What: John Lewis may reinstate employee bonus after four-year hiatus if GBP 200m pre-tax profit target is achieved by February 2026, following successful transformation efforts.

Why it is important: The move signals a significant milestone in retail recovery, as the company's improved financial performance enables it to consider reinstating traditional benefits while maintaining its recent investments in base pay and operational improvements.

John Lewis Partnership is considering the reinstatement of its historic staff bonus scheme for its 69,000 employees, contingent upon reaching a pre-tax profit target of GBP 200m for the year ending February 2026. This potential return to bonus payments, which were last distributed in the year to January 2022, marks a significant shift in the company's recent compensation strategy. The retailer's improved trading performance has positioned it favourably to achieve this target, with profit before tax and exceptional items having increased from GBP 42m to GBP 126m in the year to January 2025. The decision will ultimately rest with the partnership board, including non-executive and elected directors, who will evaluate the company's performance, particularly during the crucial Christmas trading period. This development follows a period of strategic transformation that has prioritised base pay improvements and operational investments, demonstrating the company's evolving approach to employee rewards and business sustainability.

IADS Notes: John Lewis's potential bonus reinstatement reflects a significant evolution in its transformation journey. As reported in March 2025, the company prioritised a GBP 114 million investment in base pay over bonuses despite tripled profits, demonstrating a focus on sustainable compensation structures. This approach gained support when, in May 2025, the company modernised its benefits structure to reflect contemporary workforce needs. The June 2025 employee campaign for bonus reinstatement highlighted the cultural significance of the scheme, leading to management's commitment to restore it "as soon as possible." This development follows successful strategic initiatives, including February 2025's GBP 800 million store renovation programme and the revival of the "Never Knowingly Undersold" pledge, showing how improved business performance can enable the return of traditional benefits while maintaining modern operational investments.

John Lewis mulls revival of staff bonus

What: Magasin du Nord acquires Danish fashion brand Bitte Kai Rand, expanding its venture portfolio as part of its strategy to invest in strong Danish brands with growth potential.

Why it is important: This acquisition demonstrates how department stores are evolving beyond traditional retail, leveraging their market knowledge and infrastructure to develop brand portfolios while maintaining their core retail strengths.

Magasin du Nord has acquired full ownership of Danish fashion brand Bitte Kai Rand, marking a significant evolution in its retail strategy. The acquisition places the brand under Magasin's Venture business division, led by Camilla Deichmann, who will assume the role of CEO for Bitte Kai Rand. Founded in 1981, Bitte Kai Rand has established itself as a prominent figure in Danish fashion, known for its timeless design and unwavering commitment to quality. The brand's relationship with Magasin dates back to 1984, creating a natural synergy for this acquisition. Michael Rand, the departing CEO, will transition to an advisory role, ensuring continuity in the brand's development. The acquisition aims to accelerate Bitte Kai Rand's growth through enhanced brand positioning, improved customer experiences, and strategic market expansion, while maintaining the creative and quality-conscious DNA that has defined the brand for over four decades.

IADS Notes: Magasin du Nord's acquisition of Bitte Kai Rand represents a continuation of its strategic transformation journey that began with its venture business initiatives. In February 2025, the company expanded its portfolio with investments in Danish beauty brands BLID Care and Relevant, demonstrating its commitment to building brand ownership capabilities. This strategy has been supported by strong financial performance, with the company reporting 5% growth to DKK 3 billion turnover in 2024 and doubled profits to DKK 75 million. The success of Magasin's retail transformation is further evidenced by its innovative 'Small Store' concept launched in October 2024, which has proven effective in bringing the brand closer to customers. The retailer's strength in the Danish market was demonstrated during the 2024 holiday season, attracting 2.4 million visitors with one in four Danish households making purchases.

Magasin du Nord buys Danish fashion brand Bitte Kai Rand

What: Fitch assigns BBB-(EXP) rating to El Corte Inglés's planned EUR 500 million senior unsecured notes, maintaining positive outlook based on strong deleveraging and improved margins.

Why it is important: The rating action validates El Corte Inglés's successful transformation strategy, combining operational improvements with financial discipline to strengthen its market position despite retail sector challenges. Fitch Ratings has assigned a BBB-(EXP) rating to El Corte Inglés's new EUR 500 million eight-year senior unsecured notes, aligning with the company's existing debt rating.

The planned issuance will address upcoming maturities, including a EUR 420 million syndicated Term Loan due in March 2026. The Positive Outlook reflects the company's successful deleveraging efforts, with EBITDAR net leverage expected to trend below 2.0x. The company demonstrated solid business performance in FY25, achieving 4.3% like-for-like revenue growth and a 70bp improvement in EBITDA margin to 7.4%. While profitability remains below sector averages, this is partly offset by the company's diverse business mix and significant real estate portfolio, valued at EUR 15.5 billion in 2024. The rating also acknowledges El Corte Inglés's dominant market position in Spain and its strategic focus on strengthening core retail operations through digital transformation and store investments.

IADS Notes: El Corte Inglés's improved credit profile reflects its comprehensive transformation strategy. As reported in June 2025, the company achieved EUR 16,675 million in Total Transaction Revenue with 4.3% like-for-like growth, while EBITDA reached EUR 1,209 million, representing an 11.9% increase. This performance follows significant strategic initiatives, including a EUR 428 million investment in upgrading 25 locations announced in February 2025, and the creation of a dedicated Transformation Office under CEO Gastón Bottazzini in March 2025. The company's focus on operational efficiency and digital innovation, developed in partnership with McKinsey since October 2024, has yielded tangible results, with improved margins and strengthened market position, validating its strategy of balancing traditional retail strengths with modern retail capabilities.

Fitch assigns El Corte Ingles' planned new notes 'BBB-(EXP)'

What: El Corte Inglés indefinitely delays its planned 15,000-square-meter office development on Madrid's Castellana, despite strong market demand and rising prime office rents in the area.

Why it is important: The suspension highlights how major retailers are taking increasingly cautious approaches to property development, even in prime locations, as they focus on core business transformation and debt reduction strategies.

El Corte Inglés has placed its ambitious office development project next to its Nuevos Ministerios center on indefinite hold. The plot, acquired from Adif in 2014 for EUR 136 million, was initially considered for luxury retail expansion before being designated in 2021 for a 15,000-square-meter office building designed by Thomas Heatherwick. Despite current market conditions showing strong demand, with CBD vacancy rates below 2% and prime rents reaching EUR 44 per square meter, the company has maintained the site for temporary events and food fairs. The decision comes amid Madrid's thriving office market, where recent transactions include LVMH's 20,000-square-meter lease at Castellana 4. While industry experts suggest potential tenant interest from international law firms and consultancies, the company's real estate division, led by Javier Catena, continues to evaluate the investment's long-term viability against current market opportunities.

IADS Notes: El Corte Inglés's cautious approach to the Castellana project reflects its broader transformation strategy. As reported in February 2025, the company invested EUR 428 million in upgrading 25 existing locations while implementing significant management restructuring under CEO Gastón Bottazzini in March 2025, including the creation of a dedicated Transformation Office. This strategic focus follows the successful development of their 2025-2030 plan with McKinsey in October 2024, emphasizing operational efficiency and digital innovation. The company's strong financial performance, achieving 4.3% like-for-like growth and EUR 1.2 billion EBITDA in June 2025, suggests this measured approach to property development aligns with their priorities of maintaining financial stability while pursuing core business transformation.

El Corte Inglés delays its office project in Castellana

What: Hungarian fashion label Nanushka debuts at Galeries Lafayette Haussmann with a six-month pop-up featuring its premium womenswear collection and accessories.

Why it is important: This collaboration highlights Galeries Lafayette's strategy of using curated pop-ups to introduce distinctive international brands while offering immersive retail experiences. Nanushka, the Hungarian fashion label founded in 2006, has launched its first retail space at Galeries Lafayette Haussmann.

Located on the second floor of the main building, the pop-up showcases the brand's premium womenswear line and accessories through a six-month installation. The space features the pre-fall collection titled "Stop to smell the roses" and incorporates distinctive design elements that celebrate Hungarian craftsmanship. Central to the installation is a hand-carved wooden totem adorned with Kopjafa symbols, a tribute to Hungarian heritage. The space is further enhanced with shell lighting fixtures and cushions finished in vegan Okobor leather, crafted in Budapest using upcycled fabric from previous collections. This retail debut follows Nanushka's successful collaboration with Zara in late 2024. The brand, backed by Vanguards group and GB & Partners, currently operates three standalone stores and maintains over 140 international points of sale, with annual revenue approaching EUR 50 million in 2022.

IADS Notes: Nanushka's arrival at Galeries Lafayette Haussmann aligns with the department store's strategic transformation initiatives. In November 2024, the store reported a 15% increase in sales, driven by its revamped product offering and enhanced brand partnerships. The timing of this pop-up coincides with Galeries Lafayette's broader EUR 400 million investment plan announced in February 2025, which focuses on modernising its flagship while curating unique brand experiences. This partnership follows the store's successful collaborations with other international designers throughout 2024-2025, demonstrating its commitment to introducing distinctive brands through immersive retail concepts.

Galeries Lafayette opens Nanushka pop-up store

What: John Lewis Partnership expands its retail media network beyond owned websites to enable partner brands to advertise through streaming services and external consumer sites.

Why it is important: By combining grocery and non-grocery data insights, John Lewis is creating a unique proposition in the retail media landscape that could set new standards for cross-category advertising.

John Lewis Partnership has announced a significant expansion of its retail media capabilities, moving beyond its own websites to offer partner brands advertising opportunities through streaming services and external consumer sites. This strategic initiative, developed in partnership with technology specialist Epsilon, leverages first-party data from both its Waitrose grocery stores and John Lewis department stores. The retailer's retail media lead, Jemma Haley, emphasises that this development enables a comprehensive understanding of diverse purchase journeys, from immediate necessities to considered purchases. Initially operating as a managed service with dedicated campaign execution teams, the platform plans to evolve into a self-service model, allowing brands to have greater control over their advertising activities. This expansion represents a significant step in creating an integrated retail media offering that spans multiple retail categories while maintaining customer data privacy and targeting precision.

IADS Notes: The retail media landscape has seen significant evolution throughout 2024-2025. In October 2024, several retailers, including Boots and Co-op, enhanced their media networks to leverage customer data more effectively. By February 2025, industry analysis showed that retail media was capturing 70% of spend from traditional advertising channels, while July 2024 research indicated that these networks could potentially double retailers' margins, from 1.7% to 4.3%. John Lewis's expansion aligns with this trend, following Macy's success in generating $155 million in media network revenue and Bloomingdale's strategic focus on data democratisation for enhanced customer engagement.

John Lewis takes 'big step forward' in retail media

What: Through a strategic partnership with China's SCPG Group, The Mall Group launches a Thai cultural retail initiative across 200 Chinese malls, starting with Shanghai's Sunland Incity Mall's summer festival.

Why it is important: This partnership represents a new model of retail internationalisation, combining cultural experiences with traditional retail to create meaningful market presence across borders.

The Mall Group's collaboration with SCPG Group marks a significant expansion into the Chinese market through the "Kud-Thai Holiday" themed festival at Shanghai's Sunland Incity Mall. The initiative, running from July 18-27, showcases a carefully curated selection of Thai products, from traditional snacks and dried fruits to fashion items and lifestyle products from the THAITHAI brand. The partnership extends beyond Shanghai, with plans to reach over 200 SCPG malls across 55 Chinese cities throughout the summer. This expansion is strengthened by collaboration with the Tourism Authority of Thailand to incorporate traditional cultural performances. The timing is particularly significant, coinciding with the 50th anniversary of Thai-Chinese diplomatic relations and the 10th anniversary of Bangkok-Shenzhen sister city partnership. Both companies have committed to developing long-term cross-border commerce programmes, creating sustained opportunities for Thai brands in the Chinese market.

IADS Notes: The Mall Group's Chinese market initiative represents a significant evolution in Asian retail cross-border strategies. This development builds on the company's June 2024 expansion of its tourism network to include 35 strategic partners, as reported by the Bangkok Post, establishing a foundation for international market penetration. January 2025's Inside Retail analysis highlighted how Bangkok's mall operators have successfully positioned themselves as cultural purveyors, investing significantly in exhibitions and local designer spaces. This cultural integration strategy has proven effective, as demonstrated by February 2025's successful Middle Eastern tourism initiatives. The approach aligns with broader regional trends identified in McKinsey's January 2025 report on Asia's emerging business corridors, where cultural retail and strategic partnerships are driving growth. The Mall Group's collaboration with SCPG Group, coinciding with the 50th anniversary of Thai-Chinese diplomatic relations, exemplifies how retailers are leveraging cultural connections and strategic partnerships to create sustainable market entry strategies. This is particularly significant given BCG's April 2025 analysis of Asia-Pacific's retail transformation, which identified cultural influence and strategic risk-taking as key drivers of retail success in the region.

The Mall showcases Thai products at Shanghai event

What: Falabella's fourth Seller Day unites 450 brands to tackle e-commerce challenges, showcasing 17% GMV growth with 74% marketplace contribution.

Why it is important: The success of Falabella's marketplace strategy, demonstrated by 74% GMV contribution from sellers and 60% orders delivered within 48 hours, sets new standards for e-commerce efficiency in Latin America while validating their USD 650 million investment in digital transformation.

Falabella's fourth Seller Day convened 450 brands to address key e-commerce challenges in an increasingly demanding retail landscape. The event concentrated on operational efficiency, technological development, and omnichannel strategy enhancement. The company's first-quarter performance showed strong momentum, with GMV up 17%, predominantly driven by marketplace sellers. The achievement of 48-hour delivery for 60% of orders demonstrates significant progress in meeting regional logistics standards. Industry experts, including AI specialist Sebastián Cisterna and Cadem's general manager Roberto Izikson, provided valuable insights on retail transformation and consumer behaviour trends. Pedro Jiménez, Sell-In E-commerce Manager, emphasised their commitment to building comprehensive propositions that support brand growth through technological and logistical capabilities. The gathering identified crucial challenges facing digital retail, particularly in logistics optimisation, technology support for SMEs, and maintaining commercial momentum beyond peak seasons.

IADS Notes: Falabella's marketplace success builds upon significant developments throughout the past year. In December 2024, the company announced a USD 650 million investment plan, with USD 166 million dedicated to technological capabilities. This digital transformation yielded impressive results, as seen in February 2025 when the group reported an eight-fold profit increase to €486 million. Their commitment to innovation was further demonstrated in April 2025, when their Fmedia retail media platform achieved 30% sales growth for participating brands.

Seller Day: Falabella brings together 450 brands to address e‑commerce challenges for 2025

What: Fitch Ratings reaffirms El Palacio de Hierro's AAA rating in Mexico, citing the retailer's solid financial position and stable outlook for investors and financial markets.

Why it is important: The rating affirmation validates El Palacio de Hierro's successful business model, combining luxury retail leadership with strong financial management during a period of significant market expansion.

Fitch Ratings has renewed El Palacio de Hierro's AAA rating, the highest possible in Mexico, recognizing the company's robust financial foundation and strategic market position. The rating reflects the retailer's differentiated commercial strategy in the luxury segment, supported by a flexible financial structure with stable margins and strong liquidity. Don Alejandro Baillères, Chairman of Grupo Palacio de Hierro, acknowledged this achievement as recognition of the more than 10,000 employees' contribution to the company's strength and stability. The rating assessment particularly noted the company's solid position in the luxury segment and its successful growth trajectory, which has been marked by continuous expansion and transformation while maintaining financial discipline. This achievement reinforces El Palacio de Hierro's commitment to building a prosperous future while delivering unique luxury experiences to its customers.

IADS Notes: El Palacio de Hierro's AAA rating reaffirmation comes amid strong operational performance throughout 2024-2025. As reported in April 2025, the company achieved 12% revenue growth and a 30% operating profit increase in Q1 2025, reaching USD 650 million in sales. This follows February 2025's announcement of 11% revenue growth to USD 3.2 billion in 2024, with digital sales growing 28%. The company's strategic investments, including the successful launch of its León flagship store featuring over 200 luxury brands across 35,000 square meters, demonstrate its ability to expand while maintaining financial strength. The rating also acknowledges El Palacio de Hierro's successful digital transformation, evidenced by January 2025's implementation of next-generation POS solutions across 450 points of sale, and its recognition as the world's second-best department store.

Galeries Lafayette reshuffles management ranks

What: Galeries Lafayette Haussmann achieves double-digit growth in H1 2025, driven by tourism recovery and strategic store improvements that position it among Europe's top-performing luxury department stores.

Why it is important: The flagship's performance demonstrates how strategic store improvements and luxury brand expansion can drive growth even amid shifting tourist demographics, setting a benchmark for department store evolution.

Galeries Lafayette's famed Boulevard Haussmann flagship is experiencing remarkable growth in 2025, outperforming the estimated 9% increase in French tourism. The store welcomes an impressive 37 million visitors annually, with international customers accounting for 60% of footfall. Under the leadership of Guillaume Houzé and Arthur Lemoine, the store has undergone significant transformations, expanding spaces for prominent French runway brands and enhancing luxury boutiques. Notable additions include private salons for key brands and a striking new Phoebe Philo boutique. The store's strategic focus on both established luxury houses and directional fashion has proven successful, with Louis Vuitton's boutique ranking among the brand's top five worldwide locations. This comprehensive approach to retail excellence is expected to drive turnover beyond €2 billion in 2025, with the 70,000-square-metre space effectively balancing various retail categories from fashion to beauty and home goods.

IADS Notes: Galeries Lafayette Haussmann's impressive performance in early 2025 builds upon strategic initiatives launched throughout 2024. As reported in November 2024, the store had already shown strong momentum with a 15% sales increase, driven by renovated spaces and enhanced brand offerings. The current growth aligns with the company's €400 million investment plan announced in February 2025, which focuses on modernising the flagship while expanding internationally. The store's success in attracting both luxury shoppers and tourists reflects findings from January 2025, when the addition of premium brands like Phoebe Philo demonstrated the retailer's commitment to elevating its luxury positioning. This strategy appears particularly effective as the store shifts from relying on tour groups to targeting individual shoppers, a trend identified across Parisian luxury retail in early 2025.

Galeries Lafayette Haussmann's growth and strategy

What: Dolce & Gabbana launches Light Blue-themed café pop-up at El Palacio de Hierro Perisur, offering a sensory experience through fragrance-inspired beverages and décor until September 10.

Why it is important: This initiative reflects the growing trend of luxury brands creating unique experiential touchpoints within department stores, combining hospitality with retail to enhance brand presence and customer connection.

Dolce & Gabbana has partnered with El Palacio de Hierro to create an innovative temporary space, Café D&G Light Blue, within the Perisur store location. The concept, developed in collaboration with Café Lance, translates the visual identity of the iconic Light Blue fragrance into a physical environment through carefully curated white and blue décor. The menu features specially designed beverages that aim to create a sensorial connection to the fragrance line, offering visitors an immersive brand experience. This launch follows the brand's recent expansion in Mexico, including the opening of their first Fine Jewelry and Watches pop-up in Latin America at El Palacio de Hierro Polanco. The initiative represents part of Dolce & Gabbana's broader strategy to strengthen its presence in the Mexican market through 2025, utilizing experiential formats to engage with new consumer profiles.

IADS Notes: The launch of Café D&G Light Blue reflects the evolving experiential retail landscape in Mexico. As reported in October 2024, El Palacio de Hierro's León flagship store demonstrated success with innovative concepts including themed spaces and gourmet dining options. The retailer's strong performance, achieving 12% revenue growth in April 2025, has enabled continued investment in unique brand experiences. This strategy aligns with El Palacio de Hierro's broader transformation, which has seen the successful integration of luxury brand partnerships, as evidenced by June 2025's announcement of 50 new points of sale with OTB Group. The café concept follows Dolce & Gabbana's expanding presence in Mexico, building on August 2024's launch of D&G Casa at Casa Palacio Antara, showing how luxury brands can create immersive experiences while maintaining their premium positioning.

El Palacio de Hierro opens a Dolce & Gabbana cafe in Mexico's Perisur store

What: Breuninger achieves 6% growth with €1.6 billion GMV in 2024, demonstrating strong performance across physical and digital channels with online sales representing 60% of total revenue.

Why it is important: The results validate Breuninger's strategic investment in both digital capabilities and physical retail expansion, showing how department stores can achieve profitability through integrated channel development.

German retailer Breuninger has demonstrated remarkable growth in 2024, achieving a gross merchandise value of EUR 1.6 billion, representing a 6% increase from the previous year. The company's digital transformation has proven particularly successful, with online operations now accounting for 60% of total revenue across its ten-country European presence. This digital success complements Breuninger's physical retail network, where the company maintains profitable operations across all markets. The retailer's strategic approach encompasses both online and offline channels, supported by significant infrastructure investments including advanced logistics capabilities. Their expansion into new markets, coupled with the successful integration of digital and physical retail experiences, showcases the company's ability to adapt to changing consumer preferences whilst maintaining strong financial performance. The achievement of profitability across all markets underscores the effectiveness of their balanced growth strategy and positions them strongly in the competitive European retail landscape.

IADS Notes: Breuninger's reported 6% growth and profitability across all markets in 2024 builds upon a series of strategic initiatives throughout the past year. In October 2024, the company completed its digital transformation, achieving over 50% of sales through online channels and implementing advanced data analytics across ten countries. This digital evolution was supported by significant infrastructure investments, as evidenced by the expansion of their Sachsenheim logistics centre with one of Europe's largest AutoStore systems. The successful opening of their Hamburg flagship store in April 2025, part of the Westfield Hamburg-Überseequartier development, demonstrates how Breuninger is effectively combining digital capabilities with physical retail expansion. The current 60% online sales share, coupled with profitability across all markets, validates their balanced approach to multi-channel retail development.

Breuninger achieves 6% growth in 2024

What: Ukrainian milliner Ruslan Baginskiy takes over Galeries Lafayette's main entrance and twelve windows with an immersive installation celebrating Ukrainian culture and craftsmanship, alongside a six-month shop-in-shop.

Why it is important: This collaboration demonstrates how department stores can leverage window displays to combine cultural storytelling with commercial success, while supporting emerging designers and creating meaningful connections with global audiences.

Ruslan Baginskiy's takeover of Galeries Lafayette Haussmann marks a significant retail moment, featuring a dramatic main entrance display and twelve themed windows from Tuesday through August 25. The installation, celebrating the brand's tenth anniversary, showcases Ukrainian craftsmanship through innovative displays including large-scale wicker monograms, wheat spikelets, and animated cherry blossom petals, symbolising peace in Ukrainian literature.

The collaboration extends beyond visual merchandising with a 450-square-foot shop-in-shop on the department store's second floor, strategically positioned near fashion brands like Lemaire, Loulou de Saison, and Ami Paris. Running through February 2026, the space will offer a comprehensive range including headwear, bags, candles, jewellery, and newly introduced bag charms. The brand, which won the ANDAM accessories prize in 2023, has gained international recognition through celebrity endorsements and notable collaborations, including custom pieces for Beyoncé's tours and the British royal family.

IADS Notes: Ruslan Baginskiy's window takeover at Galeries Lafayette Haussmann follows a series of successful creative collaborations throughout 2024-2025. In February 2025, Marine Serre's window display demonstrated how the department store leverages such partnerships to create immersive brand experiences. The Ukrainian milliner's installation, featuring cultural elements like wheat spikelets and cherry blossoms, aligns with Galeries Lafayette's broader strategy of cultural retail marketing, as seen in March 2025 with their African designers showcase. This approach to window displays has proven effective, with November 2024 data showing a 15% sales increase driven by such experiential initiatives. The timing of this collaboration is particularly significant as it coincides with the store's comprehensive brand portfolio enhancement, including recent additions like Phoebe Philo, demonstrating how heritage retailers can successfully balance cultural storytelling with luxury positioning.

Ukrainian milliner Ruslan Baginskiy takes over Galeries Lafayette windows

What: El Corte Inglés reports 1.39% growth in real estate portfolio value to EUR 15.716 billion, while generating EUR 83 million from 'Space Marketing' initiatives.

Why it is important: The growth in both portfolio value and 'Space Marketing' revenue demonstrates how traditional retailers can effectively monetise their real estate assets while maintaining core retail operations.

El Corte Inglés has strengthened its position in the real estate sector with its portfolio now valued at EUR 15.716 billion, representing a 1.39% increase from the previous year's EUR 15.500 billion. The company's retail network encompasses 70 department stores in Spain and two in Portugal, complemented by various retail formats including hypermarkets, supermarkets, and Sfera stores. The 'Space Marketing' segment, which includes real estate leasing and third-party commercial relationships, contributed EUR 83 million to the group's EUR 14.786 billion revenue, marking an 11.5% increase year-on-year. The company maintains an investment portfolio valued at EUR 538.2 million, showing a 6.2% growth despite the strategic sale of 40 Supercor stores to Carrefour. This transaction generated a capital gain of EUR 43.08 million, demonstrating effective portfolio management. The company's successful divestment strategy has generated EUR 660 million over the past four years through strategic asset sales, enabling a reduction in liabilities to EUR 2 billion.

IADS Notes: El Corte Inglés's latest real estate portfolio valuation of EUR 15.716 billion reflects its strategic approach to asset management. In March 2025, the company demonstrated its commitment to optimizing existing assets by investing EUR 428 million in renovating 25 locations, while simultaneously showing prudent development decisions, as seen in July 2025 with the postponement of its Castellana office project despite favorable market conditions. This balanced approach has yielded positive results, with June 2025 financial reports showing robust performance across retail segments, including an 11.5% increase in Space Marketing revenue to EUR 83 million, validating the company's strategy of maximizing value from existing assets while carefully managing new developments.

El Corte Inglés increases the value of its real estate portfolio to €15.716 billion

What: John Lewis appoints former M&S marketing director Anna Braithwaite as chief customer officer to revitalise its core brand promise of quality, value and service across all channels.

Why it is important: The appointment comes at a crucial time in John Lewis's transformation journey, following its £800 million investment in retail infrastructure and the successful revival of its "Never Knowingly Undersold" pledge, demonstrating the retailer's commitment to strengthening its customer proposition.

John Lewis has appointed Anna Braithwaite as its new chief customer officer, effective from October 2025, following her successful tenure as marketing director at Marks & Spencer. In her new role, Braithwaite will be responsible for managing John Lewis's marketing and customer experience across all channels, with a particular focus on reinvigorating the retailer's fundamental promise of quality, value, and service. Executive director Peter Ruis emphasised Braithwaite's deep understanding of the John Lewis brand and her customer-centric approach as key factors in her appointment. Her extensive retail experience, including previous positions at Tesco, F&F, Hobbs, and John Lewis itself, positions her well to lead the department store's customer and marketing strategy. The appointment represents a significant return to John Lewis for Braithwaite, who will take up the position following the completion of a non-compete period

IADS Notes: The appointment of Anna Braithwaite as chief customer officer in June 2025 marks a significant step in John Lewis's customer experience transformation. Following the September 2024 revival of the "Never Knowingly Undersold" pledge, which drove a 55% increase in website visits, and October 2024's announcement of an £800 million investment in retail infrastructure, this appointment reinforces the retailer's commitment to modernising its customer approach. The timing is particularly relevant as John Lewis has recently enhanced its digital capabilities, including the February 2025 launch of AI-powered price matching across 25 major competitors. This strategic hire builds upon other customer experience initiatives, such as the successful implementation of new technology investments worth £6 million for digital headsets and mobile payment solutions, demonstrating the retailer's comprehensive approach to blending traditional service values with modern retail innovation.

John Lewis has a new chief customer officer

What: El Corte Inglés reorganises its fashion purchasing structure following Eva Gallego's departure, promoting four internal executives to lead different segments while strengthening the division that generated €4.7 billion in sales last year.

Why it is important: This restructuring shows how traditional retailers are adapting their buying organisations to be more agile and specialised, while maintaining continuity in key revenue-generating departments through internal promotion.

El Corte Inglés has implemented a significant reorganisation of its fashion purchasing structure, dividing responsibilities among four promoted executives following Eva Gallego's departure. The restructuring sees Begoña Cue taking charge of wholesale luxury women's purchasing, while Delfina Gayoso oversees external brand purchases for women's and men's accessories and footwear. Cristina Marconell expands her role from women's purchasing to include men's and youth categories, and Lourdes Cruz adds children's purchasing to her existing lingerie and swimwear responsibilities. All four executives will report to Laura Moreno, who has led the fashion, home, culture, and leisure division since March. This change aligns with broader organisational shifts implemented earlier this year, which strengthened Santiago Bau's role and divided the company's retail operations into three distinct areas. The restructuring demonstrates El Corte Inglés's commitment to developing internal talent while adapting its operations to meet evolving market demands.

IADS Notes: The June 2025 reorganisation of El Corte Inglés's fashion purchasing structure represents the latest phase in the company's comprehensive transformation journey. This change follows March 2025's broader organisational restructuring under CEO Gastón Bottazzini, which established a new Transformation Office , supported by February's €428 million investment in store renovations and digital innovation . The decision to promote internal talent rather than external hiring aligns with the strategic direction set after retail director José María Folache's departure in October 2024 . This approach to leadership in the fashion division is particularly significant given the category's strong performance, with fashion and beauty sales reaching €4.7 billion in 2023, a 3.68% increase , demonstrating the strategic importance of maintaining continuity while driving innovation.

El Corte Inglés reorganises its fashion department

What: Rachel Morgans reveals her strategic approach to fashion retail leadership at John Lewis, highlighting the importance of competition and continuous innovation in maintaining the department store's market position.

Why it is important: This perspective from a key industry leader illustrates how traditional department stores can remain competitive through strategic premium brand expansion and operational agility, particularly relevant given John Lewis's recent addition of 49 new fashion brands.

Rachel Morgans, John Lewis's fashion director, offers a compelling glimpse into the daily operations of a modern retail executive whilst sharing her journey in the fashion industry. Having joined the partnership in June 2024, Morgans brings extensive experience from roles at Topshop, Asos, and Brown Thomas. Her early-morning routine reflects her hands-on approach to leadership, starting before 8am and maintaining a fluid schedule to remain reactive to retail demands. Her fashion perspective, combining tailored pieces with casual elements, mirrors the contemporary approach she brings to John Lewis's fashion strategy. Morgans emphasises the importance of competition in driving innovation and maintains that retail must be more than just a job – it requires genuine passion. Her career trajectory, from denim buying specialist to fashion director, demonstrates the value of diverse retail experience in senior leadership roles. The interview reveals how her background influences her current approach to fashion retail, particularly in understanding and responding to customer needs while maintaining commercial awareness.

IADS Notes: Rachel Morgans' leadership of John Lewis's fashion transformation builds upon a series of strategic initiatives that have reshaped the department store's approach to premium retail. Following the announcement of an £800 million retail transformation investment in October 2024, the company has systematically enhanced its fashion credentials. The February 2025 addition of 49 new brands, including culturally relevant names like S.S. Daley, demonstrated the retailer's commitment to contemporary fashion, while May 2025's launch of the premium Editions collection (£79-£299) showed their ability to identify and fill market gaps. This fashion-forward strategy was enabled by August 2024's restructuring of buying and merchandising teams, which created 48 new specialist roles. The combination of enhanced brand partnerships, premium own-label development, and strengthened internal expertise reflects John Lewis's successful evolution from traditional department store to modern fashion destination.

John Lewis's fashion director strategic approach to fashion

What: Falabella's Haciendo Escuela programme marks 56 years of transformative educational support, now reaching 78,000 students across Chile through strategic school-store partnerships.

Why it is important: The 2024 transformation, including partnership with Corporación Bien Público and focus on measurable outcomes, demonstrates how traditional CSR programmes can adapt to meet contemporary educational challenges.

Falabella's Haciendo Escuela Programme (PHE) celebrates 56 years of continuous educational support in Chile, evolving from a single partnership following the La Ligua earthquake to a comprehensive initiative benefiting 78,000 students. The programme operates through strategic partnerships between 49 Falabella stores and nearby schools, spanning from Arica to Punta Arenas. In 2024, PHE underwent a significant transformation to address learning challenges identified by national SIMCE testing, implementing five strategic pillars: literacy, mathematics, socioemotional skills, school leadership, and volunteerism. This restructuring, supported by Corporación Bien Público, yielded impressive results, with literacy levels improving by 28.6 percentage points and mathematics scores rising by 27.4 points. The programme extends beyond academic support to include higher education scholarships, financial literacy workshops, and leadership development initiatives, reflecting Falabella's comprehensive approach to educational enhancement.

IADS Notes: Recent developments highlight Falabella's expanding commitment to education and community development. In May 2025, the company reported that Haciendo Escuela now reaches more than 78,000 students , a significant increase from previous years. This expansion is supported by a substantial investment plan announced in December 2024 , demonstrating the company's long-term commitment to social impact. The programme's success has also influenced other initiatives, such as the February 2025 launch of an electronics trade-in programme strategically aligned with the back-to-school season , showing how educational support can be integrated with sustainable business practices.

Falabella marks 56 years of educational transformation in Chile

What: OTB Group establishes Mexican subsidiary and partners with El Palacio de Hierro to launch 50 new points of sale for its luxury brands including Diesel, Jil Sander, Marni, and Maison Margiela.

Why it is important: This strategic move demonstrates how luxury fashion groups can leverage established department store networks to rapidly expand their presence in key growth markets while maintaining brand positioning.

OTB Group is making a significant move into the Mexican market by establishing a dedicated subsidiary in Mexico City to oversee its regional expansion. The Italian fashion group, known for its portfolio of luxury brands including Diesel, Jil Sander, Marni, and Maison Margiela, has formed a strategic partnership with El Palacio de Hierro, Mexico's premier luxury department store chain. The collaboration will see the launch of approximately 50 new points of sale over the next five years, extending beyond Mexico City to key regional locations including Guadalajara, Monterrey, León, Cancún, Puebla, and Querétaro. This expansion will be executed through a combination of boutiques and branded concessions within El Palacio de Hierro's network of 31 stores. The initiative represents OTB's commitment to strengthening its presence in North America beyond its existing operations in the United States and Canada, with Mexico being identified as a crucial market for luxury retail growth.

IADS Notes: OTB's strategic entry into Mexico through El Palacio de Hierro comes at a time of significant growth in the country's luxury retail sector. The department store chain has demonstrated remarkable performance, achieving 12% revenue growth and 30% operating profit increase in April 2025, while maintaining its position as the world's second-best department store. The partnership aligns with El Palacio de Hierro's successful track record of introducing international luxury brands, as evidenced by its October 2024 flagship store opening in León, which spans 35,000 square meters and houses over 200 premium brands. The retailer's strong financial results, including 11% revenue growth to $3.2 billion in 2024, and its extensive network of 31 stores across key Mexican cities, provide OTB with a robust platform for establishing its brands in the Mexican market, following similar successful collaborations with prestigious luxury groups like LVMH and Kering.

El Palacio de Hierro partners with luxury group OTB

What: John Lewis expands its circular fashion initiatives by introducing pre-owned designer childrenswear through Kidswear Collective partnership at its Oxford Street flagship.

Why it is important: This strategic expansion of pre-owned luxury into childrenswear demonstrates how department stores are evolving their business models to meet growing consumer demand for sustainable fashion while maintaining premium brand relationships.

John Lewis continues to strengthen its position in circular retail with the launch of a dedicated pre-owned designer childrenswear space at its Oxford Street flagship store. The initiative, in partnership with Kidswear Collective, offers a curated selection of refurbished and past-season designer items for ages newborn to 12 years, featuring prestigious brands like Gucci, Burberry, and Stella McCartney at 60% below original prices. This latest venture builds upon the retailer's successful track record with rental, circular, and pre-loved collections, demonstrating their commitment to sustainable shopping options. The strategic placement within the kids department creates a seamless shopping experience where customers can mix new and pre-owned items. Services & Innovation lead Danielle Gagola emphasises the move's alignment with their broader sustainability goals, while Kidswear Collective highlights how department store partnerships help normalise pre-loved fashion purchases.

IADS Notes: John Lewis's expansion into pre-owned childrenswear represents the latest development in their comprehensive circular economy strategy. Since August 2024, the retailer has systematically expanded its sustainable offerings, beginning with The Little Loop partnership  and extending into luxury resale through Sign of the Times . This approach aligns with their £800 million retail transformation investment announced in October 2024 , which emphasises enhanced customer experiences and sustainability initiatives. The success of these ventures has been evidenced by strong customer engagement, leading to the nationwide rollout of repair services in April 2025 , demonstrating the retailer's commitment to combining traditional retail excellence with modern sustainability practices.

John Lewis to sell pre-owned kidswear with third-party Kidswear Collective

What: Manor orchestrates exclusive Labubu figurine drop at Zurich central station, leveraging Pop Mart's cult collectables to create a high-impact retail event.

Why it is important: The strategy shows how retailers can leverage collectable culture and limited availability to attract younger, digitally-connected consumers.

Manor is expanding its successful Labubu figurine events to Zurich's central station, following strong performances in Geneva and Lausanne. The one-day exclusive drop, scheduled for June 28th at 10am, capitalises on the FOMO (Fear Of Missing Out) marketing principle commonly used in streetwear and sneaker launches. The event will feature Pop Mart's cult collectables, including three distinct series: Labubu, Crybaby – Wild but Cutie, and Skullpanda – L'impressionnisme, each offering different emotional narratives. The figurines have gained significant cultural cachet, with endorsements from celebrities like Dua Lipa and Lisa from Blackpink. Pop Mart's success is evident in their 2024 revenue of $1.2 billion, driven by their blind box model and strategic retail partnerships. The event demonstrates Manor's ability to create urgency and excitement while attracting a younger, urban audience through contemporary pop culture trends.

IADS Notes: Manor's Labubu event strategy reflects broader trends in experiential retail and pop culture merchandising. According to WWD's October 2024 coverage , pop-up shops have become crucial for creating urgency and exclusivity, particularly in high-traffic locations. Inside Retail's February 2025 analysis showed how retailers are successfully combining digital integration with cultural elements to enhance customer engagement, with blind box collectables proving particularly effective. LUXUS PLUS's January 2025 report revealed how retailers are moving beyond temporary installations to create meaningful brand experiences that prioritise emotional connection over immediate sales. The Robin Report's October 2024 coverage highlighted Manor's broader strategy of modernising its retail approach through exclusive brands and themed experiences. The Zurich station event, following successful activations in Geneva and Lausanne, demonstrates how retailers can effectively leverage pop culture collectables to create compelling shopping events that drive both traffic and engagement while attracting younger audiences.

Manor creates the buzz thanks to Labubu dolls

What: John Lewis's transformation strategy sparks employee petition as partnership model evolves from annual bonuses to enhanced monthly compensation.

Why it is important: This employee response to John Lewis's strategic shift demonstrates how heritage retailers must carefully manage the human impact of organisational change, particularly in employee-owned businesses.

John Lewis Partnership faces mounting pressure from its workforce to reinstate staff bonuses after a three-year hiatus, despite reporting a 73% increase in pre-tax profit to £97 million. The campaign, which has garnered nearly 4,000 signatures through the Organise platform, reflects growing tension between modernisation efforts and traditional partnership values. Employees argue that the bonus represented more than financial reward, symbolising recognition of their contribution to the business's success.

The retailer's decision to maintain the bonus suspension comes alongside significant investments in employee compensation, including a £114 million commitment to base pay increases. This strategic shift prioritises regular monthly support over annual bonuses, with store staff receiving up to 9.4% pay rises. However, some workers contend that reduced staffing levels and increased workloads warrant additional recognition, particularly given the company's improved financial performance.

Chair Jason Tarry has expressed determination to reinstate bonuses when feasible, while the company emphasises its focus on improving base pay and business investment. This situation highlights the delicate balance between maintaining the partnership's unique employee-owned structure and implementing necessary business transformation initiatives.

IADS Notes: The current employee petition reflects broader changes in John Lewis's strategy since March 2025, when the company announced its £114 million investment in base pay alongside a 73% profit increase. This transformation includes an £800 million commitment to store renovations revealed in October 2024, which has already shown positive results through the modernised "Never Knowingly Undersold" pledge. The February 2025 introduction of 5,000 apprenticeships and increased shop floor staffing demonstrates the company's attempt to balance traditional partnership values with modern retail demands, though employee reactions suggest this transition remains challenging.

John Lewis and Waitrose face demands to reinstate bonuses

What: Galeries Lafayette transforms its rooftop into an Air France-themed dining destination, featuring Business Class menus created by three-star chef Régis Marcon and award-winning pastry chef Nina Métayer.

Why it is important: This innovative partnership demonstrates how department stores can leverage unique brand collaborations and prime locations to create distinctive experiences that attract both local and tourist customers.

Air France is bringing its premium dining experience to the heart of Paris through an innovative partnership with Galeries Lafayette. From June 25 to August 20, 2025, the department store's rooftop will host an exclusive restaurant offering Air France's Business Class menu. The culinary experience has been crafted by three-star Michelin chef Régis Marcon and "World's Best Pastry Chef 2023" Nina Métayer, featuring sophisticated French cuisine served in specially designed tableware by Jean-Marie Massaud. The restaurant, accommodating twenty covers with two lunch services daily, will recreate the intimate atmosphere of Air France's airport lounges while offering panoramic views of Paris. Located on the 8th floor, the venue includes both indoor dining space and an outdoor terrace, providing guests with spectacular views from the Eiffel Tower to Montmartre, with the Opéra Garnier as its immediate neighbour.

IADS Notes: The Air France rooftop restaurant initiative at Galeries Lafayette builds upon a series of successful experiential retail developments in Paris. In September 2024, the department store demonstrated its expertise in culinary experiences with an exclusive dining event under its iconic dome, setting a precedent for innovative food partnerships. This approach aligns with the store's EUR 400 million investment plan announced in February 2025, which emphasizes customer experience enhancement and flagship modernization. The strategy has already shown results, with November 2024 reporting a 15% sales increase driven by experiential retail initiatives. The trend extends beyond Paris, as evidenced by Printemps NYC's March 2025 focus on customer dwell time and dining experiences, confirming how department stores are increasingly using gastronomy to create unique retail destinations.

Galeries Lafayette partners with Air France for ephemeral restaurant

What: Bloomingdale's consolidates its fashion leadership by expanding David Thielebeule's role to oversee both men's and women's ready-to-wear, streamlining its fashion director structure to three key positions.

Why it is important: This strategic consolidation reflects a broader retail trend toward integrated merchandising leadership, optimising decision-making while strengthening the connection between product curation and customer engagement.

Bloomingdale's has expanded David Thielebeule's role to encompass both men's and women's ready-to-wear fashion direction, marking a significant evolution in its organisational structure. This appointment, which sees Thielebeule taking over the women's rtw responsibilities from Janelle Lloyd, is part of a broader strategy to streamline the fashion director roles to three key leaders. The restructuring aims to strengthen the connection between merchandise storytelling, brand discovery, and customer engagement across all touch points. Alongside Thielebeule, Marissa Galante Frank continues as accessories and beauty fashion director, while Kelley Carter maintains her position as home fashion director. The company has also created a new beauty editorial and events specialist role to enhance brand narratives in the beauty space. This reorganisation aligns with Bloomingdale's integrated marketing team strategy and its larger Dream Big initiative, which focuses on reimagining growth through innovation, creativity, and experiential retail.

IADS Notes: Bloomingdale's appointment of David Thielebeule as men's and women's fashion director in June 2025 aligns with the retailer's broader transformation strategy. This move builds upon several successful initiatives, including the immersive "From Italy, With Love" campaign in August 2024, which demonstrated the company's ability to create compelling retail experiences through curated merchandise and brand storytelling. The streamlining of fashion director roles complements December 2024's digital innovation efforts, when Bloomingdale's partnered with Lucky platform to enhance its omnichannel capabilities. Under CEO Olivier Bron's leadership, this focus on strategic merchandising and enhanced customer experience has yielded positive results, as evidenced by the strong 3.8% comparable sales growth in Q1 2025. Thielebeule's expanded role, with its emphasis on connecting merchandise storytelling and brand discovery, represents another step in Bloomingdale's evolution toward a more integrated and customer-centric retail model.

Bloomingdale's men's fashion director adds women's fashion to its role