What: China's Alibaba Group is considering acquiring a 5% stake in the South Korean fashion platform Ably, potentially valued at 100 billion won (US$72.4 million).

Why it is important: This move could significantly bolster Alibaba’s presence in South Korea, aligning with its broader strategy to expand its global footprint and diversify its investments in key markets. This could also provide Alibaba with a stronger foothold in the fashion industry, potentially driving regional growth.

Alibaba Group is reportedly exploring the acquisition of a stake in South Korean fashion marketplace Ably, with the deal estimated at 100 billion won. This initiative is part of Alibaba's broader investment strategy in South Korea, including a USD 1.1 billion commitment to develop logistics and business operations within the next three years. Ably, established in 2018, operates a platform with over 50,000 sellers, initially serving as a wholesale fashion hub for Dongdaemun Fashion Mall. Despite operational losses in 2021 and 2022, Ably achieved its first annual profit in 2022, reporting revenues of 259.5 billion won. The potential investment by Alibaba, alongside interest from other global investors like Ontario Teachers’ Pension Plan and CVC Capital Partners, highlights the platform's growing influence in the e-commerce sector. Neither Alibaba nor Ably has publicly commented on the negotiations.

Alibaba Group to invest in Korean fashion platform Ably 

What: Lindex Group, formerly known as Stockmann, reported mixed financial results for the first quarter with growth in its Lindex division overshadowed by challenges in the Stockmann department stores.

Why it is important: The contrasting performances of the two divisions highlight the ongoing struggles and strategic shifts within retail companies facing high freight costs and challenging economic conditions. The outcome of these results is crucial as it affects the company's strategies and the overall stability of jobs and investor confidence.

Lindex Group has seen a rise in revenue from its Lindex division by 2.7% in local currencies during the first quarter, totaling EUR 130.6 million. This growth occurred across all main markets, indicating robust performance despite broader retail challenges. However, the Stockmann division suffered a decline, with revenue dropping significantly from EUR 72 million to EUR 62.2 million. This decline was largely due to the rescheduling of the Crazy Days sales campaign and ongoing economic pressures such as high interest rates and inflation, which dampen consumer spending. Overall, the group's digital sales continued to grow, representing 18.8% of total revenue, up from 17.8% the previous year. Despite these mixed results, Lindex Group's leadership remains committed to strategic adjustments, particularly exploring options for the Stockmann department stores to stabilize and improve the division's performance within the current tough market conditions.

Lindex continues to grow but Stockmann is still struggling

What: SM is enjoying sustained growth in all its operations, from mall to department store, retail and supermarket ones.

Why it is important: The Philippines are often overlooked when it comes to retail due to their mid-segment positioning however many opportunities lie in the country.

SM Investments, a prominent entity in the Philippines, encapsulates business operations spanning retail, property, and banking, with its property segment, SM Prime, standing out as the country’s premier mall operator boasting over 20,000 tenants. Recent reports highlight a robust 21.2% revenue growth in 2023, fueled by increased sales, higher occupancy rates, and the inauguration of new malls like SM Center San Pedro and SM City Santo Tomas. These developments not only exemplify the company's expansion but also its innovative approach in creating 'lifestyle cities,' comprehensive developments that blend residential, office, and retail spaces, often revitalized from old military bases.

The retail arm of SM Investments further complements this growth, operating approximately 3850 stores including supermarkets and specialty stores, with a noteworthy sales increase of over 6% in department stores and 3.9% in the food sector. This segment highlights the gradual shift from traditional to modern retail formats, with only about 30% of food currently sold in modern retail settings, indicating significant growth potential.

Regionally, SM Investments aligns with trends across ASEAN, focusing expansion efforts outside metropolitan Manila to capitalize on rising incomes and government decentralization policies. This strategy is mirrored by competitors like Robinsons Land and Ayala Malls, who are also experiencing significant growth in both tenant sales and overall revenue.

In the Philippines, SM sees a boom in its mall operations

What: Nordstrom Rack has appointed Lori Marten as its new Executive Vice President and General Merchandising Manager, signaling a strategic move to bolster growth and customer engagement.

Why it is important: The appointment underscores Nordstrom Rack's emphasis on expanding its off-price retail segment as a key growth driver. With plans to open 22 new stores this year, following 19 openings in 2023, Nordstrom Rack is poised for significant expansion. Lori Marten's extensive retail experience and successful track record at Nordstrom are expected to enhance the merchandising strategy and strengthen brand partnerships, contributing to the division's growth and profitability.

As Nordstrom Rack gears up for expansion, the appointment of Lori Marten, a 25-year retail industry veteran, as Executive Vice President and General Merchandising Manager marks a pivotal step in reinforcing the division's growth trajectory. Reporting to Gemma Lionello, President of Nordstrom Rack, Marten will lead the merchandising strategy for both physical stores and the online platform. This move is part of Nordstrom Inc.'s broader strategy to drive growth through new Rack store openings, digital growth, and enhanced customer experiences. With Nordstrom Rack's recent performance showing improvement and plans for continued store expansion, the division is set to capitalize on its "great brands at great prices" approach under Marten's leadership.

Nordstrom Rack hires Lori Marten as EVP as it gears up for growth

What: Saks Fifth Avenue has launched the Saks Media Network, a digital advertising platform designed to help brands connect with Saks' affluent customers.

Why it is important: This initiative represents a significant expansion in Saks' digital strategy, enhancing brand visibility and revenue generation through targeted advertising. It leverages Saks' vast customer data and high site traffic to offer brands tailored advertising solutions, aligning with broader trends in retail towards personalized, data-driven customer engagement.

Saks Fifth Avenue has introduced the Saks Media Network, a new platform facilitating digital advertising for brands on its luxury e-commerce site. This initiative aims to leverage Saks' considerable traffic—over 435 million annual site visits—and detailed customer data to enhance the visibility and sales of participating brands through sponsored product ads and on-site display banners. Kristin Maa, Senior Vice President of Growth at Saks, highlighted the network's role in extending personalized, data-driven engagements across Saks' digital and physical channels, thereby improving the overall customer shopping experience. The network also features a dedicated in-house media team that supports brands with customized strategies and detailed performance insights. Brand partner Ramy Brook Sharp of Ramy Brook expressed enthusiasm for the network's potential to boost brand visibility and align with Saks’ mission of inspiring customer fashion choices.

Saks launches Saks Media Network

What: Peek & Cloppenburg (P&C) Vienna has opened a new store in Sofia, Bulgaria, located in the Paradise Center.

Why it is important: The expansion of business activities in Bulgaria marks a significant milestone. P&C says that this will consolidate its own position in an emerging market and at the same time strengthen the

Peek & Cloppenburg Vienna, a branch of the Düsseldorf-based fashion retailer, continues its expansion in Eastern Europe with the opening of its fourth store in Sofia, Bulgaria. This new store is situated in the Paradise Center, a prime shopping location in the capital. The opening event featured amenities such as DJ music and a beauty lounge with collaborations from brands like Nespresso and Sephora.

The store spans 2,800 square meters over two floors, showcasing around 100 brands including both casual and premium lines such as Hugo Boss, Tommy Hilfiger, and Polo Ralph Lauren. P&C’s own brands, Jake*s and Review, are also featured. The store layout divides womenswear on the ground floor and menswear above, optimizing the shopping experience.

General Sales Manager Sonya Valerieva Bayraktarova expressed enthusiasm about the new location, highlighting the synergy created between retail, leisure, and nature due to the store’s proximity to South Park’s green areas. This strategic expansion is part of P&C's broader strategy to enhance its footprint in the Bulgarian market and leverage the potential of stationary retail in the region.

P&C is expanding in Bulgaria

What: A Tesco veteran will replace Dame White when she steps out.

Why it is important: This clearly signals a “back to basics” gesture.

The John Lewis Partnership has appointed former Tesco UK and Ireland CEO Jason Tarry as its new chair, replacing Dame Sharon White who will step down in September. Tarry, a Tesco veteran of over 33 years, is expected to bring a strong track record in multi-channel, multi-category retail success and a strong alignment with the Partnership's values.

The Partnership's deputy chair, Rita Clifton, praised White's leadership in guiding the company through the COVID-19 pandemic and cost-of-living crisis, helping to restore the business to financial health with a return to profit. White also helped to secure the future of the Partnership's model of employee ownership.

As the Partnership moves into the next phase of its modernization, focusing on its core retail business and future growth, Clifton expressed confidence that Tarry will provide the "inspirational leadership" required. Tarry's warmth, belief in the Partnership's ideals and democratic principles, and appreciation for its unique brands were highlighted as key qualities.

The announcement comes as the John Lewis Partnership reported a pre-tax profit of £42 million before exceptional items for the year ended 27 January, up from a £78 million loss the previous year. White, who was criticized by some for her lack of direct retail experience, noted that Tarry's "combination of fantastic retail experience with leadership through transformation" will be valuable.

Tarry, who joined Tesco's graduate program in 1990 and led its UK and Ireland business for six years, said he is looking forward to working closely with the Partnership's chair, Nish Kankiwala, and the executive team to deliver the company's clear strategy. He expressed his admiration for the Partnership's employee-ownership model, values, and Partner-led customer service, stating that his focus will be on being "brilliant retailers for customers and investing in growth.”

John Lewis Partnership hires ex Tesco UK CEO as new chair

What: China is sneezing and luxury brands are catching a cold.

Why it is important: This impacts all retailers involved with luxury brands in the world.

The luxury fashion industry in Europe is facing uncertainty due to subdued demand from China, impacting major brands differently. Kering reported a significant drop in first-half profits, attributing it to low demand in Asia, particularly China, alongside challenges in revitalizing its Gucci label. This announcement led to a six-year low in its share prices. Similarly, Ermenegildo Zegna experienced a decline in revenues in the first quarter due to poor performance of its Thom Browne brand in the Greater China region.

Contrastingly, Prada has seen strong demand for its Miu Miu brand and continued growth in Asia. Moncler and Hermes are expected to report their earnings soon, which could provide further insights into the sector's health. Despite positive reports from LVMH and L'Oréal, concerns remain about the Chinese market's recovery and its impact on luxury brands that have heavily invested in the region. Deloitte's Ira Kalish highlighted several economic challenges in China, including a property crisis and trade disputes, which could slow growth. The luxury market in China, which saw substantial growth from 2017 to 2021, now faces a tougher environment where only the strongest brands may thrive.

Industry leaders are hopeful for Chinese government stimulus to rejuvenate consumer confidence and spending. Meanwhile, brands like Chanel, Hermes, and LVMH’s Louis Vuitton, with a stable clientele of older, wealthier consumers, are well-placed to weather the storm by enhancing marketing efforts and retail experiences.

LVMH remains committed to expanding in mainland China, despite internal debates about the pace of growth. Kering is also adapting by strengthening its local management and resuming in-store activities, though it acknowledges that results from these efforts will take time to materialize.

China’s prolonged recovery shadows luxury sector’s future

What: The Robin Report asks if, instead of talking about tech disruption, we are not simply living a moment when retailers could connect the dots to be more efficient.

Why it is important: Not everything is about GenAI to make things work in retail.

Rather than being consumed by the next wave of retail disruption, 2024 presents an opportunity for retailers to thoughtfully integrate technology innovations to optimize operations and enhance customer experiences. The article highlights several examples of leading retailers successfully implementing technology.

RFID is a standout, with Levi's and PacSun reporting significant benefits. Levi's can now track inventory in real-time, freeing up merchandisers to focus on execution. PacSun has seen labor savings and shrink reduction from their RFID deployment. Uniqlo's flagship store also pioneered frictionless checkout using RFID.

In the realm of personalization, retailers are leveraging data and AI to create more tailored, authentic connections with customers. Saks personalizes online product recommendations, while H&M curates in-store music playlists for Gen Z shoppers.

The article contrasts these success stories with Kohl's misstep. In 2014, Kohl's had the chance to deploy RFID across its stores but failed to do so. This inability to track inventory data contributed to Kohl's $302 million operating loss in 2022, serving as a cautionary tale on the importance of adopting technology proactively.

The key message is that rather than fearing disruption, retailers should strategically leverage technology to optimize their operations and enhance the customer experience.

Is it wise to talk about retail disruption, or simply tech evolution?

What: Central Group is actively seeking a new partner to take over the remaining stake in Selfridges from the faltering Austrian co-owner Signa, with potential buyers from the Middle East and China showing interest.

Why it is important: This move by Central Group is crucial as it aims to stabilize and consolidate ownership after Signa's financial troubles. The outcome of these negotiations will significantly influence the strategic direction and stability of Selfridges, affecting its competitive positioning in the global luxury retail market.

Central Group, based in Thailand, is in discussions with various potential investors, including several sovereign wealth funds and private investors, to find a new partner for its Selfridges investment. This search comes after the co-owner Signa faced financial difficulties, necessitating a change in partnership. Interest has been shown by entities such as Saudi Arabia’s Public Investment Fund and possibly the Qatar Investment Authority, which owns luxury department stores like Harrods and Lane Crawford. Central Group aims to maintain a controlling stake in Selfridges, having already increased its share to 65% in the operating company through the conversion of a loan into equity. This strategic move highlights Central's commitment to retaining a significant influence over Selfridges’ future, ensuring the brand's stability and growth in the luxury retail sector.

Central's search for new Selfridges partner goes on, reportedly in talks with possible buyers

What: Adrian Joffe discusses the innovative and rule-defying approach behind the upcoming Dover Street Market (DSM) Paris, emphasizing a strategy of "no rules" and a focus on creating unique retail experiences.

Why it is important: Dover Street Market Paris represents a significant development in retail, merging historical architecture with modern retail innovation. Joffe's approach challenges traditional retail norms and offers a fresh perspective on consumer interaction, store design, and brand collaboration. This approach could influence future retail strategies and the integration of physical stores with cultural and experiential offerings.

In an interview, Adrian Joffe, alongside DSM director Kate Coffey, unveils the philosophy behind the new Dover Street Market Paris. Scheduled to open next month in the historic Hôtel de Coulanges, DSM Paris is set to redefine retail boundaries. The store will feature designs by Rei Kawakubo that ensure installations do not touch the building's original structure, likening them to "spaceships that have landed." Unlike traditional department stores, DSM Paris will mix luxury brands without allowing individualized brand spaces, maintaining an egalitarian presentation. The store will also host various cultural events in a versatile basement area named 'The Helix.' This approach not only aims to enhance the shopping experience but also solidifies DSM's role as a leader in avant-garde retail, blending fashion with art and community activities.

‘There are no rules’: Adrian Joffe on Dover Street Market Paris and the future of retail

What: Major department store chains in Japan have reported net profits surpassing pre-pandemic levels for the year ending February, boosted by robust sales to overseas tourists and renewed confidence among domestic shoppers.

Why it is important: This financial rebound is significant as it highlights the recovery and growth of the retail sector in Japan following the economic downturn caused by the COVID-19 pandemic. The surge in profits reflects not only the return of international tourism but also an increase in domestic consumer spending, indicating a strong resurgence in both global and local economic activities.

J. Front Retailing and Takashimaya, major players in Japan's retail market, have both reported exceptional annual earnings. J. Front Retailing, which operates Daimaru Matsuzakaya Department Stores, announced a net profit of approximately 30 billion yen (USD 194 million), more than doubling its profits from the previous year and exceeding earnings from four years prior. The company attributed this performance to high sales of luxury items to domestic consumers and record-breaking tax-free transactions with international tourists. Similarly, Takashimaya posted a record group net profit of 31.6 billion yen (USD 205 million), marking a 13.6% increase from the year before. These results underscore a robust recovery and optimistic outlook for the retail industry in Japan, propelled by both returning tourists and spending by local consumers.

Department store profits in Japan top pre-pandemic levels

What: Nordstrom has launched a new digital marketplace platform, aiming to significantly expand its online product assortment while maintaining a curated, customer-centric approach.

Why it is important: This initiative represents a strategic expansion of Nordstrom's digital presence, enhancing its competitiveness in the e-commerce sector. By broadening its product offerings and enabling easier access to emerging trends, Nordstrom aims to improve customer engagement and revenue, aligning with consumer demands for a more diverse and dynamic online shopping experience.

Nordstrom's new digital marketplace, part of its strategic push for digital growth, went live with a selection of brands that include Dippin’ Daisy’s, Maison de Sabre, and Tracksmith. The platform aims to triple the online product assortment in the coming years while ensuring the offerings meet Nordstrom's high standards for quality. This move is designed to complement the existing in-store experience by leveraging a marketplace model, where Nordstrom handles customer interactions and service directly, distinguishing it from other marketplace models. The company plans careful expansion of this platform to ensure quality and customer satisfaction. This strategic shift underscores Nordstrom's commitment to adapting its business model in response to evolving market conditions and consumer preferences.

Nordstrom.com wants to become the ‘Spotify of fashion’ with new marketplace

What: Frasers Group has acquired certain intellectual property assets of the luxury e-tailer Matches Fashion after previously putting the firm into administration.

Why it is important: This acquisition is significant as it demonstrates Frasers Group's continued interest in Matches Fashion, despite the challenges in turning around the business. By acquiring intellectual property assets, Frasers Group may be aiming to revitalize the brand in a new format or integrate its valuable aspects into its broader business strategy.

Frasers Group, after initially buying and then placing Matches Fashion into administration due to challenges in its business turnaround, has now acquired specific intellectual property assets of the luxury retailer. Announced via a stock exchange notification, the acquisition allows the administrators to continue selling existing stock, which is not included in the deal, for the benefit of the administration process. The details of the transaction were not fully disclosed, including the purchase price. This acquisition follows a series of bids from various parties interested in parts of Matches Fashion, indicating Frasers Group's strategic interest in retaining control over certain valuable aspects of the Matches brand. The future plans for utilizing these assets remain undisclosed, leaving the industry watching closely as Frasers Group shapes its next steps in the luxury e-commerce space.

Frasers to buy Matches... or at least, certain "intellectual property assets"

What: Falabella has finalized the sale of its shopping center assets in Peru to Mall Plaza for USD 589 million.

Why it is important: This transaction is significant as it simplifies and consolidates Falabella’s real estate operations in Peru, aligning with its strategic goal of streamlining its structure and operations. This consolidation under Mall Plaza will enhance operational efficiencies and scale, positioning Mall Plaza as the largest shopping center operator in South America. The deal not only influences the commercial landscape in Peru but also impacts regional market dynamics by expanding Mall Plaza's presence and operational capabilities.

In a strategic move to streamline operations, Falabella has sold its 66.6% stake in Mall Plaza Peru and its complete stake in Open Plaza Peru to Mall Plaza for $589 million. This sale gives Mall Plaza full control over these entities, significantly expanding its portfolio to include a total leasable area of 619,000 square meters across 15 properties in Peru. This expansion is part of a broader strategy to strengthen Mall Plaza's market share and commercial offerings in South America. The transaction, valued at USD 848 million including operational cash, aims to create a more efficient and unified real estate operation. It will be financed through a mix of cash, debt, and a USD 300 million capital increase. This reorganization is expected to drive growth and operational synergies, benefiting both Mall Plaza and Falabella.

Falabella will sell shopping center assets in Peru to Mall Plaza for almost USD 600 million 

What: L'Ensemble, a by-appointment luxury retail store, is opening in Brooklyn's Dumbo neighborhood.

Why it is important: This new store introduces a unique shopping experience that mimics the personalized service traditionally reserved for fashion buyers. It emphasizes customer experience, offering one-on-one consultations and a curated selection of brands, reflecting a growing trend in retail towards more personalized and intimate shopping environments.

L'Ensemble, founded by Dawn Nguyen and Agata Hewett, is set to open its doors in Dumbo, Brooklyn. This by-appointment store at 55 Washington Street aims to bring the bespoke buying experience to everyday consumers. The store spans 2,276 square feet and will feature a mix of established and emerging brands including Proenza Schouler, Y's by Yohji Yamamoto, and Gigi Hadid's Guest in Residence. Prices range from affordable to high-end, catering to a diverse clientele. The founders aim to differentiate through a highly personalized service, expecting word-of-mouth to be their primary marketing tool. The store’s design includes vintage furniture and a serene atmosphere to enhance the shopping experience.

A new by-appointment shopping experience comes to Brooklyn’s Dumbo

What: NGO Earthsight's investigation links Better Cotton-certified Brazilian cotton used by H&M and Zara to illegal deforestation.

Why it is important: This revelation challenges the credibility of sustainable certifications and underscores the necessity for stringent oversight and transparency in fashion supply chains to truly address environmental impacts.

An Earthsight investigation revealed that cotton certified by Better Cotton, used in H&M and Zara products, originated from Brazilian producers SLC Agrícola and Grupo Horita, currently under investigation for deforestation and land grabbing. Despite being certified as sustainable, these producers have a history of environmental infractions dating back to 2008. The investigation traced the cotton through global supply chains to prominent fashion retailers, highlighting the lack of direct oversight in certification processes. H&M and Zara parent Inditex responded by stressing ongoing dialogues and improvements with Better Cotton. The case exemplifies broader issues within fashion supply chains where reliance on certifications does not always equate to actual sustainability, raising significant questions about the effectiveness of current regulatory measures in preventing environmental degradation.

H&M, Zara Certifier Better Cotton linked to illegal deforestation in NGO report

What: A significant portion of consumers is open to using generative artificial intelligence (AI) for online clothing shopping, with many seeing potential benefits in virtual try-ons and personalized shopping experiences.

Why it is important: The growing interest in generative AI among shoppers indicates a shift towards more personalized and confident online shopping experiences. Retailers incorporating AI tools for tasks like virtual try-ons, product filtering, and customer service can enhance customer satisfaction, streamline operations, and optimize marketing strategies.

Adobe's survey highlights the evolving landscape of online retail, where generative AI plays a crucial role in enhancing the shopping experience. With 58% of consumers already finding their online shopping improved by AI and 52% willing to use AI for clothing purchases, the technology is set to transform how consumers shop for fashion. Key anticipated uses of generative AI include creating custom items, summarizing product reviews, and automating product recommendations. This interest is mirrored in the marketing realm, where a majority of marketers are integrating AI into their strategies to deliver personalized experiences and achieve operational efficiencies. As the retail industry embraces AI, it also faces the challenge of implementing these technologies responsibly, guided by principles such as customer trust and governance.

More than half of shoppers would use generative AI for clothing purchases: Adobe

What: Nordstrom, the US department store chain, is making a second attempt to delist from the stock exchange due to ongoing sales declines and challenging market conditions.

Why it is important: This move highlights the broader struggles within the US retail sector, particularly for department stores, which are grappling with shifting consumer behaviors, the rise of online shopping, and economic pressures. Privatization could offer Nordstrom more agility to make necessary strategic adjustments without the immediate pressures from public markets.

Nordstrom's decision to pursue delisting, led by CEO Erik Nordstrom and President Pete Nordstrom, reflects a strategic effort to regain control and flexibility in steering the company during turbulent times for the retail industry. The Nordstrom family, controlling a significant portion of the company's shares, had previously attempted privatization in 2017 but was unsuccessful. With the aid of financial advisers from Morgan Stanley and Centerview Partners, they aim to better navigate an increasingly competitive landscape that has seen a steady decline in market share for department stores and the shuttering of established names like Barneys. The attempt to move away from public scrutiny is seen as a crucial step towards implementing more effective transformations and tackling the challenges posed by the evolving retail environment.

Nordstrom's delisting highlights challenges in the US retail market

What: Wealthy people are less willing to spend on sustainable products.

Why it is important: People in a higher income bracket are less likely to pay more for sustainable goods.

Innovation to create sustainable beauty and fashion products and their packaging can be costly. But it’s not the wealthiest consumers that are the most interested in spending for eco-friendly practices, according to a new study by venture studio and brand incubator Squared Circles. The company has invested in brands like Nutrafol, which sold to Unilever, and $135-sweatshirt brand Pangaia.

The new research report, out on April 22, finds that over half of its 3,000 survey respondents are willing to make lifestyle changes to support sustainability. Sixty-four percent of those surveyed said they “recognise the need to compromise the way we live to ensure sustainability.” But that number drops when it comes to paying higher prices for sustainable products and practices, especially among consumers in a higher income bracket.

Among the surveyed group, 52 percent expressed a willingness to pay 10 percent more for a sustainable product. However, when excluding respondents with a household income below $100,000, this percentage decreases to less than half, at 45 percent.

Lukas Derksen, co-founder of Squared Circles, noted that wealthier consumers tend to scrutinize their spending habits more closely, which may explain their reluctance to pay higher prices for sustainable products.

Gen X respondents, particularly those categorized as "Conscious Maximalists," expressed skepticism about sustainable products, with 27 percent more likely than average to strongly agree that such products don't live up to the hype.

On the other hand, the youngest segment of surveyed consumers, mainly aged 18 to 45 and identified as "Passive Activists," showed greater willingness to spend on sustainability. Seventy-six percent of this group believe that companies should be able to charge 10 percent more for sustainable products, with 70 percent willing to make the purchase. Interestingly, income levels did not significantly affect these attitudes, as both higher and lower earners in this group demonstrated similar willingness to support sustainability, with 74 percent agreeing that lifestyle compromises are necessary for sustainability.

However, quality remains a non-negotiable factor for most consumers when it comes to sustainability. Only 35 percent stated they would purchase a product with lower performance if it were more sustainable.

The wealthy are less willing to spend on sustainable products

What: Moncler, Zara, and Sephora are among the latest brands to join Royalmount, a new mixed-use development in Montreal, slated to open in August.

Why it is important: Royalmount is poised to transform Montreal's retail landscape by introducing a large-scale, luxury shopping and lifestyle destination. The project represents a significant investment in the local economy and is set to become a key gathering spot for both residents and tourists, offering a unique blend of shopping, dining, and entertainment.

Royalmount, a USD 7 billion development located in central Montreal, is gearing up for its grand opening in mid-August. This ambitious project will feature a mix of high-end retail stores, restaurants, offices, and entertainment venues, all centered around a lush central park. Newly announced tenants include major brands like Zara, Nike, Moncler, and Sephora, joining previously confirmed luxury names such as Louis Vuitton and Gucci. Developed by Carbonleo, Royalmount aims to satisfy the local demand for luxury goods and experiences, positioning itself as a premier fashion destination in eastern Canada. The development is notably one of the first 100% carbon-neutral, mixed-use projects in the Americas and will offer easy access via a skybridge from the De la Savane metro station.

Moncler, Zara, Sephora latest brands to join Royalmount in Montreal

What: Nordstrom Inc.'s CEO Erik Nordstrom's total compensation increased to USD 4.5 million in 2023.

Why it is important: This pay raise reflects efforts to stabilize and grow Nordstrom amid varying performance across its segments, particularly the success of the Nordstrom Rack off-price chain.

In 2023, Nordstrom Inc.'s CEO, Erik Nordstrom, received a 30.8% increase in total compensation, amounting to USD 4.5 million. This increase was mainly through stock and option awards, complementing his salary and incentive pay. The compensation details, shared in a proxy statement, highlight the financial strategies amidst operational challenges. Nordstrom Rack, the company’s off-price division, displayed significant improvement, which bolstered the company’s overall performance. The retailer is focusing on enhancing customer experience and merchandise assortment, aligning with broader industry trends towards digital integration and personalized shopping. As Nordstrom continues to evolve, the executive pay structure reflects its strategic efforts to fortify its market position and expand its consumer base.

Nordstrom CEO Erik Nordstrom’s Pay Increased to USD 4.5 Million in 2023

What: Inside Retail reviews Central Retail’s financial report to understand the overall situation

Why it is important: in short, Central Retail is “cautiously confident” for macro-economic reasons and in spite of good performances.

Central Retail in Thailand sees moderate sales growth and plans expansion, facing a "K-shaped" economic recovery with varied sector growth. The tourism boost supports retail, with international visitors nearing pre-Covid levels. Central, with vast mall and store operations in Thailand and Vietnam, notes rental revenue and mall traffic increases. Fashion sales rise, while hardline and food segments see modest growth. Expansion includes various large-format stores and wholesale units, emphasizing tourism and store count as growth drivers amidst economic challenges.

Unpacking Central Retail’s financial report

What: Westminster City Council approves Lazari's redevelopment plans for the former Fenwick department store on New Bond Street, London.

Why it is important: This redevelopment reflects a significant transformation in the use of prime real estate in central London, signaling a shift towards more office space while preserving retail elements. It represents the evolving dynamics of city center spaces, catering to current market demands and the continuous allure of Bond Street for retail. The project aligns with broader trends of adapting historic sites to modern needs, ensuring financial stability for traditional retailers like Fenwick.

The former Fenwick department store, a fixture on London’s New Bond Street for 130 years, is set for a major redevelopment after Westminster City Council approved plans submitted by Lazari Investments. Fenwick vacated the building in February following its sale to Lazari for EUR 430 million. The redevelopment will involve partial demolition and reconfiguration of the building and five others at New Bond Street and Brook Street junction. The plan will significantly increase office space from 24,617 square feet to 175,043 square feet across the second to ninth floors and decrease retail space from 132,310 square feet to 50,504 square feet on the ground and first floors. This strategic move by Lazari, driven by an appreciation for the building's architecture and Mayfair's charm, aligns with Fenwick's objective to solidify its financial foundation for future sustainability. Fenwick plans to use the proceeds to fund a EUR 40 million redevelopment of its Newcastle flagship, indicating a commitment to revitalizing its physical retail presence while adapting to changing retail landscapes.

Lazari’s Fenwick department store redevelopment plans gets green light