What: El Palacio de Hierro is expanding its fashion offer with 4 new international brands to its online and physical channels.

Why it is important: El Palacio de Hierro is reinforcing its positioning as one of the most important fashion retailers in Mexico as it announces the addition of four international brands to its e-commerce platform as well as in-store locations across the country.

The four international brands include the Spanish brand Alba Conde, the English brand Whistles, Columbian brad Spirito, and Agolde, a Californian brand formed by Citizens of Humanity.

El Palacio de Hierro adds four international fashion brands to its offering

What: El Corte Inglés has linked the launch of Los Grinpins, its 100% sustainable own-brand cuddly toys, to reforestation initiatives.

Why it is important: As part of a collaboration with Sylvestris Group to plant more trees, achieve a greener and healthier environment and promote inclusive employment, El Corte Inglés welcomes a collection of five cuddly toys with attributes linked to sustainability.

2,500 trees will be planted in Alto de Majalinos as part of the project. El Corte Inglés has also pledged to donate one euro per each Ginpin toy sold along with an additional contribution to reforest the area of Teruel with native trees.

El Corte Inglés links own-brand to reforestation

What: After the 2021 takeover of Konen, Breuninger is redesigning the 12,500 square metres of retail space to create its newest flagship store.

Why it is important: Breuninger has secured the cultural and economic metropolis of Munich as part of expanding its stationary portfolio through repurposing the Konen location and e-commerce site.

In the course of the conversion, a restaurant and up to 100 new jobs will be planned for the flagship store. In addition, Breuninger is looking for an additional 100 specialists across all levels for sales in the areas of services, design, exclusive and premium fashion as well as for the beauty department.

Konen becomes Breuninger's flagship store

What: El Corte Inglés has entrusted Accenture with a strategic plan to reduce structural costs with the aim of improving efficiency and margins and automating tasks in the areas of logistics and customer service.

Why it is important: With the new plan, the group of department stores, which expects to register "robust" sales at Christmas, aims to reduce costs and avoid transferring higher prices to the end customer. Between Black Friday and the Christmas campaign, the company gambles 50% of its operating profit.

The plan includes robotizing certain tasks carried out by people, specifically in the areas of logistics and customer service, does not contemplate cutting the workforce, although it does include the closure of some unprofitable centres and the restructure of its territorial zones, eliminating one of the two areas into which the Community of Madrid was divided, and which generates 35% of all business.

Accenture has already been working on this line for a few months with general directors of the company since last March, although in recent weeks the plan has accelerated due to price increases and the increase in prices. interest rates, which has particularly affected El Corte Inglés since it finances close to 40% of its sales on credit.

El Corte Inglés signs Accenture for an adjustment plan

What: Since 2019, Galeries Lafayette dropped below one billion in turnover, caused by the lack of locals and tourists during the pandemic lockdown period.

Why it is important: This year, Galeries Lafayette has passed one billion euros in turnover thanks to the return of French clients and tourists to the Haussmann location, notably a return of Americans taking advantage of the strength of the dollar and relaxed travel restrictions.

French visitors increased by 20%, while there remains a lack of Asian tourists.

The group plans to continue building up the Marais district of Paris where BHV is located. Despite local municipal efforts to decrease traffic in this area, Galeries Lafayette remains bullish on adding locations which are accessible, as it did recently through Citynove and the opening of Arket.

Galeries Lafayette Haussmann passes its billion-euro turnover mark

What: SM Investments Corporation has been listed as one of the World's Best Employers by Forbes.

Why it is important: Forbes' sixth annual World's Best Employers list, done in partnership with market research company Statista, has recognized SM Investments Corporation among the top Employers all over the world.

SM recognized by Forbes among World's Best Employers

What: Carlos J. Torres, former manager for Tommy Hilfiger, is the new head of the product division at El Palacio de Hierro.

Why it is important: El Palacio de Hierro is strengthening its team through the new manager at the head of the product division, bringing his experience from working in companies such as Tommy Hilfiger, Esprit and Lord & Taylor.

El Palacio de Hierro welcomes a new product manager

What: Manor entrusted the management of a boutique in the Geneva department store location to its sales apprentices through its Youngstar Academy program.

Why it is important: As a way of attracting and supporting young talents in their stores, Manor Geneva selected four apprentices, aged 17 to 23, to manage a boutique in-store for an entire month.

The "Young Fashion" boutique, which they were in charge of, represents more than 500 metres squared of sales area and offers more than 15 brands. The same concept was done in 2021 but with older apprentices in their second or fourth-year apprenticeships. The month they are in charge of the boutique is filled with challenges and competitions like one might see in a reality TV show, another way to engage younger employees.

Apprentices develop a sense of entrepreneurship, team spirit and self-confidence that they take back to their specific department when the training is complete.

Manor's Youngstar Academy apprentices take control in Geneva

What: SM Investments Corporation reported a consolidated net income of PHP 42.9 billion in the first nine months of 2022, 50% higher than the same period last year.

Why it is important: SM Retail reported net income for the first nine months of 2022 at PHP 11.5 billion which has surpassed both 2019 and 2021 levels, with an increase of 138% compared to the first nine months of 2021.

Retail revenues grew 26% compared to 2021 as well as net income and revenues for speciality stores grew 139% and 35% respectively.

Portfolio companies accounted for 13% of reported net earnings while banking took the largest share at 45%, followed by property at 23%, and retail at 19%. Total assets were valued at PHP1.5 trillion.

SM net income grows 50% in nine months

What: Galeries Lafayette continues their international expansion by opening two stores in India.

Why it is important: The group doubles down on promoting fashion as a whole, from entry price points to luxury, which is a strong point of difference with other French operators promoting luxury in their international ventures.

Galeries Lafayette is teaming up with the Indian distribution group, Aditya Birla, to open two stores in Mumbai and New Delhi, respectively with 8,000 sqm in 2024 and then 5,500 sqm later on.

Aditya Birla already operates 3,500 stores in India for various brands and with different formats , including The Collective, the largest multibrand retailer in the country, stocking brands such as Ralph Lauren, Hackett London, Ted Baker and others.

Both partners insist on the fact that, in India, while international luxury brands are already well established, this is not the same for the rest of fashion brands, and as such, there is a strong potential in the country.

Galeries Lafayette to open in India

Galeries Lafayette to open in India

What: Galeries Lafayette's real-estate asset management business, Citynove, has completed the redeployment of stores in the Cours du Marais, connecting BHV Marais, Eataly Paris Marais and Lafayette Anticipations.

Why it is important: Galeries Lafayette's Citynove, responsible for the real-estate home to 10 stores located between Rue du Temple, Rue des Archives and Rue de la Verrerie in the Marais district of Paris, welcomes Arket's first Paris location overall enhancing the open-air shopping village.

The development centres around offering an effortless retail experience that celebrates historical architecture. The brands present in the Cours du Marais include Arket, Marc O'Polo, Samsøe Samsøe, EcoAlf and Tip Toe.

Galeries Lafayette's Citynove welcomes Arket to Cours du Marais shopping village

What: Manor celebrates its 120th anniversary by partnering with Swiss designer Yael Andrews and launching their very first capsule collection in fashion, home and stationery as well as a one-of-a-kind NFT collection.

Why it is important: The capsule collection reflects the values and DNA of Manor: exclusivity, innovation and creativity, while the NFT collection opens up new paths in the metaverse through a community-based approach linked by tokens.

The young designer drew her inspiration from the old Manor logos, the original names of the Manor department stores as well as from the sites spread throughout Switzerland to create an original collection for the fashion, home and stationery departments. The NFT collection was launched as a complement to reinforcing the innovative and exclusive aspect of this collaboration.

Manor's very first capsule and NFT collections

What: Footfall in Manor stores is higher compared to 2021, but the average basket size has shrunk likely due to inflation

Why it is important: According to CEO Jérôme Gilg, the pandemic improved digital business which has become complementary to strengthening physical store performance with customers shopping online from inside stores.

10% of turnover for the Manor website is completed by sales advisers on iPads inside the physical locations. Compared to what can be housed in a traditional store, Manor.ch offers half a million items.

Post-COVID, many customers are returning to in-store shopping, but their on-site purchases are shrinking. Click & Collect is growing with 40% of online purchases picked up in-store.

Mr Gilg stated that the group will continue to invest heavily in digital technology and its partnerships with brands such as Sephora, Decathlon, Fnac, Aeschbach, etc. through dedicated spaces.

Manor basket size shrinks

What: Luxury is upping the game in SKP by opening private salons which are slowly becoming HNWI social clubs.

Why it is important: The trend should spread across the world as, once an individual has experienced the ultra-premium experience, accepting to be downgraded to a "normal" boutique is not acceptable. However top-end department stores should be prepared and take into account the space consumption involved in such activities: will it be possible to negotiate the commercial terms in a way which makes these sacrifices of square meters profitable?

Several luxury brands have announced the opening of private boutiques dedicated to VIP customers around the world, such as Chanel and LVMH. SKP in Beijing is a particularly coveted location to open such salons, as the most prestigious department store in the country with the highest sales numbers.

While the first one to do so was Louis Vuitton, Chanel and Dior are now following suit by opening VIP-only salons on the third floor of their boutiques. These salons are advertised as highly exclusive and generate a lot of attention from customers, although they are also invisible to the non-connoisseurs visiting the boutique.

In those salons, where new customers are not invited, experience is all that matters, as they are imagined as galleries rather than stores, or even social clubs.

Luxury brands open private salons in SKP 

What: SM focuses on a strategic expansion plan of adding seven SM Supermarket, SM Hypermarket and Savemore stores to bring better food shopping to developing Filipino regions and communities.

Why it is important: SM is also expanding its imported offerings including adding El Corte Inglés' brand to its assortment.

SM Markets are expecting the holidays and the ongoing return to in-person work and classes post-pandemic to bring a boost to consumer spending which has already been visible in increased sales of fresh food products, snacks, beverages and school-related commodities.

SM Markets open stores in developing communities

What: Numerous specials for visitors are available during the two-week anniversary period of Sanisbar by Breuninger's five years in the city of Stuttgart.

Why it is important: The anniversary event kicked off with an exclusive evening for invited guests and customers, offering a twelve-course menu to highlight signature dishes and the gastronomic expertise of the lifestyle location.

Breuninger celebrates 5 years of Sansibar in Stuttgart

What: Juan Carlos Escribano, CEO of El Palacio de Hierro, shares his experiences as Spanish director for the Mexican luxury department store and how this has influenced his views on the future success of this retail format.

Why it is important: As crisis looms over many countries, the effects will vary from location to location based on their respective interdependence, according to the CEO.

The interview demonstrated Escribano's perceived importance of specialisation and scale, along with the ability to execute projects and improvise when facing unexpected issues. He cites the recent EPH Coyoacán store as an example of execution and improvisation as there were two earthquakes that damaged the AC and elevators one week before the opening, yet the department store still managed to fix everything before the deadline.

International experience and age have also taught him that a strong team is more important than being individualistic. According to Escribano, fashion retail is both a mathematical and scientific execution through study, Excel and programming applications combined with an uncanny eye for operations, something that cannot be learned in school. Both factors contribute to what can be described as magical success for department stores.

For years, the El Palacio de Hierro CEO has been warning of the death of department stores. His reasoning highlights the elimination of home, technology, and F&B offerings; the disappearance of which has caused department stores to turn into fashion stores. On top of this, many department stores have over-expanded by opening too many locations which Escribano believes leads to dilution and a lack of consistent standards. This is a critical point to miss when clients are looking for a perfect service that encourages them to return and spend time in-store, or even online. As well, other luxury department stores now have more outlet locations than their full-priced stores which confuses the main mission of the company.

Department stores can be competitive by having anything from a gym to a barber shop to keep people in the store and having a great time. Of course, Escribano puts a caveat on this advice by noting that a department store can't be everything and that the company must choose in which area they will specialize to dominate that particular niche (i.e. cheapest, biggest, etc.).

His advice for all companies is that ownership and management do not mix.

El Palacio de Hierro CEO speaks on the future of department stores

What: Breuninger becomes the official outfitter for the Bundesliga club FC Bayern Basketball and thus equips coaching staff, team and club officials with both formal and casual looks with a signed contract set for two years.

Why it is important: The sponsoring package includes, among other things, the presence on advertising boards at all home games. In addition, there are advertisements and commercials in the club media, other promotional opportunities for the club and an extensive hospitality contingent.

Breuninger partners with FC Bayern Basketball

What: The head of the e-commerce research department at the Cologne trade research institute EHI reports the top 1000 Germain online retailers for 2021.

Why it is important: Amazon and Otto remain the top two, however, Breuninger has broken into the top 20 as one of the 541 out of the top 1000 online stores which also had physical locations.

The 1000 largest online shops increased their sales by 16.1% to 79.9 billion euros last year and the market share of the top ten remained at 40%.

Breuninger joins top 20 list for German online retail

What: The Galeries Lafayette Haussmann store will now feature the largest dedicated space within a department store in Europe to Rolex.

Why it is important: The luxuriously designed space features codes of the brand and furniture and interiors designed in Geneva to bring the embodiment of the brand into the Galeries Lafayette Paris Haussmann location.

The space is accessible from the first floor or the ground floor and features a watchmaker's workshop where various operations guaranteeing Rolex quality will take place.

The 250-square-meter is decorated with Alpi Verde marble and walnut lath ceilings. On the ground floor, customers are greeted by a fluted travertine and brushed bronzed brass entrance.

Galeries Lafayette dedicates largest exclusive space to Rolex

What: Two credit agencies, Fitch Rating and HR Rating, have awarded El Palacio de Hierro a AAA rating following the close of a 102 million euros bond issue with a three-year maturity.

Why it is important: As part of a larger refinancing plan, the department store group will use the capital to improve the profile of its debt and investment plan.

The credit agencies have deemed the bond issue stable due to El Palacio de Hierro's diversification of business and the stability in its operating cash flows. As well, the agencies highlighted the department store group's success with commercial strategies for maintaining its market positioning.

The resources obtained will be used to refinance another bond of 51 million euros due in 2023. In addition, investment in digital technologies has been mentioned following a registered 31% increase in digital sales in the first half of 2022.

El Palacio de Hierro receives AAA credit rating 

What: After launching its online shop in Poland a year ago, Breuningerr has expanded its online business to Belgium, the Netherlands, Luxembourg, Spain, Italy, and now the Czech Republic.

Why it is important: Breuninger continues to open new markets through store openings and expanding its online business with the addition of six countries just this year.

The online shop is structured in the same format as its existing online shops in the Czech language with a usual Breuninger standard product range. Delivery to the Czech Republic is expected to be between three and five days.

Breuninger opens online shop for the Czech Republic

What: Breuninger won over the Porsche company gaining the automotive company's tenancy in the Dorotheen Quartier and opening the first Porsche brand store.

Why it is important: Porsche's first brand store settles in beside other quality retailers, reinforcing the history of the area and bringing its values of innovation and visionary concepts to the inspiring real estate district; thanks to Breuninger.

Breuninger continues to deliver quality retail experiences for the Stuttgart residents and tourists by influencing the development of Dorotheen Quartier's offerings.

Breuninger brings first Porsche store to DOQU

What: SM is committed to supporting women in its effort to be a more inclusive company that welcomes diversity.

Why it is important: SM Investments appointed Ms Elizabeth Anne "Lizanne" C. Uychaco as the company's first Group Diversity Officer following its official support of female empowerment after signing the UN Global Compact Women Empowerment Principles in March 2021.

Ms Uychaco is currently the Senior Vice President for Corporate Services at SM and sits as a director in various SM companies such as Belle Corporation, NEO, Goldilocks Bakeshop, Inc., Brownies Unlimited, Inc., ACE Hardware Philippines, Inc., Philippines Urban Living Solutions and more.

SM strives to empower women, which can be seen through its workforce comprising 63% of women. As well, 58% of its female workers hold senior leadership positions. SM believes that having a mix of individuals with diverse backgrounds and skill sets will always improve business and better support the communities it serves.

Ms Uychaco also leads the Felicidad Sy Sunshine Place which offers comprehensive and enriching programs for seniors.

SM's diversity and inclusion milestones