What: Global trade policy shifts are compelling retailers to revolutionise their operations through technology adoption, focusing on AI-driven solutions for cost management and supply chain resilience.

Why it is important: The scale of trade policy changes, affecting 44% of US imports, demands unprecedented operational adaptation, making technological innovation no longer optional but essential for maintaining competitive advantage in global retail.

The retail industry faces a transformative challenge as new tariffs threaten to disrupt established supply chains and operational models. Advanced supply chain solutions are emerging as critical tools, enabling retailers to rapidly integrate enterprise-wide data and assess country-specific risks. Through AI-powered analytics and predictive modeling, companies can now pinpoint high-risk SKUs and proactively adjust their strategies to maintain profitability. The integration of real-time simulation capabilities for multiple tariff scenarios has become a competitive necessity, allowing businesses to analyze duties, evaluate alternative vendors, and automate pricing adjustments swiftly. This technological evolution extends beyond immediate operational concerns, encompassing sophisticated risk management strategies that address both current challenges and future uncertainties. The industry's response demonstrates a clear shift towards data-driven decision-making, with retailers leveraging AI to optimise supply chain efficiency, balance inventory, and ensure product availability despite tariff challenges.

IADS Notes: The retail industry's response to tariff pressures has accelerated significantly in early 2025. As reported in March 2025, retailers are implementing AI-powered analytics for supply chain optimisation, while BCG's projections of USD 640 billion in additional import costs are driving widespread operational changes. February 2025 saw the elimination of the USD 800 de minimis rule, further complicating international trade. Despite these challenges, January 2025 data shows that 87% of early AI adopters achieved significant revenue increases, though only 10% of retailers have successfully scaled their AI applications, highlighting both the potential and challenges of technological adaptation.

Tariff turmoil: How retailers adapt to shifting trade policies

What: Erewhon has evolved from a health food store into a luxury lifestyle brand, leveraging celebrity partnerships and premium pricing to create a distinctive retail experience that transcends traditional grocery shopping.

Why it is important: The transformation demonstrates how specialty retailers can successfully elevate everyday shopping into luxury experiences, creating new benchmarks for experiential retail and community building in the process.

Erewhon's remarkable transformation under Tony and Josephine Antoci's leadership since 2011 exemplifies the evolution of modern retail into experiential destinations. The company has successfully positioned itself as a luxury lifestyle brand, where $20 smoothies and $19 strawberries become coveted status symbols rather than mere grocery items. Their strategic approach combines premium product curation with celebrity partnerships, including viral smoothie collaborations that generate both social media buzz and charitable contributions. The company's $200-a-year membership programme has created an exclusive community aspect, while partnerships with fashion brands like Balenciaga and lifestyle ventures such as Sushi Club have reinforced its luxury positioning. As Erewhon expands to thirteen locations across California, its success demonstrates how a focused retail concept can evolve into a comprehensive lifestyle brand that attracts both local regulars and international visitors seeking an authentic LA experience.

IADS Notes: Erewhon's success aligns with significant retail trends identified in recent years. As noted in January 2025, successful retailers are prioritising emotional engagement over traditional sales metrics, which Erewhon demonstrates through its carefully curated environments and social spaces. The company's approach to creating community hubs reflects the growing importance of "third spaces," where retailers foster genuine connections beyond traditional shopping experiences. Their December 2024 expansion into apparel and lifestyle products exemplifies how strong brand identity can support category expansion, creating a comprehensive lifestyle experience that transcends traditional retail boundaries.

The business of Erewhon

What: Multi-brand luxury retailers in Africa are expanding beyond traditional markets, creating new opportunities in Kenya, Angola, and Egypt.

Why it is important: This expansion signals Africa's growing importance in global luxury retail, with multi-brand stores serving as strategic entry points for international brands while navigating complex local market conditions.

Africa's luxury retail landscape is undergoing a significant transformation as multi-brand stores expand beyond the established markets of South Africa, Nigeria, and Morocco. Family dynasties like Kenya's Little Red and new ventures such as DuCarmo in Angola are reshaping the continent's luxury retail scene, offering prestigious international brands to affluent consumers. These retailers play a crucial role in markets where major luxury conglomerates have limited direct presence, providing immediate access to designer brands while navigating complex local challenges. The continent's wealth dynamics are evolving, with millionaire numbers expected to increase 65% by 2033, particularly in countries like Zambia, Uganda, and Rwanda. However, retailers face significant challenges, including high import duties, complex customs processes, and underdeveloped infrastructure. Despite these obstacles, many stores are evolving beyond traditional retail roles, offering additional services like designer support and incubator programs, demonstrating the dynamic nature of luxury retail in African markets.

IADS Notes: The expansion of luxury retail in Africa through multi-brand stores reflects broader industry trends observed throughout 2024-2025. As seen in October 2024, major retail groups like Frasers are strategically entering the African market through local partnerships, demonstrating how established companies can navigate complex regional markets. This approach aligns with the February 2025 Bain-Altagamma study, which emphasizes the need for luxury retailers to fundamentally rethink their strategies in emerging markets, balancing digital capabilities with traditional luxury values. The success of this model is particularly relevant as African millionaire numbers are projected to increase by 65% by 2033, suggesting significant potential for luxury retail growth through carefully curated multi-brand partnerships.

The retailers unlocking Africa’s luxury market

What: Despite modest holiday sales improvement, Macy's faces mounting pressure from tariffs and cautious consumer spending, prompting aggressive store optimisation and supply chain restructuring.

Why it is important: The convergence of trade tensions, shifting consumer behaviour, and department store decline forces traditional retailers to fundamentally reimagine their business models, making Macy's response a bellwether for the industry's future.

Macy's, America's largest department store chain, reported a slight 0.2% increase in comparable sales across its stores, including Bloomingdale's and Bluemercury, marking its best performance in nearly three years. However, this modest improvement comes amid significant challenges, including consumer spending constraints and margin pressures. The company's turnaround strategy involves closing more than 60 of 150 planned store locations, whilst grappling with the impact of new tariffs on imports from Canada, Mexico, and China. CEO Tony Spring indicated that while current inventory levels shield the company from immediate tariff effects, future impacts will be assessed on a case-by-case basis. This cautious approach reflects broader industry concerns, with other retailers like Target and Best Buy warning of potential price increases for American consumers. Despite these challenges, some retailers, including Warby Parker and TJX, have implemented strategies to diversify their supply chains and minimise tariff exposure, demonstrating the industry's adaptive response to trade pressures.

IADS Notes: Macy's latest performance reflects significant retail transformation trends observed throughout 2024. In March 2024, the company launched a USD 100 million supply chain optimisation plan to address tariff impacts, while November 2024 reports showed the "First 50" pilot stores delivering consistent growth and improved customer satisfaction. The expansion of store closures announced in December 2024 aligns with May 2024 data showing department stores' market share had declined to just 2.6% of retail transactions, highlighting the urgency of transformation efforts. January 2025 results demonstrated strong performance in luxury segments, suggesting that while Macy's faces significant headwinds, its multi-brand strategy shows promise.

Macy’s signals rocky year ahead as retailers reckon with trade war

What: Sweden leads the OECD's glass-ceiling index in 2025, while persistent gender gaps in labour participation and wages continue to hinder women's advancement across major economies.

Why it is important: This comprehensive analysis of workplace gender equality across OECD countries provides retailers with actionable insights for addressing leadership diversity gaps, especially significant as only four of nine recent creative director appointments went to women or people of colour.

The Economist's 2025 glass-ceiling index reveals Sweden's ascendance to the top position, ending Iceland's two-year dominance in workplace gender equality. The Nordic region's consistent strong performance stems from policies supporting gender equality and working parents, creating a model for other nations. Despite women's higher university graduation rates (45% compared to 36.9% for men), significant challenges persist across the OECD. Labour force participation remains lower for women at 66.6% compared to men's 81%, with stark regional variations from Iceland's 82% to Italy's 58%. The gender pay gap continues, with women earning 11.4% less than men, while board representation has improved from 21% in 2016 to 33% today. Political representation has reached a historic high, exceeding 34% of parliamentary seats. However, parental support varies dramatically, with the United States standing alone among rich nations without nationally mandated parental leave, while Hungary and Slovakia offer extensive paid leave for mothers.

IADS Notes: Recent retail industry data reinforces the glass-ceiling index findings about workplace gender inequality. While women control 75% of global discretionary spending and represent a USD 32 trillion market opportunity , they remain underrepresented in leadership positions, with only four of nine recent creative director appointments going to women or people of colour . The retail sector's high turnover rate of 51%  suggests a direct link between gender inequality and talent retention challenges. Progressive policies supporting gender equality, as seen in the Nordic countries' success, offer practical solutions for addressing these industry-wide challenges. Some positive change is emerging, exemplified by major Asian retailers like Seven & i Holdings breaking traditional barriers with more diverse leadership appointments , but significant work remains to close the global gender gap in retail leadership.

Women in the workforce: the glass-ceiling index 2025

What: Global trade tensions are forcing fashion retailers to balance sustainability commitments against rising tariff costs, reshaping industry practices and supply chains.

Why it is important: This dual pressure of trade tensions and sustainability requirements is catalysing fundamental changes in retail operations, from sourcing strategies to consumer pricing, potentially reshaping the industry's future.

The fashion industry faces a critical challenge as escalating trade tensions threaten to undermine sustainability commitments. With US President Trump wielding tariffs as a political weapon against both strategic rivals and traditional allies, fashion businesses are grappling with unprecedented uncertainty. Industry experts, including Michelle Gabriel from IE New York College, emphasise that effective strategic planning becomes nearly impossible under such volatile conditions. The impact extends beyond immediate operational concerns, potentially affecting long-term sustainability investments that often lack immediate returns. Environmental nonprofits warn against using tariffs as an excuse to retreat from climate goals, arguing that abandoning sustainability efforts would harm both supply chain workers and brand reputations. Industry leaders, including Colin Browne of Cascale, maintain that sustainability remains non-negotiable despite short-term trade concerns. The situation has prompted some companies to innovate, particularly in areas like artificial intelligence for material efficiency and circular business models, while others focus on practical approaches like factory-level improvements and supply chain optimisation.

IADS Notes: The retail landscape has undergone significant transformation since early 2025, with BCG projecting USD 640 billion in additional US import costs from tariffs. This economic pressure coincides with February 2025's EU regulations mandating retailer-funded textile waste management, while consumer data shows 60% of shoppers expressing increased climate concern despite price sensitivity. The industry's response has been innovative, as demonstrated by Peek & Cloppenburg's January 2025 launch of their sustainable store concept, showing how retailers can balance environmental responsibility with economic viability.

As tariffs cause chaos across fashion’s supply chain, what happens to sustainability?

What: AI-driven hyper-personalisation is transforming retail through advanced data analytics and machine learning, with the global market projected to grow at 23% annually as retailers leverage technology to enhance customer experiences and operational efficiency.

Why it is important: As consumer expectations evolve and technology becomes more accessible, retailers must embrace AI-driven personalisation to remain competitive, with industry leaders already demonstrating how this transformation can drive substantial revenue growth and operational efficiency.

The retail industry is witnessing a revolutionary transformation through AI-driven hyper-personalisation, with the global market for AI in retail valued at USD 11.61 billion in 2024 and projected to grow at 23% annually through 2030. This evolution is driven by strong consumer demand, with 67% of customers seeking more personalized interactions and real-time recommendations. Retailers are leveraging AI technologies to enable precision targeting, optimise content delivery, and create seamless omnichannel experiences. Key elements include enhanced data collection through loyalty schemes, AI-powered customer data platforms, and sophisticated machine learning algorithms that enable microtargeting and real-time engagement optimisation. The integration of physical and digital dimensions through augmented reality and virtual reality further enhances the customer experience, while agentic AI and generative AI enable more sophisticated customer interactions through chatbots and voice assistants. Success stories from major retailers demonstrate significant improvements in conversion rates and revenue growth, highlighting the transformative potential of these technologies.

IADS Notes: The retail industry's embrace of AI-driven hyper-personalisation has reached a critical inflection point, as evidenced by recent market developments. McKinsey's February 2025 report highlighting that 71% of consumers expect personalised interactions underscores the urgency of this transformation. This consumer demand aligns with BCG's November 2024 analysis revealing potential gains of USD 570 billion for industry leaders through personalisation. The operational impact is equally significant, with AI agents demonstrating 15-30% improvement in customer service efficiency as of January 2025. Walmart's successful implementation of AI-powered personalised homepages in October 2024 serves as a blueprint for large-scale deployment, showing how retailers can effectively combine data analytics, machine learning, and customer experience optimisation. These developments collectively demonstrate how AI-driven personalisation is evolving from a competitive advantage to an essential component of retail strategy.

How AI-driven hyper-personalisation is transforming retail

What: Trump's confrontational stance towards Europe catalyses a renewed focus on AI development and implementation in the retail sector, supported by substantial investment and balanced regulatory frameworks.

Why it is important: This pivotal moment in EU-US relations creates an opportunity for European retailers to establish technological independence and competitive advantage, as evidenced by the 87% of early AI adopters achieving significant revenue growth.

Europe's response to Trump's antagonistic stance marks a decisive shift in the continent's approach to AI development and implementation. Rather than retreating from the challenge, European leaders are seising this moment to foster innovation and technological independence. The EU's strategic investment of EUR 200 billion through the InvestAI initiative, coupled with France's EUR 109 billion commitment to AI infrastructure, demonstrates unprecedented commitment to technological advancement. This approach balances regulation with innovation, as the EU AI Act affects only 10-20% of enterprises while focusing on high-risk applications. The retail sector stands to benefit significantly, with European retailers already achieving 30% faster operations through AI implementation. However, challenges remain, as only 10% of retailers successfully scale their AI applications. The combination of political pressure and strategic investment creates an environment where European values and innovation can thrive together, potentially reshaping the global retail technology landscape.

IADS Notes: The retail industry's transformation through AI has gained significant momentum throughout 2024-2025. In February 2025, the EU launched its landmark EUR 200 billion InvestAI initiative, while European retailers demonstrated concrete results with 30% faster operations through AI implementation in March 2025. October 2024 data revealed that 87% of early AI adopters experienced revenue growth of 6% or higher, validating the strategic focus on technological advancement. However, January 2025 statistics showing only 10% of retailers successfully scaling their AI applications underscore the importance of the article's call for more aggressive development strategies. This data suggests that Europe's balanced approach to regulation and innovation could indeed provide a viable alternative to US and Chinese AI development models.

Trump is a gift to European AI

What: Corporate boards face increasing burnout risks as they navigate multiple disruptions while providing enhanced strategic guidance to management.

Why it is important: As retail undergoes rapid transformation, maintaining effective board oversight and preventing director burnout is crucial for ensuring sound governance and successful business adaptation.

The current business landscape presents significant challenges for corporate board members, who are dealing with unprecedented levels of disruption while facing increased demands on their time and expertise. Directors are now spending nearly 90 hours annually in board meetings alone, up from 70-80 hours pre-pandemic, while simultaneously managing multiple board commitments. The pressure comes from various sources: guiding companies through economic uncertainty, monitoring geopolitical risks, adapting to new regulations, and addressing emerging issues like DEI and sustainability. To prevent burnout and maintain effective governance, boards are implementing strategic time management, leveraging technology for immediate problem-solving, and developing frameworks for future decision-making. The emphasis on director well-being and mutual support through regular check-ins reflects the recognition that board effectiveness directly impacts corporate success.

IADS Notes: According to our database, retail boards are experiencing significant transformation in their governance approaches. In January 2025, research showed that constructive board disagreements have become essential for effective corporate oversight, particularly evident in cases like Macy's board restructuring. The retail sector has seen notable leadership changes, with our database showing that by October 2024, several major retailers underwent significant board and CEO transitions. This trend continued into early 2025, as companies like John Lewis eliminated their CEO role to streamline decision-making, demonstrating how boards are adapting their structures to manage increasing complexities while maintaining effective oversight.

Board burnout is a major risk to all companies— Here’s how they can protect their top directors

What: Leading retailers achieve 4.5% annual productivity growth by redefining efficiency through AI integration, marking a departure from the industry's decade-long 0.3% growth rate.

Why it is important: This shift represents a fundamental reimagining of retail productivity, where technology serves as an enabler of human capability rather than just a cost-reduction tool.

The retail industry is experiencing a transformative shift in how productivity is measured and achieved, moving beyond traditional cost-cutting approaches that have yielded only 0.3% annual growth over the past decade. High-performing retailers are demonstrating remarkable success, achieving 4.5% annual productivity growth by fundamentally redefining their approach to efficiency. The integration of generative AI, with 84% of retail executives planning increased investment, represents a pivotal strategy in this transformation. Drawing lessons from Sears' journey from innovation leader to bankruptcy, the article emphasises that sustainable growth requires continuous adaptation and strategic technology deployment. Rather than replacing human workers, AI serves as an enabler that automates routine tasks while empowering employees to focus on creative, strategic work. This new paradigm suggests that long-term retail success depends on reinvesting in both technology and people, fostering a culture of continuous learning and innovation.

IADS Notes: The retail industry's approach to productivity is undergoing a fundamental transformation through AI adoption, as evidenced by recent market developments. According to Vogue Business , 87% of retailers implementing AI witnessed revenue increases of 6% or more, alongside 15-30% improvements in customer service efficiency, demonstrating the shift from cost-cutting to value creation. This evolution is exemplified by a Retail Dive report , where Walmart's AI technology processed 850 million product data points, significantly enhancing operational efficiency and customer experience. The impact extends to consumer behaviour, with The Robin Report  showing 38% of shoppers actively using AI tools and 80% reporting positive experiences. The transformation is particularly evident in operational processes, as WWD  highlights retailers' transition from traditional Excel-based planning to AI-driven systems, enabling more dynamic inventory management and improved decision-making. This convergence of technological capability and practical implementation suggests that retail productivity is being redefined, with successful companies leveraging AI not just for cost reduction but for comprehensive value creation across their operations.

Redefining productivity In retail

What: Leaders must implement five critical actions to ensure transformation benefits materialise in P&L results, addressing common sources of financial leakage.

Why it is important: The success of recent retail transformations demonstrates how proper financial oversight can help organisations navigate market challenges while delivering measurable results.

Corporate transformations face a critical challenge: ensuring their projected financial benefits materialise in the bottom line. This comprehensive analysis reveals that typically 10-20% of expected financial impact is lost before reaching P&L statements due to various forms of leakage, including price and wage increases, demand fluctuations, and operational underperformance. To address this challenge, leaders must implement disciplined financial oversight through five key actions: partnering with finance to set realistic targets, building robust tracking infrastructure, cascading awareness throughout the organization, aligning incentives with transformation objectives, and embedding a value-driven culture. The article emphasises how successful transformations require not just ambitious goals but also precise mechanisms to monitor and maximise their financial impact. This approach enables organisations to maintain credibility with investors while ensuring transformation efforts deliver tangible business outcomes. The framework presented provides a practical roadmap for leaders to bridge the gap between transformation initiatives and actual P&L results, ultimately driving sustainable financial performance.

IADS Notes: Recent retail transformations validate BCG's emphasis on disciplined financial oversight and cultural change. Macy's Q4 results in March demonstrated how precise tracking of transformation initiatives can yield tangible results, with their "First 50" pilot locations delivering consistent growth despite broader market challenges. This success was mirrored by BHV's remarkable turnaround in January, achieving €9.6 million EBITDA through strategic cost management and merchandise optimisation. Saks Global's revolutionary reorganisation in December exemplified BCG's recommendation for embedding value-driven culture, as they eliminated traditional roles in favor of technology-driven operations. Meanwhile, Breuninger's successful digital transformation in October, achieving over 50% online sales, showcased how systematic transformation can directly impact P&L outcomes when supported by robust financial tracking and accountability systems.

Making transformation count where it matters —the bottom line

What: EU's revised sustainability directives CSRD, CSDDD, and ESPR mandate comprehensive environmental reporting and due diligence from retailers by 2028, fundamentally transforming business practices and supply chain management.

Why it is important: This regulatory framework represents the EU's most comprehensive attempt to address retail's environmental impact, requiring significant investment in new technologies and processes while reshaping industry standards globally.

The European Union's sustainability regulations are undergoing significant revisions, with the implementation deadline for CSRD extended to 2028 and its scope adjusted to focus on larger businesses. The updated criteria now apply to companies with over 1,000 employees and EUR 50m in turnover if based in the EU, or EUR 450m if not EU-based. These directives demand comprehensive environmental reporting and supply chain due diligence, while the ESPR introduces specific requirements for waste reduction, durability, and product repairability. Digital product passports will become mandatory, tracking products from origin through their lifecycle. The regulations' impact extends beyond EU borders, affecting UK businesses trading with the bloc. While some retailers, like Passenger and Baukjen, are proactively preparing for compliance, others face challenges in securing resources and expertise. The directives also raise concerns about unintended consequences, particularly for smaller suppliers and factories lacking resources for comprehensive reporting and auditing. Despite implementation challenges, these regulations are reshaping the retail landscape, pushing the industry toward greater transparency and sustainability.

IADS Notes: The evolution of EU sustainability regulations marks a critical turning point for retail operations. As noted in February 2025, the extension of CSRD compliance deadlines to 2028 provides crucial adaptation time, though industry experts warn that up to 75% of fashion businesses could disappear within five years due to non-compliance. The industry's initial unpreparedness for these changes has led to collaborative initiatives for standardised reporting. This transformation aligns with shifting consumer preferences, as evidenced by the growing preference for repairs over replacement, suggesting that successful regulatory adaptation could become a key competitive advantage.

CSRD, CSDDD and ESPR: do you know the new letters of sustainability law?

What: Circular economy strategies are transforming retail through consumer-driven sustainability initiatives, creating new revenue streams while reducing environmental impact.

Why it is important: The convergence of consumer demand, regulatory pressure, and proven business success cases demonstrates how circular economy practices are becoming essential for retail survival and growth, as evidenced by recent industry-wide adoption of sustainable initiatives.

The retail industry is experiencing a fundamental transformation driven by sustainability and circular economy principles. Nearly one-third of shoppers now rank eco-friendliness as their primary consideration when making purchases, prompting retailers to adopt comprehensive circular strategies. These initiatives encompass product take-back programs, resale platforms, and sustainable packaging solutions, creating multiple benefits: increased customer loyalty, new revenue streams, and reduced environmental impact. The shift from traditional 'take, make, dispose' models to sustainable cycles is particularly evident in consumer behaviour, where environmental consciousness drives purchasing decisions. Retailers implementing circular practices not only satisfy customer demands but also secure their future in an evolving marketplace. This transformation extends beyond mere environmental considerations, offering significant business advantages through optimised resource use, emerging income from resale strategies, and strengthened brand reputation. The integration of these practices represents a strategic imperative for retailers, balancing profitability with environmental responsibility while meeting increasingly stringent regulatory requirements.

IADS Notes: Recent developments in retail sustainability demonstrate how circular economy strategies have moved from theoretical concepts to practical implementations. As reported in June 2024, the NRF's comprehensive guide revealed that successful retailers are adopting multiple circular approaches simultaneously, from product design to reverse logistics . This trend gained momentum when the EU introduced groundbreaking regulations in February 2025, requiring retailers to fund textile waste management and meet specific reduction targets . The commercial viability of sustainable retail was proven by Peek & Cloppenburg in January 2025, with their 32,000-square-foot green retail concept successfully combining eco-conscious merchandise with repair services . The resale market's strong performance, documented in January 2025, showed how traditional retailers are successfully integrating circular business models into their operations . These initiatives align with shifting consumer preferences, as December 2024 data revealed that 41% of consumers now choose repairs over replacement, while 24% actively purchase secondhand items . This convergence of regulatory pressure, business innovation, and consumer demand is transforming retail sustainability from a niche concern into a mainstream business imperative.

The benefits of a circular economy strategy in retail

What: Southeast Asian Ramadan retail sales surge 16% year-over-year, with Malaysia leading at 21% growth, driven by evolving digital shopping patterns and personalised retail strategies.

Why it is important: The significant growth in Ramadan retail sales demonstrates Southeast Asia's emerging role as a digital retail powerhouse, with consumers embracing sophisticated shopping patterns that combine traditional festivities with modern commerce.

Ramadan continues to strengthen its position as a crucial shopping period across Southeast Asia, with retail sales demonstrating remarkable year-over-year growth. From 2023 to 2024, sales surged by 16%, building on the previous year's 8% increase. Malaysia's predominantly Muslim market led the growth with a 21% increase in retail transactions, while Singapore posted a 7% rise. However, Indonesia experienced an 11% decline in online sales, highlighting the complexity of regional market dynamics. The shopping patterns during Ramadan have evolved significantly, with sales peaking during the final two weeks of the holy month. Consumer activity shows distinct temporal shifts, with online sales spiking during late-night and early-morning hours, particularly between Sehri and Iftar. Religious and ceremonial items dominated the growth categories with a 63% increase, followed by clothing at 23%. The transformation extends beyond retail, with the travel sector experiencing a 29% year-over-year increase in bookings. Retailers are adapting to these changing patterns by implementing sophisticated strategies, including targeted retail media placements and personalized product recommendations. The success of these approaches demonstrates the increasing sophistication of Southeast Asian consumers and the importance of combining cultural understanding with digital innovation.

IADS Notes: The strong Ramadan retail performance aligns with broader regional trends identified throughout early 2025. As noted in January 2025, Singapore's achievement of 13.3% online sales penetration demonstrates the region's growing digital maturity, while March 2025 reports showed most Southeast Asian countries achieving over 5% growth rates. February 2025 research revealed 90% of Asian consumers value AI-driven recommendations, supporting the success of personalised retail strategies during Ramadan. These developments reflect the sophisticated evolution of Southeast Asian retail, where cultural events are increasingly driving digital innovation and market adaptation.

Ramadan shopping trends unpacked: What retailers need to know

What: Four persistent organisational dynamics prevent sustainable cost reduction in retail, requiring fundamental changes in accountability, overhead management, resource allocation, and productivity investment capture.

Why it is important: The analysis demonstrates why traditional cost-cutting measures fail without addressing fundamental organisational dynamics, helping retailers avoid repeated unsuccessful programs.

Cost reduction programs in retail consistently fall short of their goals, with only 25% described as "very successful" according to a global survey of 2,100 business leaders. The research identifies four fundamental organisational dynamics that undermine sustainable cost management: insufficient P&L accountability among leaders, self-perpetuating overhead growth, tendency to create new positions rather than redeploy resources, and failure to capture promised savings from productivity investments. These challenges persist because companies often implement superficial measures without addressing the underlying organisational causes. The solution requires a comprehensive reset of the operating model, including clear P&L accountability, aggressive reduction of bureaucracy, flexible resource reallocation, and concrete plans to capture productivity gains. Companies that successfully address these four drivers can improve their odds of building long-term cost capability by two to three times, with a significant multiplier effect when tackled simultaneously. This approach enables organizations to emerge with streamlined operations, fewer management layers, and greater agility to meet future demands.

IADS Notes: Recent retail industry developments strongly validate the article's key findings about organisational cost challenges. As seen in March 2024, Macy's ambitious "Bold New Chapter" strategy directly addresses the issue of P&L accountability and overhead reduction, targeting $235 million in annual savings through supply chain optimisation . The broader industry trend is exemplified by Coresight Research's March 2024 findings, which revealed that 90% of retailers face operational inefficiencies leading to significant revenue losses . This aligns with the article's emphasis on sustainable cost reduction through organisational redesign. The transformation trend continued in October 2024, with major U.S. department stores implementing varied turnaround strategies , while Saks Global's December 2024 revolutionary organisational restructuring, eliminating traditional roles in favor of technology-driven approaches , demonstrates how retailers are actively addressing the article's identified challenges of resource redeployment and productivity investment returns.

The four biggest organisational cost challenges—and how to solve them

What: Generative AI serves as a productivity-enhancing tool that both augments existing capabilities and enables workers to tackle previously unattainable tasks.

Why it is important: As retail undergoes digital transformation, understanding GenAI as an 'exoskeleton' rather than a replacement technology helps organisations better implement and leverage its potential while maintaining essential human elements.

Generative AI is emerging as a transformative force in retail, functioning as an 'exoskeleton' that enhances worker capabilities rather than replacing human input. Early implementations show that GenAI not only increases productivity by enabling employees to work faster and more efficiently but also empowers them to tackle tasks previously beyond their scope. While the technology may reduce the need for certain roles, its most significant impact lies in creating new opportunities and enhancing existing positions. The human element remains crucial, particularly in areas requiring empathy, ethical judgment, and relationship building. This evolution suggests a future where GenAI serves as a powerful tool that amplifies human capabilities while preserving the essential interpersonal aspects of retail operations.

IADS Notes: According to our database, retail's experience with GenAI confirms this 'exoskeleton' concept. In February 2025, research showed that 87% of retailers implementing AI witnessed revenue increases of 6% or more, while achieving 15-30% improvements in customer service efficiency. However, January 2025 data revealed that only 10% of companies successfully scale their AI applications, highlighting the importance of proper implementation. IKEA's April 2024 initiative to train 3,000 workers in AI literacy demonstrates how retailers are preparing their workforce to leverage this technology effectively, while maintaining a human-centric approach to adoption.

Gen AI's “Exoskeleton ” will spark a new era of productivity and talent growth

What: Vietnam's retail market is set to reach USD 350 billion in 2025, driven by a young demographic, expanding middle class, and significant infrastructure development across traditional and digital retail channels.

Why it is important: Vietnam's retail evolution demonstrates the increasing importance of Southeast Asian markets in global retail strategy, particularly as young populations and rising middle classes drive demand for modern retail experiences.

Vietnam's retail sector is experiencing remarkable growth, with retail sales increasing by 9.3% year-on-year in Q4 2023. The country's demographic advantage, featuring a median age of 32 and a population of nearly 100 million, is driving this expansion. Shopping malls dominate the retail landscape, accounting for 63% of total retail space supply, with significant developments underway including Aeon Xuan Thuy and Thiso Mall Hanoi. Major global brands such as Flying Tiger Copenhagen, Genki Sushi, Franck Muller, and Victoria's Secret are either entering or expanding their presence in the market. The luxury retail segment is gaining momentum in key shopping districts of Hanoi and Ho Chi Minh City, with brands opting for standalone flagship stores to create immersive experiences. Additionally, Vietnam's digital economy is among Southeast Asia's fastest-growing, with e-commerce platforms like Shopee, Lazada, and Tiki expanding their operations. However, the sector faces challenges including legal complexities, workforce shortages, and the need for improved recruitment and retention strategies.

IADS Notes: Vietnam's retail landscape is undergoing a significant transformation, as evidenced by recent market developments. In November 2024, MM Mega Market's USD 20 million investment in Danang demonstrated international retailers' confidence in the market's potential. This move aligns with broader regional trends identified in January 2025, showing Vietnam's emergence as a key player in Asian retail growth. The market's attractiveness is further highlighted by February 2025's expansion of Korean retail giants Lotte and Shinsegae, who are implementing multi-format strategies to capture market share. However, the sector faces regulatory challenges, as shown by December 2024's suspension of Temu and Shein operations, indicating Vietnam's careful balance between digital trade growth and local market protection. Despite these challenges, retailers like Central Retail continue to adapt their strategies, focusing on tourism-centric locations and innovative retail concepts, reflecting the market's evolution toward a more sophisticated retail ecosystem.

What retailers need to know about Vietnam’s potential and challenges for 2025

What: RMS, an agency specializing in consulting, training, and recruitment in the retail, luxury, fashion, and hospitality sectors, has been measuring the satisfaction of its retail teams every two years for 15 years using its tool, the RMS Social Retail Barometer.

Why it is important: This study highlights the need to build team loyalty through levers other than compensation, such as proximity to management, career prospects within the company, or simply recognition of their commitment and flexibility.

RMS publishes the 2024 edition of the Social Retail Barometer 

What: FTSE 350 retailers achieve 42% female board representation but struggle to reach the 40% women in leadership target, with only half of major retailers meeting this goal.

Why it is important: The data highlights a critical challenge in translating boardroom diversity into executive-level representation, affecting how retail organisations make strategic decisions and understand their customer base.

The latest FTSE Women Leaders Review reveals a complex picture of gender diversity in UK retail leadership. While companies have made significant progress in board representation, with women occupying 42% of positions across major retailers, the transition to executive leadership remains challenging. Only half of the 30 major retailers examined are meeting the target, despite a voluntary goal set in 2022 for 40% representation by year-end 2025. The private sector shows promising signs, with women making up 36.8% of leadership roles, slightly outperforming FTSE 350 companies at 35.3%. Notably, the Co-operative Group stands alone with women in all four top positions - chair, senior independent director, chief executive, and finance director. However, the volatility in year-to-year figures, influenced by small team sizes and individual departures, underscores the fragility of progress. The sector's 70% achievement in having women in key leadership roles, while significant, still lags behind the FTSE 350 average of 77%, indicating room for improvement in retail's journey toward gender parity.

IADS Notes: The retail industry's approach to gender diversity has undergone significant transformation since late 2024. Walmart pioneered a strategic pivot by maintaining inclusion practices while removing explicit DEI language, achieving strong market performance. This contrasts with Target's experience, which faced a USD 10 billion valuation loss following controversies in February 2025. The emergence of the FAIR framework (Fairness, Access, Inclusion, and Representation) has offered retailers a new way to balance inclusive practices with business performance. The luxury sector notably diverges from mass-market trends, with brands like Prada and Gucci maintaining explicit DEI commitments despite market pressures, demonstrating how different retail segments approach diversity initiatives according to their specific market dynamics and customer expectations.

With controversy around DEI swirling, how gender-diverse are retail executive teams?

What: Trump administration's 25% tariff implementation signals major disruption to North American retail supply chains and pricing structures.

Why it is important: This policy shift represents the largest coordinated tariff action affecting retail supply chains in recent history.

The implementation of 25% tariffs on Mexican and Canadian imports marks a significant shift in retail economics, with projected annual costs of USD 1,200 per US household. The National Retail Federation's analysis suggesting a USD 46-78 billion reduction in consumer spending power highlights the broad economic implications. Different retail sectors face varying impacts, with food & beverage and general merchandise expected to see price increases of 0.81% to 1.63%. The tariffs are particularly significant for cross-border retail dynamics, affecting common imports ranging from food products to manufactured goods. Consumer behavior is already shifting, as evidenced by Canadian consumers' response to strip American alcohol brands from shelves. This development, combined with existing inflation concerns, suggests a fundamental restructuring of retail pricing strategies and supply chains across North America.

IADS Notes: Recent data from March 2025 shows 62% of consumers expressing concern about rising retail prices due to new trade policies. This anxiety is supported by BCG's January 2025 analysis projecting USD 640 billion in additional import costs from expanded tariffs. The impact is already visible in specific sectors, as demonstrated by Mexico's December 2024 implementation of 35% textile import tariffs. February 2025 saw consumer confidence recording its sharpest decline since August 2021, while April 2024's changes to de minimis thresholds highlighted the broader transformation in international trade regulations affecting retail operations.

How tariffs will impact retail prices

What: February's retail sales data in the US presents a mixed and confusing picture, with conflicting trends depending on the measurement method used.

Why it is important: The contradictory data highlights the challenges in accurately assessing the retail landscape, which is crucial for understanding consumer behaviour and economic health.

February's retail performance presents a perplexing array of statistics, showing a slight increase of 0.2% on a seasonally adjusted basis from January and a rise of 3.1% compared to February 2024. Conversely, year-over-year figures indicate a decline of 0.9% and a month-to-month decrease of 4% when unadjusted, as reported by the Census Bureau. This highlights the challenge of accurately assessing the retail landscape.

On a seasonally-adjusted basis, February 2025 retail sales reached $722.7 billion compared with $700.9 billion last year. However, unadjusted figures show that the retail and food services sector generated $639.1 billion in February 2025, a drop from $644.8 billion in the same month last year

IADS Notes: The discrepancy between seasonally adjusted and unadjusted data has led to criticism from industry experts. Paula Rosenblum, co-founder and managing partner at RSR Research, expressed frustration over the reliance on seasonally adjusted month-over-month data, questioning the rationale behind the Census Bureau's and National Retail Federation's use of such figures. It's worth noting that 2024 was a Leap Year, adding an extra day to February. On average, the retail and food services sector generated $22.2 billion daily in February 2024, compared to $22.8 billion in February 2025, indicating that consumer spending increased by nearly 3% daily this year compared to last, which aligns with inflation trends.

US February retail sales decline 0.9% year-over-year, but that’s just part of the story

What: EPA's sweeping environmental deregulation threatens fashion industry's sustainability progress by weakening emissions, air quality, and water pollution standards while potentially discouraging innovation in cleaner production technologies.

Why it is important: This development highlights the growing tension between regional environmental policies, as the US moves toward deregulation while the EU strengthens sustainability requirements, creating complex challenges for global fashion supply chains.

The EPA's latest deregulatory initiatives under the Trump administration signal a significant shift in environmental oversight that could profoundly impact the fashion industry's sustainability efforts. The sweeping rollbacks across emissions, air quality, and water pollution regulations present fashion companies with a complex dilemma: potential short-term cost savings versus long-term environmental commitments. Industry experts, including Dr Sheng Lu from the University of Delaware, warn that these changes could stifle innovation in sustainable production technologies, particularly in areas like waterless dyeing and digital printing. The deregulation's scope extends to greenhouse gas reporting requirements and mercury standards, affecting textile mills and apparel factories that rely on coal-fired power. Rachel Van Metre Kibbe of Circular Services Group emphasizes that deregulation doesn't address fundamental sustainability challenges, while the American Apparel and Footwear Association raises concerns about the impact on companies already investing in environmental compliance.

IADS Notes: The EPA's deregulation contrasts sharply with global trends in retail sustainability regulation. In March 2025, the EU implemented comprehensive sustainability reporting requirements through CSRD, CSDDD, and ESPR, while February 2025 saw the introduction of mandatory textile waste management funding for retailers. The industry's vulnerability to regulatory changes was highlighted by the January 2025 Kantamanto Market fire, demonstrating the fragility of global waste management systems. This regulatory divergence occurs as October 2024 reports revealed the limitations of market-driven environmental initiatives, while May 2024 saw the introduction of significant legislative changes promoting sustainability across fashion supply chains.

How EPA deregulation could undermine fashion’s sustainability goals

What: Retail visionary Burt Tansky pioneered the modern luxury department store model by focusing on affluent customers and strategic expansion.

Why it is important: His strategic focus on affluent customers and careful market expansion created a blueprint for luxury retail success that remains relevant as department stores navigate digital transformation and market consolidation.

Burt Tansky, who passed away at 87, left an indelible mark on luxury retail through his transformative leadership at Neiman Marcus Group. Rising from humble beginnings in Pittsburgh, he shaped the modern luxury department store landscape through roles at I. Magnin, Saks Fifth Avenue, and ultimately as CEO of Bergdorf Goodman and Neiman Marcus Group. His unwavering focus on the highest-end luxury market and rejection of "bridge" brands elevated Neiman Marcus to industry-leading productivity rates exceeding USD 500 in sales per square foot. Under his leadership, the company grew from 24 to 41 stores through careful market selection, while also pioneering luxury e-commerce through neimanmarcus.com. Tansky's customer-centric approach, including personally knowing his top 250 customers, set new standards for luxury retail service. His tenure culminated in the successful USD 5.1 billion sale of the business in 2005, having transformed the company's stock value from USD 10 to USD 100 per share. Beyond his business acumen, Tansky was known for mentoring executives, maintaining strong vendor relationships, and bringing wit and warmth to the industry.

IADS Notes: Burt Tansky's legacy of luxury retail leadership continues to influence today's market transformations. As seen in February 2025, Nordstrom's appointment of a Director of Luxury Styling and creation of dedicated service spaces echoes Tansky's belief in personalised customer relationships, demonstrating how his high-touch approach remains relevant in modern retail. His strategic approach to store network development finds new expression in Saks Global's February 2025 decision to invest USD 100 million in the NorthPark Center location while closing less viable stores, showing how careful market selection remains crucial. The creation of a USD 10 billion luxury powerhouse through the Saks-Neiman Marcus merger in January 2025 validates Tansky's unwavering focus on the highest end of the market, though now enhanced by technology partnerships that he helped pioneer through early e-commerce initiatives.

How legendary Burt Tansky catapulted the Neiman Marcus Group

What: BIPOC beauty brands face market access challenges as major retailers abandon diversity initiatives, prompting a strategic shift towards specialty retail partnerships.

Why it is important: The retail industry's DEI rollback threatens to destabilise USD 370 million in annual Black beauty consumer spending, reshaping market access for minority-owned brands.

Major US retailers including Walmart, Amazon, and Target are retreating from their diversity, equity and inclusion commitments, creating significant challenges for BIPOC beauty brand founders. These retailers previously championed DEI initiatives through enhanced shelf space and support programmes, particularly following the racial reckoning of 2020. However, the current rollback threatens to destabilise the momentum gained by diverse beauty brands in mainstream retail. The impact extends beyond mere shelf space, affecting critical resources like accelerators and funding programmes essential for emerging players. In response, brands are exploring alternative channels, with specialty retailers like Ulta Beauty and Sephora maintaining their DEI commitments. BIPOC-priority retailers and those participating in the 15 Percent Pledge are emerging as crucial allies, while brands strengthen their direct-to-consumer strategies and explore innovative retail formats like pop-ups and hospitality partnerships. Despite these challenges, experts remain optimistic about diversity in beauty finding new paths to growth.

IADS Notes:The retail industry's approach to DEI has undergone significant transformation since late 2024. Walmart's November 2024 strategic pivot to maintain inclusion practices while removing explicit DEI language achieved strong market performance , contrasting sharply with Target's February 2025 experience of a $10 billion valuation loss . The emergence of the FAIR framework in January 2025 offered retailers a new way to balance inclusive practices with business performance, while specialty retailers like Sephora reinforced their commitments through innovative initiatives.

BIPOC-owned beauty brands face a new reality in the post-DEI era