What: Emaar Properties PJSC announced a $408 million expansion of Dubai Mall, adding 240 new luxury retail and dining outlets.

Why it is important: The expansion aims to enhance Dubai's appeal to wealthy travelers and repeat visitors, aligning with the emirate's broader efforts to boost tourism and maintain its status as a global shopping destination.

Emaar Properties PJSC has unveiled plans for a 1.5 billion dirham ($408 million) expansion of Dubai Mall, which will add 240 new luxury retail and dining outlets. The expansion supports Dubai's strategy to attract more repeat visitors through new visa rules and increased airline capacity. Dubai Mall, located opposite the Burj Khalifa, welcomed 105 million visitors in 2023, marking a 19% increase from the previous year. With over 1,200 stores and 200 food and beverage outlets, the mall is already one of the world's largest and most visited shopping destinations. The emirate is also investing in infrastructure projects, including a $35 billion passenger terminal at a second airport, to accommodate the growing number of travelers.

Dubai’s iconic mall expands to boost city’s allure for wealthy visitors

What: Saks Fifth Avenue is transferring its credit card portfolio to Bread Financial, a tech-oriented financial services company.

Why it is important: This move aims to enhance the payment experience for Saks customers through Bread Financial's advanced digital capabilities and marketing expertise, providing a more integrated and personalized shopping journey.

Saks Fifth Avenue is set to transfer its credit card portfolio to Bread Financial, replacing the current issuer, Capital One, with the transition expected to be completed by Q3 2024. Bread Financial will manage the credit card program for both Saks and Saks Off 5th, offering and supporting the existing Saks World Elite Mastercard and Saks credit card. Customers will benefit from Bread's digital capabilities, making it easier to sign up for and use their Saks credit cards. Additionally, Bread will leverage extensive data and consumer insights to enhance customer engagement and loyalty through targeted marketing campaigns. This transition occurs amidst rising national credit card delinquencies and Saks' potential acquisition of the Neiman Marcus Group.

Saks Fifth Avenue credit card portfolio to transfer to Bread Financial

What: Fitch Ratings anticipates an improvement in Falabella's credit profile following better-than-expected operating performance in the first quarter of 2024.

Why it is important: Falabella's financial performance and strategic initiatives, such as reducing debt and improving liquidity, are expected to enhance its credit standing.

Fitch Ratings has updated its forecast for Falabella, indicating a potential improvement in the Chilean company's credit profile. The company showed a 5.2% revenue growth and an EBITDA margin of 9.5% in the first quarter of 2024, significantly up from the 4.5% margin in the same period of 2023. With improved liquidity, including $967 million in available cash and $583 million in short-term debt, Falabella is well-positioned to meet its bond maturity in January 2025. Fitch projects that continued positive performance and strategic debt reduction could bring the company's Ebitdar net leverage to around 4.5 by the end of 2024. However, Falabella still faces a competitive market and must remain agile to adapt to consumer preferences and maintain its financial health.

Fitch Ratings foresees an improvement in Falabella's credit profile

What: Amazon is leveraging artificial intelligence to create product descriptions, marketing texts, images, and advertisements for its global online marketplace.

Why it is important: This initiative aims to streamline the content creation process for sellers, potentially boosting their sales and advertising effectiveness, as evidenced by increased click-through rates.

Amazon is now utilizing AI to generate various services for retailers on its global online marketplace. These services include AI-generated product descriptions, marketing texts, images, and advertisements. According to Dharmesh Mehta, Amazon's vice president responsible for the marketplace, approximately 30,000 sellers in Europe are already using these AI features. AI-generated advertisements have shown click-through rates up to 20% higher than traditional ads. Amazon's marketplace hosts two million retailers globally, with significant activity in Germany, where 47,500 retailers sold 750 million products last year. Amazon plans to invest ten billion euros in Germany to expand cloud services and enhance logistics and corporate infrastructure.

Amazon lets AI generate advertising

What: Walmart will equip 2,300 stores with digital shelf labels, allowing the update of prices in an entire store in just 2 mn.

Why it is important: Real time pricing is around the corner.

Walmart is set to implement digital shelf labels (DSLs) in 2,300 of its stores by 2026, a move that will cover half of its store network. This technology, developed by Vusion Group, allows for rapid price updates on over 120,000 products within two minutes using the Me@Walmart app. In contrast, the manual update of traditional paper labels typically takes two full days each week. The introduction of DSLs at Walmart has been hailed as a transformative step by Daniela Boscan, the food and consumable team lead at Walmart’s Texas location, emphasizing its efficiency, customer satisfaction, and sustainability benefits in reducing operational waste.

The push for digital labeling reflects a broader trend in the U.S. retail sector, which has lagged behind Europe in adopting such technologies. The electronic shelf label market is growing rapidly, projected to increase from $1.6 billion in 2023 to $4.4 billion by 2031, with a compound annual growth rate of 13.5%. This technology not only streamlines operations but also supports dynamic pricing strategies that are crucial in the current inflationary climate. Retailers using DSLs can adjust prices more frequently and economically, gaining a competitive advantage, enhancing customer loyalty, and improving market share.

Experts advocate for the widespread adoption of DSLs among retailers, especially in price-sensitive sectors like groceries. The technology's benefits extend beyond pricing to improved stock management and order fulfillment processes, making it a strategic investment for leading retailers aiming to stay competitive.

Walmart to equip half of its store fleet with digital price tags within 2026

What: Sales in Spanish shopping centers increased by 3.2% from January to April 2024 compared to the same period in 2023, with footfall growing by 3.7%.

Why it is important: The rise in sales and footfall indicates a positive trend in consumer spending and engagement in shopping centers, particularly highlighting the increased average spending per visitor in regions like Catalonia.

According to CBRE's "Retail Index," Spanish shopping centers experienced a 3.2% increase in sales and a 3.7% rise in footfall from January to April 2024 compared to the same period in 2023. Catalonia led the sales growth with a 6.1% increase, despite only a 2.3% rise in footfall, attributed to higher average spending per consumer. Southern Spain saw the highest footfall growth at 7.9%, with a corresponding sales increase of 3.8%. Rents have remained stable at 2023 levels, and no significant changes are expected in the next year.

Spanish Shopping center sales grew 3.2% through April, according to CBRE

What: Walmart Data Ventures has launched Digital Landscapes, a self-serve insights tool within the Walmart Luminate platform, allowing suppliers to track online shopper behavior before purchases.

Why it is important: This tool can significantly enhance suppliers' marketing strategies by providing detailed insights into how customers find and interact with their products online, enabling more effective allocation of marketing resources and campaign optimization.

Walmart Data Ventures has introduced Digital Landscapes, a new feature within the Walmart Luminate platform, currently in beta. This self-serve solution allows suppliers to analyze online shopper behavior, including engagement trends and traffic sources from search engines, social platforms, Walmart.com, and the Walmart mobile app. By understanding how customers discover products and their behavior prior to purchase, suppliers can refine their marketing strategies to improve reach and campaign effectiveness. This move aligns with Walmart's broader strategy to enhance its retail media business, which saw significant growth in advertising and marketplace seller engagement in recent quarters. Digital Landscapes is expected to be generally available later this summer, providing valuable first-party data that is crucial as third-party cookies are phased out.

Walmart opens access to off-site customer journey insights for suppliers

What: ION Orchard’s CEO on the achievements made by the mall in 15 years

Why it is important: Singapore is one of the very few Asian markets where the distinction between malls and department stores remain visible, and where the latter are second in the race. 

ION Orchard, a prominent retail destination in Singapore, is marking its 15th anniversary with significant strides in enhancing its retail mix and customer experience. The mall has evolved into a multifaceted destination that blends shopping, dining, entertainment, and lifestyle, thanks in part to a diverse mix of international and local brands. Orchard Turn Developments CEO Yeo Mui Hong highlights the mall's strategic adaptation to market trends through regular surveys and market research, which inform their tenant selections and marketing campaigns. Yeo notes key collaborations and exclusive launches, such as Louis Vuitton x Supreme in 2017 and Christian Dior's Air Dior Capsule Collection in 2020, as pivotal in distinguishing ION Orchard from its competitors. The mall also embraces digital integration, with initiatives like interactive Instagram filters and augmented reality experiences to bridge the online and offline shopping environments. Technological enhancements in stores, like Zara's revamped two-floor outlet with integrated digital tools, underscore this modern approach. Staff training is another critical component of their strategy, with programs like the ION P.R.I.D.E. initiative ensuring high service standards across all personnel. These efforts are part of a broader vision to cement ION Orchard's status as a premier shopping and lifestyle hub in Singapore, particularly as it celebrates a significant milestone in its operation.

Singapore’s ION Orchard turns 15

What: Walmart is launching a new service to its suppliers allowing them to undertand their customers' behaviour before the purchase.

Why it is important: being able to offer unprecedented services to brands is a great way to fidelize them.

Walmart's Data Ventures division is introducing Digital Landscapes, a new feature in the Walmart Luminate analytics suite, to provide suppliers with early insights into consumer online behavior. This tool allows tracking from the initial product search through to purchase, offering a comprehensive view of the customer journey. Previously, Walmart suppliers had access only to post-purchase data, but Digital Landscapes will now include pre-purchase behavior tracking, utilizing data from Walmart's e-commerce site, mobile app, external search engines, and social platforms.

Digital Landscapes aims to enhance supplier strategies by providing daily engagement trends and the sources driving traffic, which can inform more effective marketing and sales tactics. This development follows the international expansion of the Walmart Luminate platform, which began with Walmex in Mexico and will extend to Walmart Canada. This innovation is designed to improve supplier understanding of how customers find and decide on products, ultimately aiding them in optimizing conversions. Walmart, headquartered in Bentonville, Ark., runs over 10,500 stores and multiple e-commerce websites across 19 countries. The general availability of Digital Landscapes is slated for later in the summer of 2024.

Walmart launching beta of customer behavior solution for suppliers

What: Nordstrom has appointed Alexis DePree as its new Chief Operating Officer (COO), expanding her responsibilities to include the company’s supply chain operations, transportation, inventory operations, enterprise operations, and store operations.

Why it is important: Alexis DePree's appointment as COO signifies Nordstrom's commitment to strengthening its operational efficiency and supply chain capabilities.

Nordstrom has named Alexis DePree as its new Chief Operating Officer (COO), an expanded role that reflects the extensive scope of her responsibilities. DePree, who joined Nordstrom in early 2020 as Executive Vice President and Chief Supply Chain Officer, brings over 12 years of fulfillment leadership experience from Amazon and Target. In her new role, DePree will oversee supply chain operations, transportation, inventory operations, enterprise operations, and store operations. Her contributions have already led to significant improvements in Nordstrom’s supply chain efficiency and customer service speed. Nordstrom emphasizes that DePree's team will continue to play a critical role in implementing RFID technology and ensuring operational consistency across all stores.

Nordstrom appoints Alexis DePree as COO

What: Supermarkets are increasingly equipping themselves in retail media capabilities, especially through in-store messaging devices.

Why it important: While retail media has gone under the radar due to the popularity of AI, it is still a growing, and very concrete, topic.

Retailers are increasingly leveraging in-store media to enhance customer engagement and advertising revenue. Supermarkets, for example, are installing digital screens in high-traffic areas like entryways and checkout lanes to capture consumer attention and promote products. Hy-Vee, through its RedMedia network, and large players like Walmart and Kroger, are leading this initiative. Walmart has incorporated around 170,000 digital screens across its stores, and Kroger has integrated video into its Kroger Precision Marketing network.

The scope of in-store media is considerable, with Solomon Partners reporting potential advertising spending in U.S. retail media networks (RMNs) to reach $106 billion by 2027. In-store consumer reach significantly surpasses online audiences, making physical stores a lucrative platform for advertisers. Walmart, for instance, reaches over 212 million people monthly in-store, compared to 125 million online.

Moreover, the integration of analytics and digital tools is pivotal. For example, Hy-Vee’s RedMedia provides detailed campaign performance data, enhancing strategic advertising decisions. Similarly, Northeast Grocery collaborates with Instacart to use Carrot Ads for targeted in-store advertising, reflecting a trend towards more personalized, data-driven marketing strategies in retail.

Supermarkets are leveraging retail media through in-store messaging

What: Target is partnering with Shopify to add a curated selection of Shopify brands to its online marketplace and physical stores.

Why it is important: This partnership aims to enhance Target's product offerings by bringing high-growth, trusted brands to a broader customer base, leveraging the reach of both Target's extensive retail network and Shopify's robust e-commerce platform.

Target Corp. is teaming up with Shopify to incorporate a hand-picked assortment of Shopify brands into its Target Plus marketplace, which will also extend to physical Target stores in the coming months. This move, announced by Harley Finkelstein, President of Shopify, and Cara Sylvester, Target’s EVP and Chief Guest Experience Officer, aims to expand Target's product mix with thoughtfully designed and affordable items. This partnership allows Shopify merchants to reach millions of new customers and aligns with Target’s strategy to provide a curated, high-quality shopping experience. The collaboration reflects the growing importance of digital marketplaces, projected to account for over 30% of all e-commerce growth in the next three years.

Target expands marketplace with select shopify brands

What: After many years of work, Central Chidlom, an iconic location in Bangkok, is finally opened.

Why it is important: we reported the state of Central business in Bangkok in a previous exclusive, mentioning Chidlom as an important location in need of a significant upgrade Natira Boonsri, CEO of Thailand's Central Department Store Group, recently spoke about the transformation of Central Chidlom, one of the country's historic department stores, claiming it to be "redefining the shopping experience."

 The newly unveiled Luxe Galerie, a three-level, 8000 square meter luxury area within Central Chidlom in downtown Bangkok, marks a significant upgrade. This section hosts an array of top-tier brands like Versace, Burberry, and Louis Vuitton, and includes distinct spaces such as Shoes Avenue and Sneakers Boulevard, which cater to luxury footwear and younger fashion demographics respectively. Central Chidlom, which opened in 1973, faced competition and obsolescence over the decades, even experiencing a significant setback with a fire in 1995. However, this renovation appears to be a strategic move to reposition itself in a bustling retail landscape dominated by newer shopping centers. This makeover aligns with Central Retail's broader performance, which owns Central Chidlom. In the first quarter of this year, Central Retail reported fashion sales surpassing 2019 figures for the first time post-pandemic, with total sales 6% higher year-on-year. The company's omni-channel sales approach now accounts for nearly 20% of its retail sales, showcasing significant growth. Central Retail's overall net profit for the quarter also rose by 14% to approximately $72 million.

Inside Central Chidlom’s luxury makeover in Bangkok

What: Shinsegae-powered Handsome is launching its first multibrand location outside Korea.

Why it is important: Are we seeing the emergence of a new breed of fashion multibrand retailers?

South Korean fashion retailer Handsome has launched its first global flagship store for the System and System Homme brands in the Marais district of Paris. This new two-story flagship store spans 470 square meters, making it the largest of Handsome's 147 locations worldwide. Reported by The Korea Economic Daily, the store's design was a collaborative effort with both local and international designers and artists, incorporating traditional Korean dancheong decorative techniques. The store showcases over 400 items, including apparel that has been featured at Paris Fashion Week since 2019. Beyond serving as a retail space, it is also positioned as a global logistics hub, facilitating worldwide shipping from Europe to regions including the Middle East, North and South America. Additionally, Handsome is set to launch a pop-up event at Galeries Lafayette in Paris next month.

South Korean Handsome has opened its first global flagship, in Paris

What: US grocer Wegman’s is celebrating the 40th promotion of its scholarship program, which supported46,000 associates since its inception.

Why it is important: This is the kind of support that many employees expect nowadays in order to be able to grow with the support of their employer. A great way to make retail an interesting career too.

Wegmans Food Markets Inc. celebrates the 40th anniversary of its Employee Scholarship Program, which has provided $145 million in educational assistance to over 46,500 associates since its inception. This year, the program awarded more than $6.5 million to 1,500 employees, with celebrations planned at all store locations. The scholarships offer up to $8,000 for part-time and up to $16,000 for full-time employees, with no annual limit on the number of recipients or restrictions on fields of study.

Highlighting the program's impact, Wegmans revisited two of its first recipients from 1984. Mary Beth Stalter, a beneficiary of the inaugural year, now oversees the scholarship program as Wegmans' director of benefits and programs. Her career progression within Wegmans illustrates the program’s role in supporting long-term employee development. Bill Schmitt, another early recipient, parlayed his scholarship into a lasting career within Wegmans' finance department, emphasizing the diverse career paths available at the company.

Wegman’s celebrates 40 years of employee scholarships

What: Lacoste is taking over Selfridges' Alto by San Carlo rooftop restaurant and terrace, transforming it into an immersive space called Le Club Lacoste.

Why it is important: This partnership between Lacoste and Selfridges highlights the brand's commitment to creativity and innovation, showcasing its new collection and enhancing customer engagement through a themed, immersive experience.

This summer, Lacoste's signature green hue will dominate Selfridges' second floor atrium and rooftop terrace, transforming the Alto by San Carlo restaurant into Le Club Lacoste. The collaboration, celebrated for its creativity and innovation, aligns with the summer of sport theme and features the debut collection of Lacoste's creative director Pelagia Kolotouros. Visitors can enjoy a tennis-inspired drinks menu and watch live Wimbledon matches on digital screens, while the space is adorned with archival images from Lacoste's tennis heritage.

Lacoste takes over Selfridges for a summer of tennis

What: Thai retailer Central Group has acquired the remaining assets of the German luxury department store chain KaDeWe Group.

Why it is important: This acquisition strengthens Central Group's presence in the European luxury retail market and allows it to manage some of Germany's most iconic department stores, enhancing its global footprint.

Central Group, a Thai retail giant, has purchased the remaining assets of KaDeWe Group, including the renowned KaDeWe store in Berlin and the other two stores, Alsterhaus in Hamburg and Oberpollinger in Munich. This move follows the insolvency of Signa, the property empire founded by Rene Benko. Central Group will continue operating these stores and plans to renegotiate the rent agreements. The acquisition underscores Central Group's strategy to expand its luxury retail portfolio in Europe amidst the real estate crisis affecting Signa.

Thailand's Central buys rest of German luxury retail business KaDeWe

What: THG (The Hut Group) has agreed to sell its luxury goods websites, including Coggles, to Frasers Group, the owner of Sports Direct, as part of a strategic partnership.

Why it is important: This deal allows THG to streamline its portfolio and integrate Frasers' credit and loyalty scheme into its e-commerce platform, potentially boosting revenue opportunities and improving cash flow stability.

UK-based e-commerce group THG has announced a strategic partnership with Frasers Group, which includes selling its luxury goods websites like Coggles, generating £43 million in annual sales, to Frasers. Additionally, Frasers' credit and loyalty scheme, Frasers Plus, will be integrated into THG's Ingenuity ecommerce platform. This move aims to streamline THG’s portfolio and open up new revenue opportunities. The partnership will also see THG’s protein products sold in Sports Direct stores. Analysts view this collaboration positively, expecting it to contribute to THG's stable and sustainable free cash flow generation.

THG signs tie-up with Sports Direct owner Frasers

What: Seibu Ikebukuro has gone through a major revamp since the purchase of Sogo Seibu by US fund Fortress

Why it is important: The news of the purchase had cause a lot of emotion in Japan when it was announced. Seibu Ikebukuro Main Store is undergoing a transformative renovation to modernize its space and shopping experience under the theme of inclusion.

 This marks the store's first comprehensive renovation, aimed at adapting to contemporary shopping habits by offering a unified space for both female and male categories. This design shift away from traditional gender-segregated floors encourages a more inclusive environment for friends, couples, and families. The renovation emphasizes a home concept, enhancing the architectural design to reflect class, sophistication, and art across all floors. Central to this redesign are the luxury, cosmetics, and basement deli sections. The luxury area will expand to feature around 60 top global brands in a mixed-gender format, significantly increasing its sales floor. The cosmetics section will also see an expansion, offering around 60 domestic and international brands, including unisex options, catering to a broader audience. The basement deli section will showcase about 180 shops, emphasizing new and diverse brands. Furthermore, the store will continue to enhance its private sales services, a key strength of Sogo & Seibu. This renovation not only aims to elevate the customer experience but also to reinforce Seibu Ikebukuro's role as a major commercial hub in Ikebukuro, positioned near the third-largest terminal station in the world and serving as a gateway to Toshima Ward's evolving international city of art and culture.

Seibu Ikebukuro to reopen in January 2025

What: Hong Kong Land is investing USD 1 billion to transform Hong Kong's Landmark Central into a leading luxury destination.

Why it is important: This significant investment aims to rejuvenate Hong Kong's luxury retail market, making Landmark Central a prime destination for global fashionistas, art enthusiasts, and high-spending tourists, thus boosting the local economy and solidifying Hong Kong's status as a luxury shopping hub.

Hong Kong Land has announced a substantial investment of $400 million, with an additional $600 million expected from retail tenants, to transform Hong Kong's Landmark Central into a premier luxury destination. This project, named "Tomorrow's Central," involves a comprehensive redevelopment of the iconic Landmark commercial complex and mall, which will remain operational throughout the three-year transformation process. Major luxury brands like Cartier, Chanel, Dior, Hermès, and Louis Vuitton will expand their retail spaces, creating two-to-eight-storey Maison destinations with exclusive features such as haute couture ateliers, private dining, and bespoke concierge services. The redevelopment will also include sustainable construction practices and introduce new luxury retail concepts, ensuring Landmark Central remains a key attraction for both local and international luxury shoppers.

USD 1bn investment aims to transform Hong Kong's Landmark Central into ultra-luxe trailblazer

What: Fashion brands are slow to open stores in Dubai's community malls, missing out on a growing demand from local residents.

Why it is important: With Dubai's population set to double by 2040, there is a rising need for convenient retail options in residential areas, presenting a significant opportunity for fashion brands to cater to local demand away from the crowded mega malls.

Dubai's population growth and urban expansion are driving a demand for community malls in residential areas, offering a convenient alternative to the city's bustling mega malls. These smaller malls provide an opportunity for fashion and beauty brands to establish a presence and engage with local consumers in a more intimate setting. Despite this potential, many global fashion brands have been slow to move into these spaces, focusing instead on high-traffic mega malls. As Dubai's population decentralizes, the demand for well-executed community retail is increasing, creating a significant opportunity for brands to cater to local needs and experiment with new retail formats without heavy capital investment.

Dubai’s community malls are a missed opportunity for fashion

What: The Beauty CEO at Shoppers Stop describes his strategy since joining in 2022.

Why it is important: dedicated specialty stores, spun off from the department stores, are on the menu to increase the category share from 18% to 25% in 3 years.

Biju Kassim, President of Beauty at Shoppers Stop, has outlined an ambitious strategy for the company's beauty business, emphasizing distribution and specialized retail formats to drive growth. Since taking the role in January 2022, Kassim has steered Shoppers Stop towards becoming a key player in the distribution of international beauty brands, an initiative that began with the formation of Global SS Beauty Brands Ltd., a subsidiary focusing on this area. This strategic move aims to provide deeper partnerships with brands by aligning closely with their long-term plans, enhancing supply chain control, and boosting brand building efforts.

Currently, beauty products account for 18% of Shoppers Stop’s revenue, with plans to increase this to 25% in three years. Fragrances lead the category, contributing 42%, followed by makeup and skincare. The distribution network, still in its early stages, includes prestigious brands such as Clarins, Nars, and several from L'Oréal International Division, including Armani and Prada. As of the third quarter of FY 2024, this network has expanded to 334 doors and garnered Rs 39 crore in sales.

Additionally, Shoppers Stop has introduced large-format specialty beauty stores, such as a 9,000 sq. ft. store in Kolkata’s Quest Mall, to provide ample space for brands to fully express their identity. This is a shift from the typical 1,500 to 3,000 sq. ft. beauty stores, enabling better brand representation. The strategy includes both expanding these large formats selectively and continuing to grow smaller boutiques and dedicated beauty spaces within department stores.

On the omnichannel front, Shoppers Stop aims to increase its online sales from the current 7-8% to 15%, by enhancing its digital platforms shoppersstop.com and ssbeauty.in. However, the focus remains predominantly on brick-and-mortar, reflecting the prestige nature of the brands they carry, many of which prefer limited online presence.

Shoppers Stop Beauty CEO interviewed

What: The Netherlands' iconic department store chain, De Bijenkorf, appoints a new CEO.

Why it is important: De Bijenkorf aims to become a significant luxury player in the country in the years to come.

Matthijs Visch has been appointed the new CEO of de Bijenkorf, taking over from Giovanni Colauto this Friday. Colauto, who served as the CEO since 2012 and was with the company since 2001, led significant changes including the optimization of the store portfolio, notably closing five of the 12 branches in 2013. The remaining stores are in major Dutch cities, alongside an active webshop.

Visch joins de Bijenkorf from Patagonia, where he was the director of European operations for two years, bringing with him a strong background in sustainability. Before Patagonia, he held a key role at Nike as the general manager for Eastern Europe, the Middle East, and Africa. André Maeder, CEO of the Selfridges Group which owns de Bijenkorf, expressed his satisfaction with Visch’s appointment and acknowledged Colauto’s impactful contributions to the company. De Bijenkorf has also shifted its focus towards luxury retailing, a strategy initiated during Colauto's tenure.

De Bijenkorf appoints a new CEO

What: the two Australian department store chains are reducing the number of stores overall

Why it is important: rightsizing does not imply the disappearance of department stores, who are poised to reinvent themselves around their flagships as a node in their store network. 

David Jones is strategically reducing its physical store size, reacting to shifting consumer behaviors towards online shopping and targeted in-store experiences. This adjustment involves renovations in NSW and Victoria, where floors are being surrendered to landlords to optimize store operations. The retailer aims to transform these spaces into hubs that emphasize customer experience over traditional retail functions, reflecting a broader industry trend towards omnichannel commerce. In contrast, Myer, which has historically served a mid-market customer base, is also downsizing, reflecting similar challenges within the department store sector. Myer's adjustments come amid attempts to revitalize its brand and attract a younger, digitally-savvy demographic. Both David Jones and Myer are navigating an environment where consumers are increasingly drawn to either premium or value-oriented offerings, bypassing traditional mid-market options.

Australian department stores are poised to rightsizing