October, which will provide rent-free shop spaces to young entrepreneurs under 35. Ten shop premises in the authority's shopping centers will be available, along with basic shop-building support and marketing assistance. If participants generate a profit, 20% of their net profit will be reinvested into the program. The program seeks to leverage young people's innovative ideas and provide a diverse shopping experience for the community. Applications are open from August 1 to August 31, with selections based on criteria such as innovation, feasibility, and social benefits. This program coincides with Hong Kong's recent efforts to boost online shopping and retail sales through an e-commerce festival.

Hong Kong to offer rent-free shops to aspiring startups

What: Saks Fifth Avenue in San Francisco is switching to an appointment-only shopping format starting August 28.

Why it is important: This unprecedented move aims to address issues of crime and declining foot traffic in the area while providing a more personalized and secure shopping experience for customers. The decision reflects Saks' commitment to maintaining a presence in San Francisco despite recent challenges faced by retailers in the city.

In response to ongoing crime and declining sales, Saks Fifth Avenue in San Francisco will transition to an appointment-only format on August 28. This strategic shift is intended to enhance security and offer tailored services to customers. Despite a wave of store closures in San Francisco, including Nordstrom and Neiman Marcus, Saks remains dedicated to serving its clientele in the city. Customers can book appointments via their style adviser, email, or the Saks website. Saks' owner, HBC, continues to innovate and expand services, such as the Fifth Avenue Club, while awaiting government approval for its acquisition of Neiman Marcus Group.

Saks Fifth Avenue in San Francisco shifts to appointment-only shopping

What: Harvey Nichols is not improving and tests the patience of its shareholder, Dickson Poon

Why it is important: All dominos may not have yet fallen in the UK

Harvey Nichols has faced continual financial losses for the fourth consecutive year, relying on a GBP 25 million bailout from its primary shareholder, Broad Gain, a subsidiary of Dickson Investment Holding owned by Hong Kong businessman Dickson Poon. In 2023, revenue rose to GBP 79 million from GBP 57 million the previous year, yet the loss remained at GBP 4 million. No dividends were distributed, similar to 2022. In response to increased difficulties due to inflation, Brexit outcomes, and the crisis in Ukraine, Harvey Nichols closed a branch in Hong Kong and reduced its workforce. These measures are part of a broader crisis affecting department stores since the pandemic. The situation at Harvey Nichols is further complicated by leadership changes, with CEO Manju Malhotra resigning and Julia Goddard taking over in April 2024. Competitively, Selfridges faces its own financial troubles, with the bankruptcy of its shareholder Signa and potential acquisition interest from the Saudi Public Investment Fund.

Harvey Nichols ends up in red for the 4th consecutive year

What: Japanese department stores’ customers are discovering Korean brands and they love them!

Why it is important: All things Korean are successful hits in retail worldwide.

Marui Department Store in Tokyo concluded the successful run of the Andar pop-up store with robust sales and strong consumer turnout. The store achieved significant popularity, especially with products like T-shirts and pants endorsed by model Jun Ji-hyun, which sold out quickly and necessitated restocking. Andar, primarily an online retailer, reported sales exceeding USD 8.7 million since its Japanese online inception in January of the previous year.

The broader trend shows Korean retailers making significant inroads into the Japanese market, traditionally dominated by local firms. The allure of Korean fashion, cosmetics, and food products is particularly strong among Japan's youth, who are drawn to the quick trend adoption and quality of these items. The influence of Hallyu, including K-pop, is a notable factor in this appeal.

Olive Young, a major Korean beauty retailer, has also expanded its footprint in Japan, establishing a local subsidiary in May following a 125% growth in annual sales over four years. Korean cosmetics and home beauty device company APR reported impressive sales during a promotional event in Japan, with over 21,000 units of their flagship product sold, highlighting a 20% increase in Korean cosmetics exports to Japan.

Japanese retailers are reciprocating this interest, with Hyundai Department Store's pop-up in Shibuya Parco achieving record-breaking sales and underscoring the high regard for Korean products as both high quality and trendy among Japanese consumers.

Korean brands are hits in Japanese department stores

What: Head Sportswear has opened a men’s tennis pop-up shop at Selfridges as part of the retailer’s Sportopia summer takeover.

Why it is important: This initiative highlights the collaboration between prominent sportswear brands and major retailers to offer immersive and innovative shopping experiences, attracting both sports enthusiasts and fashion-forward consumers.

Head Sportswear has launched a men’s tennis pop-up shop at Selfridges, aligning with the retailer’s Sportopia takeover for the summer. The pop-up showcases Head’s fashion-focused sportswear collection, featuring vintage-inspired designs and performance apparel. The collection includes moisture-wicking fabrics, UV protection, and ergonomic designs for on-court wear, alongside off-court styles such as sweatshirts and hoodies. The pop-up runs until July 20, coinciding with the Wimbledon tournament. Selfridges’ Sportopia takeover also includes collaborations with brands like Lacoste, Champion, Nike, Omega, and David Beckham, offering immersive experiences such as a rooftop Wimbledon viewing area, sports bar, and climbing wall. The initiative, inspired by major sporting events and local sports communities, aims to celebrate sports culture and brand fandom.4o

Head Sportswear opens men’s pop-up, part of Selfridges’ Sportopia takeover

What: Target is launching its first Denim Take Back Event from Sunday to August 10, offering consumers a 20% discount code in exchange for recycling used denim.

Why it is important: The event aligns with Target’s sustainability goals and back-to-school shopping season, encouraging recycling while providing customers with a discount on new denim purchases.

Target is introducing its first Denim Take Back Event, running from Sunday to August 10, where customers can recycle their used denim of any brand at Target stores. In return, they will receive a 20% discount code on new denim purchases, applicable to both Target-owned and national brands. This initiative is part of Target's broader commitment to sustainability and follows the success of its annual car seat trade-in program. Customers can drop up to five denim items in designated in-store boxes, with materials being recycled into new products. The event aims to reduce waste and offer affordable fashion updates during the back-to-school season.

Target launches first chain-wide Denim Take Back Event

What: Designer Christian Louboutin has invested in Experimental Group, becoming a minority shareholder in the French hospitality group.

Why it is important: This investment signifies the growing trend of luxury brands partnering with the hospitality industry to expand their influence and diversify their portfolios.

Christian Louboutin has joined forces with Experimental Group as a minority shareholder, partnering alongside Jean Moueix and Brookfield Asset Management. This collaboration aims to bolster the expansion of Experimental Group’s portfolio, which includes hotels, restaurants, and bars throughout Europe. Founded in 2007, Experimental Group has established over 20 venues and is set to open new locations in Val d’Isère, Rome, and Paris by 2025. The group values Louboutin's entrepreneurial spirit and anticipates that his global reputation and creative expertise will significantly contribute to their growth and development.

Louboutin invests in hospitality