What: Boohoo has launched a new online marketplace, Boohoo Brands, featuring over 150 fashion, beauty, and lifestyle brands.

Why it is important: This initiative is a strategic move by Boohoo to enhance its product offerings and improve customer experience, aiming to regain market share and recover from significant financial losses due to challenging market conditions.

Boohoo has unveiled Boohoo Brands, an online marketplace hosting over 150 well-known brands, including Revolution Beauty, L’Oréal Paris, Ray-Ban, Marc Jacobs, and Michael Kors. This launch aims to position Boohoo as a comprehensive shopping destination, leveraging its network to onboard and maintain strong relationships with new and existing brands. This development follows the Debenhams marketplace launch, also powered by Mirakl. Boohoo's chief product officer, James Blacklock, highlighted the company's commitment to providing diverse, high-quality products in one place. The launch comes as Boohoo strives to recover from a GBP 160m loss caused by inflation and declining sales, with additional efforts to boost social commerce through influencer partnerships.

Boohoo launches marketplace featuring over 150 brands

What: A global IT outage caused by a Microsoft cloud computing glitch grounded thousands of flights and disrupted air cargo and port operations worldwide.

Why it is important:  The outage has significant implications for global supply chains, exacerbating existing pressures on air cargo capacity and potentially causing prolonged delays and congestion in freight movement across sea and land.

A global IT outage triggered by a Microsoft cloud computing glitch disrupted air travel and cargo operations worldwide on Friday. Major airlines, including American, Delta, and United, paused their flight schedules, affecting cargo handling at global airlines such as Air France-KLM and Lufthansa. The outage, caused by a faulty update from cybersecurity firm CrowdStrike, also impacted major ports, including those in Los Angeles, Long Beach, and the UK's Port of Felixstowe. While some operations have resumed, the fallout is expected to take days or weeks to fully resolve, with potential delays in cargo processing and increased congestion at ports and airports. FedEx, UPS, and Union Pacific have implemented contingency plans to mitigate the impact.

Global IT outage disrupts air cargo supply chain and major ports

What: Saks' parent company HBC is acquiring Neiman Marcus Group for USD 2.65 billion, merging the two luxury retail giants into a new entity called Saks Global.

Why it is important: This deal acknowledges the struggling state of North American luxury department stores, offering a chance to improve cost positions, leverage against powerful vendors, and rationalize store portfolios. However, it also raises concerns about significant layoffs, the impact on Neiman Marcus' Dallas operations, and the challenge of differentiating two similar brands.

The much-anticipated acquisition of Neiman Marcus by Saks' parent company, HBC, finally materialized, driven by the need to address the declining North American luxury department store model. This merger, forming the new entity Saks Global, presents opportunities to streamline costs, strengthen vendor negotiations, and optimize store locations and brand offerings. However, the transition comes with significant downsides, including potential layoffs, especially at Neiman Marcus' Dallas headquarters, and the challenge of managing overlapping store locations and similar value propositions between Saks and Neiman Marcus. The involvement of Amazon and Salesforce adds a layer of complexity, potentially bringing valuable financial and technological resources to the new entity. The future success of this merger depends on strategic execution and differentiation of the two brands.

The Saks/Neiman Marcus deal: The good, the bad, and the complicated

What: John Lewis goes back to retail basics and increased the number of sales staff

Why it is important: suppliers are not ok to pay the bill.

John Lewis's chief, Peter Ruis, is implementing a strategy to enhance the retailer's performance by increasing the number of employees on the shop floor. Appointed in January, Ruis aims to replicate the successful sales culture of the store's beauty halls throughout other sections by renegotiating contracts with fashion brands. According to The Sunday Times, these new agreements would allow brands to pay a reduced commission in exchange for staffing their concessions with more employees. Research by John Lewis supports this approach, suggesting that a greater staff presence could boost concession sales significantly, benefitting both the retailer and its suppliers. Although fashion brands are generally supportive, some suppliers have expressed the need for lower commission rates to feasibly accommodate the plan.

New John Lewis boss to increase shop floor staff

What: Department stores in Peru have reported a significant decline in sales over the past year, impacted by decreased domestic demand and challenging macroeconomic conditions.

Why it is important: Understanding the factors contributing to this downturn and the strategies being implemented to address these challenges is crucial for anticipating the future performance of the retail sector and the potential recovery in the coming months.

Peruvian department stores have faced considerable challenges over the past year, with a reported year-on-year sales decline of 8.2% as of April 2024, according to the Ministry of Production's General Office of Impact Assessment and Economic Studies. This decline, which contributed to an overall 2.6% contraction in the retail sector, has been primarily attributed to decreased domestic demand in categories such as clothing, footwear, and personal care products. Major retailers like Falabella, Ripley, and Oeschle have bolstered their digital presence and improved logistics, yet sales have continued to struggle. Despite this, there are signs of potential recovery, with consultancy Macroconsult forecasting a 3.4% growth in the sector for 2024. Factors such as controlled inflation, an improving economy, and strategic e-commerce initiatives are expected to drive this growth, alongside temporary boosts from released funds and seasonal bonuses.

Department stores report negative sales for the past year: what will happen in the coming months?

What: Barneys New York plans a revival by expanding its product range and distribution through Saks and Neiman Marcus, contingent on the USD 2.65 billion acquisition of Neiman Marcus Group by the owner of Saks.

Why it is important: The acquisition could significantly bolster Barneys' presence and product offerings, allowing it to leverage the combined retail power of Saks and Neiman Marcus, thereby enhancing its market reach and revitalizing its brand.

Barneys New York is gearing up for a significant comeback, expanding beyond its current beauty and perfume lines into home goods, sportswear, intimates, outerwear, and more. This plan depends on the pending USD 2.65 billion acquisition of Neiman Marcus Group by Saks' owner. Authentic Brands Group, which owns Barneys' intellectual property, would assign product licenses to new partners, with distribution rights extending to Saks Fifth Avenue, Neiman Marcus stores, and Barneys' global locations. This initiative aims to rejuvenate the Barneys brand, tapping into the combined strength of Saks and Neiman Marcus.

Barneys plots a bigger comeback thanks to Neiman-Saks deal

What: John Lewis has been granted permission to transform its Waitrose site in Bromley into a new residential community with 353 rental homes and a modernised store.

Why it is important: This project underscores John Lewis's commitment to community development and urban regeneration, offering a significant boost to the local economy and providing much-needed housing with a focus on long-term tenancy options and community amenities.

John Lewis has received approval from the London Borough of Bromley to convert its Waitrose site into a residential community featuring 353 rental homes. The development, which prioritizes local residents for tenancy, includes a mix of one, two, and three-bedroom homes, with shared fitness, home-working, and socializing areas. The project also features new public green spaces, a café, and amenities for community groups and schools, alongside improved cycle and pedestrian links. John Lewis estimates that the investment will inject GBP 70 million into the local economy over the next decade. Katherine Russell, John Lewis Partnership's director of Build to Rent (BTR), expressed delight at the support from Bromley residents and the potential to enhance the area and provide vital housing.

John Lewis given the green light for new rental housing in Bromley

What: The Champs-Élysées has undergone its most significant renovation in 40 years, with a EUR 30 million investment from the City of Paris and the introduction of new structures by designer Ramy Fischler.

Why it is important: This extensive makeover aims to prepare the iconic avenue for the influx of visitors during the 2024 Paris Olympics, enhancing pedestrian flow, reducing visual clutter, and revitalising the area to attract both tourists and locals.

In preparation for the 2024 Paris Olympics, the Champs-Élysées has received its most comprehensive renovation in four decades. The City of Paris invested EUR 30 million in improvements, including pavement repairs, enhanced pedestrian crossings, and expanded green spaces. The Champs-Élysées Committee enlisted designer Ramy Fischler to redesign and unify outdoor terraces, enhancing pedestrian traffic flow and visual appeal. This project is part of a broader initiative to revitalise the avenue, which has seen new tenants and increased leasing activity post-pandemic. The effort aims to make the Champs-Élysées more attractive to both tourists and Parisians, who have largely avoided the area in recent years.

Champs-Élysées undergoes major makeover ahead of Paris Olympics

What: Mall traffic in Philippines is increasing 21% year on year

Why it is important: the secret sauce, like everywhere else, is dining and experience.

SM Supermalls, a prominent Philippine mall chain under SM Prime Holdings, has witnessed a significant 21% increase in first-quarter foot traffic, reaching over four million daily visitors compared to last year's 3.3 million. This rise is largely attributed to a growing consumer interest in leisure and dining experiences. The shift in consumer preferences is evident in the mall's space allocations, with food tenants now occupying 30% of the leased area—a substantial rise from just 10% a decade ago. Non-food sectors, including entertainment options, make up 50% of the space. This period also saw the introduction of innovative attractions like the Space & Time Cube+ at S Maison and Cosplay City at SM City Fairview, emphasizing the company's strategy to enhance the shopping experience by creating dynamic destinations.

Philippines’ SM Supermalls sees double-digit growth in foot traffic

What: Hyundai department stores introduces a new tool for advertisers with AI helping to create content matching products

Why it is important: When it comes to creating new usages with AI, we have not yet seen the limits of such ideas.

Hyundai Department Store has partnered with Giant Step to launch "One Step," an AI-driven program designed to create advertising images. This initiative, part of the store's accelerating digital transformation, allows users to generate ad visuals by inputting relevant keywords about an event or theme, such as "sea beach" and "relaxing vacation." Introduced on Hyundai's online platform, The Hyundai Dotcom, in May, the trial of One Step demonstrated a significant improvement in engagement, doubling the click-through rate compared to previous methods.

Building on this successful pilot, Hyundai plans to initially apply One Step for creating advertisements on The Hyundai Dotcom, with future expansions slated for offline events. This AI tool not only enhances advertising effectiveness but also frees up staff to focus on more creative tasks by automating the production of consistent and differentiated advertising visuals.

This development follows Hyundai Department Store's recent introductions of other AI solutions, including AI copywriter 'Lewis,' AI chatbot 'Jelpo,' and a customer behavior analysis program 'RTS' for super-personalized marketing, marking significant strides in the company's comprehensive digital transformation strategy.

Hyundai introduces an AI-powered advertising designer

What: Kering's net profit plunged 50% in the first half of the year, prompting a new profit warning due to a drastic slowdown in luxury spending.

Why it is important: This significant drop in profit highlights the challenges faced by even top luxury brands in the current volatile market, underscoring the impact of economic uncertainties and shifting consumer behaviours on high-end retailers.

Kering, the parent company of luxury brands such as Gucci, Saint Laurent, and Balenciaga, has issued a new profit warning after its net profit halved to EUR 878 million in the first half of 2024. Organic sales at Gucci, Kering's flagship brand, fell by 19% in the second quarter, significantly below market expectations. The company attributes this decline to a drop in traffic and underperformance of carryover styles. Despite ongoing cost-cutting measures and strategic efforts to revitalize Gucci, Kering no longer anticipates margin improvements in the second half of the year. The company is also facing broader market challenges, with decreased sales in Asia Pacific, North America, and Europe, though it saw a notable increase in Japan. Kering's executives emphasize continued investment in brand development and efficiency improvements to navigate the challenging landscape.

Kering issues new profit warning after net profit halved in H1

What: Wharf Real Estate Investment Company Limited (Wharf REIC) has announced an expected loss of not less than HKD 900 million (USD 115 million) for the first half of 2024, compared to a profit of HKD 1.805 billion the previous year.

Why it is important: This significant loss highlights the challenges faced by Hong Kong's retail sector due to a decline in mainland tourist spending, impacting the overall economic recovery of the region post-reopening.

Wharf REIC, a major Hong Kong shopping mall operator, anticipates a substantial loss of at least HKD 900 million for the first half of 2024, a stark contrast to the HKD 1.805 billion profit recorded last year. The downturn is attributed to a fall in the value of investment properties and a decrease in spending by mainland tourists, which stalled retail sales recovery soon after border reopenings in early 2023. Despite this, Wharf REIC maintains a healthy financial position. Additionally, its sister company, The Wharf, has projected a loss between HKD 2.5 billion and HKD 2.8 billion for the same period, marking a significant swing from a profit of HKD 696 million previously.

Hong Kong mall giant swings into the red as mainland shoppers stay away

What: European retailers are investing heavily in digital trends, AI, and social commerce, with significant emphasis on TikTok, to meet the evolving demands of consumers and stay competitive in a rapidly changing market.

Why it is important: Understanding and leveraging these trends is crucial for retailers to innovate and adapt to the shifting preferences of younger, digital-savvy consumers, ultimately driving customer loyalty and increasing sales.

At the recent eTail London conference, European retailers highlighted key digital trends shaping the industry. These include hyper-personalization through generative AI, the rise of social commerce with platforms like TikTok, cost-saving platforms like Shopback, a surge in second-hand shopping driven by Millennials and Gen Z, and the importance of seamless product returns. AI's role is expanding in customer service, dynamic pricing, task automation, and logistics optimization. TikTok's entertainment and discovery-driven environment offers a unique opportunity for brands to engage with users and boost purchase intent, with social commerce in the UK projected to double in the next four years. Retailers globally must innovate rapidly to align with these trends and cater to younger consumers' preferences.

Digital trends, AI, and TikTok: European retailers’ investment focus

What: John Lewis launches a 16-week in-store repair trial in partnership with Timpson Group-owned Johnsons across five branches.

Why it is important: The trial aligns with John Lewis’ circular economy strategy, aiming to extend the lifespan of products and reduce environmental impact, while addressing growing consumer demand for sustainable and repair services.

John Lewis has initiated an in-store repair service trial in collaboration with Timpson Group-owned Johnsons, available in five branches: Oxford, Liverpool, Cheadle, Milton Keynes, and Welwyn. This service, which includes repairs, alterations, laundry, and dry cleaning for any brand, is part of John Lewis' commitment to sustainability. The initiative aims to help customers extend the life of their clothing and homeware, supporting the retailer's circular economy strategy. The trial will assess customer preferences, the types of garments repaired, and the demographics of users. This move is in response to increasing consumer interest in repairs over new purchases, contributing to significant reductions in carbon, waste, and water footprints

John Lewis launches in-store repair trial with Timpson Group

What: Despite Google reversing its decision to phase out third-party cookies, retailers should continue to focus on first-party data strategies due to the anticipated high opt-out rates and increasing regulations.

Why it is important: The shift towards user-controlled cookie settings in Chrome, mirroring Apple's Safari, means a significant portion of users are expected to opt-out of cookies. This continues the trend of diminished tracking capabilities and highlights the need for robust first-party data strategies to maintain personalized marketing and compliance with upcoming stricter regulations.

Google's recent announcement to allow users to control third-party cookies in Chrome, rather than phasing them out completely, is seen as a temporary win for advertisers. However, with high expected opt-out rates and ongoing regulatory changes, the end result remains largely unchanged for retailers. Marketing experts like Mark Baartse emphasize the importance of continuing to invest in first-party data strategies. Retailers are advised to leverage first-party data to understand customer behavior better and create personalized experiences. Experts recommend conducting data audits, communicating the purpose of data collection to consumers, creating value for consumers, and simplifying the data-sharing process to ensure mutual benefit and compliance.

Why retailers shouldn’t ditch their data strategy after Google’s cookie reversal

What: The merger between Saks and Neiman Marcus, funded partly by Amazon and Salesforce, faces potential complications from the FTC, which may delay or challenge the deal.

Why it is important: The involvement of major companies like Amazon and Salesforce heightens regulatory scrutiny, potentially impacting the consolidation of two of the largest luxury department store chains and reshaping the retail landscape.

HBC's USD 2.65 billion deal to merge Saks and Neiman Marcus into Saks Global faces potential delays and challenges from the Federal Trade Commission (FTC). With Amazon and Salesforce as part of the funding, the merger draws significant regulatory attention, reflecting increased scrutiny in the retail sector. The FTC's rigorous antitrust review, which could include a "second request" for detailed information, complicates the path to finalising the deal. This heightened scrutiny comes as the FTC also challenges other major retail mergers,

Potential FTC challenges to Saks/Neiman Marcus merger due to Amazon and Salesforce involvement

What: Hong Kong is not yet recovering from its current woes

Why it is important: The city will need a serious retail reinvention to face the increasing competition in the region from other desirable hubs.

Hong Kong's retail sales experienced an 11.5% year-on-year decline in May, continuing a trend of double-digit decreases, with sales totaling HKD 30.5 billion. This downturn followed a 14.7% decline in April and a 7% decrease in March, cumulating in a 6.1% drop for the first five months compared to the previous year. The Census and Statistics Department cited shifts in consumption by visitors and residents and the strong Hong Kong dollar as key factors.

Significant sales declines were seen across various sectors, particularly in motor vehicles and parts (down 29.8%), watches, clocks, and valuable gifts (down 21.4%), commodities in department stores (down 21.1%), and apparel (down 18.8%). Contrarily, sectors like books, newspapers, stationery, and gifts saw a 6.9% increase, and medicines and cosmetics rose by 2.5%.

Online sales reached HKD 2.6 billion, making up 8.7% of total retail sales and showing a 21.9% increase from the previous year. In response to these trends, the government is optimistic that initiatives such as the enhanced Individual Visit Scheme and increased duty-free allowances for Mainland residents will boost retail sectors in the near future.

Hong Kong retail sales see double-digit decline for second straight month

What: LVMH has been developing an "AI Factory" to enhance efficiency and improve customer experience across its luxury brands.

Why it is important: This strategic use of AI positions LVMH at the forefront of innovation in the luxury sector, helping to maintain its competitive edge while ensuring ethical and responsible AI usage.

LVMH's AI Factory, directed by Axel de Goursac, is a comprehensive initiative to integrate AI within the company's luxury brands, including Louis Vuitton, Dior, and Tiffany & Co. The AI Factory provides modular, adaptable algorithms that support various business needs such as e-commerce recommendations, client advisor enhancements, and product forecasting. Partnering with Stanford University's Institute for Human-Centred Artificial Intelligence, LVMH is committed to ethical AI practices. The company avoids direct customer-facing AI tools, focusing instead on augmenting its workforce. Plans include extensive employee training in AI and exploring generative AI applications for content creation and sustainability.

Inside LVMH’s AI Factory

What: Snapchat has launched a sports-themed augmented reality (AR) Locker Room at Selfridges’ flagship London store as part of the store's summer Sportopia promotion.

Why it is important: This collaboration represents a significant integration of digital technology into physical retail, highlighting the evolving ways brands are engaging with consumers. By incorporating AR experiences, Snapchat and Selfridges are enhancing customer interaction and offering innovative ways for shoppers to engage with sports brands and merchandise.

Snapchat has joined Selfridges’ summer Sportopia promotion by launching a sports-themed AR Locker Room at its flagship London store. Throughout July and August, shoppers can use AR Mirror experiences to virtually try on sports kits, interact with top sports brands, and experiment with AR lenses. They can also see themselves in a custom Team Selfridges Sportopia football kit and share their favorite looks via a QR code. This collaboration aims to connect sports fans with digital communities and enhance their shopping experience through innovative technology. Other notable activations in Sportopia include Lacoste’s rooftop takeover and Champion’s shop-in-shop concession featuring exclusive collections.

Snapchat joins Selfridges' Sportopia line-up

What: Fortnum & Mason has introduced Fortnum’s Dispatch, a subscription delivery service offering regular refills of the retailer’s popular biscuits, teas, and jams.

Why it is important:  This service aims to enhance customer experience by providing convenient access to Fortnum & Mason's premium products, encouraging customer loyalty and expanding the retailer's market reach.

Fortnum & Mason has unveiled Fortnum’s Dispatch, a new subscription delivery service starting July 4. The service offers three subscription options: The Tea Post, providing a year’s supply of monthly tea refills for £100 annually; The Biscuit Post, offering monthly biscuit refills for £20; and The Teatime Dispatch, which combines tea, biscuits, and jams for £75 a month. Each subscription includes additional perks such as a customisable initialled china mug for tea subscribers. CEO Tom Athron emphasized the company's commitment to bringing Fortnum’s joy into customers' homes with this latest innovation.

Fortnum & Mason launches subscription delivery service

What: Macy's has promoted Sabina Israelian-Garcia to senior vice president, general merchandising manager of home, foods, and toys.

Why it is important: The promotion of Israelian-Garcia signifies Macy's commitment to enhancing its home, food, and toy categories, with a particular emphasis on its strategic partnership with Toys "R" Us. This move aligns with Macy's "Bold New Chapter" strategy, aiming to strengthen brand partnerships, diversify product assortments, and focus on high-performing stores while expanding smaller format chains.

Macy’s has promoted Sabina Israelian-Garcia to senior vice president, general merchandising manager of home, foods, and toys. In her new role, Israelian-Garcia will oversee the diversification of product assortments and strengthen brand partnerships in these categories. This promotion is part of Macy’s broader "Bold New Chapter" strategy, which includes closing underperforming stores and investing in smaller format stores and luxury offerings. Israelian-Garcia, who previously managed big-ticket merchandise at Macy's, will report to chief merchandising officer Nata Dvir. Her experience and strategic vision are expected to drive growth in Macy’s home, food, and toy departments, including the successful integration of Toys "R" Us shops within Macy’s stores.

Macy’s promotes from within to amp up focus on home, food, and toys

What: In China, customers are increasingly wary of displaying signs of wealth, following a government crackdown.

Why it is important: While it will, without a doubt, impact the national market, what about international luxury consumption by Chinese nationals?

In China, there has been a noticeable shift among consumers towards more discreet luxury goods, influenced by a decrease in local demand and a growing sense of "luxury shame." This sentiment is detailed in the latest Luxury Goods Worldwide Market Study by Bain & Company and Altagamma. Federica Levato of Bain & Company highlighted that Chinese customers are now favoring private shopping experiences and understated items over flashy luxury products. Similarly, Alex Anton from the luxury online retailer 2-Times noted a shift in consumer behavior, with an increased interest in independent and local designers, as well as a higher frequency of purchases despite a greater sensitivity to pricing compared to Western consumers.

Anton also mentioned that Chinese consumers are moving towards an "anti-discounting mentality," particularly following the market exits of Farfetch and Matches, which diluted their brand salience with constant discounts. In contrast, 2-Times focuses on early access to exclusive brands and maintains a strong stance against discount-driven sales, emphasizing personalized selling and sophisticated technology. Furthermore, the crackdown on public displays of wealth by China’s cyberspace administration is reinforcing this trend towards discreet luxury. Anton suggests that in 2024, luxury brands should educate their communities on avoiding ostentatious displays of wealth and instead promote healthier, more candid lifestyles to maintain consumer trust and connection.

Luxury fatigue is taking off in China

What: Amazon plans to beat Shein and Temu at their own game.

Why it is important: The great decoupling is taking place, with online behemoths only focused on the economic race, while other retailers are pressurized to operate sustainably.

Amazon is set to launch a new service shipping inexpensive fashion and household items directly from China to the U.S., a move aimed at competing with low-cost e-commerce platforms like Temu and Shein. This service will enable delivery from China to U.S. consumers in nine to 11 days, a change from the current practice of routing through U.S. warehouses. The service will focus on unbranded products such as phone cases and household tools.

The strategy represents a shift in Amazon's operational model, traditionally known for fast delivery and easy returns, as it adapts to the competitive pressures from Temu and Shein, who leverage the U.S. statute allowing tax-free entry for shipments under $800. These platforms have gained significant market traction, with Temu recently becoming the most downloaded free app in the U.S. Apple Store, underscoring their rapid expansion and threat to Amazon's market dominance.

Amazon's response also includes efforts to enhance visibility and accessibility of its bargain items, with initiatives like lowering seller fees for inexpensive apparel and boosting the selection of products available for same-day delivery. This strategic pivot is designed to maintain its competitive edge by matching the supply chain efficiencies that have fueled the success of its rivals.

Amazon takes on Chinese rivals Temu and Shein with plans for new discount service

What: Central Retail Corporation’s Chief People Officer, Panchalee Weeratammawat, emphasizes the need for adaptability in managing a multigenerational workforce and highlights the changing expectations of today’s retail employees.

Why it is important: Understanding and addressing the differing needs of various age groups within a company is crucial for recruiting, retaining, and nurturing talent, especially in a rapidly evolving retail environment.

Panchalee Weeratammawat, Chief People Officer at Central Retail Corporation (CRC), discusses the evolving expectations of retail employees, particularly the younger generation's focus on societal impact and sustainability. She highlights the challenges of managing a multigenerational workforce, stressing the importance of flexibility and individualized approaches to meet diverse needs. Weeratammawat also underscores the significance of digital transformation, emphasizing the necessity of clear communication, the right skills, and fostering a growth mindset to ensure successful implementation. CRC operates in Thailand, Vietnam, and Italy, with over 75,000 employees, making it one of the largest workforces in the region.

Central Retail’s CPO addresses multigenerational workforce challenges