What: John Lewis will close all its stores for Christmas.

Why it is important: How do you balance employees’ well being with the need for profit?

John Lewis has announced that it will close all 34 of its stores on both Christmas Day and Boxing Day, joining several other retailers in giving staff time off during the festive period. While John Lewis stores will operate normally from December 27 to New Year's Eve, individual store hours may vary. Its sister brand, Waitrose, will also be closed on these days. Other retailers like Aldi, Home Bargains, Iceland, Lidl, Poundland, and The Range will similarly shut their stores on Christmas Day and Boxing Day, with some extending closures to New Year's Day, as part of an effort to give employees a well-deserved break.

John Lewis to close all 34 locations for two days over Christmas to give staff time off

What: Frasers Group has acquired Matches in a GBP 52 million cash deal from its private equity owner Apax.

Why it is important: The acquisition marks a significant move in the luxury retail sector and is poised to provide Matches with the scale, expertise, and financial stability to thrive.

The acquisition aims to bolster Frasers' luxury offering and enhance its relationships with brand partners. Matches CEO Nick Beighton will collaborate with Frasers to strategize the business's future. The sale represents a setback for Apax, which struggled to drive commercial success at Matches. Beighton, with a background at Asos, was appointed to lead Matches, focusing on refining brand curation and operational efficiency. Despite a dip in sales and widened losses in the fiscal year ending January 31, 2023, the business remained resilient under Beighton's leadership.

Frasers Group acquires Matches 

What: Sycamore Partners, a New York-based private equity fund, has shown potential interest in acquiring Macy's Inc.

Why it is important: The potential acquisition of Macy's could result in the sale of parts of the business to recoup costs, considering its real estate value is estimated to be between USD 6 billion and USD 11 billion.

The fund, with around USD 10 billion in committed capital, is reportedly considering a bid for Macy's, with the potential for an all-cash offer. Sycamore's possible interest stems from the opportunity to save on costs by eliminating Macy's board and dividends. The firm is also attracted to Macy's extensive real estate holdings, and unlike other private equity firms, Sycamore tends to hold onto retail brands for several years.

Sycamore has investments in other retailers, such as Staples, Torrid, and Hot Topic, indicating its active role in the retail market. Recently it acquired Chico's FAS Inc. and the  KnitWell Group comprising of Ann Taylor, Loft, and Talbots.

Who else could bid for Macy’s?

What: The complexities and challenges of using AI to predict consumer behaviour in the fashion industry.

Why it is important: Experts caution against overreliance on AI for setting initial buys, emphasizing that it may not fully capture the artistry and intuition involved in trend forecasting and creative decision-making.

While AI offers the promise of more accurate forecasting, the emotional and unpredictable nature of fashion purchases presents a significant hurdle.

AI should be seen as a support tool for experienced merchandisers and creative teams, rather than a replacement for human expertise. AI-driven services, such as in-season reorders and pricing optimization, are gaining traction, yet AI-powered demand forecasting is met with scepticism from brands. Many are cautious about relying solely on AI for initial buying decisions, preferring clear, quantifiable assumptions and intuition.

Retailers face the challenge of making accurate predictions about styles, colours, and sizes far in advance, with lead times of up to 45 weeks, and although AI has the potential to provide more precise forecasts than historical methods by considering a multitude of variables, concerns remain about its readiness to entirely replace human decision-making.

Can AI predict what shoppers will buy?

What: Black Friday in the US was a success. But is it built on sound foundations?

Why it is important: Conditioning customers to low prices and discounts is not new, but it is key for retailers to know the limit before it is too late for them.

US online shoppers set a record by spending $38bn during the post-Thanksgiving period, including $12.4bn on Cyber Monday, the biggest digital shopping day in US history. This 8% increase from last year indicates a potentially lucrative festive season, with higher foot traffic in malls and a rise in credit card spending. Despite negative economic sentiment surveys, retail spending contributed to a significant GDP growth in the third quarter. However, uncertainties remain with slowing labor markets, high mortgage rates, and the resumption of student loan payments, balanced by cooling inflation and lower gas prices.

The surge in online shopping is partly attributed to the convenience of mobile shopping apps and the growth of buy now, pay later programs, raising concerns about overspending. Heavy promotional discounting also drove sales, but this strategy risks hurting profits if it cannibalizes full-price sales.

Retail giants like Walmart and Best Buy have expressed concerns over increasing reliance on discounts. Compared to last year, when consumers shopped early due to COVID-related issues, this year saw more waiting for holiday promotions. This trend might lead to a challenge familiar to brick-and-mortar stores: customers refusing to pay full price and expecting discounts, potentially leading to a post-holiday slump for online retailers.

Black Friday bonanza could lead to a festive hangover for retail

What: According to a study by Sainsbury's RSM UK, retailer-branded labels are expected to drive fashion growth in the UK in 2024.

Why it is important: More budget-conscious consumers are turning to own-brand clothing ranges amidst the cost of living continuing to shape shopping habits.

The study revealed that over a third of consumers are buying more own-brand products than last year. The survey also showed that clothing and accessories saw a six percentage point increase in own-brand product purchases. Additionally, over a quarter of consumers are planning to cut back on clothing and accessories spending in the next three months, with women being more likely to do so.

Despite the trend of adding third-party brands, retailers like Next, M&S, Sainsbury's, and John Lewis are focusing heavily on their own labels, with consumers appreciating their value in difficult times.

Own-brand fashion's appeal to grow in 2024 - UK report

What: The whole business world is focusing on how to master AI, but is it really a silver bullet?

Why it is important: AI is a tool at the service of a vision, not a magical answer to growing complexity in the world.

OpenAI's ChatGPT has rapidly gained popularity, becoming the fastest-growing app ever with around 100 million weekly active users. This success has significantly increased OpenAI's valuation to an estimated $86 billion. However, there is debate about whether this is just hype or a true success story. OpenAI's leadership, including COO Brad Lightcap, acknowledges that aspects of AI are overhyped, particularly with high expectations from enterprise customers. Despite initial underestimations of ChatGPT's popularity, Lightcap remains optimistic about the future potential of AI technologies, though acknowledging the current limitations and challenges.

OpenAI has faced setbacks, including a temporary dismissal of CEO Sam Altman, who was later reinstated. The company continues to deal with technological shortcomings and fluctuating consumer interest. Nevertheless, there is still significant momentum and optimism in the development of AI tools like ChatGPT, with a focus on overcoming current challenges and exploring uncharted potential applications.

OpenAI Sam Altman’s right hand thinks that AI is overhyped

What: Rinascente has launched a lavish Chanel Wonderland takeover, marking a significant holiday season event.

Why it is important: The collaboration with Chanel signifies a pinnacle in Rinascente's strategy as a media company and a remarkable achievement in driving record sales.

The Chanel Wonderland concept encompasses multiple store floors, windows, facade, and arcade, featuring a captivating light show using Twinkly mapping technology and thematic decor. The lower floor is transformed into a dedicated Chanel Beauty universe, boasting an immersive pop-up boutique featuring makeup, skincare, and fragrance products, as well as a temporary café with a French-inspired menu. Various Chanel activations are dispersed throughout the store, including a dedicated shoe corner, an eyewear space, and a permanent Chanel Beauty corner.

Rinascente on track to hit EUR 1b in sales and unveils Chanel takeover

What: In response to the challenges of a difficult 2023, Falabella has implemented a contingency plan involving the reduction of up to 400 jobs across its three main operating markets: Chile, Peru, and Colombia.

Why it is important: The company is focused on an expense reduction plan and asset sales to strengthen its financial position and return to pre-pandemic debt levels.

Falabella has expressed appreciation for the contributions of the affected workers and emphasized a respectful separation process, with intentions to provide benefits to mitigate their situation. This strategic decision comes as the company faces declining financial indicators, a negative rating from Fitch Ratings, and the forthcoming resignation of its general manager effective January 2024.

Falabella cuts 400 jobs in its 3 main operating markets

What: Macy’s Inc. reportedly received a USD 5.8 billion buyout offer, at USD 21 a share, by an investor group including Arkhouse and Brigade Capital Management.

Why it is important: If Macy’s were to accept the bid, it could face the challenge of balancing short- and long-term goals and objectives under new ownership, and its strategies might undergo shifts in alignment with the new owner's vision for the company.

This offer, viewed as low and offering a modest premium, has sparked a 19.4% spike in Macy's stock price, which closed at USD 20.77. The company's future value seems promising, with improved inventory control and the potential for a soft landing of the economy in 2024. The bid represents a 20.8% premium over Macy's market capitalization. The bid is about 5.4 times EBITDA, which represents a historically lower valuation.

The timing is less than ideal for Macy's, as it grapples with a low stock price, ongoing management transition, and soft business performance. The pending transition in leadership, with Tony Spring set to take over as CEO, adds complexity to the situation. An extended bidding war could lead to significant business disruption, posing a vulnerability for Macy’s.

Despite being labelled "a steal" by one source, it's unlikely that Macy's board would accept the reported offer at USD 21.A new owner could decide to break up the group by selling off pieces of the business, such as Bloomingdale’s or Bluemercury, to more than recoup what was paid for the whole company. Macy’s substantial real estate assets, valued between USD 7.5 billion and USD 11.6 billion, also adds to the complexity of the situation.

The advantage of going private is the higher profitability as expenses such as dividends and board member salaries could be cut.

Macy’s reportedly receives USD 5.8B buyout offer from Arkhouse, Brigade

What: Neiman Marcus rejects Saks’s proposed takeover of Neiman for close to $3 billion.

Why it is important: The potential merger would allow the luxury department store chains to negotiate better terms with suppliers and reduce duplicate costs, as the changing landscape of retail and the increasing power of luxury brand owners are creating challenges for department stores.

A merger between Saks and Neiman could result in the closure of some overlapping store locations, as they have multiple stores in the same malls. Neiman's bankruptcy and subsequent restructuring in 2020 helped the retailer shed significant debt, and both chains have experienced fluctuations in luxury goods purchases during the pandemic. The potential agreement is still under negotiation, but a final deal is not expected until early next year.

Neiman Marcus rejects $3 billion takeover bid by Saks

What: AR is quietly making its way in retail and could be as important as AI in the selling process.

Why it is important: AI tends to overshadow all other innovations these days, but some are extremely important to consider.

Augmented Reality (AR) is increasingly influential in retail, offering immersive experiences that blend digital and physical worlds. It's expected to revolutionize consumer-brand interactions, but widespread adoption is still developing. Current AR, like Wayfair's in-app feature, is seen as rudimentary. The industry anticipates more integrated AR applications soon, moving beyond gimmicks to core retail experiences.

Key AR technologies in retail include:

1. Mobile AR: Utilizes smartphones to overlay digital elements onto the real world. Major players include Meta, Google, and Apple.
2. AR Smart Glasses: High-end wearables for precision AR experiences, still largely focused on business applications.
3. WebAR: Offers browser-based AR experiences, though less immersive due to hardware limitations.

Mobile AR is the primary focus for retail, enhancing shopping with virtual product trials, reducing returns, personalizing experiences, and expanding customer outreach. Challenges remain, including clunky execution and consumer adoption hesitance, but AR's potential in retail is vast and transformative. As technology evolves, it's poised to redefine the shopping experience, making it more engaging and interactive.

The AR revolution in retail is (almost) here

What: China used to compete with the rest of the world with its low prices. Now, it has become a national issue.

Why it is important: When someone competes on the price, there is always a newcomer with cheaper options.

Chinese retailers are increasingly focusing on lower-priced goods and services to attract cost-conscious consumers, a trend that risks entrenching deflationary pressures in the world's second-largest economy. This shift is in response to declining income growth and consumer spending. It includes strategies like price cuts, the opening of bargain stores, and the introduction of cheaper product versions, potentially leading to a cycle of reduced profit margins, limited wage growth, and weakened consumer demand.

For example, Haidilao, a major hotpot chain, has launched lower-priced outlets with more affordable menu options and reduced staffing costs. Similarly, Moutai, known for its expensive liquor, has introduced lower-priced latte and chocolate products. Retail giants like Walmart’s Sam’s Club and Alibaba’s Freshippo are engaged in a price war, significantly cutting prices on popular items.

The trend is affecting various product categories, leading to a decrease in average selling prices. This situation is raising concerns about parallels with Japan's "lost decades" of economic stagnation. Despite expectations of economic growth, the consumer sector is not feeling the benefits, with high youth unemployment and some workers facing lower wages. The rise of discount stores and significant price cuts by major brands reflect these changing market dynamics and consumer behaviour.

Chinese retailers’ pricing strategies risk ‘vicious cycle’ of low margins

What: For the BCG, implementing AI mainly means transforming minds.

Why it is important: Tech usage is not a decision, it begins with people.

The promise and complexity of implementing generative AI can delay adoption. Leaders need clarity on where and how it can enhance productivity and transform processes in their organization. BCG's diagnostic provides this clarity so companies can set the right ambitions, define a roadmap, make key choices, and orchestrate the AI-enabled transformation to capture value quickly.

The BCG evaluates the potential productivity impact of AI on every function and activity level. This shows the highest value pools, ensuring companies prioritize the most promising uses of AI. It also assesses how jobs and skills need to evolve to optimize results. This shapes workforce strategy and change management to equip people to harness AI's potential.

With diagnostic insights, companies can set realistic yet aspirational goals for AI, map deployment waves starting with quick wins, make decisions on tracking success and driving adoption, and orchestrate the transformation through coordinated upskilling, workflow redesign, and change management. This creates maximum enterprise value. Without a diagnostic, even digitally mature firms risk wasted investment and missed competitiveness from AI.

BCG's diagnostic cuts through the complexity, so companies can confidently leverage AI to enhance productivity, reimagine processes, support their workforce through the transition, and lead in their industries.

The path to generative AI begins with a workforce diagnostic

What: LLMs come with inherent limitations that leaders need to understand.

Why it is important: The transformative nature of LLMs and GenAI is too important for the mechanisms to be ignored by decision-makers.

Large language models (LLMs) like ChatGPT are transforming businesses with their ability to generate detailed, humanlike responses in plain language and code. ChatGPT rapidly gained 100 million users, and in the first half of 2023, AI startups received over $40 billion in investments, indicating significant interest in LLM applications.

Despite their capabilities, LLMs can be misleading due to their humanlike text outputs, which can be mistaken for human intelligence. Understanding their mechanics and limitations is crucial for effective application in businesses. LLMs predict text sequences using machine learning, with advancements like neural network transformers allowing for more context-aware responses. The model’s size, training data quality and volume, and context window size are key to its performance.

However, LLMs have significant limitations:

1. Reasoning: They struggle with complex logical reasoning, often producing errors in multistep logical tasks.
2. Knowledge/Expertise: LLMs are limited by their training data and can generate outdated, incorrect, or "hallucinated" information.
3. Understanding: They may not fully grasp the context or details of prompts, leading to incoherent or disjointed responses.
4. Planning/Execution: LLMs can suggest impractical or naive actions due to limited understanding and reasoning capabilities.

In business, these limitations can lead to unreliable outputs. Effective application requires complementing LLMs with human oversight and other technologies. Keeping humans in the loop is essential for validating AI-generated content and translating complex business problems into effective prompts.

To enhance LLMs, researchers are working on augmenting them with reasoning engines, domain-specific training, and reinforcement learning from expert feedback. Businesses should stay informed about these advancements and carefully consider the context in which LLMs are deployed, especially in high-stakes or logic-intensive scenarios. Proper understanding and application of LLMs, combined with complementary technologies and human oversight, can maximize their potential while mitigating risks.

The Working Limitations of Large Language Models

What: The Galeria Karstadt Kaufhof may soon be put up for sale following the insolvency of its parent company, Signa Holding.

Why it is important: The German Trade Association (HDE) is concerned about the potential impact of Signa's insolvency on Galeria, noting the importance of department stores in city centers for attracting customers and benefiting neighboring businesses.

The managing director of the KaDeWe Group, which includes the Berlin KaDeWe and is partially owned by Signa Holding, expressed confidence in their independent financial stability. The German Association of Cities has called for cities to be involved in discussions regarding the future of Galeria locations and for changes in insolvency law to allow cities access to central properties in such cases.

Retail experts are skeptical about Galeria's future, doubting the likelihood of finding an investor interested in taking over the group. The Thai trading company Central Group, a major shareholder in KaDeWe, might consider acquiring individual Galeria locations in major cities.

Galeria could soon be put up for sale

What: Heinemann, a duty-free operator, tries to create a new approach to travel retail by redesigning its stores in a more compelling way.

Why it is important: new categories and new products are being introduced, such as Pet care, which in the end might force department stores to follow suit to remain on the same page with travellers.

Heinemann Australia has launched the first domestic airport terminal department store concept at Sydney Airport's Terminals 2 and 3, a development first mentioned in December 2022. This 2,270 square meter retail space offers the largest beauty selection in any Australian domestic airport, along with fashion, accessories, watches, jewelry, chocolates, sweets, gifts, wines, and spirits.

The store features a significant focus on Australian fashion, incorporating local brands such as PE Nation, Rebecca Vallance, Nobody Denim, Status Anxiety, and Alemais. Luxury resortwear brand Camilla is also available, following its earlier launch with Heinemann at Sydney Airport.

Heinemann's beauty section boasts over 65 brands, including health and well-being-focused products like Vida Glow and Kissed Earth, and a range of clean beauty products. The fragrance line-up includes new and exclusive brands like Creed and Juliette Has a Gun.

A unique addition is a category for pet lovers, featuring brands like Frank Green and Pet Friendly Co. Pet Friendly & Co also offers a personalization service for dog harnesses, a first in a physical store.

The store's design, inspired by Sydney's coastlines, features organic lines and ceiling designs mimicking waves, intended to guide customers and enhance their shopping experience. Terminal 2 includes a prominent engagement zone for pop-ups.

George Tsoukalas, Heinemann Australia's Managing Director, expressed excitement about showcasing national and international brands to the high volume of travelers at Sydney Airport. Sydney Airport's Executive General Manager Commercial, Mark Zaouk, echoed this sentiment, highlighting the partnership's role in enhancing passenger experience.

This opening coincides with a strong recovery in domestic travel, with Sydney Airport's domestic passenger numbers in October reaching 86% of pre-pandemic levels. The timing is also opportune for the gifting season.

Heinemann plans to introduce more brands and retail concepts, with a grand opening for these stores scheduled for the first quarter of 2024.

Heinemann opens a “department store” concept in Sydney airport

What: A new generation of supermarket is sweeping over Europe.

Why it is important: Disruption is not always coming from fashionable topics (AI) or big guns (Shein). Retailers need to be on the permanent lookout.

Rohlik, a Czech online grocery company founded in 2014, distinguishes itself in the European market by offering a diverse range of products and services. Operating under different names in Austria, Czechia, Germany, Hungary, and Romania, Rohlik focuses on providing a combination of services akin to Tesco, Whole Foods, local butchers and bakers, coffee shops, pharmacies, and toy shops. The company prioritizes expansion in Germany, where it has already established a strong presence in Munich and Frankfurt and recently acquired the Berlin-based delivery service Bringmeister.

CEO Tomáš Čupr highlights Rohlik's profitability and competitive pricing, setting it apart from quick commerce players that struggle with economics and customer loyalty. Unlike these companies, which offer limited assortments, Rohlik provides a comprehensive range of about 17,000 items, covering everything from dry food and local delicacies to household and pet products. While it doesn't promise ten-minute delivery times, Rohlik ensures efficient logistics and quick delivery, often within an hour, through automated distribution centers powered by custom-developed software and robotics.

With a disruptive retail concept, online supermarket Rohlik moves into Europe

What: Ikea is launching a 19-piece limited-edition fitness collection called Dajlien.

Why it is important: The collection aims to bridge the gap between home and active life while recognizing that training can take many shapes and forms.

With products ranging from $4 to $135, the collection includes training weights, an air purifier, an exercise mat, and a belt bag. It was developed to address the trend of women and teen girls dropping out of sports and fitness activities. The products are sleek and designed for small-space living, with storage units for the equipment. The items feature unique geometric shapes and are intentionally designed to look different from typical fitness gear.

It is set to launch in January and will be available for six months or until sold out, and it's intended to offer at-home fitness options for everyone, regardless of space or level of fitness.

Ikea launches limited-edition fitness collection

What: SMCP enters India through a major deal.

Why it is important: The Indian gold rush has begun.

SMCP, the owner of French fashion labels Sandro and Maje, has entered a deal with Reliance to expand into the Indian market. The company plans to open stores in the Jio World Plaza mall in Mumbai, as part of a broader move by high-end European brands to establish a retail presence in India. SMCP's CEO, Isabelle Guichot, sees potential in India due to its growing wealth, young population, and lack of accessible luxury fashion labels. After initial experiences in luxury hotel outlets, SMCP, through its partnership with Reliance Brands, aims to open around 10 stores in India over the next three to five years, starting in Mumbai. The financial details of the partnership have not been disclosed.

France's SMCP strikes deal with Reliance to expand into India

What: Cencosud's shopping centre division in Chile has been honored with the "Social Innovation" award for its implementation of a "Gray Water Reuse Plant and Dry Gardens" at the Portal La Dehesa complex in Santiago.

Why it is important: This recognition underscores the company's active role in sustainable issues of social impact and its dedication to advancing sustainable practices in the region.

This initiative aligns with their sustainability strategy and contributes to the United Nations Sustainable Development Goals (SDGs). The project, developed in collaboration with the startup Yaku Biofiltro, has allowed for the reuse of 100% of water from sinks and showers, reducing the shopping centre's water consumption by 28% in 2023 compared to 2022. It positively impacts the environmental challenges faced by communities in Santiago and demonstrates Cencosud's commitment to strengthening sustainability and environmental responsibility.

Cencosud receives the "Social Innovation" award in Chile

What: In Singapore, rents become increasingly disconnected from the actual state of the business.

Why it is important: Is Singapore poised to become a new playground for regional players looking for new markets?

CapitaLand Integrated Commercial Trust (CICT), Singapore's largest private mall operator, has seen moderate business across various consumer segments recently, reflecting a wider retail slowdown in Singapore. Despite this, the company reported positive metrics in the first nine months of the year, including a 4% year-on-year increase in tenant sales per square foot, with higher growth downtown due to returning international tourists. Mall foot traffic and retail occupancy (99%) also increased, contributing to a 9.8% rise in gross revenue and 6.8% in net property income.

However, a slowdown is apparent in the third quarter, with lower growth rates in revenue and net property income. Turnover rents, which depend on tenant sales, could be impacted if sales continue to be under pressure. Retailers are facing rising occupancy costs, potentially affecting their margins.

Retail sales in Singapore appear fragile, with non-auto retail sales dropping in October. While food and beverage sales have been strong, there was a noticeable slowdown in October. CapitaLand's growth categories include shoes, bags, leisure, and entertainment, with food and beverages also performing well. Home furnishings, however, declined significantly, likely due to the broader economic slowdown and consumer caution.

Tourism, particularly in downtown malls, has been positive but has not yet returned to pre-pandemic levels. The outlook for Singapore's retail sector is cautiously optimistic, with expectations of a recovery in international arrivals by 2024 and moderate retail space openings planned for the next few years.

E-commerce remains steady, accounting for around 15% of retail sales. CapitaLand has been adapting its tenant mix to reduce vulnerability to e-commerce, focusing more on food and beverage, leisure, and entertainment offerings. Special events, or "proactive stakeholder engagements," are also part of their strategy to maintain consumer interest.

Singapore malls face high rents and stalled sales

What: Prada has made a partnership with Philippines’ Store Specialists to expand the brand in the country.

Why it is important: Going direct is not always an option, including for the most powerful brands. This shows that hope remains for department stores if they manage to find the right business model.

The SSI Group in the Philippines has formed a joint venture with the Prada Group through its subsidiary, Stores Specialists, to expand Prada's presence in the country. The initial investment involves PHP16.6 billion ($298.7 million) from SSI Group and PHP25 billion ($448.1 million) from Prada Group, with the total investment eventually reaching PHP152 billion ($2.7 billion) and PHP228 billion ($4 billion) respectively. Prada Group will own 60% of the joint venture, Prada Philippines, with Stores Specialists holding the remaining shares. The venture, set to start operations early next year, aims to accelerate Prada's growth in the Philippines and improve operational efficiencies. SSI Group is known for its portfolio of luxury brands including Balenciaga, Boss, Bottega Veneta, Cartier, Loewe, and Alexander McQueen.

Prada Group forms JV with SSI to expand presence in the Philippines

What: China and Singapore launched a programme where they agree to let their respective tourists pay in digital yuan.

Why it is important: New payment options can be disruptive for department stores, especially in S.E. Asia

China and Singapore are piloting a program where tourists from both countries can use China's digital currency, the e-CNY, for travel expenditures. This initiative, part of a series of agreements to strengthen bilateral ties, was announced during the annual Joint Council for Bilateral Cooperation in Tianjin. Additionally, the two nations agreed on a mutual 30-day visa-free travel arrangement.

This collaboration marks significant progress in the cross-border retail application of the digital yuan. Experts believe this could lead to its wider use in trade and other high-value transactions. The adoption of the e-CNY has been growing, with significant increases in transaction volumes and the number of merchants accepting the digital currency in pilot cities.

China has been experimenting with the international use of the e-CNY, especially considering the rising geopolitical tensions and the need for yuan internationalization. This includes multi-country trials and tests for retail use in Hong Kong, enhancing the digital yuan's potential for broader global usage.

China and Singapore agree to let their tourists pay in e-CNY