In the era of AI and all things digital, middle managers will remain pivotal to department store performance and innovation.

Often seen as mere cogs in the machine, middle managers have historically been central to fostering operational efficiency and maintaining organisational cohesion in department stores, notorious for their longstanding complexity and sophistication. Now that department stores are evolving, are middle managers destined to become remnants of the past? The annual IADS White Paper explores the complex relationship between middle managers and retail companies. It highlights their pivotal role in maintaining operational efficiency, driving innovation and spearheading organisational transformation in a challenged retail landscape. Good middle managers might be very well tomorrow's unicorns in retail!

Since its inception in 1928, IADS' purpose has been to coordinate information between department stores worldwide and research their activities to address their many challenges. The IADS produces a White Paper on a specific topic relevant to the industry every year, and always from the department stores' point of view. The 2021 edition reviewed how department stores managed the COVID-19 pandemic. In 2022, digital transformation and how it impacts organisations was tackled. In 2023 the focus was centered around CSR and ESG, and the 2024 edition was dedicated to retail media.

The IADS 2025 White Paper investigates middle management's critical—and often underestimated—role in driving department stores' evolution and performance. Rapid technological advancements and shifting consumer expectations raise questions about the need for middle management now that traditional retail models are heavily challenged. Middle managers are essential leaders, connecting top management's vision with frontline operations. The IADS research analyses their roles, challenges, and how they can continue to create value for department stores.

Middle managers and department stores: a love and hate story

From the first mail ordering attempts in 1845 to implementing AI-driven solutions, department stores have had to adapt to new contexts continuously. However, one reality remains constant: retail is a people business. This is why department stores have always relied on their often-unsung heroes, middle managers, who have always bridged the gap between strategic vision and day-to-day operations, ensuring that the innovative strategies devised by senior leadership were effectively executed on the ground.

Department store productivity grew significantly from 1900 to 1980, as did the overall share of middle managers. However, in the 1990s and 2000s, the love story faded due to the technology boom, and middle managers were increasingly considered an unnecessary bureaucratic layer. Then, with the financial crisis of 2008 and the pandemic of 2020, middle managers' roles needed to be reimagined, but, instead, many of them were eliminated to optimise costs.

Today, the role of middle managers extends beyond operational oversight. They are crucial in navigating the complexities of technological advancements, driving innovation and addressing the need for a more agile and resilient organisational structure. Their ability to act as navigators, connectors, and coaches is fundamental to successfully implementing transformative initiatives.

A new perspective on middle management: their impact on transformation and innovation

With the growing complexities in retail, it is time to reevaluate the role of middle managers. Sometimes seen as the "unloved children" of retail and often criticised for slowing down decision-making, middle managers are more than ever indispensable connectors between strategy and execution. Their proximity to the frontline and senior leadership allows them to implement innovative strategies while ensuring teams remain agile and responsive to consumer demands.

The IADS White Paper highlights how middle managers are key to fostering innovation within department stores. They often pilot transformation projects, so their balanced perspective allows them to advocate for changes aligning with executive goals and practical day-to-day realities. It demonstrates how they can initiate and sustain organisational changes by leveraging their knowledge of operations and strategic objectives, as Carrefour's customer-centric revolution exemplifies. In particular, the White Paper underscores their central role in navigating AI adoption, balancing technological efficiency with human oversight. Indeed, as stated by Gartner during their 2024 IT Symposium, AI will contribute to flattening organisations even more, leaving some middle managers jobless. However, the IADS strongly believes that AI will allow them to focus on more strategic activities, increasing the value they bring to their companies.

The head-scratching has just started

The path to excellence and the ability to become a change agent is a shared responsibility

Both middle managers and companies are responsible for making the most of these key executives. Companies can help middle managers develop transverse skills that are increasingly important in differentiating high-performing middle managers from their peers:

• Emotional intelligence (as exemplified by US grocery company Wegmans),
• Resilience and ability to embrace change (The John Lewis Partnership has developed some groundbreaking initiatives in this field),
• Strategic thinking (outside of the retail world, US studio Pixar provides an interesting example of how to foster such a capability),
• Transversal collaboration and ability to leverage informal networks to enhance collaboration, better handle challenges, and support innovation. While the Harvard Business Review states that middle managers are bound to become "people leaders", the IADS believes they are also becoming "internal influencers", building a culture of resilience and collaboration, as it happened at the Australian telecommunications company Telstra when it reinvented its middle managers' roles.

Instead of seeing them as a potential source of savings through their elimination, companies should reduce unnecessary pressure on middle managers, foster flexibility as Marks & Spencer's arrangements suggest, and grow development programmes and mentorship, an often-untapped opportunity in retail companies.

Finally, by leveraging technologies like AI, middle managers and companies can re-bundle their roles so that they can spend more time on leadership and innovation. This way, companies can maximise middle managers' efficiency to create value continuously.

Valuable insights and actionable recommendations

The IADS 2025 White Paper analyses the current state of middle management and offers actionable insights on how department stores can empower these leaders for the future. It provides recommendations on attracting, retaining, and developing middle managers who can navigate the challenges of a modern retail environment. Flexibility, autonomy, continuous learning opportunities, and alumni groups, as exemplified by the Chalhoub Group, are key factors in securing top middle managers. The IADS white paper, "Middle managers: remnants of the past or tomorrow's unicorns?" serves as a call to action for retail executives to invest in and empower their middle management teams by creating a supportive environment where they are trusted to take on greater strategic responsibilities and lead transformative initiatives.

Read the full press release below:

White Paper: Middle Management- IADS Press Release (English)

livre blanc: Middle management - IADS Communiqué de Presse (Français)

Access the White Paper below:

Click here to view the table of contents

IADS White Paper- Middle managers: remnants from the past or tomorrow's unicorns?

Le Point discussed the enduring relevance of department stores as defined by IADS and their ability to adapt to changing consumer needs. IADS' GM, Selvane Mohandas du Ménil, was quoted on how department stores have shifted from selling "everything to everyone" to curating specialised experiences in response to competition from online platforms like Amazon. The article emphasised examples of resilience and innovation within IADS members, including Galeries Lafayette's creative initiatives and Tsum's operations in Ukraine amidst challenging circumstances.

Le Point explores the global relevance of department stores with IADS insights

Modaes' has written an article that highlights IADS' contribution to the curation, including exclusive archival materials and private documents that enrich the narrative. Running until April 2025, the Cité de l'architecture et du patrimoine exhibition examines how department stores pioneered concepts like ready-to-wear and brand identity while adapting to modern challenges.

Modaes highlights IADS' role in Paris exhibition on department store history

WWD has written an article discussing the recent exhibition at the Cité de l'architecture et du patrimoine exhibition displaying drawings, plans, photographs, works of art and period objects throughout department store history. The article mentions IADS' participation in the curation of the event.

WWD discusses the IADS' participation in Cité de l'Architecture et du patrimoine

Luxury Tribune has written an article detailing how luxury department stores have had to reinvent themselves amidst digitalization, shifting consumer expectations, and economic upheaval in order to compete. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on this need to shift.

Luxury Tribune quoted IADS on department store luxury market changes

Fashion Network has published an article discussing the recent exhibition at the Cité de l'architecture et du patrimoine exhibition displaying drawings, plans, photographs, works of art and period objects throughout department store history. The article mentions IADS' participation in the event by opening our archives and connecting the museum with El Palacio de hierro, The Mall Group, and Selfridges.

Fashion Network mentioned IADS' participation in La Saga des grands magasins exhibition in Paris

The International Association of Department Stores (IADS) collaborates with Paris' Cité de l'Architecture et du Patrimoine for a landmark 6-month-long exhibition on department stores' global evolution.

The International Association of Department Stores (IADS) joins forces with Paris's prestigious Cité de l'Architecture et du Patrimoine to present a groundbreaking exhibition chronicling the global evolution of department stores. From November 6, 2024, to April 6, 2025, 'La Saga des Grands Magasins, de 1850 à nos jours' offers an immersive journey through the world of department stores. This landmark exhibition traces their transformation from nineteenth-century retail pioneers to today's reinvented cultural destinations.

Featuring over 500 carefully curated pieces, the exhibition showcases never-before-seen architectural drawings, vintage photographs, design objects, artworks, and rare artefacts from renowned department stores worldwide. This IADS's unprecedented collaboration has unlocked access to exclusive international archives, bringing together treasures from iconic institutions, including Bangkok's The Mall Group, Beijing's SKP, Berlin's KaDeWe, Copenhagen's Magasin du Nord, Hong Kong's SOGO, London's Harrods and Selfridges, Mexico's El Palacio de Hierro, and Turin's Green Pea.

A Global Journey Through Department Store History

The exhibition unfolds in three sections, offering a rich narrative of the department store's evolution over the past 150 years. Visitors embark on a journey illustrating how department stores have been at the forefront of architectural innovation, urban development, and cultural transformation.

• ▪ The Golden Age (1850-1930): This section delves into the origins of department stores in the world's capital cities. In Paris, they emerged under Napoleon III, a period marked by rapid urbanization, industrialization, and technological advances. Consumption was reinvented through the mix of spectacular buildings combined with revolutionary sales techniques such as fixed prices and large-scale window displays, and the notion of shopping was born. These architectural marvels were not just places to shop but symbols of modernity and progress, introducing a new way of life to an eager middle class. This part of the exhibition also highlights the global spread of the department store model and how it innovated in organising labour in a new way
• The department store, an unstoppable machine (1930-1980): The interwar period marked the zenith of department stores as centres of luxury, fashion, and social life. This section showcases how these stores became integral to major cities' cultural fabric, offering goods and a social experience. However, they had to reinvent themselves after WWII, as new competitive formats appeared: supermarkets (1957), followed by hypermarkets (1963), which contributed to redirecting the traffic to the peripheries of the cities. The exhibition tracks the architectural and operational changes that department stores underwent in response, focusing on transforming retail spaces into more efficient "selling machines" driven by the burgeoning field of consumer psychology and marketing. They also diversified into lifestyle by contributing to developing ready-to-wear and design.
• The reinvention in the Digital Age (1980 to the Present): As the exhibition moves into the modern era, it examines how department stores, once considered the pinnacle of retail innovation, have confronted the challenges of globalization, economic crises, and the digital revolution. The exhibition highlights how they have redefined themselves in the 21st century by embracing technology, integrating e-commerce, and focusing on customer experience rather than just product sales. Online shopping has fundamentally altered consumer behaviour, and department stores have responded by becoming cultural hubs, hosting pop-up events, art installations, and exclusive brand collaborations. The exhibition also looks to the future, considering how department stores position themselves to remain relevant in an increasingly digital world.

IADS's role in bringing a global perspective to the exhibition

The IADS has been instrumental in expanding the exhibition's international dimension. Through its archives and contacts, the Association has provided the museum with rare archival materials and valuable connections to international stores that have redefined retail history, offering visitors a global view of how these retail spaces have evolved.

'Department stores have been more than mere shopping destinations – they have been architects of urban landscapes, catalysts of consumer culture, and beacons of innovation across the globe,' says Ms. Kamshim Lau, IADS President and CEO of SOGO Hong Kong. 'This exhibition with the Cité de l'Architecture et du Patrimoine celebrates their enduring legacy and their continued relevance in shaping retail's future.' This global perspective is essential to understanding the full impact of department stores, as their influence extends far beyond Europe to cities across Asia and the Americas. It is also an opportunity for the IADS, a professional research organisation, to provide the general public with more information about the world of department stores, their dynamics, and their relevance in the 21st century in a context of scarce factual and scientific information about them.

A Unique Multidisciplinary Exhibition

The exhibition stands out for its rich, multifaceted narrative, weaving together architectural innovation, social progress, and cultural transformation. From their groundbreaking use of iron and glass in the 1800s to today's architectural masterpieces, department stores have consistently redefined the boundaries of design. Their carefully crafted interiors transformed shopping into a theatrical experience, where commerce meets spectacle. Visitors will also discover how these retail pioneers revolutionized not just commerce, but also workplace dynamics, particularly for women, who found unprecedented professional opportunities within their walls. The IADS's support of 'La Saga des Grands Magasins' reflects its commitment to showcasing the department store model's evolution and sharing its members' innovative spirit with a global audience.

About the Cité de l'Architecture et du Patrimoine

The Cité de l'Architecture et du Patrimoine, located in the Palais de Chaillot in Paris, is one of the world's largest centres for the dissemination of architectural knowledge. This institution is unique in its scale, combining multiple facilities under one roof: a museum (the Museum of French Monuments), a school (the École de Chaillot), a platform for architectural creation, a specialised library, and an archives centre. As a key player in disseminating architectural culture, its role extends beyond protecting and promoting France's unique architectural heritage to addressing challenges related to architecture, heritage preservation, and the city of tomorrow.

Press contact: caroline.loizel@citedelarchitecture.fr

About IADS

The International Association of Department Stores (IADS) is the only expert body specializing in the department store retail format in the world. Consisting of leading department store members located around the globe, the Association acts as an international network, facilitating exchange and communication between IADS members, and conducts research to address current challenges department stores are facing to provide actionable insights for its members. Today, IADS permanent members include Beijing Hualian Group (PRC), Bloomingdale's (USA), Boyner (Turkey), Breuninger (Germany), Chalhoub Group (UAE), Centro Beco (Venezuela), El Corte Inglés (Spain), El Palacio de Hierro (Mexico), Falabella (Chile, Colombia and Peru), Galeries Lafayette (France), Lifestyle International Holding (Hong Kong), Magasin du Nord (Denmark), Manor (Switzerland), The Mall Group (Thailand). These retail leaders are joined by a network of other department stores and retail companies as corresponding members. Together, the IADS members, all key players in their respective markets, create a landscape of various business models and cultures and represent more than €35bn cumulated annual turnover, achieved through more than 514 stores with 181,000 associates in 23 countries. Through its own activities and partnerships with NellyRodi, Retail Hub and RH-ISAC, the Association constantly stays up to date on its members' questions and challenges and generates solution-driven problem-solving processes for its members so that they are prepared to face the future of the retail industry.

Press Contact: IADS, press@iads.org

Read the full press release below:

IADS PRESS RELEASE: Cité de l'Architecture exhibition

IADS - Communiqué de presse - partenariat avec la Cité de l'Architecture

Crisalide Press published an article about Camera Buyer Italia's first international conference of the association, entitled " RE-RETAIL: technology, market and consumers in the world of fashion retail." They mentioned the participation of IADS' general manager Selvane Mohandas de Ménil.

Crisalide Press mentions IADS at the Re-Retail conference

Pambianco News has published an article discussing how multibrands are investing in the digital channel. The article explores omnichannel, innovative payment solutions, and the growth of multibrand techniques. IADS' general manager Selvane Mohandas de Ménil discussed the awareness of retailers that they want to give concreteness to their sales methods and strategies through these innovation strategies.

Pambianco News quoted IADS on multibrands in the digital channel

Fashion Network has published an article discussing consumer habits in the mens fashion sector using data from our IADS press release on the subject. The article explores the need for department stores to compete by incorproating new ideas and balancing well-known brands with new labels to attract and retain male customers.

Fashion Network quoted IADS on mens fashion consumer habits

In Menswear, while casualwear remains a driving force fuelled by the introduction of new brands, department stores have a new secret sauce for the category: community-driven experiences.

Last January, the IADS identified that casualwear continued to lead the menswear category despite more attention given to semi-formal wear and a growing concern for pricing. Since then, department stores have refined their strategies to capture - and retain - modern male consumers' hearts. With a keen focus on community-building through pop-up stores and lifestyle events, department stores foster deeper connections with their customers by creating engaging experiences.

In comparing the past two financial exercises, the average menswear turnover share for IADS members evolved differently according to the regions: while it remained stable in North America and the Middle East (two new areas for the IADS with Bloomingdale's and Chalhoub Group having joined in the past two years), it was more contrasted in Europe and trending slightly downwards overall, reflecting the ongoing pressure induced by continued inflation and the cost of life. Regarding price points, while the mid-range segment keeps on taking the lion's share with 28% of sales, it is notable that luxury, affordable luxury and premium combined segments take 56% of the total sales on average. Two parallel factors can explain this:

• The continued demand for semi-formal and occasion wear, as we identified last January,
• Department stores' elevation strategy through onboarding more sophisticated brands with higher price points and margins. While mid-range remains central to their business, many IADS members pursue premium and luxury strategies.

Finally, the entry-level segment represents a slightly decreasing but sizeable share of 16% of total sales.

In menswear, no matter the customer's age, casualwear is for all!

IADS partner NellyRodiidentified two significant trends shaping the menswear landscape that keep on blurring the border between tradition and self-expression in all customer segments:

• The resurgence of traditional craftsmanship and heritage-driven designs, with consumers favouring brands enhancing authenticity and quality.
• Boundaries are pushed away, with designers infusing humour, irony, and bold interpretations into menswear. This trend appeals to younger generations looking to break free from conventional styles and express individuality through daring and playful designs.

Strikingly, menswear is moving beyond rigid categories: customers seamlessly mix casualwear, workwear, and formal styles, breaking traditional fashion rules. Still, casualwear continues to lead the menswear departments, favoured for its effortless flexibility across different aspects of life and work. This reflects society's preference for adaptable clothing for various occasions and a convergence towards female customers' behaviour.

Brands: the difficult balancing between blockbusters and newcomers

NellyRodi presented its exclusive scouting of 34 up-and-coming brands, from must-haves to hidden gems, especially made for the Association's members:

• Must have brands: Aimé Leon Dore, Lemaire, Norse Projects, Octobre Éditions, Officine Générale, Casablanca, Barbour, Faguo.
• On trends: Homme Plissé, Mfpen Hereekvipering, Pompeii Brand, Noah, Jeanerica Jeans, Le Minor, Louis Gabriel Nouchi, Helmut Lang, Walk in Paris, Encré, SAMSØE SAMSØE
• Rising brands: Magliano, Hed Mayner, Kidsuper, Charles Jeffrey Loverboy, Auralee, A kind of Guise, Séfr, Kartik Research.
• Hidden gems: Drapeau Noir, Kardo, Cmmn Swdn, Caleb, Rier, Aalto + Recoded, Greg Laboratory.

Carrying must-haves and big brands is not a guaranteed path to success. Some blockbusters or well-known brands have mixed results across markets due to specific fits or marketing strategies that are too different. This shows a necessary adaption to local clientele and the need for a balanced brand portfolio beyond leading brands such as Boss(a brand that successfully relaunched by simplifying its product offer), Polo Ralph Lauren, Stone Island, Moncler, Dior and Carolina Herrera, depending on markets. New brand introductions also reflect an embrace of modern, urban fashion that aligns with the steady demand for streetwear. Breuninger added Represent and Fear of God Essentials, while Tryano welcomed Homiés Marbella and Scarosso. Magasin du Nord expanded with Barons, Hugo Blue, and Mango Man. Balancing world-class names with new labels is further complicated by the direct-to-customer or retail-only strategies sometimes pursued by the latter.

Community building is a growing priority for department stores

To win over customers, especially GenZ, the emphasis is increasingly shifting toward seasonal stores and events. While not new, pop-up stores and capsules remain an unparalleled way to attract customers in-store and contribute to building communities, a key to department stores' future. It has been the case with The Giving Movement and Sprayground at Tryano, On pop-up during the Olympics at Galeries Lafayette, Ami Paris, C.P. Company and Moose Knuckles pop-ups at Breuninger, Hugo Blue at Magasin du Nord, to name a few. Breuninger also partnered with German rap artist Rin, who attracted 10,000 fans through a Ljubav x Hugocollaboration and organised fashion talks with Stone Island and Esquire. These creative approaches allow retailers to connect more deeply with their target audience.

Besides, several department stores experiment with outdoor-related initiatives to foster deeper customer connections. A notable trend in community engagement is the focus on running, which has successfully created loyal customer bases, especially among the male customer base. Breuninger has partnered with brands like On to host weekly running events, attracting customers who value health and fitness. These events drive foot traffic while reinforcing brand loyalty through lifestyle community activities. Cycling clubs have also emerged as a growing trend, particularly in urban markets like Copenhagen. Magasin du Nord has tapped into this trend, noting that while niche, it's gaining traction among outdoor enthusiasts and urban dwellers.

Despite a slight decline in turnover share, the market remains dynamic, with casualwear leading the category and a growing focus on premium and luxury segments. Retailers adapt to shifting consumer preferences by refining their brand portfolios and engaging with consumers through community-building initiatives like pop-ups and events, ultimately aligning with shared values.

Read the full press release below:

IADS PRESS RELEASE: Boyner Istinye Park

IADS - Communiqué de presse - Mode masculine 2024

Fashion, Art, Technology and Experience Meet at the Brand New Boyner İstinyePark Istanbul

Transforming its stores as destinations that add value to everyone's lives, Boyner recently renovated its store in İstinyePark Istanbul. Digital merchandising applications, artworks, nail art area, Bubble Tea, one of the most popular beverages of the recent period, Costa Coffee, Europe's largest chain, and the most exclusive selections of world-renowned brands come together at Boyner İstinyePark Istanbul. A special invitation was held for Boyner İstinyePark Istanbul, which attracted attention with its renewed face, hosted by Boyner Büyük Mağazacılık Chairman Cem Boyner and Boyner Büyük Mağazacılık CEO Eren Çamurdan. Designed by London-based creative agency Bompas&Parr with the theme of "Sky Magic", the event allowed guests to discover the new world of Boyner İstinyePark and witness many special and different experiences in a magical environment dominated by thousands of shades and senses of the sky.

Transforming its stores into living spaces by offering fashion, art, technology and experience together, Boyner organized a special event hosted by Cem Boyner, Chairman of the Board of Boyner Büyük Mağazacılık, and Eren Çamurdan, CEO of Boyner Büyük Mağazacılık, at its İstinyePark Istanbul store, which was renovated with this concept. Designed with the concept of "Sky Magic" and attended by prominent names of the business, retail and fashion world, the special and different experience areas met with the guests. Guests who entered the store through the clouds experienced the smell of rain, witnessed the sunset, stepped into the colorful world of the rainbow and had the opportunity to touch the white clouds. The refreshments of the event, which featured a different experience at every point, were similarly inspired by the sky. Jelly candies resembling layered clouds added color and excitement to the night with their colors and different flavors.

Continuing its new generation retailing steps focusing on different experiences that will make life enjoyable, Boyner, which started with Boyner Cadde, one of the iconic shopping destinations of Baghdad Street, has recently given its İstinyePark Istanbul store a brand new face. Renovated by Toner Architecture, Boyner İstinyePark Istanbul's six thousand square meters of space features the collections of Turkey's and the world's well-known brands only at Boyner İstinyePark Istanbul, the works of ten artists from different disciplines specially designed for the spirit of Boyner and the interior architectural texture of the store, nail art with Ala Nail Art, product personalization area and digital experience points. Costa Coffee and Bubble Tea areas in the store add a special enjoyment to the shopping experience.

Many Applications from Different Fields of Art in the Store

Boyner İstinyePark features the works of artists from different fields of art, from ceramics to glass art, sculpture to mural art. The works designed by each artist using different materials such as ceramics, mirrors, wire, epoxy, waste glass and waste metal, which are special to the spirit of Boyner and the interior architectural texture of the store, create a feeling of an exhibition for the visitors.

Areas to Enrich the Shopping Experience are at the Forefront

Focusing on experience points with its new generation merchandising vision, Boyner offers many alternatives that will make shopping enjoyable for its visitors at IstinyePark store.

"Flip Dot Displays", which is one of the first sections that visitors will discover on their journey of experience, follows the movements of the person heading towards the store in harmony and activates the scales with sensors. In addition, the 3D futuristic sculpture and digital visuals located at the bottom of the store support this flow.

In the Ala Nail Art area in the store, visitors are offered a special nail care experience, while in another area there is an experience point where personalized designs can be made with special paints and drawings on fabric.

At the "Inspiration Wall", another attraction point of Boyner İstinyePark, visitors can choose the styles they like through the videos on the screen and get recommendations from the products in the store according to the style they choose. By registering the products they choose with a QR code, they can get support from the sales consultant in finding their products. In addition, the kiosks in the store display the stock status, content, price and reviews of the products to make the lives of the visitors easier.

Costa Coffee, the UK's most popular coffee brand, is located in the middle area of the store and welcomes those who want to take a pleasant break from shopping. Bobble Tea, which offers the most fun and colorful version of cold tea, also offers visitors a colorful and delicious experience.

World Famous Brands at Boyner İstinyePark

Boyner İstinyePark has many new brands in Women's, Men's, Shoes, Bags, Active, Outdoor, Home and Cosmetics categories, exclusive to this store. After Label, Le Twins, Cedelar, Urbancode, Pinko, Tombolini, Cacharel, John Richmond, Sseinse, K-Way, Duvetica, Ice Play, Ko Samui Tailors, Hvisk, Saucony, Mizuno, La Sportiva, Thirtytwo, Rab, Peak Performance, Volcom, Monologue, and in the cosmetics category, Atelier Versace and Prada Les Infusions stand out as special brands in Boyner İstinyePark's selection.

Boyner İstinyePark Istanbul invites everyone to be a part of this unique experience with its vibrant, dynamic, provocative, calm but pleasant and feel-good features.

Read the full press release below:

IADS PRESS RELEASE: Boyner Istinye Park

LSA has published an article discussing beauty and wellness trends in department stores. The article explores these consumer behaviors using the insights and figures from the IADS press release about cosmetics, beauty, and wellness, focusing on the wellness sector and the nice surprises which impact all categories of beauty.

LSA quoted IADS on beauty outperforming in department stores

Fashion Network has published an article discussing department store beauty sectors focusing mostly on fragrance and beauty. The article explores these consumer behaviors using the insights and figures from the IADS press release about cosmetics, beauty, and wellness, focusing on the influence of niche brands and how these preferences are experiencing a major shift.

Fashion Network quoted IADS on deprtment store beauty, fragrance and skincare

While fragrances continue to flourish in department stores, the convergence of cosmetics, beauty, and makeup under the all-encompassing "wellness" umbrella—a concept that transcends traditional notions of "care"—is now indisputable.

In October, the IADS highlighted the emergence of a post-pandemic feel-good factor in 2021-22, sparking increased demand for wellness-related products. This concept has since permeated all product categories, reflecting evolving customer preferences and compelling department stores to reimagine their approach to "care" products. Concurrently, new market dynamics in fragrances—with major brands adopting direct-to-consumer strategies while offering luxury lines to rival niche brands—explain the category's vibrancy, even as department stores remain vigilant for emerging trends.

For IADS members, the Cosmetics & Beauty business saw an average growth from 9% to 10% of total business between 2022 and 2023, with notable variations across categories. Fragrances surged from 36% to 45% of the Cosmetics & Beauty business, haircare increased from 3% to 5%, makeup held steady at 19%, while skincare declined from 34% to 26%. These shifts weren't price-driven; the balance between price segments remained constant, with luxury products accounting for 50% of category business, premium products 20%, prestige products 11%, and entry-level items 19%. Instead, they indicated a market transformation:

• The wellness concept has infiltrated every category, becoming the primary reference point for cosmetics shopping, including haircare. This shift blurs boundaries between historically "care"-focused categories and prompts questions about the global interpretation of "wellness" in each market.
• While niche and specialist brands fuel the fragrance market's growth, the makeup category faces disruption from major fashion players and celebrity-backed brands, challenging the dominance of specialist brands.

From Care to Wellness

Today's consumers seek more than just products for skin, hair, and scalp; they desire a holistic experience in 'care'. Despite declining market share, department stores are revitalising the skincare segment through enhanced services to improve consumer interaction and deliver authentic wellness experiences. Tryano (Chalhoub Group) is exploring the implementation of beauty cabins staffed by skin diagnosis experts. To effectively promote these new services, a blend of time-tested marketing techniques (CRM targeting, social media, influencer partnerships) and modern approaches (offering skincare treatments as gifts with purchase) is essential, mainly to attract younger clientele. In this landscape, prestige niche brands like Barbara Sturm, Augustinus Bader, Dermalogica, La Mer, and Sisley gain traction as customers engage with product trials.

A genuine sense of wellness also demands a fresh assortment: IADS members continuously seek brands offering self-care, personalisation, and creativity, aligned with ethical and community-centric values, tailored to their market segments. For instance, Boyner focuses on haircare, suncare, and serum-infused products, while El Palacio de Hierro emphasises men's and dermo-cosmetics.

IADS partner Nelly Rodi presented an exclusive selection of relevant brands in this context:

• Skincare: Ipsum Alii, Mimétique, Mtm Labo, Talm, Thisworks, and Megababe
• Haircare: Flora Lab, Fatboy, Crown Affair, Prose, and Pattern

Wellness is paving the way for new product uses and categories: In Turkey, Boyner observes a rise in renewable packaging products, while in Switzerland, Manor is tapping into the "beauty from within" trend by offering food supplements like Vital Protein collagen, which have become integral to customers' routines.

Fragrances: niche brands spearhead growth, raising questions on clustering

Niche fragrances lead the charge in department stores, with brands such as Creed, Maison Francis Kurkdjian, Amouage, Montale, Byredo, Le Labo, Armani Privé, YSL high-perfumery, Penhaligon's, and Parfums De Marly at the forefront. The market shows no signs of saturation, as Galeries Lafayette sees space being claimed by challenger brands like Parfums BDK, Matière Première, and Maison Crivelli. This diversity is crucial as department stores pursue new brands to differentiate themselves and boost foot traffic. NellyRodi presented its exclusive scouting of up-and-coming fragrance brands in this category: Perroy, Obvious, Vyrao, Borntostandout, and Dedcool.

Consequently, department stores must reconsider their fragrance department clustering strategies. Some are contemplating the creation of unisex, niche, prestige, and premium areas instead of traditional men's and women's sections. As customer preferences become more fluid, the conventional gender-based separation may be losing relevance in certain markets.

Makeup is stable with fashion newcomers

The category continues to grow in some department stores, maintaining a steady average market share, primarily due to lip and eye-related products. While established names like Chanel and Dior maintain their unchallenged dominance, other historical leaders such as MAC face increasing competition as the market welcomes new entrants:

• Fashion brand spin-offs: Rabanne, Prada, Gucci, Valentino, Loewe
• Celebrity-backed brands like Haus Labs by Lady Gaga and r.e.m.beauty by Ariana Grande

Next-generation brands are also emerging, as NellyRodi scouted:Obayaty, Fara Homidi, Good Weird, (M)anasi, and Florasis. Consequently, customers can anticipate significant changes in department store makeup floors in the coming seasons.

The Cosmetics, Beauty, & Wellness industry is undergoing dynamic shifts, propelled by the surging demand for niche fragrances and a consistent appeal for makeup, particularly in the lip category. Wellness now encompasses more than traditional beauty products as skin care evolves towards a more holistic, care-at-large approach that incorporates services and experiences. This transformation mirrors a broader consumer trend favouring personalised, inclusive, and ethically aligned products.

Access the PDF press release here:

IADS PRESS RELEASE: Cosmetics, Beauty & Wellness

Access the PDF press release, in French, here:

IADS Communiqué de Presse: Cosmetiques & Beaute

Vogue Business has published an article discussing the success, or lack thereof, in the luxury retail scene in Paris, France during the Olympics. The article explores the slower tourist traffic in the city and how that impacts luxury stores. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on consumer behavior during this monumental time.

Vogue Business quoted IADS on luxury retail in Paris during the Olympics

Le Monde has published an article discusses consumer behavior in Paris during the Olympics. The article explores the fact that the influx of Olympic tourists are generally not participating in retail shopping due to tight viewing schedules and lack of purchasing power. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on this phenomenon.

Le Monde quoted IADS on consumer behavior in Paris during the Olympics

Le Monde has published an article exploring the impact of the Olympics on various business sectors in Paris, including restaurants, retail, and transportation. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on the shopping habits of the incoming Olympic spectators.

Le Monde quotes the IADS on retail in Paris during the Olympics

Inside Retail has written an article detailing the merger of Saks and Neiman Marcus and how this union could create a department store titan in a time where theres increased competition. Saks, known for its flagship store on Fifth Avenue in New York, and Neiman Marcus, with its iconic Dallas location, are expected to benefit from combined resources and customer bases. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on the strategic implications of this merger for the luxury retail sector.

Inside Retail quotes the IADS on the Saks & Neiman Marcus merger

Fashion Network has reported on Falabella Retail's recent induction into the International Association of Department Stores (IADS). The Chilean company, recognized as the largest department store chain in South America, will be officially welcomed at the 65th General Assembly in Istanbul this November. The article highlights Falabella's significant contributions to global retail, particularly in enhancing omnichannel capabilities, loyalty programs, and private brand efficiency. The report also touches on Falabella's extensive history and current operations, serving 15 million customers across 103 stores in Chile, Peru, and Colombia.

Fashion Network reported on Falabella joining the IADS

**Falabella Retail, South America's retail giant and a global omnichannel pioneer, joins the International Association of Department Stores.

Falabella Retail, part of the Chilean multinational company Falabella S.A. Group, renowned for its cuttingedge omnichannel approach seamlessly blending offline and online sales, unwavering commitment to sustainability, and magnetic appeal to top regional talent, officially joins the IADS. This membership will be formalised at the 65th Association General Assembly in Istanbul this November.**

From humble beginnings as a tailor's shop in 1889, Falabella Retail has evolved over 135 years into South America's retail powerhouse. Today, it caters to 15 million customers, offering a curated selection of over 160 international, local, and exclusive brands, alongside a diverse range of private labels spanning fashion, technology, and home categories. Standout names include Sybilla, Basement or Americanino. Its network of 103 department stores across Chile, Peru, and Colombia forms the cornerstone of a sophisticated retail ecosystem, seamlessly integrated with digital platforms and financial services to deliver an unparalleled experience to South American shoppers, particularly the millions enrolled in its loyalty program.

In 2021, Falabella unveiled its crown jewel: a flagship store in Santiago de Chile's Parque de Arauco open-air mall. This retail behemoth, the largest in South America, stands as a beacon of sustainable retail innovation. Boasting LEED Gold certification from the US Green Building Council, the store achieves impressive energy savings of 31% and water conservation of 51% through innovative design and equipment, all while elevating the shopping experience. Sprawling across 25,000 square meters, it offers over 40 distinct retail experiences, including cutting-edge augmented reality installations and lightning-fast automated click-and-collect services. This flagship epitomizes Falabella's broader sustainability drive, which includes 39 LEED-certified stores across the continent and a robust commitment to circular fashion through its Taller F customization, repair, and transformation workshops.

Falabella's reputation for quality and creativity in its private labels is matched by its ability to attract top global talent. The group's unwavering focus on training and upskilling its 24,100 associates across Chile, Colombia, and Peru is exemplified by programs like Escuela F, which hones skills in product development, store management, and planning.

Ms Kamshim Lau, Executive Director of Lifestyle International (Hong Kong SAR) and President of the IADS said: "I am pleased to welcome Falabella Retail back to our esteemed association. As South America's largest department store chain and a global frontrunner in omnichannel sales, Falabella brings invaluable expertise and a rich history of excellence. We are excited to continue our collaboration and work together towards the growth and success of department stores worldwide!"

Mr Francisco Irarrazaval, Corporate CEO of Falabella Retail, said: "This alliance will allow us to share insights with the world's leading retailers, gaining a first-hand understanding of the latest trends and best practices, which will enable us to continue leading changes and responding to our customer's needs. This reinforces our commitment to put the customer at the centre of our decisions and our objective of having an active participation in addressing the current challenges of the industry worldwide."

By joining the IADS, Falabella Retail will contribute its unique insights to the rich tapestry of knowledge shared among the world's leading department stores. Within the IADS framework, members collaborate to craft strategic and practical solutions to key industry challenges, from enhancing omnichannel capabilities and loyalty programs to optimizing private label efficiency and driving broad-scale innovation.

Access the PDF press release here:

IADS PRESS RELEASE: Falabella joins the IADS

Access the PDF press release, in French, here:

IADS Communiqué de Presse: Falabella rejoint l'IADS

Inside Retail has written an article detailing Central Group's aquisition of KaDeWe following the €1 billion acquisition of the KaDeWe property in Berlin's most famous shopping street Tauentzienstraße, from Signa Prime Selection AG last April. Central Group has agreed to acquire the rest of the KaDeWe Group portfolio – Alsterhaus in Hamburg and Oberpollinger in Munich. The article quoted the IADS' GM, Selvane Mohandas du Ménil, who shared his thoughts on the strategic investment by Central Group in Thailand.

Inside Retail quotes the IADS on Central Group's aquisition of KaDeWe

**Bloomingdale's, America's only nationwide, full-line, upscale department store, joins the International Association of Department Stores.

Bloomingdale's Inc., a global retail icon celebrated for its distinctive merchandising strategy, store experience, and brand positioning, officially joins the IADS. This membership will be formalised at the 65th Association General Assembly, which will be held in Istanbul this November.**

With a rich history spanning over 150 years, Bloomingdale's has carved a unique niche in the global retail landscape. The brand is internationally renowned for its exclusive product offerings, innovative customer service, and unforgettable culturally relevant shopping experiences. As a brand, Bloomingdale's has fostered enduring relationships with its clientele, including millions who are part of the retailer's Loyallist program.

Recognized globally for animation and trend-driven fashion, Bloomingdale's department stores and e-commerce channels carry women's, men's and kid's apparel and accessories, cosmetics, and home goods, inclusive of furniture, differentiating them within the US landscape.

The flagship store is located in Manhattan, New York on 59th Street and Lexington Avenue. From the subway stop on the lower level to the well-known brown kraft-paper "Big Brown Bags" to the many TV shows and movies that have featured the brand, it has become an iconic part of the fabric of New York. The company now operates 32 full-line stores, 21 outlets, and 3 Bloomies locations in the United States. Bloomies, a newly introduced small format concept, provides a casual, contemporary, and highly curated experience featuring an edit of top brands in a broad range of men's and women's categories, including apparel, accessories, beauty, giftable products and more. In addition, Bloomingdale's has an international presence with locations in Dubai and Kuwait.

The company is also deeply committed to building a more equitable and sustainable future through its B the Change program, a roadmap based on three pillars – environmental impact reduction, social inclusion, and youth development – actioned through campaigns, grants, fundraising activities, volunteer opportunities and more. In 2023, Bloomingdale's Inc. supported 96 organisations in the US and donated more than $2.7 million to charity partners./nbsp]

Ms Kamshim Lau, Executive Director of Lifestyle International (Hong Kong SAR) and President of the IADS said: "It gives us great pleasure to extend a warm welcome to Bloomingdale's Inc. as a valued member of the IADS. With an extraordinary heritage spanning over 150 years, Bloomingdale's has successfully positioned itself as a distinguished hub for luxury shopping in the United States, Dubai and Kuwait. We look forward to having Bloomingdale's participate in the various activities and exchanges of the IADS, contributing towards our drive to deliver customer excellence and quality services in the department store industry."

Mr Olivier Bron, CEO of Bloomingdale's, said: "Bloomingdale's is thrilled to officially join the esteemed IADS. This partnership serves as an opportunity to share, develop, and enhance our collective knowledge of the Department Store business with valued business peers internationally. We are very much looking forward to the great work and necessary collaboration ahead."

By joining the Association, Bloomingdale's will contribute to the fruitful exchanges taking place between leading department stores in the world within the framework offered by IADS, where members come together to bring strategic and concrete answers to questions ranging from real estate strategy to e-commerce profitability, organizational efficiency, private label profitability, relationships with international brands and the evolution of customer expectations.

Access the PDF press release here:

IADS PRESS RELEASE: Bloomingdale's joins the IADS

Access the PDF press release, in French, here:

IADS Communiqué de Presse: Bloomingdale's rejoint l'IADS

The Fashion Network has written an article on what home & decor have done to adapt to consumer preferences post COVID-19, based on IADS' findings. The article quotes findings from the associations merchandising meeting on the home & decor sector held last February that covered brands, categories and products that are winning in retail thanks to strategies outlined in the takeaway report including Private Labels and sustainable offerings.

Fashion Network echoed IADS' findings on Home & Decor in retail