What: Verizon argues that teams are best placed to know where to implement AI in their tasks, not an AI “czar.”

Why it is important: AI should not be a pretext to increase organizational complexities, on the contrary.

Artificial intelligence (AI) is increasingly recognized for its transformative potential across various business operations, including supply chain, HR, sales, and marketing. However, the prevalent corporate strategy of appointing a central AI "czar" to oversee technological integration often fails. Such appointments usually result from board enthusiasm following pitches about new tech opportunities, leading to the selection of leaders who lack practical understanding of daily operations. This disconnect can result in suboptimal utilization of the technology, with these leaders frequently exiting after minimal achievements.

Instead, effective AI deployment requires a decentralized approach where innovation is driven by frontline employees who understand the specific operational challenges and opportunities. At Verizon, for example, AI implementation is managed by teams directly involved in the relevant workflows, supported by a center of excellence that provides necessary tools and governance. This model fosters a deeper, practical integration of AI, allowing for operational adjustments in real-time based on frontline feedback.

Verizon's experience demonstrates that leveraging AI for customer care, sales, and operations can significantly enhance service efficiency and sales conversion rates. AI assists in simplifying complex customer interactions and continuously improves through real-time learning from user interactions, leading to more personalized customer experiences and improved performance metrics. Ultimately, this approach emphasizes the empowerment of employees who can apply AI tools effectively at the point of action, ensuring that technology enhances, rather than encumbers, business processes.

Teams Should Drive AI Adoption — Not Senior Leadership

What: Walmart is stopping short its venture in healthcare and that’s a surprise.

Why it is important: Health was seen as a new avenue for retailers post Covid. Not anymore: the avenue is not profitable enough.

Walmart has announced the closure of its 51 health centers across five states, alongside its virtual care services, citing lack of profitability as the primary reason. The decision stems from a challenging reimbursement environment and rising operational costs, which have rendered the healthcare venture unsustainable. Although no specific dates for the closures have been provided, Walmart is focused on ensuring continuity of care for its patients and is offering support to affected associates, including the option to transfer to other locations within Walmart or Sam’s Club. Associates will receive pay for 90 days post-closure, with severance benefits available thereafter if they have not transferred or left the company. Providers will continue serving patients until the clinics close and are also assured of 90 days' compensation, followed by transition payments.

Despite the closures, Walmart will maintain its health and wellness services, which include nearly 4,000 retail pharmacies and over 3,000 vision centers nationwide. The health centers, which offered a variety of services including primary care, dental, and optical services, were initially launched to compete with similar services by Amazon. The abrupt end to this initiative, especially after recent expansion announcements in Texas, highlights a shift in Walmart's strategic priorities towards more profitable ventures, even as it strives to manage the fallout for its employees and the communities previously served by the health centers.

Walmart Health Is Closing

What: Hyundai launched a new brand, “Connect Hyundai” in order to cater for the needs of a specific clientele.

Why it is important: This is the second retailer brand name they have launched, after “The Hyundai”, and this helps differentiating each branch and bringing a specific flavour to each.

Hyundai Department Store is rebranding its Busan branch as 'Connect Hyundai,' set to launch in September following renovations beginning at the end of July. This initiative represents a pilot for a new retail concept aimed at diverging from traditional department store formats by blending elements from department stores, outlets, and entertainment venues. A key feature of this transformation is the expansion of the food hall and the inclusion of popular food and beverage brands, catering especially to the preferences of the MZ generation.

Industry experts are watching closely to see if 'Connect Hyundai' will emulate the success of Hyundai’s earlier venture, 'The Hyundai,' which was introduced in Yeouido, Seoul, in 2021. 'The Hyundai' attracted a significant young audience through its innovative brand and pop-up store selections, along with unconventional rest areas, drawing over 100 million visitors in just over two years. Its success prompted the rollout of similar concepts in other cities like Daegu, and plans are underway for a launch in Gwangju.

If 'Connect Hyundai' proves successful, there are plans to expand this concept nationwide, potentially starting with the Cheongju branch. This strategy indicates Hyundai's commitment to adapting and evolving within the retail sector to meet changing consumer demands and preferences.

Hyundai Busan to reopen as “Connect Hyundai” in September

What: Frasers Group is considering purchasing a 50% stake in Exeter's Princesshay shopping centre for around £40 million, marking its potential first joint venture with The Crown Estate.

Why it is important: This potential acquisition signifies Frasers Group's strategic move to expand its retail footprint through high-profile investments in key shopping centers. By targeting prime retail estates, Frasers Group aims to strengthen its market presence and leverage lucrative commercial real estate opportunities.

Frasers Group is the leading contender to acquire a 50% share in Princesshay estate in Exeter, currently owned by Nuveen and managed by The Crown Estate. The estate, generating over £9 million annually, includes a 400,000 sq ft shopping center with major retailers like Zara, Next, and Superdry. This acquisition aligns with Frasers' recent pattern of buying significant retail properties, following purchases in Luton, Dundee, and Leeds. If successful, this venture would be Frasers' first passive investment in a shopping center, potentially signaling a strategic shift in its property investment approach.

Frasers Group mulls stake in key Exeter shopping centre

What: Urban Outfitters is launching into Vintage and Upcycled Apparel

Why it is important: Urban Outfitter is trying to reach Gen Z shoppers in new ways.

Urban Outfitters has launched its Vintage + Remade platform, aiming to assist  Gen Z in discovering unique second hand items in a market full of fast fashion.  For Urban Outfitters, this initiative places emphasis on taking care of pre-loved good and upcycling.

Urban Outfitters has collaborated with various independent brands and designers to select the best collections that showcase each collaborators distinct style.

Vintage + Remade aims to address the scarcity of good quality vintage pieces by partnering with curators, artists, and upcyclers.

These collections aim to simplify the shopping experience for Gen Z shoppers who are seeing, high quality vintage clothing.

The platform positions Urban Outfitters as a go to festination for vintage fashion staples, putting attention on sustainability and personal expression.

Urban Outfitters Launches New Platform for Vintage and Upcycled Apparel

What: Global fashion industry faces significant legislative changes aimed at promoting sustainability and ethical practices.

Why it is important: These legislative changes are crucial as they aim to shift the fashion industry towards more sustainable and ethical operations. The introduction of laws across the U.S. and Europe to enforce corporate accountability for environmental and human rights impacts in supply chains will likely transform industry standards, promoting practices such as circularity in apparel and stricter due diligence. This transition supports not just environmental sustainability but also enhances the social responsibility of fashion brands globally.

Recent legislative initiatives in the U.S. and Europe are set to overhaul the fashion industry by introducing measures to promote sustainability and ethical operations. The Americas Act in the U.S. focuses on incentivizing circular economy practices in the fashion sector with a substantial financial commitment, while California considers mandating a statewide textile recycling program through the California Responsible Textile Recovery Act. In Europe, the Corporate Sustainability Due Diligence Directive (CSDDD) is poised to compel large corporations to scrutinize and mitigate adverse environmental and human rights impacts within their supply chains. Despite challenges in its enactment, CSDDD exemplifies Europe's firm stance on corporate accountability. Additionally, the International Maritime Organization's goal for net-zero emissions by 2050 influences major shipping companies, integral to the fashion supply chain, to adopt greener fuel alternatives and reduce their carbon footprint. These legislative frameworks not only aim to address the direct impacts of the fashion industry but also encourage holistic change across associated sectors like shipping and materials sourcing.

Global fashion industry faces sweeping legislative changes for sustainability

What: Shinsegae, Lotte and Hyundai are all able to post modest growth in a very difficult context.

Why it is important: Middle-class consumption remains the last hope for retailers in markets where inflation remains high

Despite an economic downturn marked by high interest rates and rising prices, large department stores in Korea, including Lotte Shopping, Shinsegae, and Hyundai Department Store, have shown robust sales growth. In the first quarter, combined sales reached 2.733 trillion won, a 3.8% increase from the previous year's 1.9983 trillion won. Each of the three major retailers recorded sales increases, with Lotte Department Store at 1.4%, Shinsegae Department Store at 7.0%, and Hyundai Department Store at 3.6%. Notably, all three stores achieved record-breaking performance for the quarter, with Lotte and Shinsegae seeing the highest transaction volumes ever for this period, and Hyundai Department Store reaching a new quarterly sales record.

These results underscore the resilience of middle-class consumption despite broader economic pressures. An official from Hyundai Department Store attributed their success to strong sales in luxury goods, young fashion, and sports products, particularly in their Pangyo branch and The Hyundai Seoul.

The growth in department store sales contrasts with increasing economic strain on the general populace, evidenced by rising costs for groceries and dining out. Analysts have cautiously noted signs of a rebound in domestic consumption, which grew by 0.8% in the first quarter, suggesting that consumer spending might have reached a low point. Researchers attribute this recovery to factors including a continuous trade surplus, rising asset values in markets like bitcoin and stocks, and increased foreign consumption, signaling a possible stabilization in economic conditions despite ongoing challenges.

South Korean department stores beat the inflation

What: Fitch Ratings predicts sustained pressure on Falabella's credit profile throughout 2024.

Why it is important: The evaluation reflects the challenges posed by a competitive retail environment, economic downturns in Chile, and sluggish recovery in consumer spending. This ongoing assessment affects investor confidence and could influence Falabella's financial strategies and operations in the future.

Fitch Ratings has forecasted that Falabella will continue to face financial pressures into 2024 due to a tough economic climate in Chile, marked by a significant recession and a slow rebound in consumer behavior. Despite a better-than-expected financial report recently, which showed improvements in revenue and profit, the South American retail giant still struggles with a challenging market landscape and high execution risks. This situation follows a downgrade to a speculative grade by Fitch in late 2023, highlighting the ongoing difficulties Falabella faces in stabilizing its financial standing amidst intense competition and unfavorable macroeconomic conditions.

Fitch Ratings estimates that Falabella's credit profile will remain under pressure in 2024

What: The Walmart marketplace has stirred controversy as it now lists luxury labels.

Why it is important: Curation remains a key differentiator, as department stores know.

Walmart recently stirred social media buzz by listing luxury fashion brands such as Khaite, Dries Van Noten, and pre-owned Birkins on its online marketplace, raising questions about the juxtaposition of high-fashion labels and everyday consumer goods. This phenomenon resulted from resellers like Luosophy acquiring unsold stock from Matches, a company undergoing liquidation, and subsequently listing these items on Walmart’s platform. The luxury items appeared at full price, upwards of $2,000, and included brands like The Row, Rick Owens, and Jacquemus, although some listings like The Row were later removed.

This occurrence underscores the complex dynamics of third-party e-commerce marketplaces where luxury brands lose some control over distribution, especially when wholesalers and liquidators are involved. Neil Saunders, a Globaldata analyst, interprets this trend as a sign of a slowing luxury market with excess inventory finding its way into diverse retail channels. He warns that the marketplace model dilutes the luxury shopping experience, which is traditionally curated and immersive, contrasting sharply with the broad and uncurated nature of platforms like Walmart's online marketplace.

The incident highlights broader issues in e-commerce, where the proliferation of products and vendors leads to a "race to the bottom" in product quality and shopping experience. Marketplaces like Nordstrom are attempting to counteract this by curating offerings and maintaining brand partnerships. However, the challenges of balancing wide selection with quality curation remain prevalent, emphasizing the ongoing tension between reach and refinement in the digital retail landscape.

Would you buy luxury at Walmart?

What: Chinese shoppers drive a surge in luxury sales in Japan, taking advantage of favorable exchange rates and tax refunds.

Why it is important: The influx of Chinese tourists to Japan is significantly boosting the local luxury market, highlighting the impact of international travel on retail economies. This trend is particularly important as it helps mitigate the slower economic growth and decreased consumer spending within China itself.

Recent trends have shown that Chinese tourists are flocking to Japan to take advantage of lower prices on luxury goods due to favorable exchange rates, with items like Louis Vuitton and Chanel handbags being up to 25 percent cheaper than in China. This surge in luxury spending is bolstered by the weak Japanese yen and the absence of tax-free shopping in the UK, making Japan an attractive shopping destination. Despite economic slowdowns in China, these tourists are spending significantly, with luxury brands responding by expanding their presence and tailoring services to cater to this lucrative market segment. The trend not only boosts Japan's luxury retail sector but also reflects broader shifts in global travel and spending patterns, which could reshape future strategies for luxury brands worldwide.

Chinese shoppers drive luxury sales in Japan despite macro concerns

What: Neiman Marcus Advances Sustainability Initiatives, Surpassing Goals Ahead of Schedule

Why it is important: The retailer's proactive strides in sustainability showcase its commitment to transforming not only its operations but also influencing the wider luxury retail industry towards more sustainable practices.

At the recent WWD Sustainability Summit, Neiman Marcus CEO Geoffroy van Raemdonck discussed the company’s achievements in its sustainability efforts. Three years ago, Neiman Marcus embarked on a strategic plan titled “Revolutionizing Luxury Experiences,” focusing on sustainable products, fostering a culture of belonging, and community support. The company has notably reduced its Scope One and Scope Two emissions by 42%, nearing its 2025 goal of a 50% reduction, and aims to procure 100% renewable energy by 2030. Online, it promotes over 400 brands through sustainable edits, contributing to 7.4% of its sales. With its continued success, Neiman Marcus is not only meeting but exceeding its sustainability goals, positioning itself to implement even more rigorous targets in the future.

Neiman Marcus CEO says the company is ‘ahead of achieving’ sustainability goals 

What: Marks and Spencer Group (M&S) reported a profit growth with UK clothing and home sales increasing by 5.3 percent and overall group sales improving by 9.4 percent to £13.1 billion.

Why it is important: The profit growth and increased sales in the clothing and home sector reflect M&S's successful strategies amidst challenging market conditions.

M&S reported a profit before tax and adjusting items of £716.4 million and statutory profit before tax of £672.5 million for the full year. Group sales increased by 9.4 percent to £13.1 billion, with UK clothing and home sales up by 5.3 percent and adjusted operating profit rising to £402.8 million. Despite a 1.4 percent decline in international sales, M&S opened six new full-line stores, including relocations to former Debenhams stores, and plans to open up to four more in 2024/25. CEO Stuart Machin emphasized the ongoing cultural transformation within the company as crucial for continued success.

M&S posts profit growth, clothing & home sales increase 5.3 percent

What: Retail expert Jörg Funder expects the approval of the restructuring plan for Galeria Karstadt Kaufhof. Creditors, including landlords, suppliers, and the tax office, will vote on the plan, which involves significant concessions but is deemed the only viable option to avoid liquidation.

Why it is important: The approval of this plan is crucial for the survival of Galeria Karstadt Kaufhof, a major player in the retail sector. It will impact thousands of employees and creditors, including key suppliers and landlords. The plan's acceptance would stabilize the business, ensuring continued operations and mitigating extensive financial losses for all parties involved.

Retail expert Jörg Funder anticipates that the restructuring plan for Galeria Karstadt Kaufhof will be approved by creditors during the vote on Tuesday in Essen. The plan, drawn up by insolvency administrator Stefan Denkhaus, requires creditors to make significant concessions, with an expected insolvency rate of 2.5 to 3 percent. If accepted, the plan would prevent liquidation, keep many branches open, and save numerous jobs. The insolvency proceedings have cost 41.2 million euros so far, with potential legal costs rising to 71.2 million euros if the plan is rejected. The restructuring involves a takeover by a consortium of NRDC and BB Kapital SA, with plans to close 16 of 92 branches, affecting 1,400 employees. Approval by the court would lift the insolvency proceedings and allow the handover to new owners by the end of July.

Trade expert expects approval of Galeria rescue plan

What: Printemps is set to open a new 560-square-meter outlet store in the McArthurGlen Paris-Giverny shopping center in Normandy, offering promotional luxury and lifestyle products.

Why it is important: The new outlet marks Printemps' expansion in the competitive clearance market, reinforcing its presence in the luxury retail segment.

Printemps is preparing to open a new outlet store in the McArthurGlen Paris-Giverny shopping center in Normandy, following its first outlet in Miramas, Provence, opened in 2017. The new 560-square-meter store will offer luxury and lifestyle products at promotional prices and is expected to open in early summer. Recruitment for the sales team is currently underway. This expansion is part of Printemps' broader strategy to enhance its market presence, complementing its network of 20 department stores in France and one in Doha, Qatar, as well as its e-commerce ventures.

Printemps prepares the opening of an outlet in Normandy

What: Selfridges plans to cut approximately 70 head office jobs.

Why it is important: The job cuts at Selfridges highlight the broader challenges facing British retail, particularly the impacts of the cessation of tax-free shopping for international tourists. This change has significantly affected sales, especially in luxury segments that heavily relied on international buyers.

Selfridges is set to reduce its workforce by about 70 positions, focusing on head office roles, due to challenging market conditions and shifts in customer needs. This decision comes in the wake of the UK government's decision to halt tax-free shopping following Brexit, which had a notable impact on international sales, particularly from tourists who contributed significantly to revenue through VAT-exempt purchases. The company is attempting to mitigate the impact on affected employees through redeployment opportunities. Meanwhile, the retail landscape continues to adapt to the significant regulatory changes and economic pressures, exemplified by the financial troubles of Selfridges' co-owner, Signa Holding, and the ongoing negotiations concerning the property division of the business.

Selfridges set for job cuts, citing freeze on tax-free shopping

What: Walmart has implemented generative AI technology to improve search functionalities and empower frontline employees, resulting in enhanced customer service and streamlined operations.

Why it is important: The use of generative AI represents a significant advancement in how retail companies can better serve their customers and optimize their operations. By integrating AI into its systems, Walmart is able to offer more personalized shopping experiences, anticipate customer needs, and provide real-time solutions to in-store queries. This technological shift positions Walmart at the forefront of retail innovation, setting a precedent for other retailers to follow.

Walmart has begun using generative AI to refine its search capabilities and support its employees, aiming to deliver a more personalized and efficient shopping experience. CEO Doug McMillon highlighted the immediate positive impact of this technology during a February earnings call. The AI helps customers with complex, mission-based searches and provides associates with real-time information to better assist shoppers. For example, it can help locate specific products even with minimal customer input. This initiative is part of Walmart's broader strategy to leverage AI for boosting productivity and reducing costs. Despite the promising start, experts like Tom Taulli and Bernard Marr note that generative AI in retail is still in its early stages and will take time to become fully integrated into omnichannel strategies.

How Walmart is using generative AI

What: Macy’s first turnaround plan results beat analysts’ expectations.

Why it is important: The group has been under intense pressure so far, and delivering what it promised is an excellent signal.

Macy's reported a decline in sales and profits in the first quarter but still exceeded Wall Street expectations. Despite the broader financial pressures causing customers to become more selective and price-sensitive, Macy's is witnessing positive outcomes from its strategic adjustments, including store closures and enhancements. As a result, the company has upgraded its annual outlook.

Amid these economic pressures, consumers across all income brackets are adjusting their spending habits. Notably, luxury items like handbags and shoes have seen reduced sales at Bloomingdale's, reflecting a shift to more affordable options. Macy's CEO Tony Spring indicated that ongoing economic uncertainties are affecting consumer behavior, prompting the company to remain cautious about external factors beyond its control.

Macy's is actively transforming its physical retail presence by closing 150 underperforming stores over three years and expanding with 30 new small-format locations by fall 2025. This move is expected to nearly triple its count of small-format stores to about 42. Furthermore, Macy’s plans to open 15 new Bloomingdale's and 30 Bluemercury luxury locations to strengthen its position in the high-end market. The retailer's revamped stores have shown a 3.3% increase in comparable sales.

Financially, Macy's earnings fell to $62 million, or 22 cents per share, from $155 million, or 56 cents per share in the previous year. However, adjusted earnings per share were 27 cents, surpassing analyst predictions by 11 cents. Revenue decreased by 2.7% to $4.85 billion, though it still topped analyst forecasts. Macy's comparable store sales dropped by 1.6%, while Bluemercury and Bloomingdale's reported gains. The company also experienced a decline in credit card revenues due to higher delinquency rates.

Macy's has also taken steps to stabilize its governance by appointing two independent directors to its board, supported by Arkhouse Management, amid pressures from activist investors.

Macy’s tops expectations for the first quarter as luxury and beauty sales shine

What: Mytheresa, a Munich-based luxury e-tailer, has reported significant growth in its fiscal third quarter, with net sales increasing by 18% to EUR 234 million. This growth comes amidst rumors of the company considering a private move and potential acquisition of Yoox-Net-a-Porter.

Why it is important: The performance of Mytheresa stands out in a luxury e-commerce sector that has generally seen lackluster results. The company's strategic moves, including exclusive capsule collections and high-profile client events, have contributed to its growth. However, its future actions, particularly regarding going private and acquisitions, could significantly impact the luxury retail market and investor perceptions.

Mytheresa has excelled in the luxury e-commerce space, showing robust sales growth and enhanced earnings due to strategic inventory management and unique customer engagement strategies. Amidst speculation of acquiring Net-a-Porter and going private, Mytheresa faces the dual challenge of maintaining growth in a competitive market and managing rising customer acquisition costs. The company's focus on high-value clients and efficient marketing has kept it profitable, but it remains cautious about future profit margins due to the shifting dynamics in luxury retail.

Mytheresa's strong growth amidst acquisition rumours and strategic challenges

What: Benedict Evans goes beyond the AI excitement and reviews what is really possible to be done in a working environment today.

Why it is important: AI is a technology without a clear deployment path for now (in terms of mass usage), even though the buzz says the contrary.

The article reflects on the historical and potential future impact of technological advancements, particularly focusing on the evolution of software applications from the invention of VisiCalc to the modern use of large language models (LLMs) like ChatGPT. Initially, it outlines the transformative role of VisiCalc, the first computer spreadsheet, which significantly optimized the workflow of accountants by reducing a week's work into an afternoon. This innovation, conceived by Dan Bricklin after observing a manual spreadsheet creation, marked a significant shift in using technology to address specific professional needs.

However, the article notes that while some innovations like VisiCalc found immediate product-market fit and widespread adoption, others have been slower to find their footing across various industries. This is illustrated through personal anecdotes of not finding applicable use-cases for technologies such as ChatGPT, despite their broad capabilities and the excitement they generate within tech circles.

The broader thesis of the article examines the ongoing debate about whether modern LLMs can truly become universal solutions capable of automating a wide range of tasks without the need for specific software for each task. The article suggests that while the technology is promising and improving, there remain significant challenges. These include the "weak" problem of current technical limitations and the "deeper" problem of identifying and understanding the potential use-cases where these technologies could be effectively implemented.

The discussion extends to the nature of technological adoption and the notion that significant innovations often require not just a creator who can envision and develop a solution but also a market that understands and embraces the potential uses of that innovation. This concept is explored through the analogy of needing a new generation of "Dan Bricklins" who can both envision new uses for LLMs and develop applications that make these uses accessible and practical for end-users.

Ultimately, the article argues that while LLMs and similar technologies have the potential to fundamentally change how tasks are automated, realizing this potential depends heavily on the ability to both imagine new applications and effectively communicate and market these innovations to users who can benefit from them. This process involves a reciprocal adaptation where both technology and user practices evolve to capitalize on new possibilities.

Looking for AI use cases

What: Saks Fifth Avenue expands its Saks Social Club with new members including Paris Hilton, Chanel Iman, and Shareef O'Neal.

Why it is important: This expansion enhances Saks' engagement with diverse communities, amplifies its marketing efforts, and reinforces its commitment to social causes through influential figures in various sectors.

Saks Fifth Avenue has added notable personalities like Paris Hilton, Chanel Iman, and Shareef O'Neal to its ambassador program, the Saks Social Club, which has doubled in size since its inception in 2020. These ambassadors participate in marketing campaigns, create content, and represent Saks in both virtual and in-person events, helping to connect the retailer with new communities and support charitable causes. This initiative not only enriches Saks' brand presence but also aligns with its strategy to cultivate deeper relationships with luxury consumers across diverse demographics.

Saks names Paris Hilton, Chanel Iman and Shareef O’Neal to the Saks Social Club

What: Major brands like Reebok and Adore Me are utilizing generative AI to empower consumers to design their own digital and physical products, enhancing personalization and engagement.

Why it is important: This innovative use of generative AI allows consumers to engage directly with brands and create personalized products, boosting consumer satisfaction and loyalty. It represents a shift in the traditional retail model by integrating technology to offer a more interactive and personalized shopping experience.

Brands are increasingly integrating generative AI into their consumer offerings, allowing for high levels of customization and engagement. Reebok has launched a platform where users can design digital sneakers with unique patterns and colors, even purchasing them for use in digital environments or obtaining physical counterparts. Similarly, Adore Me offers a service where customers can design personalized lingerie sets using AI-generated patterns. These initiatives not only cater to the creative desires of consumers but also position the brands as innovative leaders in retail technology. This trend towards personalization and digital interaction is set to reshape consumer expectations and brand strategies in the fashion industry.

Brands are unleashing generative AI design tools for customers

What: Kohl's has partnered with Instacart to offer same-day delivery from its nationwide stores, enhancing accessibility to its products for customers.

Why it is important: This partnership is a strategic move by Kohl’s to utilize its extensive physical store network to meet the rising consumer demand for convenience and immediacy in shopping.

Kohl's is leveraging its partnership with Instacart to provide same-day delivery across 1,172 store locations, offering items from various categories including beauty, skin care, and home essentials. This service allows Kohl's to tap into Instacart’s substantial customer base and aligns with its strategy to enhance in-store experiences and broaden its market reach. The move is part of Kohl’s broader efforts to improve its performance, as evidenced by its recent initiatives such as the introduction of Babies R Us shop-in-shops and a significant expansion of its home goods assortment. Despite these efforts, Kohl’s has faced challenges with declining sales figures, making this partnership a crucial step in its strategy to turn around performance and better serve the needs of modern consumers.

Kohl’s to deliver same day through Instacart

What: Mall of America launches on-site game show in order to generate curiosity and traffic.

Why it is important: Less retail, more experience and dining options seem to be the future of malls in the US.

Mall of America, recognizing the enduring appeal of physical retail experiences alongside eCommerce's convenience, is set to introduce an on-site game-show-style amusement center, Great Big Game Show. This new attraction, featuring televised game formats with live hosts and interactive elements, aims to draw visitors to its location by enhancing the in-mall experience. As highlighted by a PYMNTS Intelligence report, traditional malls face challenges from eCommerce, with 42% of retail subscribers visiting stores less frequently. However, by integrating experiential offerings like themed dining, events, and social activities, malls can increase visitor duration and spending.

Such experiences not only increase foot traffic but also strengthen community ties, particularly appealing to Gen Z consumers—60% of whom visit malls for socialization, according to the International Council of Shopping Centers. Despite broader spending cautiousness, data suggests consumers continue to invest in memorable experiences, with companies like Groupon and Vivid Seats reporting robust performance in their experiential segments. This trend underscores a sustained preference among a significant majority of U.S. consumers for engaging with physical stores, with 44% preferring to shop in-store without digital interactions, further emphasizing the continued relevance of brick-and-mortar retail.

US malls push unique experiences to create traffic

What: Polène, a French leather goods brand, is set to open a new space at Le Bon Marché Rive Gauche in Paris on June 3.

Why it is important: Polène's entrance into the department store sector marks a significant expansion of its retail presence and offers the brand a prestigious platform to reach both local and international customers.

Polène is expanding its retail footprint by opening a new space at Le Bon Marché in Paris, a move that introduces the brand to the department store sector. This new location will feature Polène’s collections of handbags, small leather goods, and jewelry. The store design will highlight Polène’s commitment to local craftsmanship with a prominently featured wooden table named Racine, crafted by French artisans. In addition to this store, Polène plans to open a flagship store at 2 rond-point des Champs-Elysées by the end of the year, demonstrating the brand's ongoing expansion and commitment to establishing a strong retail presence in key fashion capitals. Polène currently operates two stores in Paris, including a pop-up, and has international locations in New York and Tokyo.

Polène to open at Le Bon Marché in Paris