What: Selfridges is advancing its sustainability agenda by integrating circular retail practices that emphasize consumer enjoyment over ownership.

Why it is important: As Selfridges shifts its business model to include more sustainable practices like resale, rental, repair, refills, and recycling, the emphasis on making these processes enjoyable for customers is crucial. This approach not only helps meet sustainability goals but also engages customers in a meaningful way, potentially setting a standard for the retail industry.

Selfridges CEO Andrew Keith outlined the company's playful approach to circular retail at a recent event, highlighting the importance of customer enjoyment in sustainable shopping. With a revised goal to reach net-zero carbon emissions by 2040, Selfridges is pushing for at least 45% of its transactions to involve recycled products or circular services. The initiative, known as ReSelfridges, has seen success in areas like resale and beauty refills, though some sectors like children’s clothing rental have underperformed. Keith emphasized the importance of simplicity in customer interactions and the need for continuous adaptation and learning to refine their offerings. The strategy integrates sustainability deeply into the business model, making every team member a stakeholder in achieving these ambitious goals.

Selfridges embraces playful circular retail to drive sustainability goals

What: Marks and Spencer (M&S) reported a significant increase in profits and announced its first dividend since 2019, signaling a successful turnaround in its food and clothing divisions.

Why it is important: This turnaround marks a pivotal moment for the 140-year-old retailer, indicating a sustainable recovery and renewed relevance in the competitive retail market.

Marks and Spencer's CEO Stuart Machin declared the onset of "a new M&S" as the company posted impressive financial results, including a pre-tax profit of £716 million for the year ending March 30. The retailer's revenue grew by 9.4% to £13 billion, driven by a 13% rise in food sales and a 5.3% increase in clothing and home sales. This financial resurgence has placed M&S in its strongest position since 1997, leading to an 8% rise in shares and the announcement of a 3p per share dividend. M&S's strategic focus on modernizing clothing ranges and expanding its popular food stores has contributed significantly to its growth, with continued optimism for future performance.

Marks and Spencer chief hails ‘beginnings of a new M&S’ as profits soar

What: Thom Browne has successfully defended against Adidas in two recent court rulings regarding the use of stripe designs on his apparel, reinforcing his brand's design autonomy.

Why it is important: This legal victory is significant as it highlights the complexities of trademark disputes and their potential to shape branding and product design strategies in the highly competitive apparel market.

Thom Browne achieved two significant legal victories in his ongoing battle with Adidas over the use of striped designs on clothing. The United States Court of Appeals for the Second Circuit upheld a jury verdict from January 2023, confirming that Browne’s use of four stripes and a grosgrain ribbon on his garments does not infringe on Adidas’s trademark of three stripes. This decision came after Adidas's failed attempt to secure a new trial based on the exclusion of certain testimonies and other arguments, which the court dismissed as meritless. Additionally, Judge Jed Rakoff of the Southern District of New York denied Adidas’s request for a retrial despite new evidence from emails suggesting potential confusion between the two brands’ stripe designs.

These emails had surfaced from another trademark dispute in the U.K. and pertained to unrelated international product designs. This series of court rulings not only bolsters Thom Browne's position in the fashion industry but also emphasizes the stringent standards and thorough consideration involved in trademark disputes, particularly when well-known designs and significant financial stakes are involved.

Thom Browne Wins Two More Rounds in Court Battle With Adidas on the Use of Stripes

What: John Lewis has launched a menswear rental platform, becoming the largest high street retailer to offer a wide range of men's formalwear for rent through a partnership with rental specialist Hurr.

Why it is important: This move signifies a major shift in the menswear market, responding to growing consumer demand for rental options. It highlights John Lewis's innovative approach and leadership in expanding rental services beyond womenswear, promoting sustainable fashion practices and catering to evolving consumer preferences.

John Lewis has announced its entry into the menswear rental market, partnering with Hurr to offer a vast selection of formalwear from exclusive and third-party premium brands. The platform, boasting the largest range of menswear brands available for rent on the high street, includes labels like Boss Tailoring and Charles Tyrwhitt. Rental prices start at £40 for a four-day rental, with options for next-day delivery. This initiative follows the success of John Lewis's womenswear rental platform launched in 2022 and responds to significant customer interest, as evidenced by top search terms and industry growth projections. The move aims to make menswear rental mainstream and support sustainable fashion choices.

John Lewis dives into menswear rental with high street's biggest platform

What: Nordstrom has settled a lawsuit with Patagonia over accusations of selling counterfeit apparel.

Why it is important: This settlement highlights the critical issues surrounding trademark and copyright infringement in retail, emphasizing the need for stringent supply chain controls and the potential repercussions for brand reputation and legal liabilities.

Nordstrom and outdoor clothing manufacturer Patagonia have reached a settlement in a lawsuit where Patagonia accused Nordstrom of selling counterfeit versions of its clothing. The lawsuit, filed in the U.S. District Court for the Central District of California, claimed that Nordstrom continued to sell counterfeit sweatshirts and t-shirts after their retail agreement ended. Nordstrom responded by denying knowledge of the items' inauthenticity at the time of purchase and stated that it had ceased business with the supplier of these goods and removed the products from sale. The settlement likely aims to avoid prolonged litigation and preserve the business reputations of both companies, although specific terms of the agreement were not disclosed.

Nordstrom settles Patagonia counterfeiting lawsuit

What: Tapestry is challenging the FTC to define the term "accessible luxury" in legal terms as it seeks to defend its $8.5 billion acquisition of Capri Holdings.

Why it is important: This legal battle is crucial as it will potentially set a precedent for how "accessible luxury" is classified and regulated, affecting marketing strategies and competitive dynamics within the sector.

Tapestry Inc. is currently embroiled in a legal dispute with the Federal Trade Commission (FTC) over its planned $8.5 billion takeover of Capri Holdings, which would bring together major brands like Coach, Kate Spade, and Michael Kors. The FTC argues that the merger could give the combined entity undue influence over the "accessible luxury" handbag market, a term popularized by Coach but not legally defined. Tapestry's defense is complicated by the FTC's lack of a clear definition for what constitutes an "accessible luxury" handbag, questioning whether this includes various types of bags like backpacks and duffel bags, and what price points delineate this market.

Tapestry's legal filings highlight the ambiguity in market definitions, which could range from below $100 to over $1,000, thereby affecting market competition analysis and regulatory oversight. The outcome of this case could influence how companies define and segment their products within the luxury goods market, impacting how they compete and how they are regulated moving forward. Tapestry has urged the court to compel the FTC to clarify its market definition to ensure a fair and expedient trial, emphasizing the need for clarity to accurately reflect market competition in 2024.

Tapestry Pushes FTC to Define ‘Accessible Luxury’ amid court battle to acquire Capri Holdings

What: Placer.ai data reveals that U.S. shopping centers, including indoor malls, open-air shopping centers, and outlet centers, experienced significant year-over-year traffic gains in the first quarter of 2024.

Why it is important: The increase in mall traffic amid ongoing economic uncertainty contradicts previous predictions of a retail apocalypse. The ability of top-tier malls to attract visitors through strategic diversification, such as incorporating fitness centers, dining, and experiential offerings, demonstrates the evolving landscape of retail.

In the first quarter of 2024, U.S. malls and shopping centers saw notable year-over-year traffic increases, with February and March showing particularly strong performance, according to Placer.ai data. Despite a slight dip in April due to a calendar shift, the overall trend underscores the resilience of top-tier malls. These malls have successfully adapted by diversifying their offerings beyond traditional retail, focusing on high-end dining, fitness centers, and other experiences. This strategic evolution has enabled them to attract consistent foot traffic, defying earlier predictions of a decline in brick-and-mortar retail. However, consumer confidence remains affected by broader economic issues, driving shoppers towards value-oriented retailers.

Resilience at retail, Q1 mall traffic holds up

What: Generative AI's introduction into the fashion and tech industry has sparked both high expectations and skepticism about its transformative potential.

Why it is important: This focus on generative AI is pivotal as it could revolutionize online shopping experiences and marketing strategies, although its real impact remains uncertain amid emerging challenges.

The integration of generative AI in fashion technology, such as Kering's ChatGPT-powered shopping assistant "Madeline", has been met with both excitement and underwhelming results. Initially hyped as a solution to enhance e-commerce efficiency and creativity, early implementations like Madeline have shown limitations, leading to a reassessment of their practicality and effectiveness. Similarly, Levi's trial with AI-generated models to promote diversity faced backlash, highlighting the technology's social implications and its current inadequacy in sensitive applications.

Despite these setbacks, the potential financial impact of generative AI is still notable, with McKinsey predicting a significant boost to the fashion and luxury sectors' profits. However, as the technology continues to evolve, it faces the typical "hype cycle" trajectory where initial enthusiasm might lead to disappointment before achieving more realistic and practical applications. This pattern suggests that while immediate outcomes may temper enthusiasm, the enduring work will be in refining AI's capabilities to meet industry needs more effectively, a process that could take years to realize fully.

Is Generative AI the New Fashion-Tech Bubble?

What: Dillard’s beat Wall Streat expectations in terms of losses for the first quarter of 2024.

Why it is important: While comparable sales are dipping, Dillard’s is still investing in new stores and sees its profitability grow thanks to a focus on assortment and inventory control.

Dillard’s Inc. reported a decline in first-quarter net income by nearly 11% to $180 million, down from $201.5 million the previous year, with earnings per share also falling 6.4% to $11.09. Despite these declines, the results surpassed Wall Street expectations, with earnings per share beating the forecasted $9.25 from Zacks Investment Research. The retailer experienced a slight dip in total and comparable-store sales by 1% and 2%, respectively, with net sales decreasing slightly to $1.55 billion.

In response to a challenging consumer environment, CEO William T. Dillard II emphasized the company’s focus on profitable sales through interesting product offerings and stringent inventory control. This strategy led to a reported increase in liquidity, with cash and short-term investments surpassing $1 billion for the first time. However, operating expenses rose to $426.7 million due to increased payroll, accounting for 27.5% of sales, up from 25.7% the previous year.

Amidst inflation and high interest rates affecting consumer spending, Dillard’s has prioritized inventory management and the development of both store and e-commerce platforms. The company highlighted cosmetics as its strongest merchandise category for the quarter, while men’s clothing and accessories lagged. Additionally, Dillard’s announced the opening of a new store in South Dakota and the upcoming closure of an Ohio clearance center, maintaining a total of 274 stores across 30 states.

Dillard’s shares closed nearly 5% down at $434.45, though they have seen a significant increase of over 41% from the previous year, outperforming the S&P 500's gain.

Dillard’s Inc. posts USD 180 million first-quarter profit

What:  Macy’s executives Tony Spring and Keelin Evans elaborate on the strides the company is making through its Mission Every One platform towards achieving a sustainable future, aiming to integrate sustainability into every aspect of its operations.

Why it is important: Macy’s ambitious $5 billion Mission Every One initiative underscores the company's commitment to environmental stewardship and social equity, which are increasingly important to consumers.

Macy's Inc. has made significant headway in its sustainability efforts through its Mission Every One platform, committing $5 billion to foster a more equitable and sustainable future. In a discussion at the WWD Sustainability Summit, CEO Tony Spring and VP of Sustainability Keelin Evans outlined the company’s focus areas including sustainable products and services, community engagement, and fostering a culture of belonging. Highlights of their efforts include partnerships with Planet Water and the World Wildlife Fund to improve water stewardship and access in production communities, particularly in India. Macy’s has also focused on incorporating sustainable practices in its supply chain, with an increase in the use of preferred materials in its private brand merchandise, rising from 3% in 2022 to 35% in 2023. These initiatives reflect Macy’s holistic approach to sustainability, aiming to influence both internal stakeholders and the wider industry.

Macy’s CEO and sustainability VP discuss working for a sustainable future with a USD 5 billion plan

What:  M&S has partnered with the recycling technology firm Polytag to track its plastic packaging.

Why it is important: This initiative is significant as it represents a proactive approach by M&S to address the single-use plastic crisis by enhancing the traceability and recycling of plastics.

Marks & Spencer (M&S) is collaborating with Polytag to implement a system that applies invisible tags to plastic containers like drink bottles and food cartons. These tags are detectable by electronic readers at recycling centers, facilitating better sorting and recycling of plastics. This system, which will soon see its large-scale deployment at M&S, helps distinguish between more valuable recyclables and those contaminated by chemicals. M&S's initiative comes ahead of new regulatory fees on plastic packaging disposal under the UK's extended producer responsibility (EPR) regime, aiming to enhance recycling infrastructure and efficiency.

M&S partners with recycling tech firm to track plastic packaging

What: Farfetch continues to report losses under new owner Coupang.

Why it is important: The integration of Farfetch into Coupang's operations is crucial as it reflects the challenges and opportunities within the e-commerce and luxury retail sectors. Despite its ongoing losses, Farfetch's performance is critical for Coupang’s broader strategy to expand its footprint in luxury e-commerce and improve profitability.

Since acquiring the struggling luxury e-commerce platform Farfetch for $500 million, South Korean giant Coupang is facing the challenge of turning around its financial performance. In Q1, Farfetch contributed $288 million in revenue but reported a net loss of $93 million and an adjusted EBITDA loss of $31 million. While Coupang's overall revenue grew by 23% to $7.1 billion, its net income sharply declined due to the Farfetch acquisition. Coupang's CEO, Bom Kim, remains optimistic, aiming for Farfetch to reach near-positive adjusted EBITDA by year's end. The acquisition is part of Coupang’s larger strategy to enhance customer experience and operational excellence across its diverse services, indicating a strategic expansion into new market segments and continuous infrastructure investment.

Farfetch losses weigh on Coupang in Q1

What: Major department stores like Macy’s, Kohl’s, and Nordstrom are implementing strategies to attract younger customers, specifically targeting millennials and Generation Z, amidst declining sales and increased competition from alternative retail platforms.

Why it is important: Attracting younger customers is crucial for the survival and growth of traditional department stores. The shifting preferences of millennials and Gen Z towards online shopping and niche brands threaten the market position of these retailers.

Department stores such as Macy’s, Kohl’s, and Nordstrom are facing challenges in appealing to younger consumers due to competition from online and specialty retailers. To counteract this trend, these stores are adopting various strategies: Kohl’s is introducing trendier teen clothing and expanding its baby department, Macy’s is refreshing its brand and opening smaller stores, and Nordstrom is expanding its online marketplace and partnering with popular brands. The effectiveness of these strategies is being closely monitored by Wall Street, highlighting the importance of adapting to changing consumer preferences.

Department stores aim to attract gen z and millennials

What: Hong Kong is now authorized to use digital yuan.

Why it is important: While digital yuan is not yet overly popular worldwide, this will be probably a much needed option for retailers willing to lure in Mainland customers.

Hong Kong is set to integrate mainland China's pilot digital currency, the e-CNY, into its retail environment, as announced by the city's central bank head. This development marks a significant step in Beijing's agenda to internationalize the yuan, especially during a time of escalating geopolitical tensions. The integration allows both mainland Chinese and Hong Kong residents to utilize digital yuan wallets for payments in Hong Kong’s retail shops and selected online stores, without the need to establish a mainland bank account.

The e-CNY, primarily used for domestic transactions within China, has reached a transaction volume of US$249.27 billion by the end of June 2023, with over 120 million digital wallets in operation. The digital currency is already accepted by over 10 million merchants across 17 provinces and cities in mainland China. In Hong Kong, the digital wallets will have a balance limit of $1,384, with transaction and daily payment caps set at $276.87 and $692.17 respectively. Peer-to-peer transfers, however, are currently prohibited.

This pilot program in Hong Kong will facilitate more straightforward transactions for residents traveling or conducting business between the mainland and Hong Kong. Major Chinese banks like the Industrial and Commercial Bank of China, Bank of China Ltd, China Construction Bank Corp, and Bank of Communications Co are among the designated e-CNY wallet operators. Despite these advancements, the yuan's role in global finance remains relatively minor but is gradually increasing.

Hong Kong retailers to be allowed to accept new digital yuan

What: According to the Financial Times, US revenge travel boon is coming to an end.

Why this is important: This is not good news for international retailers abroad.

The surge in American consumer spending on high-end vacations, often referred to as "revenge travel," appears to be diminishing, transitioning to what the industry is now branding as "normalized demand." This shift suggests a cooling in the travel sector, prompting companies to adjust their financial outlooks.

Marriott International, among other leisure firms, noted a stabilization in travel demand in the US and Canada, with RevPAR showing no growth year-over-year in the first quarter. Similarly, Expedia has revised its full-year expectations downwards due to lower-than-anticipated growth in bookings. Southwest Airlines also experienced subdued demand, with first-quarter RASM at the lower end of its forecast. Airbnb reported a slowdown too, with a modest increase in bookings compared to the same quarter last year, marking its slowest growth post-pandemic.

The U.S. hotel industry faced its first decline in RevPAR since the pandemic began, dropping 2.2% in March. This downturn has been part of a longer trend of decreasing hotel occupancy rates over the past year.

However, the global market presents opportunities, with travel demand in Europe and Asia remaining robust. Companies like Booking, which has minimal revenue dependence on the U.S., have benefited from this sustained international interest. Additionally, corporate travel is picking up, potentially offering a more stable revenue source for companies like Delta Air Lines and Hilton Worldwide, which cater significantly to business travelers. This sector's recovery is expected to outpace leisure travel, with a 7% increase in domestic business trips projected for this year.

Is this the end of US revenge travel?

What: Central Group has acquired the KaDeWe property in Berlin from Signa.

Why it is important: This acquisition marks a significant step for Thailand's Central Group in their strategic expansion into the European luxury retail market, especially following Signa's insolvency.

Thailand's Central Group has successfully purchased the renowned KaDeWe property in Berlin from the insolvent Austrian firm Signa, signaling a strategic push into European luxury retail. The acquisition, reported to be worth around USD 1.07 billion, is part of Central's broader plan to acquire the entire KaDeWe Group, which also includes prominent properties in Hamburg and Munich. Central already owns a majority stake in the group. This move is seen as an attempt to revitalize and financially stabilize the renowned retail group amidst Europe's ongoing real estate crisis. This acquisition not only expands Central's portfolio but also strengthens its foothold in the European luxury market, underscoring the importance of international investment in sustaining commercial real estate within key global cities.

Thailand’s Central Group acquires German luxury retail property KaDeWe

What: Berangere Michel, Finance Director of John Lewis Partnership, will step down later this year.

Why it is important: This change in the finance leadership at John Lewis comes at a critical time when the company has just returned to profit after three years.

Berangere Michel, the Finance Director of the UK's John Lewis Partnership, is set to leave her role later this year after a 16-year tenure with the company. This announcement follows closely on the heels of the appointment of Jason Tarry as the upcoming chairman and comes after the recent departure of Sharon White. Michel, who stepped into her current role in 2021, has played a pivotal part in steering the company back to profitability, particularly through improvements in the food business and effective cost-saving measures. Her departure is scheduled for autumn, marking the end of a significant phase of leadership within the company.

UK's John Lewis says finance boss to step down later this year

What: The rise of Shein seems unstoppable

Why it is important: Department stores need to find credible sources of fashion proposals before Shein and its likes kill the landscape.

Shein, an online fast-fashion company, has seen a significant increase in profits, reaching over USD 2 billion in 2023 with USD 45 billion in gross merchandise value. This marks a substantial growth from previous years. Awaiting regulatory approval from Beijing, Shein is planning a major IPO in New York or London, which could value the company at over USD 60 billion. The IPO is a test of Beijing's stance on Chinese companies incorporating overseas and raising funds in the US. Despite relocating its headquarters to Singapore, Shein operates largely from China, with a significant number of employees based there. The company's founder, Xu Yangtian, also moved to Singapore, holding a 37% stake in Shein. Amidst its IPO efforts, Shein faces scrutiny in Washington regarding its business model and connections with the Chinese government .

Shein profits double to over USD 2bn ahead of planned listing 

What: Hyundai is following Lotte and Shinsegae and launches its own structure to support local fashion.

Why it is important: While the follower’s attitude is rather strange, the overall approach in Korea is quite smart as department stores are positioning themselves as incubators for local fashion, a good answer to global brands.

Hyundai Department Store has launched a new service called "The Hyundai Global" to help Korean fashion brands expand into overseas markets. Under the program, Hyundai will select promising Korean brands and negotiate with foreign retail partners, such as Japan's Parco, to open stores and pop-ups featuring the brands.

By handling the entire process, from location selection to inventory management, Hyundai expects the brands can reduce their overseas expansion costs by over 30% compared to going it alone. It's a "win-win", as global retailers can enhance their merchandise by tapping into Hyundai's "validated" Korean brands.

The first market targeted is Japan, where Hyundai will sign a deal with Parco to open a Noice pop-up in May, followed by 11 other Korean brands. This builds on Hyundai's existing partnership with Thai retail group Siam Piwat to operate Korean brand spaces in their malls.

Hyundai aims to expand The Hyundai Global model to prominent shopping malls in China, Vietnam, Hong Kong, and Europe, helping drive the global expansion of Korean fashion labels.

Hyundai Department Store launches platform for K-fashion expansion

What: John Lewis is hosting a Members’ Week from May 1-7, offering loyalty card members exclusive discounts, prizes, and in-store events.

Why it is important: This initiative marks a significant step in enhancing customer engagement and loyalty. By merging their existing loyalty schemes and introducing more personalized experiences, John Lewis aims to increase customer retention and lifetime value.

During the first week of May, John Lewis is set to deliver its "best ever" Members’ Week, filled with exclusive benefits for My John Lewis cardholders. The event will feature store-wide discounts and prizes, such as GBP 500 holiday vouchers from John Lewis Finance, along with tailored local events like beauty masterclasses and fashion talks. This initiative is part of a broader strategy to revamp John Lewis's loyalty programs by merging the My John Lewis and My Waitrose schemes into a unified platform, enhancing customer benefits and loyalty. The move, spearheaded by the new pan-Partnership head of loyalty, Emily Wells, previously of Tesco, and supported by collaborations with loyalty experts Dunnhumby and Eagle Eye, reflects an ambitious effort to deepen customer relationships and innovate their retail experience.

John Lewis launches ‘best ever’ discounts and prizes for Members’ Week

What: Hyundai follows suits with Shinsegae and launches its platform for Korean fashion brands

Why it is important: for Korean players, being involved in the development of local brands is now strategic.

Hyundai Department Store is launching The Hyundai Global, a platform aimed at expanding Korean fashion and entertainment brands globally, starting with Japan. This initiative will significantly reduce the financial barriers for small to medium-sized domestic brands entering international markets, offering savings of over 30%. The Hyundai Global will manage various logistical aspects, including product export/import and store operations. The first collaboration will be with Japan's Parco to host pop-up stores in Shibuya Parco for brands like Noice, EMIS, Matin Kim, and Mischief.

Korean fashion brands go global with Hyundai’s new platform

What: The Monmouth Mall, one of the largest in New Jersey, is going through a “de-malling” process to be reintegrated in the city centre as an open air mixed-used project.

Why is it important: are we on the eve of seeing a rightsizing in terms of retail space and square meterage across the world?

The Monmouth Mall in New Jersey is being transformed into an open-air shopping center called Monmouth Square, significantly reducing its retail space. This renovation, led by Kushner Companies, includes the addition of 1,000 luxury apartments. The process involves demolishing parts of the mall and converting indoor spaces to outdoor areas. Despite these changes, some key tenants like Macy’s, AMC Theatres, and Boscov’s will remain. The redevelopment aims to create a mixed-use town center with shops, restaurants, apartments, and medical office space, with construction starting later this year.

A New Jersey mall to be transformed in a mixed-use building

What: Harvey Nichols has appointed Julia Goddard as its new chief executive.

Why it is important: This leadership change comes at a critical juncture for Harvey Nichols as the company navigates through financial challenges, including the impact of ending tax-free shopping in the UK and widespread inflationary pressures.

Julia Goddard, with 14 years of experience at Alexander McQueen, notably as president of the EMEA region, has been appointed the new CEO of Harvey Nichols following Manju Malhotra's departure after 25 years. She will report to Sir Dickson Poon and Pearson Poon, the chairman and vice chairman of the company, respectively. This leadership transition occurs as Harvey Nichols confronts significant industry challenges, including financial pressures from changes in tax regulations and ongoing inflation. Additionally, the company is undergoing a strategic reorganization, which includes job cuts affecting 5% of its workforce as part of its effort to achieve profitability. Despite these challenges, Harvey Nichols reported an expected 13% increase in revenue for FY 2023, amounting to GBP 216.6 million, and a 30% reduction in losses. Goddard's appointment is pivotal as the company seeks to stabilize and grow in a tumultuous retail landscape.

Harvey Nichols appoints new CEO

What: The Pogen Index reports an 8% increase in foot traffic across Mexican shopping centres during the first quarter of 2024 compared to the same period in 2023.

Why it is important: This increase indicates a recovery and stabilization in the retail sector following years of turbulence. It underscores a shifting consumer behaviour, with physical retail regaining strength even amidst the rise of e-commerce. This trend provides retailers insights into consumer preferences and highlights the enduring appeal of in-person shopping experiences.

The retail landscape in Mexico shows signs of positive momentum in 2024, as evidenced by an 8% rise in shopping center foot traffic in the first quarter, according to the latest Pogen Index. This uptick is primarily attributed to holiday-driven shopping during March, which saw a 16.8% increase due to the Easter holidays and the Benito Juárez birthday long weekend. While the growth is not as high as the double-digit increases seen in 2022 and 2023, it represents a welcome stabilization in the sector. Major cities like Mexico City and Monterrey experienced significant foot traffic gains, with increases of 9% and 9.2%, respectively. Meanwhile, beach and border cities saw more modest rises, suggesting robust beach tourism. Retail categories such as jewellery and sportswear recorded notable increases, highlighting specific areas of consumer interest and spending. This resurgence of in-store shopping signals a balanced retail growth alongside the continuing expansion of online commerce.

Influx to shopping centers and stores advances in Mexico this 2024