What: A new study by Boston Consulting Group and the World Retail Congress reveals that increased investment in innovation correlates with higher returns in the retail sector.

Why it is important: The report highlights the necessity for retailers to adapt to technological changes and shifting consumer expectations. Retailers that invest significantly in innovation, such as AI, e-commerce, and operational improvements, not only achieve higher returns but are also better positioned to compete in a rapidly evolving marketplace.

Research from Boston Consulting Group and the World Retail Congress indicates that retail leaders who invest heavily in innovation tend to outperform their peers. The study, based on a survey of over 400 global retail executives, shows that high-performing retailers invest 13% of their revenue in innovation and see a 21% return on investment (ROI). In contrast, those investing only 3% achieve a 9% ROI. Key areas of focus for these investments include operational improvements, e-commerce enhancements, and big data/AI/analytics. The report stresses the importance of embracing a culture of creativity, experimenting with multiple initiatives, and developing partnerships to sustain innovation. This approach is crucial as retailers face challenges from economic pressures and the integration of new technologies.

Retail leaders who invest more in innovation will see higher returns, report says

What: The competitive landscape in China's fast fashion industry is intensifying as local high street giants compete fiercely with global brands like H&M and Zara, leveraging their deep understanding of local preferences and rapid trend adaptation.

Why it is important: This competition underscores the shifting dynamics in China's retail sector, where local brands are gaining ground by appealing to hyper-local trends, offering better fit and competitive pricing. Unlike their global counterparts, these local players are doubling down on the domestic market, capitalizing on "guochao" (national pride) movements and consumer's increasing confidence in local quality. This trend challenges the traditional dominance of international fast fashion brands, forcing them to rethink their strategies, from product offerings to marketing and collaboration efforts.

As Chinese consumers become more discerning and rational in their purchases, local fast fashion brands like Metersbonwe, Peacebird, and Semir are thriving by catering to local tastes, preferences, and value for money. They're leveraging digital platforms like Tmall, Taobao, and Douyin to reach a wider audience, quickly adopting new trends and engaging in creative collaborations to stay relevant. Meanwhile, global brands face mounting challenges, from geopolitical tensions to changing consumer behaviors accelerated by the COVID-19 pandemic. Despite these hurdles, there's potential for foreign brands to regain their footing by localizing offerings, forging meaningful collaborations, and harnessing the power of online retail. However, to truly compete, they must adopt a "contender mindset," embracing the nuances of the Chinese market and investing in strategies that resonate with local consumers' evolving preferences.

Can H&M and Zara compete with Chinese rivals?

What: AI in the corporate environement is in a strange situation, both overrated on the short range and underestimated on the long one.

Why it is important: We believe at IADS that AI is still, in spite of the many headlines, in its infancy and that this tech is actually a game changer that CEOs need to take seriously.

The article discusses the significant impact of AI on the market and industries, highlighting both optimism and caution around its adoption. It references Amara’s Law, suggesting that while we might overestimate AI's short-term effects, its long-term impact is likely underestimated. With AI adoption accelerating, examples from companies like L’Oréal and various fintechs show promising efficiency and productivity improvements. Despite challenges in measuring AI's adoption and success, the article suggests staying invested in AI as a crucial theme for the coming decade, emphasizing its potential to drive significant productivity gains starting from 2025.

Investors are still underestimating the long-term impact of AI

What: Francisco Irarrázaval, corporate general manager of Falabella Retail, spoke about the company's strategic shifts and the future of retail at eCommerce Day Chile 2024.

Why it is important: Falabella's strategies, including a renewed focus on omnichannel experiences and adjustments to its digital identity, are pivotal as the company adapts to a rapidly changing retail environment influenced by globalization and digital transformation. These changes are significant for maintaining competitive advantage and meeting evolving consumer expectations in a highly interconnected market.

At eCommerce Day Chile 2024, Francisco Irarrázaval, corporate general manager of Falabella Retail, detailed the company’s recent strategic shifts and vision for the future in a dialogue moderated by Marcos Pueyrredon of the eCommerce Institute. The discussion covered various topics from digital transformation and sustainability to enhancing customer experience and the strategic utilization of physical stores in an increasingly digital marketplace.

Irarrázaval explained the rationale behind recent changes at Falabella, including the reintegration of falabella.com with its retail management and the return to traditional brand colors, which aligns with a broader strategy to leverage Falabella’s physical assets and brand equity to compete more effectively on a global scale. He acknowledged the initial attempt to unify the group's online presence under a single color and platform was part of a larger vision to centralize operations and improve user experience, but it inadvertently distanced some customer segments.

The talk also highlighted Falabella’s commitment to sustainability, aiming for net-zero emissions by 2035 and integrating eco-friendly products into their collections, which have been well received by consumers. Irarrázaval's insights revealed a deep understanding of the complexities of modern retail, including the need for agility in the face of rapid technological change and global competition. He stressed the importance of maintaining a balance between global trends and local advantages, which he likened to the strategic approach of David versus Goliath.

Overall, Irarrázaval's presentation underscored Falabella's proactive approach in navigating the challenges of retail globalization, the digital economy, and consumer behavior shifts, emphasizing a strategic pivot back to core strengths and an enhanced omnichannel shopping experience.

Francisco Irarrázaval discusses Falabella's strategic shifts at eCommerce Day Chile 2024

What: countries increasingly review their approach to de minimis, the low value parcel tarriff exemption system, as this give a competitive advantage to some.

Why it is important: Chinese fast fashion built its model on this loophole in the US and EU

The de minimis threshold, which exempts low-value imported parcels from tariffs, varies significantly by country, with the UK at £135, the EU at €150, and the US at $800. These thresholds reduce administrative burdens and promote international trade for small businesses, supported by organizations like the World Customs Organization and OECD. The economic rationale behind these thresholds is that the cost and administrative intensity of collecting tariffs on low-value items often outweigh any potential revenue gains.

However, the US's high threshold is facing political criticism for allegedly aiding Chinese companies in undercutting American competitors and facilitating illicit activities such as tax evasion and drug trafficking, according to statements by U.S. Trade Representative Katherine Tai and Ohio Senator Sherrod Brown. The U.S. is considering legislation to remove this threshold for Chinese goods already under Section 301 tariffs.

Concurrently, the EU is moving towards eliminating its de minimis threshold, driven by a desire to combat fraud and increase revenue, with customs duties being a significant source of EU funds. A proposed change could raise an additional €1 billion per year by shifting tariff collection responsibilities to large e-commerce platforms, following the EU's approach to import VAT.

These changes indicate a shift in policy that could make online shopping more expensive in both the US and the EU, reflecting broader economic strategies rather than merely addressing issues like tariff evasion or illicit imports.

E-commerce: more regulation in parcel shipment to come

What: Thailand's Central Group aims to acquire real estate assets from the insolvent Austrian property company Signa, including high-profile properties like KaDeWe in Germany and Selfridges in London.

Why it is important: This acquisition would not only expand Central Group's portfolio in the luxury retail sector but also signify a significant shift in ownership of prime real estate assets amid Europe’s ongoing real estate crisis. It highlights the growing influence of Asian investors in the global retail and real estate markets.

Central Group, a major Thai retailer, is set to make a bold expansion in the global luxury retail market by potentially acquiring key assets from Signa, an Austrian property company facing insolvency. The assets in question include notable luxury department stores such as KaDeWe, Alsterhaus, Oberpollinger, and Globus, alongside the iconic Selfridges in London. Central Group's interest in Signa’s luxury portfolio marks a strategic move to deepen its involvement in the high-end retail sector, building on its existing investments. Signa, founded by Rene Benko, has been heavily impacted by the real estate crisis in Europe, leading to insolvency claims running into billions of euros. This potential acquisition by Central Group underscores the dynamic shifts within the luxury retail and real estate landscapes, highlighting the resilience and strategic ambitions of global players amidst challenging market conditions.

Thailand’s Central Group eyes acquiring Signa retail assets

What: The Musée des Arts Decoratifs in Paris hosts an exhibit exploring the transformative role of department stores in shaping modern consumer culture.

Why it is important: This exhibit is significant as it illustrates how department stores revolutionized shopping by turning it into a leisure activity, promoting mass-produced fashion, and enhancing women's social freedom.

"The Birth of Department Stores" at the Musée des Arts Decoratifs in Paris examines the emergence of department stores in Paris during the Second Empire. The exhibit showcases how these stores became centers of consumption and fashion democratization, coinciding with major urban architectural changes under Napoleon III. Featuring a mix of clothing, advertising materials, furniture, and archival footage, the exhibit highlights the pivotal role of department stores in promoting new marketing strategies and lifestyle aspirations. It also delves into the social implications, particularly for women, who found new freedoms and employment opportunities within these retail spaces. Through various displays, the exhibit connects the historical impact of department stores on modern retail practices and consumer culture.

‘The Birth of Department Stores’ Exhibit Dives Into Origins of Consumption, Marketing and Trends

What: Shein is planning to white-label its logistic capabilities to other brands

Why it is important: Combine this with the AI current craze (a feature also embedded in to Shein’s model) and the recipe is perfect for many brands to delve into this appealing proposal.

Shein, the China-founded bargain fashion empire, is planning to open up its pioneering small-batch manufacturing model to global brands and designers through a new initiative called "supply chain as a service." This move represents a shift in Shein's business strategy as it faces challenges in the U.S., its biggest market.

Under this plan, Shein will make its supply-chain infrastructure and technology available to outside brands and designers, allowing them to leverage Shein's system for testing new fashion items in small batches and tracking consumer demand. This capitalizes on Shein's revolutionary manufacturing model, which contracts with thousands of factories in China to churn out tens of thousands of new styles daily, relying on real-time data to analyze demand and replenish orders as needed.

While Shein has faced pushback from Western regulators and politicians over concerns like forced labor in its supply chain, as well as stiff competition from another budget retailer with Chinese roots, Temu, the company delivered record-hitting annual revenue and profit in 2023, according to its executive chairman Donald Tang.

By opening up its supply chain to global brands, Shein is refocusing on its powerful capabilities to manufacture and distribute fashion products efficiently, leveraging its strengths in this space where it doesn't directly compete with Temu's broader product offerings.

Shein to market its supply-chain technology to global brands

What: Le BHV Marais partners with the prestigious Tajan Auction House for an exclusive spring cleaning event, offering free expert valuations and an auction.

Why it is important: This collaboration introduces an innovative blend of retail and art auction culture, providing an exceptional opportunity for clients to uncover the value of their treasures and participate in an auction within a department store setting. It signifies a unique cultural and commercial venture, enhancing the traditional shopping experience with the allure of the art market.

From March 30 to May 12, as part of its Spring Cleaning event, Le BHV Marais announces a groundbreaking collaboration with Tajan Auction House. For over three decades, Tajan has been a pivotal meeting point for art collectors and enthusiasts, conducting numerous auctions annually and achieving significant records. This partnership allows customers to have their art and precious objects appraised by expert auctioneers for free. The appraisal sessions, focusing on various specialties including paintings, luxury accessories, jewelry, and watches, will take place on April 4, 6, 23, 24, and 27 at BHV Marais, and on April 5 at BHV Parly 2. An exceptional auction event will follow on May 16 at BHV Marais, where selected items from the appraisals will be sold. This event not only offers a glimpse into the hidden value of personal treasures but also transforms the department store into an exciting auction venue, making the intriguing world of art auctions accessible to a broader audience.

Le BHV Marais Collaborates with Auction House Tajan for a unique spring cleaning event

What: Macy’s introduces a new exclusive menswear collection honoring The Divine Nine historically black fraternities.

Why it is important: This collection strengthens Macy's commitment to diversity and inclusion, directly connecting with its social purpose platform, Mission Every One. By collaborating with The Divine Nine, Macy's not only celebrates African American culture and fraternity traditions but also supports broader educational and community service initiatives through substantial donations to foundations chosen by The Divine Nine organizations.

Macy's has unveiled an exclusive menswear collection designed to celebrate and honor the historically black fraternities known as The Divine Nine. The collection includes a variety of menswear such as polos, blazers, cardigans, and accessories, all reflecting the signature colors and ethos of the organizations like Alpha Phi Alpha, Kappa Alpha Psi, and others. Created in partnership with Tayion Collection's Montee Holland, a participant in Macy’s diversity initiatives, and featuring items from Stacy Adams and Macy's Club Room, the collection ranges from formal wear to casual styles.

This initiative is part of Macy’s social purpose platform, Mission Every One, which aims to empower leaders and foster representation. Macy’s plans to donate $3 million by January 2025 to foundations supported by The Divine Nine, contributing to their missions of academic excellence, community service, and brotherhood. Prices for the collection start at $49, and it will be available online and at select Macy’s stores by July 2024. This collaboration not only provides members of The Divine Nine with apparel that celebrates their heritage but also supports the ongoing philanthropic and community-focused efforts of these fraternities.

Macy's unveils exclusive menswear collection in honour of The Divine Nine

23

What: London's Westfield London and Westfield Stratford are set to host the London Eid Festival, celebrating Eid al-Fitr, with expectations to draw over 300,000 visitors.

Why it is important: This festival not only marks a significant cultural and religious celebration but also highlights the role of major shopping centers in fostering community spirit and engagement. The success of the previous year's festival underscores the potential for such events to drive foot traffic and enhance the shopping experience, offering a blend of entertainment, retail diversity, and cultural festivity.

Westfield London and Westfield Stratford are gearing up to host the London Eid Festival this April, following the event's success in 2023. Expected to attract over 300,000 visitors, the festival will celebrate Eid al-Fitr with an array of activities and entertainment. The festivities, running from April 12-14 at Westfield London and April 19-21 at Westfield Stratford, will feature fashion, boutique items, and homewares from eight different countries, alongside live performances, children’s choirs, Qawwali bands, and DJ sets. Katie Wyle, Head of Shopping Centre Management at Unibail-Rodamco-Westfield, emphasized the festival's significance in bringing together and celebrating diverse communities. These events showcase the shopping centers' commitment to leveraging cultural celebrations as a means of drawing in visitors and strengthening community ties in the post-pandemic landscape.

Eid festival back at London Westfield sites after 2023 success

What: John Lewis is making its job interview questions publicly available online to attract and assess candidates more effectively.
Why it is important: This initiative aims to democratize the recruitment process, allowing candidates from diverse backgrounds to better prepare for interviews. It addresses the talent shortages affecting 80% of UK companies, aiming to streamline the hiring process and ensure a fit between the candidates’ skills and the company's needs.

John Lewis has introduced a novel approach to recruitment by publishing its interview questions on a dedicated website, allowing prospective employees to prepare thoroughly. Lorna Bullett, the talent acquisition lead at John Lewis, emphasized that this transparency is intended to attract diverse and talented individuals capable of demonstrating their true potential. Despite the availability of questions, the interview process will remain stringent, with additional follow-up queries ensuring that responses are based on genuine experience. This strategy not only aids applicants in better preparation but also enhances the efficiency of the selection process amidst significant talent shortages reported across the UK.

John Lewis to reveal job interview questions online to find ‘the best talent’

What: Bloomingdale's has launched a new camp-inspired pop-up space called "Camp Bloomingdale's.”

Why it is important: This initiative revitalizes in-store shopping by creating a themed, interactive experience that appeals to all ages, potentially increasing customer traffic and sales. It merges retail with nostalgia and experiential activities, aligning with consumer desires for engaging shopping environments.

Bloomingdale’s introduced its latest 'Carousel' pop-up, "Camp Bloomingdale’s," which is designed to be the ultimate summer destination offering a diverse product range that includes swimwear, accessories, and beauty essentials. Highlighted brands in the pop-up include Coleman and Summer Camp sunscreen, with an emphasis on camp-inspired collections from Mother Denim, Free City, and Vintage Havana. The store features exclusive items like fanny packs and s’mores kits and offers engaging activities such as a customization bar and bracelet-making station. Launched at the flagship on 59th St, the pop-up is also accessible online and in select locations, combining traditional shopping with interactive experiences to draw in a wide range of customers.

Bloomingdale's opens camp-inspired pop-up space

What: New federal regulations cap credit card late fees at USD 8, impacting department stores like Macy’s and Kohl’s which heavily rely on revenue from store-branded credit cards.

Why it is important: This rule change is critical because it directly affects the profitability of store-branded credit cards, a significant revenue source for department stores already facing financial pressures. The reduction in late fees could further squeeze the financial health of these retailers, influencing their overall business strategies and customer loyalty programs.

Department stores, already under stress from soft selling trends, face a new challenge as a federal rule caps credit card late fees at USD 8, potentially slashing a lucrative revenue stream. Historically, store-branded credit cards have been vital for retailers like Macy’s and Kohl’s, not only for driving purchases but also for their substantial fees and interest earnings. These cards, issued by banks such as Synchrony Financial and managed through perks and loyalty points, encourage customer spending and retention. However, with the new cap starting this spring, these retailers must navigate the reduced profitability of their credit programs while continuing to incentivize customer loyalty and spending. This regulatory change is part of broader financial dynamics, including the rise of alternative payment options like buy now, pay later services, challenging the traditional credit card model. The impact of this rule will necessitate strategic adjustments in how department stores manage and promote their credit offerings.

Department stores face another squeeze. This time, with store credit card revenue

What: Galeria Karstadt Kaufhof, Germany's last major department store chain, is set to receive new ownership following its third bankruptcy in four years.

Why it is important: This transition marks a critical phase for the traditional retail sector in Germany, reflecting broader challenges such as rising operational costs and changing consumer behaviors. The acquisition by a consortium including U.S. private equity firm NRDC Equity Partners and German businessman Bernd Beetz could stabilize the company and save thousands of jobs by maintaining most of its current stores.

Galeria Karstadt Kaufhof, Germany’s sole remaining major department store chain, is poised for a takeover by a consortium led by NRDC Equity Partners and Bernd Beetz's BB Kapital SA, after declaring its third bankruptcy in recent years. The chain plans to retain over 70 of its 92 branches, aiming to preserve the majority of its 12,800 positions. This move comes after the company faced severe financial strains due to high energy costs, inflation, and reduced consumer spending, exacerbated by the COVID-19 pandemic. The finalization of this takeover is contingent on the approval of Galeria’s creditors and a court in Essen, with a creditors' meeting scheduled for May 28. The consortium's leaders express a long-term commitment to revitalizing and expanding the storied retail chain, indicating a hopeful future for the employees and the brand itself.

Germany's last department store chain is to get new owners after its latest insolvency

What: SM holding is planning to open 4 new malls, 3 of which are in new regions.

Why it is important: SM expands in every retail format but makes sure they own all walls as well.

SM Investments Corporation is actively enhancing its footprint across the Philippines, aiming to broaden its influence in various sectors including retail, real estate, hospitality, banking, and logistics. e company is poised to open four new malls through its property division, SM Prime Holdings. These will include one in Metro Manila and three others in provincial locations, reflecting a strategic geographical diversification.

In addition to its mall expansion, SM Investments is planning significant growth in its grocery segment. The company's minimart chain, Alfamart, is set to augment its network by adding at least 400 new stores by year-end.

SM Investments plots expansion to more regions in the Philippines

What: The Financial Times reviews the emergence of a new C-suite position, the Chief AI Officer.

Why it is important: Is that something truly needed or is it just a trend fad?

The rise of generative AI has led to a sharp increase in the number of companies hiring a designated "Chief AI Officer" (CAIO) to oversee the deployment of AI and manage the associated opportunities and risks. The CAIO role requires a blend of technical AI expertise and strong business acumen to drive transformation, identify new revenue streams, and mitigate ethical/security challenges.

CAIOs are sought after across industries, particularly in finance, healthcare, and consumer sectors, but tend to have backgrounds in computer science and business rather than cutting-edge AI research. Their responsibilities focus more on governance, change management, and "socializing the tech" within the organization, versus being on the bleeding edge of AI development.

While the CAIO position has significantly grown in the past 5 years, its long-term viability is uncertain. Some argue the role should be decentralized, with AI expertise spread across functions. Others believe CAIOs will adapt, potentially through fractional/part-time models for smaller companies. Ultimately, the CAIO represents a critical bridge between AI capabilities and business impact, even as the specific responsibilities may evolve.

The rise of the Chief AI officer

What: The Essen District Court has opened insolvency proceedings for Galeria Karstadt Kaufhof, marking a crucial step towards rescuing the department store chain from bankruptcy.
Why it is important: This development allows creditors to register claims against the company and advances discussions with potential new owners. With "60 plus X" branches expected to remain, the outcome of these proceedings and subsequent negotiations will significantly impact the future of Galeria Karstadt Kaufhof, its employees, and the retail landscape in German city centers.

Galeria Karstadt Kaufhof's journey through its third bankruptcy in three and a half years has reached a pivotal moment with the Essen District Court's initiation of insolvency proceedings. Stefan Denkhaus, appointed as the insolvency administrator, is now steering the company towards a potential sale, with final decisions pending a creditor meeting set for May 28th. The insolvency has been described as "bitter" for the employees by the Verdi union, highlighting years of wage concessions made in hopes of job preservation. The negotiations' focus is on maintaining a viable branch network and securing reasonable rent agreements, especially for the "60 plus X" branches that are aimed to continue operations. The insolvency underscores the challenging retail environment and the importance of strategic investments and negotiations in securing the future of department store chains in urban centers.

Insolvency proceedings opened for Galeria Karstadt Kaufhof

What: Hudson Yards in New York City has transformed into a leading shopping destination, overcoming initial skepticism and pandemic challenges through a dynamic mix of stores, restaurants, and attractions.

Why it is important: The success of Hudson Yards highlights the potential for mixed-use developments to thrive even in the face of significant obstacles, such as public criticism and global health crises. By continuously adapting its retail, dining, and entertainment offerings, Hudson Yards has managed to draw both locals and tourists, contributing significantly to the city's economy and reshaping perceptions of the area.

Initially met with criticism for its perceived lack of soul and luxury orientation, Hudson Yards has defied detractors by evolving into one of New York's most frequented malls. Following a rough start marked by the departure of major tenants like Neiman Marcus and the impact of COVID-19 lockdowns, the development has rebounded impressively. Last year, it saw a 19% increase in average monthly visits, outpacing other renowned shopping centers. This turnaround is attributed to Related Companies' strategic remerchandising efforts, which have introduced a balanced mix of high-end and accessible retail options, diverse dining experiences, and unique attractions like the Edge sky deck. The blend of offerings caters to a wide audience, including nearby residents, office workers, and international visitors. Hudson Yards' resurgence as a vibrant community hub and shopping destination underscores the resilience and adaptability of brick-and-mortar retail in a rapidly changing landscape.

How Hudson Yards defied its haters and became New York’s top mall

What: Investment company Andreessen Horowitz reviews how the corporate world is adapting to Generative AI.

Why it is important: For now, major companies are still building their own apps rather than buying them off the shelf.

The article discusses the significant growth and potential of generative AI in the enterprise sector for 2024. After observing consumer behavior in 2023, enterprises are expected to notably increase their budgets for generative AI, expanding its application and transitioning more workloads to production. Enterprises are exploring multiple AI models to tailor solutions to specific use cases and are increasingly turning to open-source models for greater control and customization. The focus is on building in-house applications, with a keen interest in internal productivity tools, while cautiously approaching external customer-facing applications due to concerns about AI reliability and public perception.

16 changes to the way companies are building and buying Generative AI

What: Xydrobe, in collaboration with Harrods, will introduce a virtual reality cinema experience on the 5th floor of the luxury department store starting in June, offering a 10-minute multisensory journey for up to 20 guests.

Why it is important: This initiative marks a significant advancement in retail innovation, merging technology with luxury to create immersive brand narratives. By engaging all the senses, this experience not only enhances customer engagement but also sets a new benchmark for interactive shopping experiences, potentially revolutionizing the future of retail in the luxury sector.

Harrods, in partnership with VR cinema pioneer Xydrobe, is set to transform the luxury shopping experience with the introduction of a virtual reality cinema. This multisensory platform, capable of hosting 20 guests, will immerse participants in a 4D environment that includes visuals, sound, scent, and wind, offering brand-specific narratives that change monthly. This ambitious venture aims to deepen the connection between luxury brands and their customers, leveraging cutting-edge technology to drive engagement and sales. With the rise of immersive VR in retail, this experience represents a forward-looking approach to blending storytelling with innovation, offering a glimpse into the future of interactive and engaging shopping environments.

Harrods to host multisensory cinema experience

What: Richard Baker is expected to acquire the bankrupt Galeria in Germany.

Why it is important: This move signifies a significant expansion of Richard Baker's retail and real estate portfolio, highlighting his strategic investments in the global retail landscape. Galeria's bankruptcy, resulting from the financial turmoil of its parent company Signa, opens a new chapter under potential ownership by NRDC Equity Partners. This acquisition could reshape the future of one of Germany's major retail chains, merging with Baker's expansive network in the retail sector.

Galeria, the amalgamation of the Kaufhof and Karstadt retail chains in Germany, declared bankruptcy following the financial downfall of Signa. NRDC Equity Partners, led by Richard Baker and associated with notable figures like Bernd Beetz, is poised to acquire the retailer. This acquisition, expected to be announced soon, marks a critical expansion for Baker, who has a history of successful investments in the retail and real estate sectors. The potential purchase of Galeria adds to Baker's portfolio, emphasizing his influence and strategic positioning in the global retail market.

Richard Baker in bid to buy Galeria in Germany

What: Duty free in Japanese department stores is exceeding expectations.

Why it is important: Thank the touristic influx fuelles by the weak Yea.

In March, Japan witnessed a substantial increase in duty-free sales at its department stores, which escalated almost 2.5 times year-over-year to a record-breaking 49.5 billion yen ($320 million). This surge, the highest since records began in October 2014, was primarily fueled by the weak yen and coincided with a high influx of tourists during the cherry blossom season. This period also marked the ninth consecutive month that sales exceeded pre-pandemic levels of 2019. Additionally, the number of duty-free shoppers reached a new high for March, totaling 454,000 according to the Japan Department Stores Association.

Overall, same-store sales among 177 stores run by 71 companies rose by 9.9% to 510.9 billion yen, continuing a 25-month streak of growth. Despite the positive impact of the yen's depreciation on sales, an association official highlighted the accompanying challenges, notably the increased costs of imported goods due to the currency's weakness. The yen fell to a 34-year low against the U.S. dollar by the end of March, prompting concerns about the need for a more balanced economic approach.

Japan’s March duty-free sales at department stores surge to record high

What: Hugo Boss defintively exits Russia.

Why it is important: The Russian counterpart of Finnish Stockmann (now Lindex), JSC Stockmann, a retailer, now hold all operations in the country.

Hugo Boss is set to exit its Russian operations by selling its business to JSC Stockmann, a wholesale partner, as reported by Reuters. This decision marks the termination of Hugo Boss's direct involvement in Russia, a move prompted by the geopolitical tensions in the region. The German fashion retailer halted its online sales and store operations in Russia in March 2022, according to Interfax.

Hugo Boss to divest Russian business to Stockmann