What: Dillard’s has launched 'The Coterie Shop,' a new luxury designer initiative available online and in select stores, aiming to attract luxury shoppers with exclusive collections.

Why it is important: This move signifies Dillard’s strategy to diversify and upscale its merchandise offerings, aligning with broader trends among department stores to revamp product assortments and cater to more affluent consumers.

Dillard’s, in an effort to rejuvenate its merchandise offerings and appeal to luxury shoppers, has introduced 'The Coterie Shop.' This initiative, announced on February 20, 2024, features an exclusive selection of luxury designers, including Abbey Glass, Buru, Crosby by Mollie Burch, and Fanm Mon. The Coterie Shop offers both special occasion and casual attire, marking a significant shift towards high-end fashion for Dillard’s. This initiative is part of a larger trend among department stores like Macy’s and J.C. Penney, which have also been diversifying their product lines with new private labels and collaborations.

The Coterie Shop is now available in select Dillard’s locations across multiple states, including Alabama, Arkansas, Arizona, Florida, Georgia, Kentucky, Louisiana, North Carolina, Oklahoma, South Carolina, Tennessee, and Texas. This move comes after Dillard’s reported sales declines in three consecutive quarters of 2023, indicating a strategic pivot to boost sales and attract a more upscale clientele. Alexandra Dillard Lucie, Dillard’s vice president of merchandising, expressed excitement about introducing customers to the unique and captivating pieces created by the featured brands’ talented artisans. This initiative represents Dillard’s commitment to enhancing its merchandise mix and customer experience amidst the evolving retail landscape.

Dillard’s goes after luxury shoppers with ‘The Coterie Shop’

What: Buy Now, Pay Later (BNPL) apps, initially popular among Gen-Zers and Millennials for making impulse purchases without immediate full payment, are facing challenges as they mature. These include uncertainties about long-term profitability, rising interest rates, and concerns over encouraging unwise debt levels among consumers.

Why it is important: The BNPL sector, which saw a dramatic rise in usage with online shopping's surge during the pandemic, is at a crossroads. With a broadening user base that now includes retirees and those on fixed incomes, and major players like Klarna experiencing significant valuation drops, the future of BNPL services is under scrutiny. The industry's evolution is critical for understanding consumer credit behavior, regulatory responses, and the financial health of the fintech sector.

Buy Now, Pay Later (BNPL) apps, which allow consumers to defer payments through installments, have expanded rapidly since their inception in the early 2010s. Initially targeting younger consumers wary of traditional credit cards, BNPL services like Klarna, Afterpay, and Affirm have broadened their appeal to include a wider demographic, including retirees. However, the sector faces significant challenges, including a massive drop in valuation for companies like Klarna, increased competition, rising interest rates, and growing regulatory and consumer concerns over debt accumulation. Despite these hurdles, BNPL remains a popular payment option, with its use expected to continue growing. The industry's future will likely involve increased regulation, a focus on responsible lending, and possibly a consolidation of players as it seeks sustainable business models.

How ‘buy now, pay later’ apps are changing as they mature

What: Kith introduces a multi-tiered loyalty program, offering members exclusive merchandise, early access to products, VIP event invitations, and more.

Why it is important: The move by Kith to debut a loyalty program underscores the growing trend among retailers to enhance customer engagement and retention through exclusive rewards and experiences. This strategy reflects the competitive landscape of the retail industry, where brands seek to foster a strong community of loyal customers by providing unique value and incentives beyond traditional purchasing transactions.

Kith has rolled out its Kith Loyalty program, a three-tiered initiative designed to reward its customers with a range of exclusive benefits, including custom items, early product access, and VIP event invitations. To celebrate the launch, Kith released the Molecule Exclusives collection, featuring apparel, accessories, and limited-edition footwear in collaboration with Adidas. The program encourages active participation by allowing members to earn points through various interactions, such as contests, app engagement, and store visits. This launch aligns with a broader industry trend where brands like Under Armour and Hanna Andersson are investing in loyalty programs to enhance customer loyalty and drive engagement, indicating a shift towards more personalized and experiential retail strategies.

Kith debuts loyalty program with members-only merch

What: The GMB union has issued a warning to the John Lewis Partnership regarding potential staff walkouts if the company does not engage in discussions about its plan to eliminate 11,000 jobs over the next five years. The union demands urgent talks with chairwoman Sharon White to provide clarity and representation for the workforce.

Why it is important: This situation underscores the tension between the need for business restructuring and the rights of employees to fair representation and information about job security. The John Lewis Partnership's proposed job cuts represent a significant reduction in its workforce, aiming to decrease costs by EUR 900m. The move has sparked concerns among employees and the GMB union, highlighting the importance of transparent communication and negotiation in organizational changes.

The John Lewis Partnership, owner of Waitrose, faces potential industrial action from its employees, represented by the GMB union, over plans to cut 11,000 jobs within five years. The union has requested an urgent meeting with the company's chairwoman to discuss the job cuts and seek meaningful representation for the workers. Approximately 250 John Lewis and Waitrose partners are members of the GMB union, which has threatened to ballot workers for a strike if their demands are not met. The company has responded by stating it will reply to the GMB's letter. This development follows reports of the partnership's intention to significantly reduce its workforce to lower its cost base, alongside accusations from the GMB of discouraging union membership among employees. The John Lewis Partnership maintains that its employee-owned structure offers many union benefits without any cost, emphasizing that partners are free to join a union.

John Lewis partnership faces potential strike over job cuts

What: Janelle Lloyd, a well-known influencer and fashion industry veteran, is appointed as the new women’s ready-to-wear fashion director at Bloomingdale’s.

Why it is important: Lloyd's diverse background in buying, brand management, and digital influence, combined with her strong social media presence, positions her to bring fresh insights and a modern approach to Bloomingdale’s fashion direction, signaling the retailer's commitment to evolving its brand and staying relevant in the rapidly changing fashion landscape.

Janelle Lloyd steps into her role as Bloomingdale’s women’s ready-to-wear fashion director, bringing a wealth of experience from her previous roles in buying, brand management, interior design, and digital marketing, including a stint at Google. Lloyd, who began her career at Bloomingdale’s, returns to the upscale retailer with a strong following on social media and a successful online shopping newsletter, "Wait, You Need This." Reporting to Kevin Harter, vice president of integrated marketing, Lloyd joins the fashion office at a pivotal time, with her first tasks including covering the fall 2024 collections at New York and Paris fashion weeks. Her appointment follows significant leadership changes at Bloomingdale’s and underscores the retailer's focus on integrating diverse expertise and digital savvy into its fashion strategy.

Bloomingdale's welcomes Janelle Lloyd as new RTW Fashion Director

What: Kering, the luxury conglomerate behind brands like Gucci, Saint Laurent, and Balenciaga, reported a 4 percent decline in fourth-quarter revenues on a comparable basis, with full-year sales also falling.

Why it is important: The sales dip highlights challenges in Kering's turnaround strategies, especially for its flagship brand Gucci. As the luxury market sees varying degrees of success among competitors, Kering's performance lagging behind giants like LVMH and Richemont raises concerns. Investors and analysts are keenly awaiting further commentary on future margins and strategies to revitalize the group's leading brands.

Kering's latest financial results reveal a 4 percent drop in fourth-quarter revenues and a 2 percent decrease in full-year sales on a comparable basis, totaling EUR 19.6 billion for 2023. The slight miss in operating profit, which came in at EUR 4.75 billion, has prompted analysts to focus on the upcoming earnings call for insights into Gucci's margin outlook and the overall strategy to address the sales slump. Gucci's recent rebranding efforts under new designer Sabato De Sarno and the unexpected downturns at Balenciaga and Bottega Veneta, despite favorable market trends, are among the key issues that Kering needs to address to reassure investors and stakeholders of its recovery and growth potential.

Kering sales dip 4% in holiday quarter

What: Fashion retailers and brands are increasingly turning to generative AI technologies to gain a competitive advantage, enhancing customer experiences and operational efficiency.

Why it is important: As the fashion industry faces a slowdown, attracting and retaining top-tier customers becomes crucial. Generative AI offers a way to personalise shopping experiences, streamline operations, and foster customer loyalty, making it a key differentiator in a crowded market.

Generative AI is transforming the fashion retail landscape by offering personalised and immersive shopping experiences. Industry leaders like Accenture, XY Retail, and Blue Yonder emphasise the technology's potential to humanise digital interactions, optimise store layouts, and improve customer service. However, successful implementation requires a clear understanding of business objectives, good data management, and careful consideration of ethical use and integration with existing systems.

Retailers must prioritize enhancing the customer experience, identifying and addressing specific pain points with AI solutions. For example, Adidas and The Very Group have utilised Amazon Bedrock and vision OS apps, respectively, to improve customer engagement and personalisation. Despite the excitement, experts caution against rushing into AI investments without a strategic plan, highlighting the importance of aligning AI initiatives with business goals and customer needs.

The article underscores the need for a multifaceted approach to AI adoption, focusing on creating value for both the company and its customers. By carefully evaluating the technology's impact on their business model and ensuring ethical and responsible use, retailers can harness generative AI to stay ahead in the competitive fashion industry.

Harnessing generative AI: the new frontier for fashion retailers

What: Kroger drops the idea of having stores without human cashiers.

Why it is important: While self-checkout can provide some perks for some customers, going too radical can prove counter productive.

Kroger is reintroducing cashier-staffed checkout lanes at its Oak Lawn store in Dallas, reversing a three-year experiment with exclusive self-checkout, a move prompted by customer feedback. This store, located at 4142 Cedar Springs Road, was unique in Kroger's U.S. portfolio of 2,700 stores for its all self-checkout format since February 2021. The adjustment reflects a broader retail trend where despite a significant portion of transactions occurring through self-service options—29% in 2022 according to FMI—customers' preferences for staffed checkouts persist. Major retailers like Walmart, Target, and Costco maintain a mix of self-service and cashier-staffed lanes, indicating the continued relevance of traditional checkout experiences. Target and H-E-B have implemented item limits on self-checkouts to streamline the process, with H-E-B introducing lanes for baskets of 25 items or less in some locations. Walmart's attempt at an all self-checkout store in Plano was short-lived, reinforcing the need for offering customers the choice between self-checkout and traditional cashier-assisted lanes.

Kroger abandons of 100% self-checkout stores

What: Kotva, the iconic department store in Prague, will close for 3 years in order to be rebuilt and upgraded.

Why it is important: Here also, the purpose is to go upscale and close the gap with the nearby Parizka street

The iconic Kotva department store in Prague 1 is set to undergo a comprehensive three-year reconstruction starting from February 1, aiming to rejuvenate its status as a premier shopping destination in the heart of Prague. Owned by Generali Real Estate, the renovation will preserve the store's mixed-use function, featuring shops, offices, and a restaurant. The renovation, beginning mid-year, includes creating a new circular entrance on the underground level and closing the current entrance to the Albert supermarket.

Kotva's rich history began in the 1970s, constructed by Swedish firm Siab and inaugurated in 1975. Known for its distinctive hexagonal design and five floors, it attracted up to 75,000 visitors daily in its prime. However, post-communism, its allure waned amid growing competition. The City of Prague’s Institute of Planning and Development aims to enhance the surrounding public spaces significantly. In anticipation of the closure, tenants have been offering substantial discounts, with some already vacating. Despite the transformation, officials promise to retain Kotva's characteristic appearance, with oversight by the original architects' successors. The revamp is speculated to introduce upscale retail, aligning with nearby Pařížská Street's luxury offerings. Details of the reconstruction remain undisclosed, with a prior renovation undertaken between 2020 and 2021. Public engagement on the project's impact on adjacent spaces is expected to occur later this year.

Prague’s department store to close for renovation until 2027

What: Kering has terminated its contract with Farfetch, planning to remove its brands from the platform by the second quarter of the year. This decision comes after Farfetch's acquisition by South Korean e-commerce giant Coupang, raising concerns about the future relationship between luxury brands and the marketplace.

Why it is important: Kering's withdrawal from Farfetch signifies a significant shift in the luxury e-commerce landscape, highlighting the challenges faced by multi-brand platforms in maintaining partnerships with luxury conglomerates. It also reflects the growing trend of luxury brands focusing on direct-to-consumer sales through their own e-commerce channels, seeking greater control over pricing, product assortment, and customer data.

Farfetch's acquisition by Coupang has led to Kering ending its partnership with the e-commerce platform, marking a significant loss for Farfetch as Kering's brands contributed over USD 100 million in gross merchandise volume annually. In response, Farfetch plans to offer high-end brands on its site through third-party boutiques, ensuring "complete anonymity" to avoid backlash from luxury brands. This strategy aims to bypass direct dealings with brands while still offering their products. Kering's move, along with Neiman Marcus Group's decision to abandon Farfetch's e-commerce software for Bergdorf Goodman's online revamp, underscores the luxury industry's cautious stance towards Farfetch's future under Coupang's ownership. As luxury brands increasingly invest in their own e-commerce sites, platforms like Farfetch face challenges in maintaining their relevance and partnerships in the luxury market.

Kering is pulling its brands from Farfetch

What: Target is relaunching its Up&Up private label, introducing hundreds of new products and reformulating 40% of the brand to adhere to higher quality standards.

Why it is important: This initiative aims to bolster the brand's appeal and sustainability, responding to consumer feedback for improved quality and packaging. It underscores Target's commitment to enhancing customer experience and sustainability in its product offerings.

Target announced the relaunch of its Up&Up private label, a move aimed at expanding the brand's product assortment and elevating quality standards in response to consumer feedback. The relaunch includes the addition of hundreds of new products across various categories, including oral care, moving supplies, food storage, and dog grooming supplies, with a significant portion of the brand's products being reformulated to meet higher quality standards. Target has also updated the packaging for better visibility and sustainability, incorporating feedback from occupational therapists to improve user comfort and ease of use.

Since its inception in 2009, Up&Up has grown into a popular brand within Target, generating nearly USD 3 billion in annual sales. The expansion and improvement of the Up&Up brand are part of Target's broader strategy to offer value and innovation through its nearly 50 owned brands, which collectively generate USD 30 billion in annual sales. Target's efforts to revitalize its private label offerings, including partnerships with major brands and the introduction of store-within-a-store concepts, aim to continue driving market share growth and enhancing the overall customer experience.

Target relaunches Up&Up private label, adds hundreds of products

What: A recent study conducted by Splitit and Pymnts reveals that installment plans linked to general-purpose credit cards significantly enhance sales and customer satisfaction in the retail sector. The research, titled "Divided, Not Conquered: Acquirer and Merchant Confusion Clouds Split-Payments Landscape," indicates a growing trend among merchants to adopt or improve their systems to accept these types of payments.

Why it is important: This shift towards installment payment options reflects a broader change in consumer payment preferences, offering benefits such as fewer declined transactions, quicker processing times, and increased transparency in payment processes. Notably, 76% of merchants anticipate a rise in consumer use of these installment plans, suggesting a demand for more flexible payment solutions that can lead to higher consumer spending and improved shopping experiences.

The Splitit-Pymnts study highlights the positive impact of credit card installment plans on both merchants and consumers within the retail industry. With 78% of merchants either planning to or currently enhancing their capability to accept installment payments, this payment option is poised to drive sales growth and elevate customer satisfaction. The findings underscore the importance of early communication about payment options to consumers, with 30% of merchants recognizing the need to inform customers about their payment choices at the beginning of the customer journey. As the retail landscape evolves, installment payment plans emerge as a key strategy for merchants looking to align with consumer preferences and achieve competitive advantage.

Credit card installment plans: a win-win for retail

What: After having raised pay for staff, Walmart turns it attention to managers.

Why it is important: Granting stock options to managers is a true innovation in retail… but how realistically scalable is it?

Walmart is increasing compensation for its store managers to enhance retention and reward their pivotal role in operations. Managers will receive up to $20,000 annually in company stock, vesting over three years, and see their average salary rise from $117,000 to $128,000. Additionally, potential bonuses can reach up to 200% of the base salary, with a greater emphasis on store profitability. This move reflects the increased responsibilities of store managers, especially since the Covid pandemic, in managing diverse departments and significant sales volumes. Walmart's strategy, as outlined by CEO John Furner, is to incentivize managers to act and think like owners, acknowledging their critical contribution to the company's success.

Walmart gives stock options to retain store managers

What: Central Group aims to strengthen its control over Selfridges following the news of Signa group assets being put up for sale.

Why it is important: As Signa faces well-publicized challenges, Central Group is poised to capitalize on the situation, potentially consolidating its position within Selfridges Group.

Central initially gained majority ownership of the Selfridges operating company and is now expected to pursue the property division as well. Signa's property unit, Signa Prime Selection, has filed for insolvency, signaling the potential sale of assets valued at around €19.3 billion to recover creditors' money. The Selfridges property company is currently in talks for fresh funding with its backers. Central's interest in bolstering its hold on Selfridges Group is highlighted by its conversion of a loan into equity, equipping it with majority ownership of the operating division. The collaboration between Selfridges Central and Signa led to the acquisition of Selfridges Group for approximately £4 billion, with both parties owning a 50% stake.

Central likely to boost control of Selfridges as property assets come up for sale

What: The Parisian department store will inaugurate on March 18 a new space called "Minimal Chic", with brands combining minimalist approach and elegance.

Why it is important: The fourth floor of the women's building was redesigned to free up 187 square meters dedicated to this new space in beige and camel tones. Thirteen brands are available including Rohe, The Loom, Bourrienne, Alamelu, By Malene Birger , Skall Studio, Adolfo Dominguez and St.Agni.

Printemps Haussmann dedicates a new space to the “quiet luxury” trend

What: LVMH reported a 5.5% increase in sales in Q4, driven by strong performances in its fashion and leather goods division, selective retailing, and perfume and cosmetics divisions.

Why it is important: This growth, despite economic and geopolitical challenges, highlights LVMH's resilience and the sustained demand for luxury goods, signaling industry trends and consumer behaviour in the luxury sector.

LVMH's Q4 results showed a 9% rise in organic sales for its fashion and leather goods segment, contributing to a total sales increase of 5.5% to EUR 23.95 billion. The company achieved record full-year revenues in 2023, with total sales rising 8.8% to EUR 86.15 billion. However, net profit growth of 8% to EUR 15.17 billion fell short of expectations. LVMH attributes its success to the appeal of its brands and plans to continue investing in marketing. The company is also undergoing governance changes, with Alexandre and Frédéric Arnault set to join the board of directors. LVMH's performance contrasts with mixed results from other luxury peers, indicating its unique position in the luxury market.

LVMH sales rise 5.5% in Q4 as fashion division maintains momentum

What: A “virtual human” has launched the first fashion collection of such type ever.

Why this is important: Virtual Humans can drive traffic and increase awareness for retailers, as shown by Lulu from Brazilian retailer Magazine Luisa.

China's first hyper-realistic digital human, AYAYI, has launched a fashion brand named after herself. The brand blends physical and digital elements ("phygital"), using augmented reality (AR), mixed reality (MR), and generative AI to enhance customization and the consumer experience. The inaugural collection, "Dimensional Explorer," inspired by wingsuit flying, features garments each paired with a digital avatar, created through innovative digital assets and AIGC technology exploration.

In addition to real models, AYAYI herself appears in digital form modeling these outfits. A promotional video highlights the collection's minimalist street-style clothing alongside AR avatars exploring urban and mixed reality landscapes.

AYAYI, developed by Ranmai Technology using Epic Games’ MetaHuman in Unreal Engine, was China's first MetaHuman. She has already made a mark as a virtual influencer in various campaigns and is now venturing into phygital fashion, bridging the gap between the digital and real worlds.

A phygital fashion collection has been launched by a virtual human

What: Fifth and Madison Avenues are experiencing a retail revival, with vacant storefronts being repopulated by top designer and brand stores, leading to a resurgence on these world-class avenues.

Why it is important: This revitalization is attributed to landlords allowing rents to settle at more reasonable levels, tourists returning to the city, and a renewed global interest in shopping in physical stores post-pandemic.

The post-pandemic period has seen designers and brands gaining more confidence in managing online and store operations, leading to increased store openings and integration of selling channels. Specifically, Madison Avenue, from 57th to 72nd Streets, has seen a significant recovery and stabilization, with the availability rate for vacant spaces dropping to under 20% from the pandemic peak of 40%. The avenue has witnessed a flurry of store openings, relocations, and expansions, particularly in the fashion and luxury segment, demonstrating confidence in reinvesting in the area. While Madison Avenue's space is tightening, it still faces uncertainties related to potential developments in certain properties.

Fifth Avenue, on the other hand, has also seen high-profile store openings, indicating a transition and renewed confidence in the future of the avenue. However, there are still available stores and ongoing transitions in certain sections of Fifth Avenue, suggesting a continued evolution in the retail landscape of the area.

Fifth and Madison Avenues’ retail revival

What: Walmart is closing its innovation unit, Store No. 8, which was established to foster technological advancements and compete with Amazon. The closure will see the departure of Scott Eckert, who led the unit.

Why it is important: This move signifies a strategic shift in Walmart's approach to innovation, indicating a possible realignment of resources and priorities within the company.

Walmart has announced the shutdown of Store No. 8, its technology and business innovation unit, which was instrumental in developing initiatives like in-home delivery and voice shopping. The unit, launched in 2017, was a key player in Walmart's efforts to rival Amazon, focusing on areas such as health and wellness, sustainability, social commerce, and the metaverse. With the closure, Scott Eckert, the senior vice president in charge since June 2019, will exit the company. Walmart's CFO, John David Rainey, stated that the responsibility for future innovations will now be distributed across the company. This decision reflects Walmart's evolving strategy in embracing new revenue streams and adapting to market trends. The announcement comes as Walmart prepares for its fourth quarter and year-end earnings call, following a year where it saw a 5.2% increase in Q3 global revenue but also observed cautious customer spending.

Walmart to close Store No. 8

What: Sandersons boutique department stores experience an exceptional Christmas performance.

Why it is important: This success contrasts with the struggles faced by many independent department stores, making Sandersons a standout performer in the sector. The overall positive Christmas performance underscores an ongoing appetite for luxury brands and investment pieces despite evolving retail trends, showcasing Sandersons' adaptability and relevance in the market.

Despite a challenging economic climate, the indie retailer experienced significant growth, with two-month sales soaring from GBP 564,000 in 2016 to almost GBP 7 million in 2023. The Christmas shopping sales saw a 5% year-on-year increase across their physical and online stores. The co-founder, Mark Dransfield, expressed satisfaction with the sales and footfall figures across the group, highlighting growth in internet sales, especially for discounted luxury items. The stores also announced new additions to their product lineup, including pre-loved luxury handbags from brands like Louis Vuitton and Chanel in collaboration with Xupes, as well as the introduction of Weekend Max Mara, Marella, Hackett, and Boss.

Sandersons sees record Christmas performance

What: The Neiman Marcus Group, in partnership with the Fashion Scholarship Fund (FSF), is supporting 10 college students with scholarships and mentoring for the second consecutive year.

Why it is important: Lana Todorovich of NMG and Peter Arnold of FSF emphasize the importance of nurturing the next generation of changemakers in sustainable and ethical fashion.

The 2024 scholarship recipients come from various universities, with a focus on diverse backgrounds and sustainable fashion careers. Each student receives a USD 10,000 scholarship, mentorship from a Neiman Marcus Group executive, and access to industry events and store programming. The FSF, a fashion education nonprofit, will grant over USD 1.4 million in scholarships in 2024 to 162 students, many of whom are BIPOC, first-generation college students, or Pell Grant-eligible, and provides them with career opportunities, mentorship, and industry access.

Neiman Marcus Group and Fashion Scholarship Fund empower future fashion leaders

What: Harrods opens a very exclusive club in China for its top wealthy customers.

Why it is important: Harrods is going further than luxury brands who already opened such clubs in China. It is all about bringing a very exclusive experience to the top 1%.

Harrods has launched an exclusive private members’ club in Shanghai for 250 affluent individuals. This club offers unique access to Gordon Ramsay's first restaurant in China, a bar with rare Scotch whiskies, and Harrods' private jets. With an annual membership fee of 150,000 yuan, the club aims to attract wealthy Chinese customers as Harrods’ traditional customer base shows stagnant spending. Located in Shanghai's historic Cha House, the club also includes a public tea room and bar. The restaurant offers dishes that blend local flavors with British classics, staying true to Ramsay’s culinary style. The club boasts exclusive offerings like the Louis XIII Rare Cask 42.1 cognac. Harrods’ initiative reflects its strategy to provide a unique lifestyle experience to its Chinese clientele, beyond just online shopping. This move comes as Chinese customers form a significant portion of Harrods' sales, with the company experiencing substantial profit and sales growth.

Harrods opens private members’ club in Shanghai costing £16,500 a year

What: Forbes reviews the announcements made by Walmart between the CES and the NRF event.

Why it is important: they are going big on AI with many different use cases proposed, showing the width of potential applications.

In the past week, Walmart announced several innovative initiatives at CES, emphasizing its push beyond traditional retailing into technological and cultural spheres:

1. GenAI Search: This feature for iOS users offers cross-category recommendations based on specific queries, like preparing for a football party.
2. InHome Replenishment: An anticipatory service where Walmart predicts customer needs and delivers items directly to their refrigerators.
3. Shop with Friends: An AR-based social commerce platform allowing users to create virtual outfits, compare with similar-sized models, and seek feedback from friends.
4. AI Receipt Verification: A computer-vision system to ensure the items in a shopper’s cart match their receipt upon exiting the store.
5. Renewable Energy Goals: Walmart aims to power over 50% of its stores with renewable energy by 2025.
6. Walmart Creator: A new platform for users to post product reviews and recommendations influencer-style, with an opportunity to earn money.
7. Pop Culture Integration: Walmart plans to continue integrating its brand into pop culture, following initiatives like a shoppable holiday rom-com and a Mean Girls tie-in.

These announcements, made at a tech-focused event like CES and ahead of Walmart executives speaking at NRF, indicate Walmart's strategy to follow and expand upon Amazon’s model, focusing on logistics, marketplace, and a broader role in the consumer market.

A look at the most recent announcements made by Walmart, including AI

What: Takashimaya is doing well in Japan, but is closing unprofitable stores.

Why it is important: Is the future of department stores to be focused on a small selection of store units, instead of covering a whole country?

The article discusses the challenges faced by department stores, exemplified by Takashimaya's decision to close its Gifu store. Department stores, often seen as romantic but outdated, face difficulties due to high capital intensity and changing consumer habits. Despite these challenges, operators like Takashimaya have continued to invest in these stores due to their integral role in local communities.

Takashimaya's Gifu store, operational since 1977, is closing due to its inability to agree with the landlord, Heiwa Building Corporation, on necessary upgrades. This store, despite its iconic status, faced issues like deteriorating facilities and changing market conditions, such as low birth rates and an ageing population, impacting its profitability.

Despite the closure in Gifu, Takashimaya as a whole experienced a strong year in 2023. Sales in December increased by 7.5% year-over-year, driven by duty-free luxury sales and domestic fashion spending. Its overseas stores in Singapore, Ho Chi Minh City, Bangkok, and even the initially struggling Shanghai store, showed positive trends. Takashimaya's real estate arm, Toshin Development, also reported favourable conditions in the rental market and involvement in various mixed-use development projects.

The company raised its revenue and earnings guidance for the fiscal year ending February 29, with sales from inbound travellers to Japan estimated at 63 billion yen. This positive performance is reflected in Takashimaya’s stock price increase of nearly 20% over the past year. However, the article points out a significant concentration of sales in just five of its 14 domestic stores, which account for about three-quarters of domestic sales. Other stores, like those in Sakai, Omiya, and Senboku, face structural issues and mediocre sales, highlighting the challenge of long-term sustainability for department stores not located in prime areas. Despite these challenges, there are enough positive indicators to maintain market confidence and keep most stores operational, excluding the Gifu store.

Takashimaya ups expectations as trophy stores kick goals