What: John Lewis has introduced a retail media platform allowing brands to manage and monitor their advertising campaigns on its website.

Why it is important: This initiative offers brands enhanced tools for targeted advertising, enabling them to better connect with shoppers, adapt to trends, and measure campaign effectiveness in real time.

John Lewis has unveiled a new retail media platform in collaboration with Epsilon, enabling brands to create, manage, and monitor their advertising campaigns, including banner ads and sponsored product listings. The platform provides a dashboard for brands to track engagement, sales, and the performance of their campaigns, allowing for quick adjustments to seasonal trends and sales peaks. The ads will be reviewed by John Lewis' in-house team to ensure suitability for customers. This move aims to improve the connection between customers and brands, providing more targeted and relevant advertising options. Jemma Haley, head of John Lewis' retail media business and proposition strategy, emphasized the importance of meeting customers at the right moments with targeted advertising.

John Lewis launches retail media platform to enhance brand connectivity

What: Alibaba is offering an array of AI-based tools to enhance cross-border retail.

Why it is important: It is all abouèt the culture, as marginal cost of technology is going down. What is important is the capability of each company to leverage their competitive advantage with such new tech.

Alibaba's International Digital Commerce Group is leveraging generative AI-powered tools to enhance cross-border merchant services, including translation, content creation, and managing product returns. Kaifu Zhang, the vice president of the unit and head of its AI initiative, discussed this strategic focus during his appearance at the Reuters Next Conference in Singapore. He expressed optimism about AI's potential within Alibaba, despite ongoing tensions between China and the U.S., and pointed out that China matches the U.S. in AI innovation rates.

Zhang emphasized the competitive edge gained from innovations in open-source AI technology, particularly in China and Europe. Following a restructuring that turned its international e-commerce unit into a standalone business, Alibaba has been trying to boost competitiveness in its global marketplaces like AliExpress and Lazada. This restructuring comes as Alibaba faces increasing competition from other China-based companies like Shein and PDD's Temu, which have shown more rapid growth in sales.

Alibaba bets on gen AI tools for overseas merchants

What: Andrew Keith is leaving his position as CEO of Selfridges in the fall, to be succeeded by André Maeder, CEO of Selfridges Group.

Why it is important: Keith's departure comes after leading Selfridges through significant challenges and transitions, including COVID-19 impacts, a major ownership change, and strategic developments in customer experience and sustainability.

Andrew Keith, who joined Selfridges in 2020 and later became CEO, is stepping down this fall. His tenure saw Selfridges navigate the COVID-19 pandemic, a change in ownership with Central Group acquiring a majority stake, and the bankruptcy of co-owner Signa. Under Keith's leadership, Selfridges launched various customer-centric innovations and sustainability initiatives. André Maeder, the current CEO of Selfridges Group, will assume Keith's responsibilities. The transition comes amid efforts to enhance customer experiences and maintain Selfridges' high standards. Keith expressed pride in leaving Selfridges in a strong position and looks forward to new ventures.

Selfridges CEO Andrew Keith to depart after eventful four-year tenure

What: Marc Metrick discusses the future and implications of HBC’s USD 2.65 billion takeover of Neiman Marcus Group.

Why it is important: This merger aims to drive growth for both Saks and Neiman Marcus, enhancing vendor relationships and customer engagement, while signaling a shift towards a more complex, technology-driven retail and real estate operation.

Saks CEO Marc Metrick has outlined the future steps following HBC’s USD 2.65 billion acquisition of Neiman Marcus Group, pending regulatory approval. Metrick emphasized a growth-oriented strategy rather than business consolidation, aiming to enhance vendor partnerships and customer shopping experiences across Saks and Neiman Marcus. The new entity, named Saks Global, reflects the complexity and breadth of HBC’s portfolio, encompassing real estate, intellectual property, and retail assets. Metrick reassured vendors and employees that no operational or payable funds were used for the transaction, and post-merger, Saks Global will have a robust financial structure to support continued growth and flexibility in operations.

Saks Global CEO Marc Metrick on the days ahead

What: Target is struggling to recover from backslash against socially committed merchandise.

Why it is important: Customers are fickle, they call for retailers to commit themselves in social fights, but cancel them when they go too far

Target is grappling with sales declines and a damaged brand image following a backlash against its LGBT+ themed merchandise, while its main competitor, Walmart, is successfully attracting affluent customers, which are vital for Target's business model. During the 1990s, Target gained popularity with its stylish in-house brands, seeing a significant revenue boost post-Covid-19 as consumers preferred shopping in fewer locations. However, inflation and a shift in consumer spending habits have reduced sales, leading to a stark contrast in performance compared to Walmart.

Recently, Target initiated several strategic moves to revive growth under CEO Brian Cornell's guidance. These include searching for a new chief marketing officer, integrating third-party merchants via Shopify, and employing a generative AI chatbot to enhance store efficiency. In response to declining sales, which fell by 5.4% in Q2 2023—the largest drop since the global financial crisis—Target has adjusted its strategy for selling Pride merchandise amid ongoing controversies and significant backlash in 2023.

To strengthen its market position, Target is planning to expand its store network by over 300 locations and launch new private-label brands, aiming to restore a 6% operating profit margin and increase sales by $15bn over the next decade. Despite these efforts, analysts  suggest that Target's reliance on discretionary items makes it vulnerable in economic downturns. In contrast, Walmart's broader grocery offerings and effective ecommerce strategies have enabled it to outperform Target, highlighting a significant shift in consumer preferences and competitive dynamics.

Target loses cachet with shoppers as inflation and competition bite 

What: The retail scene in China shows some slow down.

Why it is important: Online grows, which suggests that the market is turning increasingly domestic. Rich pre-pandemic Chinese tourists are a memory for now.

China's retail sales growth slowed in June, with a modest increase of 2% compared to May's 3.7% rise, falling short of the forecasted 3.3% growth, according to the National Bureau of Statistics (NBS). This downturn reflects broader economic challenges, including a persistent property slump, rising local government debt, and subdued private-sector spending. On a month-to-month basis, retail sales even saw a slight decline of 0.12%.

For the first half of the year, total retail sales of consumer goods rose by 3.7% year-on-year to 23,596.9 billion yuan (approximately US$3.2 trillion). This growth was segmented into a 3.2% increase in the retail sales of goods and a 7.9% rise in catering sales. Additionally, online retail sales saw a significant boost, up 9.8%, and retail sales of services increased by 7.5% during the same period. These figures highlight the uneven recovery and ongoing economic pressures facing China's retail sector.

China retail sales growth slumps unexpectedly

What: The post-pandemic surge in tourism has significantly benefited fashion and beauty retailers, though changes in traveller spending patterns have posed challenges for some brands.

Why It Is Important: The shift in how and where travellers spend their money impacts retail strategies and highlights the need for brands to adapt to new consumer behaviours to capitalize on the tourism boom effectively.

The ongoing post-pandemic travel boom has brought a substantial increase in tourism, benefiting fashion and beauty retailers. The US Department of Transportation reported record numbers of travellers, while Chinese tourists are nearing pre-Covid levels of international travel. However, shifts in spending patterns have emerged; Western tourists are focusing more on experiences, while Chinese tourists prefer shopping domestically or in Asian destinations rather than in Europe. Japan, with its weak yen, has become a significant beneficiary, seeing a doubling in fashion spending from tourists. Brands like LVMH and Estée Lauder face challenges adapting to these changes, while others capitalize on the trend through strategic initiatives such as resort pop-ups and airport boutiques. As summer progresses, it remains to be seen if increased travel will lead to a rebound in luxury spending or if budget constraints will limit fashion splurges.

Fashion’s travel retail bet pays off

What: Luxury brands like Chanel, Prada, Hermès, Loewe, and Louis Vuitton are collaborating with museums, artists, and art fairs in China to generate marketing buzz and expand their client base amid a slowdown in the key luxury market.

Why it is important: These initiatives are crucial for luxury brands to enhance their presence and reputation in China, a market that is increasingly valuing cultural engagement and local relevance. As the Chinese market faces economic slowdowns, leveraging art collaborations helps luxury brands maintain their appeal and connect with affluent, culturally aware consumers.

Luxury brands are deepening their investments in China’s art scene to attract wealthy consumers and enhance their brand image. Companies like Chanel, Prada, Hermès, Loewe, and Louis Vuitton are collaborating with Chinese museums, artists, and art fairs, creating exhibitions, launching foundations, and participating in art fairs. These efforts help brands to engage with the local culture and expand their client base. However, some brands have faced challenges in localizing their projects and managing cultural sensitivities. The return on investment varies, with large-scale, long-term projects being harder to quantify compared to more intimate, short-term initiatives.

Why luxury brands are investing in China’s art scene

What: Private brands have achieved record highs in unit and dollar shares during the first half of 2024.

Why it is important: This growth highlights the increasing consumer preference for store brands, indicating a shift in purchasing behaviour that could have long-term implications for both private and national brands.

According to data from Circana provided to the Private Label Manufacturers Association (PLMA), private brands have reached unprecedented levels in unit and dollar shares in the first half of 2024. Store brands now hold approximately 23% of the unit market share and 20% of the dollar market share as of mid-June, with a year-over-year growth in both units and dollar sales outperforming national brands. The Circana data suggests that if current trends continue, store brand revenues could exceed a quarter trillion dollars in 2024. The growth has been widespread across most product departments, with beauty, liquor, and general food showing the most significant increases.

Private brands reach new heights in 2024

What: Australian department store Myer has proposed to explore a merger with an apparel brands group.

Why it is important: Beware of what could come out of such an idea, Stockmann in Finland has done so and is now overwhelmed with the success of Lindex, which gave its name to the holding company.

Myer has initiated a proposal to merge with Premier Investments' Apparel Brands, which includes Just Jeans, Jay Jays, Portmans, Jacqui E, and Dotti. This proposed all-scrip merger, outlined as non-binding, indicative, and conditional, would involve Myer acquiring these brands in exchange for issuing new shares to Premier. As a result, Century Plaza Investments, led by Premier chairman Solomon Lew, would become the largest shareholder in Premier.

The merger aims to enhance Myer's scale and market position significantly, promising substantial synergies and potential for sustainable earnings growth. According to Myer executive chairwoman Olivia Wirth, the merger aligns with Myer’s strategic focus on both organic and inorganic growth to maximize shareholder value. She noted that the potential synergies and growth prospects of this combination merited further exploration.

Apparel Brands operates 717 stores across Australia and New Zealand and reported revenues of USD 845 million in the last fiscal year. Both companies have recognized the substantial benefits this merger could offer and have agreed to proceed with reciprocal due diligence to explore the transaction further.

Myer seeks to merge with Premier Investments’ Apparel Brands

What: Marks & Spencer has announced Alison Dolan as its new Chief Financial Officer (CFO), set to replace interim CFO Jeremy Townsend in May 2025.

Why it is important: The appointment of Alison Dolan, a seasoned executive with extensive experience in fast-paced, digitally-led businesses, is crucial for M&S as it continues its successful transformation and expansion efforts.

M&S has named Alison Dolan as its next CFO, with her tenure set to begin before May 2025. Dolan, currently CFO at Rightmove plc, brings a wealth of experience from her previous roles at News UK and Sky, where she focused on finance, strategy, and transformation. CEO Stuart Machin expressed confidence in Dolan's ability to contribute to M&S's ongoing transformation. Meanwhile, interim CFO Jeremy Townsend will remain until May 2025, ensuring a smooth transition. This leadership change comes at a prosperous time for M&S, with rising sales and profits, alongside plans for further investment in its store estate to open new locations and upgrade existing ones.

M&S names Alison Dolan as new CFO, but with big delay

What: Alipay+ teams up with Hyundai Department Stores to provide additional services to tourists.

Why it is important: It is notable that The Hyundai Seoul has been a hit recently with tourists visiting Seoul and Korea.

Alipay+, operated by Ant International, has partnered with Hyundai Department Store to enhance global customer interactions and solidify their international standings. A Memorandum of Understanding (MoU) was signed to foster global marketing collaborations, notably through a pop-up store at The Hyundai Seoul, aimed at international visitors.

Hyundai will host Alipay+ pop-up stores that spotlight Alipay+'s services and promote Hyundai’s branches as prime Korean attractions. They plan regular promotions offering discounts to users of Alipay+ partner wallets like Alipay, AlipayHK, GCash, Touch 'n Go, and TrueMoney. Additionally, from June 6-26, The Hyundai Seoul will feature a pop-up for the EUFA EURO 2024, selling themed merchandise and offering interactive experiences, alongside a lucky draw for game tickets.

The partnership also includes efforts to mitigate high exchange rates during key holiday periods through special promotions and streamlined tax-refund processes, alongside bespoke programs for VIP customers. Alipay+’s extensive network includes over 88 million merchants globally and 1.7 million merchant points in Korea alone, underscoring its significant reach and influence in enhancing the shopping experience for international visitors in Korea.

Alipay+ partners with Hyundai Department Store

What: Korean e-commerce discounter Coupang has been caught red-handed manipulating product reviews

Why it is important: The scale of the manipulation is astounding, and by the time it was discovered, Coupang has been able to eat quite a large marketshare. 

South Korea's Fair Trade Commission (FTC) has imposed a significant fine of 140 billion won (approximately $102 million) on Coupang, a major e-commerce company, for engaging in unfair business practices. These practices include manipulating search algorithms to favor its own private-label products and generating false product reviews to enhance sales. This manipulation has been ongoing since February 2019 and has involved prioritizing at least 64,250 product types, resulting in a 76% increase in sales of these items. Additionally, Coupang mobilized 2,297 employees to write 72,614 favorable reviews for 7,342 private-label products, thereby skewing product visibility and misleading consumers. The FTC has criticized these actions for undermining consumer choice and distorting fair market competition. In response, the FTC has not only fined Coupang but also referred the company and its subsidiary, Coupang Private Label Brands (CPLB), for further legal action. CPLB, established in July 2020, specifically manages the sales of Coupang’s private brand items. The regulatory body has also mandated corrective measures to rectify these unfair practices, emphasizing a strict stance against such deceptive behavior in the market.

Coupang fined US$102 million for manipulating search algorithm

What: Canadian retailer Simons is expanding with new locations in Toronto, aiming to succeed where other department stores like Nordstrom and Sears failed.

Why it is important: Simons' approach to understanding and catering to the unique shopping habits of Canadian consumers, coupled with its gradual and calculated expansion strategy, could position it as a successful player in a challenging market where others have struggled.

Simons, a Canadian fashion and homeware retailer, is expanding its footprint with new stores in Toronto's Yorkdale Shopping Mall and the Eaton Centre. Despite the challenges that have led to the failure of other department stores in Canada, Simons is optimistic about its growth, focusing on tailoring its offerings to meet the specific tastes and preferences of Canadian shoppers. With a strong emphasis on customer experience, reasonable pricing, and an understanding of regional differences, Simons aims to avoid the pitfalls that plagued its predecessors. Analysts believe that Simons' strategic approach and focus on connecting product, customer, and marketing will help it succeed where others did not.

Canadian retailer Simons is expanding. Can it succeed where its peers couldn't?

What: Luxury e-commerce companies like Mytheresa, Ssense, and Moda Operandi are staying afloat by focusing on specific consumer bases, curating their product assortments, and maintaining retail fundamentals, despite the challenging market conditions.

Why it is important: The success strategies of these luxury e-tailers highlight the importance of targeting a defined audience, prioritizing profitability over aggressive growth, and emphasizing customer experience.

In a challenging luxury e-commerce market, Mytheresa, Ssense, and Moda Operandi are surviving by honing in on specific consumer segments, curating their product offerings, and excelling in retail fundamentals. These companies avoid competing on price, instead focusing on exclusivity, superior service, and targeted marketing. Mytheresa continues to see sales growth by engaging high-end clients with exclusive events and products. Ssense caters to Gen-Z with emerging designers and creative content, while Moda Operandi attracts runway enthusiasts with virtual trunk shows. Despite their successes, these strategies could limit scalability and raise questions about the market's capacity to sustain multiple players. The luxury sector faces slower growth and higher customer-acquisition costs, challenging e-tailers to maintain their value propositions. As the market evolves, the focus on unit economics and operational efficiency will be crucial for long-term resilience.

Luxury e-commerce: who’s surviving and why

What: Dame Sharon White, Chair of John Lewis Partnership, asserts that the business is "back on track" and poised for future growth as she prepares to step down in September.

Why it is important: This announcement highlights John Lewis's recovery and strategic positioning after navigating significant challenges like the pandemic and inflation, indicating stability and readiness for future expansion, especially in the convenience sector.

Dame Sharon White, preparing to hand over her role to Jason Tarry in September, affirmed that John Lewis Partnership is "back on track" and well-positioned for future growth. Despite a tumultuous tenure marked by the pandemic and inflation, White emphasized the business's recovery and resilience. Under her leadership, the company returned to profit, generating a pre-tax profit of £42m for the year ended January 27, 2023, and secured additional funding for its turnaround plan. John Lewis is set to increase investment by 70% this year, focusing on refurbishing 80 Waitrose stores and expanding its convenience sector presence. White expressed optimism about the company's future, particularly in growing its local convenience offerings.

John Lewis chair Dame Sharon White: ‘We’re back on track and fit for the future’

What: Westfield London and Westfield Stratford City malls contributed nearly £19 million in social value to the UK economy, communities, and environment in 2023.

Why it is important: This significant contribution highlights the role of retail centers in generating economic, social, and environmental benefits, underscoring the importance of corporate responsibility in modern business practices.

Unibail-Rodamco-Westfield (URW) has released its third annual Social Value Impact report, revealing that Westfield London and Westfield Stratford City malls collectively generated £18.76 million in social value in 2023. The report, produced in partnership with the Social Value Portal, outlines substantial contributions in job creation, work placements, and volunteer hours. Key highlights include generating over £5.73 million and £5.16 million in job creation at Westfield London and Stratford City, respectively, and significant increases in volunteer hours. Additionally, the malls provided over £2.46 million worth of space and digital promotion to community and charity groups. Since 2021, URW has generated over £60 million in social value, reflecting its commitment to community and environmental initiatives.

Westfield UK releases strong social impact report for 2023

What: Target plans to roll out a generative AI chatbot called Store Companion to help store employees with process-related questions and operational support.

Why it is important: The introduction of AI technology is expected to enhance the efficiency and effectiveness of Target’s store operations, improve the customer shopping experience, and support employees by providing instant access to information and learning resources.

Target announced the nationwide rollout of its AI-powered chatbot, Store Companion, to all nearly 2,000 stores by August. This tool, designed to aid store associates with process-related inquiries and operational tasks, is currently in pilot testing at about 400 locations. Developed in-house over six months, the chatbot utilizes frequently asked questions and procedural documents to provide instant answers to store associates, thereby improving efficiency and customer engagement. Additionally, Target is using generative AI to enhance online product display pages and search results, aiming to offer a more personalized shopping experience. This initiative reflects Target’s broader strategy to leverage AI for operational innovation, following similar moves by competitors like Walmart.

Target to roll out generative AI chatbot for store employees

What: AI is used in finance to make decisions in addition to red tape.

Why it is important: While some are basing their reasoning on AI-powered tools, others do not believe that AI will help on on the longer run when it comes to building a strategic vision.

Asset management firms are increasingly incorporating artificial intelligence (AI) into their operations to enhance investment decision-making and identify profitable opportunities. JPMorgan plans to deploy a generative AI tool named “Moneyball” within its $3.2 trillion Spectrum portfolio management platform to highlight potentially suboptimal decisions by portfolio managers, like premature stock sales. This tool aims to counteract biases and refine decision-making by reflecting on past market and manager behaviors.

Other asset managers are also embracing AI. For instance, Voya Investment Management uses a virtual analyst to assess stock risks, providing portfolio managers with a combination of human and AI-driven insights. This AI tool has proven effective, offering high-value alerts that complement human judgment. Legalist, a hedge fund specializing in litigation finance, employs an AI tool called “Truffle Sniffer” to sift through court records and identify promising investment targets based on likely favorable outcomes.

Moreover, the LQAI ETF, managed by LG and Qraft Technologies, utilizes AI for stock picking and generates monthly reports that explain its investment strategies, focusing on resilient and technologically advanced companies.

Despite these advancements, there is skepticism regarding AI's ability to deliver long-term investment returns. David Giroux from T Rowe Price argues that AI is mainly effective in gaining short-term advantages rather than predicting long-term earnings, suggesting limitations in addressing market inefficiencies over extended periods.

AI is promoted from back-office duties to investment decisions

What: Zara plans to introduce live shopping in the UK, Europe, and the US later this year, following its success with the format in China.

Why it is important: The move signifies Zara’s commitment to innovative retail experiences and aims to capitalize on the growing trend of live shopping.

Zara, part of the Inditex group, will test live shopping in the UK, Europe, and the US before the end of the year after successful implementation in China. The fast-fashion brand has been broadcasting five-hour live shopping shows weekly on Douyin, China's equivalent of TikTok, significantly boosting sales. The live streams feature Chinese models showcasing Zara products, parades, and behind-the-scenes sequences, attracting about 800,000 viewers per broadcast. In Western countries, Zara will stream these events on its app and website to retain control over its image. The shows, which will be shorter (45 minutes to an hour), will focus on specific Zara Woman collections and feature notable fashion personalities. The format aims to provide a friendly and interactive shopping experience. This initiative underscores Zara's strategy to stay at the forefront of retail innovation and leverage new digital engagement methods to drive growth.

Zara will test “live shopping” in Europe and the United States after its success in China

What: Macy's tops the list of department stores ranked by sales over the trailing 12 months.

Why it is important: The ranking highlights the shift in the retail landscape, where department store sales have drastically decreased from 14 percent of total retail sales in 1993 to less than 3 percent today, underscoring the impact of consolidation, acquisitions, and the rise of competitors like Walmart and Amazon.

Macy's Inc. leads the ranking of department stores by sales for the trailing 12 months, with $23.7 billion in sales, according to data from S&P Capital IQ. Following Macy's, Arcandor AG, a German holding company formed from the merger of Karstadt Warenhaus AG and Quelle AG, ranks second with $22 billion in sales, and Kohl's comes in third with $17.5 billion. The significant decline in the share of department store sales from 14 percent of total retail sales in 1993 to less than 3 percent today reflects major changes in the retail sector, including consolidation, acquisitions, and intense competition from major retailers like Walmart and Amazon. Despite the challenges in the U.S. market, department stores are thriving globally, particularly in China and Asia, where smaller and more experiential formats are popular among urban shoppers.

Department stores ranked by sales

What: Shinsegae Department Store in Gangnam, Seoul, has launched "House of Shinsegae," a luxury hotel-style venue within the department store, offering premium food, beverage, fashion, and beauty services.

Why it is important: This innovative concept redefines the role of department stores by integrating luxury hotel experiences, enhancing the shopping experience, and attracting high-end clientele for social gatherings and business meetings.

Shinsegae Department Store's Gangnam branch has introduced "House of Shinsegae," a 7,273 square meter space designed to provide a luxury hotel experience within a shopping environment. Opening on June 10, this new venue features premium restaurants, a wine specialty store, and high-end select shops for fashion and beauty, set to open in August. The space includes sophisticated interior design, curated food offerings, and extended hours until 10 p.m., transforming the department store into a destination for exceptional dining and social experiences.

Shinsegae unveils 'House of Shinsegae': luxury hotel experience inside department store

What: Walmart has launched Walmart Realm, an immersive digital shopping experience featuring influencer-led virtual environments where consumers can browse and purchase products.

Why it is important: The introduction of Walmart Realm signifies Walmart's commitment to embracing innovative e-commerce solutions and enhancing customer engagement through immersive experiences.

Walmart has unveiled Walmart Realm, an immersive shopping platform designed to offer consumers a virtual shopping experience. The platform includes three themed digital environments—Y’allternative, Go Chromatic, and So Jelly—curated by influencers Mai Phammy, Nava Rose, Makenzie, and Malia. These environments allow shoppers to explore and purchase home, fashion, and beauty products. Additionally, Walmart Realm incorporates gamification elements and giveaways to enhance user interaction. Developed in partnership with Emperia, this initiative reflects Walmart's strategic push into immersive and experiential e-commerce, following trends set by other retailers and brands. The launch is part of a broader effort to innovate within the virtual shopping space, aligning with similar initiatives by brands like Lacoste, Bloomingdale’s, Tommy Hilfiger, and Alo Yoga.

Walmart launches immersive digital shopping experience

What: The day when 144 years old Smith & Caughey announces its closure for good in 2025, it falls victim of a cyber attack.

Why it is important: Department stores need scale to operate profitably, which some markets can not provide anymore now that we live in a globalized world.

Smith & Caughey’s, a distinguished Auckland department store operational for 144 years, has announced its impending closure in early 2025, attributing the decision to a combination of adverse factors including economic downturns, the rise of shopping malls, and changes in consumer behavior. This announcement coincided with a severe cyberattack that has crippled the store’s internal computer systems, further complicating communications with staff, customers, and stakeholders. The cyberattack, described as significant, involved the encryption of server and retail operations systems, prompting an emergency response from the company.

Chairman Tony Caughey called it a "live incident" and detailed the deployment of a specialist team to mitigate the effects. Despite the cyberattack, the company's website remains operational, and physical stores will temporarily close as they manage the crisis. The decision to shut down has been influenced by a 40% revenue decline over the past five years, challenges from direct brand retailing, and reduced city center foot traffic exacerbated by remote working trends.

This dual blow of a cyberattack on the same day as the closure announcement marks a profound challenge for the iconic store, which is well-regarded for its upscale offerings and festive displays. The closure is seen as a significant cultural and economic loss for Auckland, with nearly 250 jobs at risk.

NZ Smith & Caughey 144 years old department store considers closure, and is cyberattacked