What: Falabella demonstrates marketplace momentum through Seller Day event, highlighting partner brands' 74% contribution to growth and technological advancements.

Why it is important: This development showcases how department stores can successfully transition to digital platforms, leveraging partner relationships and technological infrastructure to drive sustainable growth.

Falabella's latest Seller Day brought together more than 450 brands to review progress and outline e-commerce priorities for 2025. The event highlighted significant achievements in the company's digital transformation, with first-quarter GMV increasing by 17%, largely driven by partner brands contributing 74% of that growth. A key operational milestone was reached with 60% of orders now delivered within 48 hours, demonstrating the company's commitment to meeting evolving market demands. The gathering focused on operational efficiency, technological infrastructure enhancement, and omnichannel strategy consolidation. Beyond celebrating success, the event emphasised the importance of continuous seller support and recognised seven brands for their outstanding performance in the digital ecosystem. Industry experts, including Sebastián Cisterna discussing artificial intelligence's impact on retail and Roberto Izikson presenting digital consumption projections, provided valuable insights into future trends. The company reinforced its commitment to building a comprehensive platform where technology, logistics, and user experience align with contemporary industry standards.

IADS Notes: Falabella's marketplace success builds upon significant investments and strategic initiatives throughout the past year. In December 2024, the company announced a $650 million investment plan, with $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. The success of their omnichannel strategy was further demonstrated in May 2025 with an 11% overall sales increase driven by 19% retail growth, while their April 2025 Fmedia retail media platform achieved 30% sales growth for participating brands.

Falabella outlines its roadmap for e-commerce in 2025

What: Xavier Niel acquires BHV's men's building on rue de la Verrerie for EUR 50 million as Galeries Lafayette continues its strategic asset optimisation programme.

Why it is important: This development represents a significant step in Galeries Lafayette's strategic transformation, as the group continues to streamline its portfolio and concentrate resources on core operations.

Xavier Niel's NJJ Holding has acquired BHV's men's building at 36 rue de la Verrerie in Paris for approximately EUR 50 million. The 8,500-square-meter property, which combines modern and Haussmann-style architecture, features entrances on both rue de la Verrerie and rue du Temple. The transaction comes as part of Galeries Lafayette group's broader strategy to concentrate on core assets. This property was not included in the scope of the main building's takeover by SGM group, which has been operating the store since 2023. SGM is currently in exclusive negotiations with Banque des Territoires to secure financing for acquiring the 45,000-square-meter main building on rue de Rivoli. The sale aligns with Galeries Lafayette's recent strategic decisions, including discontinuing the Eataly franchise and Bazarchic operations, as the group focuses on strengthening its flagship department store operations.

IADS Notes: The sale of BHV's men's building reflects Galeries Lafayette's ongoing strategic transformation. This move aligns with the group's EUR 400 million investment plan announced in February 2025, focusing on network optimisation and flagship renovation. This transaction follows other strategic decisions to streamline operations, including the closure of Bazarchic and discontinuation of the Eataly franchise in December 2024.

Galeries Lafayette sells the men's BHV building to Xavier Niel

What: Falabella brings together 450 brands to address e-commerce challenges, highlighting 74% marketplace contribution to GMV.

Why it is important: The success of Falabella's marketplace strategy, with 74% GMV from sellers and 60% of orders delivered within 48 hours, sets new standards for e-commerce efficiency in Latin America.

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 $650 million investment plan, with $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 revises El Corte Ingles' outlook to positive from stable and affirms its BBB- rating, citing improved business performance and successful deleveraging efforts.

Why it is important: This rating action demonstrates how traditional department stores can strengthen their financial position through strategic transformation, combining operational improvements with disciplined financial management.

Fitch Ratings has upgraded El Corte Ingles' outlook to positive, while maintaining its BBB- rating. The retailer has shown impressive financial discipline, with EBITDAR net leverage expected to trend down to 2x by FY27. The company reported strong business performance in 1HFY25, achieving 3.6% like-for-like revenue growth and improving its EBITDA margin by 70 basis points to 7.5%. This success stems from growth across multiple segments, including fashion, beauty, home electronics, food, and travel. The rating agency particularly noted ECI's strategic focus on retail operations, enhanced digital capabilities, and the financial flexibility provided by its EUR15.5 billion real estate portfolio. Despite lower profitability than some sector peers, ECI's diverse business model and dominant market position in Spain provide stability and growth potential.

IADS Notes: El Corte Ingles' positive outlook revision in June 2025 reflects broader trends in department store transformation. The retailer's success in improving margins while maintaining market leadership aligns with recent industry developments, where successful retailers are balancing digital innovation with physical asset optimisation. This follows Selfridges' February 2025 strategic initiatives  and parallels Harvey Nichols' transformation plan announced in February 2025 . The focus on operational efficiency while maintaining strong customer experience mirrors Fortnum & Mason's approach, which earned them recognition as the world's best department store in January 2025 . ECI's strategy of leveraging its real estate assets while investing in digital capabilities demonstrates how traditional department stores can successfully modernise their business models.

Fitch revises El Corte Ingles' outlook to positive, affirms at 'BBB-'

What: John Lewis Partnership requires commercial team members to work three days per week in office, stores, or with suppliers from July 2025.

Why it is important: having downsized headquarters from 220,000 to 108,000 sq ft., the decision demonstrates how major retailers are reimagining their workplace strategies post-pandemic, prioritising collaborative learning and development while efficiently managing their property portfolios.

John Lewis Partnership has announced a significant change to its workplace policy, requiring commercial team members, including those in buying and merchandising roles, to spend three days per week working from office locations, stores, or with suppliers starting July 2025. This directive aims to foster improved collaboration and create an environment conducive to learning and development, with particular emphasis on supporting new recruits. The move represents an evolution of the retailer's 2021 hybrid working model, which allowed head office staff to choose their work location based on job requirements. While maintaining flexible working as a key component of its employment offer, the company has strategically downsized its head office space, relocating from a 220,000 sq ft location in Victoria to a more efficient 108,000 sq ft site in Pimlico. The retailer confirms it will have sufficient desk capacity to accommodate staff during their required office days, ensuring a smooth transition to this new working arrangement.

IADS Notes: John Lewis's June 2025 mandate for increased office presence aligns with its broader transformation strategy throughout 2024-2025. This workplace policy shift follows the successful streamlining of its staff committee structure earlier in June 2025 , demonstrating the company's focus on enhancing collaboration and decision-making efficiency. The move is supported by strong financial performance, with March 2025 reporting tripled profits and a £114 million investment in staff development . This organisational evolution builds upon the August 2024 restructuring of buying and merchandising teams , reflecting how the retailer is optimising its operations while maintaining its commitment to staff development and collaborative culture.

John Lewis orders staff back to office three days a week

What: H&M expands its premium positioning by launching Adorables, a high-end children's collection, at Galeries Lafayette Haussmann through a permanent corner, following its successful test at Selfridges London.

Why it is important: The expansion reflects the evolving relationship between mass-market retailers and luxury department stores, showing how strategic brand positioning can create mutually beneficial partnerships in the premium segment.

H&M's strategic entry into Galeries Lafayette Haussmann with its premium childrenswear line 'Adorables' marks a significant milestone in the brand's upmarket evolution. The 63-square-metre permanent corner, situated on the fifth floor of the iconic department store, showcases a carefully curated selection of clothing for children aged 0-10 years. The space features a contemporary design with wooden fixtures, rounded tubular racks, and pastoral touches that reflect the collection's premium positioning. The offering spans three distinct segments - newborn, baby, and children's wear - with an emphasis on natural materials such as organic cotton, silk, and merino wool. This permanent installation follows a successful pop-up at Selfridges London, demonstrating H&M's commitment to establishing itself in luxury retail environments while maintaining its quality standards and sustainable practices.

IADS Notes: H&M's expansion into Galeries Lafayette Haussmann builds upon its successful premium retail strategy throughout 2024-2025. In October 2024, the brand first tested this approach with an Adorables pop-up at Selfridges London , establishing the concept's viability in luxury retail environments. This move aligns with H&M's broader transformation, evidenced by its November 2024 implementation of innovative store concepts and digital integration. The timing is particularly significant as it coincides with Galeries Lafayette's €400 million investment plan announced in February 2025 , focused on optimising its store network and enhancing premium partnerships. This collaboration also supports Galeries Lafayette's April 2025 CSR strategy , which emphasises sustainable and premium retail experiences.

Galeries Lafayette welcomes H&M's premium kidswear, Adorables

What: To accelerate its turnaround plan, John Lewis Partnership is enhancing its democratic model by strengthening local forums while streamlining its partnership council from 57 to 43 members.

Why it is important: This strategic refinement of John Lewis's partnership model shows how employee-owned businesses can evolve their democratic processes while strengthening grassroots engagement, particularly relevant as the company continues its successful transformation.

John Lewis Partnership is revitalising its democratic structure through a strategic reorganisation of its staff representation model. The partnership council, the retailer's most senior staff committee, will be streamlined from 57 to 43 members this autumn, while simultaneously strengthening local forums across its department stores and Waitrose supermarkets. This change aims to create more effective channels for employee input and faster decision-making processes. The move comes as part of the company's broader transformation strategy, which has already shown success with tripled profits and a £114 million investment in staff pay. The retailer emphasises that the council's fundamental power and governance role remain unchanged, with the restructuring focused on reducing hierarchical barriers and enhancing direct communication between management and store-level employees.

IADS Notes: Recent developments provide important context for this governance evolution. In March 2025, John Lewis reported tripled profits to £126 million while implementing a significant shift in employee compensation, moving from annual bonuses to enhanced monthly support. This approach aligns with broader organisational changes, including May 2025's modernisation of staff benefits to reflect contemporary workforce needs. The timing is particularly significant as it follows February 2025's successful revival of the "Never Knowingly Undersold" pledge and the implementation of an £800 million store renovation programme, demonstrating how improved governance can support both operational efficiency and employee engagement in retail transformation.

John Lewis plans to streamline its staff committee to boost its turnaround plan

What: Gulf luxury market achieves 6% growth to $12.8 billion while global markets contract, driven by beauty sector expansion and strategic digital transformation.

Why it is important: The success of the Gulf's luxury ecosystem provides a blueprint for market development, showing how regional retail groups can outperform global trends through strategic adaptation and local market understanding.

The Gulf region's luxury market has demonstrated remarkable resilience, achieving 6% growth to reach $12.8 billion while global markets experienced a 2% decline. This success story is particularly evident in the beauty segment, which saw an impressive 12% growth, with skincare leading at 17% and Asian beauty brands showing exceptional performance with 26% annual growth from 2022 to 2024. Under Michael Chalhoub's leadership, the company is implementing comprehensive digital transformation initiatives while maintaining focus on personalised customer experiences. Saudi Arabia emerges as a key strategic priority, currently representing 18% of the regional luxury market and showing double-digit growth in 2024. The company's commitment to local engagement is reflected in their support of homegrown Saudi brands and their workforce development, with women comprising 70% of their 5,000 Saudi employees. Their digital transformation strategy, including AI implementation and enhanced logistics capabilities, aims to address the region's 13% e-commerce penetration while maintaining high-touch customer service. Tourism dynamics continue to evolve, with Russian tourists leading luxury spending in the UAE and regional consumers increasingly preferring local shopping destinations.

IADS Notes: The Gulf region's impressive 6% luxury sales growth to $12.8 billion reflects a series of strategic transformations in the market. In November 2024, Chalhoub Group's implementation of comprehensive digital solutions  laid the groundwork for enhanced operational efficiency, while their successful skincare summit in October 2024  demonstrated deep understanding of regional beauty trends. This digital and experiential focus was further reinforced in April 2025 when Mall of Emirates unveiled its $1.36 billion transformation plan , emphasising the region's commitment to innovative retail experiences. The January 2025 leadership transition to Michael Chalhoub  has accelerated these initiatives, particularly in Saudi Arabia's evolving luxury landscape. These developments align with global trends showing digital channels' growing importance, as evidenced by social commerce now driving 68% of beauty sales , validating the region's strategic focus on digital transformation while maintaining traditional retail excellence.

Chalhoub's outlook on the region's growth and the company's strategy to reach $15 billion by 2027

What: Falabella launches Flea Market, a curated second-hand fashion space in Parque Arauco, partnering with local vintage experts Nostalgic and The Vintage Sisters to offer premium pre-owned fashion.

Why it is important: This initiative demonstrates how department stores can successfully integrate circular fashion into their premium offering through expert curation, while addressing growing consumer demand for sustainable and meaningful consumption.

Falabella's Flea Market represents a sophisticated approach to circular fashion retail, combining expert curation with accessible pricing. The space features carefully selected second-hand clothing, footwear, and accessories evaluated by a specialized team of over 20 professionals. Through partnerships with local vintage experts, the initiative offers two distinct shopping experiences: Nostalgic provides urban and functional pieces from brands like Levi's and Nike starting at 10,700 Chilean pesos, while The Vintage Sisters curates conscious luxury items from prestigious brands such as Dior, Gucci, and Acne Studios with discounts of 10-20% off original prices. This curated approach ensures quality while maintaining accessibility, reflecting evolving consumer preferences for meaningful and sustainable fashion choices. The initiative's success will determine its longevity, complementing Falabella's existing circular fashion programs including Taller F, the Trueque Fair, rental services, and textile recycling points.

IADS Notes: Falabella's Flea Market launch builds upon the company's comprehensive sustainability strategy. In May 2025, the retailer reported significant progress in its circular initiatives, with over 66,000 garments recovered through F Workshops and 38 tons of clothing recycled . This success follows the Feria Trueque program, which facilitated more than 31,516 item exchanges in 2024 . The company has supported these initiatives through educational programs like Verde Talks , demonstrating a holistic approach to sustainable retail transformation.

Falabella advances its circular fashion strategy with flea market in Parque Arauco

What: Peru emerges as a key market for Falabella Group, contributing 28% of regional revenue and 20% of EBITDA through a diverse portfolio of retail formats and financial services.

Why it is important: This market success illustrates the effectiveness of integrated retail ecosystems that combine traditional retail, financial services, and digital platforms to create comprehensive customer experiences.

Falabella Group's country manager in Peru, Alex Zimmermann, has revealed the significant scale of the company's operations in the country, highlighting Peru's strategic importance to the group's regional success. The company posted strong performance in the first quarter, with regional sales reaching $3.3 billion, representing a 9% increase, while EBITDA grew by 59%. Peru's contribution of 28% to regional revenue and 20% to total EBITDA underscores its crucial role in Falabella's ecosystem. Since entering the Peruvian market in 1995 through an alliance with Saga, the company has successfully expanded its presence to include 34 Falabella Retail stores, 90 Tottus stores, Bodegas UNO locations, and 56 Maestro and Sodimac stores, alongside Banco Falabella branches and Mallplaza shopping centers. The company's focus on customer-centric innovation and digital transformation has driven significant e-commerce growth, with online shipments increasing twentyfold during the pandemic, demonstrating the success of its integrated approach to retail evolution.

IADS Notes: Falabella's announcement of Peru's 28% contribution to regional revenue in June 2025 builds upon a series of strategic successes across Latin America. This performance follows an exceptional period where the company multiplied its profit by eight to €486 million in 2024, with particularly strong growth in Peru (15.7%) and Chile (3.8%). The company's multi-format strategy has proven successful, supported by a significant $650 million investment plan announced in December 2024, which allocated $450 million for store openings and shopping center transformations. This expansion is complemented by substantial investments in customer experience, including the implementation of one-day delivery services supported by a $27 million investment in distribution center automation. The success of this integrated approach is evident in Q1 2025's results, which showed an 11% overall sales increase driven by 19% retail growth, demonstrating how Falabella's balanced approach to physical and digital retail continues to strengthen its position as a leading regional retailer.

Peru accounts for 28% of Falabella's regional revenue, with plans for further growth

What: El Palacio de Hierro receives its tenth ESR Distinction for social responsibility excellence from Cemefi and AliaRSE.

Why it is important: This milestone reflects the growing importance of long-term commitment to sustainability in retail, particularly in emerging markets like Latin America.

El Palacio de Hierro has achieved its tenth ESR (Socially Responsible Company) Distinction from the Mexican Center for Philanthropy (Cemefi) and the Alliance for Corporate Social Responsibility. Presented at the 18th Latin American Meeting of Socially Responsible Companies, this year's recognition is particularly significant as Cemefi implemented a new evaluation model that assesses the development level of socially responsible management in participating companies.

The distinction acknowledges El Palacio de Hierro's achievements in workplace quality of life, environmental stewardship, business ethics, and community engagement. This voluntary certification process requires annual review and ongoing compliance with established standards. According to Maridelia Saucedo, Director of Well-being and Social Responsibility, the achievement represents their collective commitment to building positive community impact while strengthening an organisational culture based on ethical and sustainable principles.

IADS Notes: El Palacio de Hierro's ESR recognition complements its strong business performance in 2025. The company reported 11% revenue growth in February while implementing innovative retail solutions across 450 points of sale in January. This sustainable approach contributed to its recognition as the world's second-best department store, demonstrating how ethical business practices enhance retail success

El Palacio de Hierro receives the ESR 2025 Distinction award for the tenth time

What: John Lewis pledges to restore staff bonuses while maintaining its enhanced base pay strategy, responding to employee campaign demanding recognition of their contributions.

Why it is important: The employee response to John Lewis's compensation strategy reveals how heritage retailers must carefully manage the human impact of organisational change, particularly in employee-owned businesses with strong cultural traditions.

John Lewis Partnership faces mounting pressure to reinstate its historic staff bonus system, suspended since 2022, as thousands of current and former employees campaign for its return. The retailer's leadership, including chair Jason Tarry, has committed to restoring the bonus "as soon as possible" while emphasising their focus on improved base pay rates, including a recent 7.4% increase in 2025. The company's decision to prioritise regular monthly support over annual bonuses reflects a broader transformation in its compensation strategy, having invested £114 million in base pay improvements and infrastructure development. However, employees argue that the bonus represented more than just financial reward, serving as a symbolic recognition of their contribution to the business's success. This tension comes amid improved financial performance, with the company tripling its profits, leading workers to question the continued suspension of the bonus scheme while dealing with reduced staffing levels and increased workloads.

IADS Notes: The current employee campaign for bonus reinstatement reflects a complex transformation in John Lewis's compensation strategy. In March 2025, despite tripling profits to £126m, the company prioritised a £114m investment in base pay, implementing a 7.4% pay rise for store staff. This shift from annual bonuses to enhanced monthly compensation coincides with broader modernisation efforts, including reaching 5,000 apprenticeships in February 2025 and revising the benefits structure in May 2025 to double eligible staff numbers. However, the June 2025 employee petition highlights the cultural significance of the bonus system within the partnership model, demonstrating the delicate balance between modernising employment practices and maintaining traditional values in retail transformation.

John Lewis promises to restore staff bonus 'as soon as possible' following campaign

What: El Corte Inglés introduces new management incentive plan aligned with 2025-2030 strategic objectives, focusing on operational efficiency and digital transformation.

Why it is important: This development reflects the retail industry's shift toward performance-based compensation tied to specific transformation objectives.

El Corte Inglés has approved a new management incentive program as a key component of its ambitious 2025-2030 Strategic Plan, developed in collaboration with McKinsey. The initiative, to be presented at the July 24th shareholders' meeting, aims to align executive interests with the company's long-term business objectives. The plan focuses on enhancing profitability, optimising cost structures, and accelerating digital transformation across the group's network of 72 department stores in Spain and two in Portugal. Key performance metrics include sustained operational profitability improvement, structural cost reduction, new business line development, and advancement in online commerce and omnichannel capabilities. The incentive structure is designed to reward executives who demonstrate measurable contributions to these strategic goals, positioning El Corte Inglés for success in an increasingly competitive retail environment.

IADS Notes: El Corte Inglés' new incentive plan represents a crucial component of its broader transformation strategy. According to Modaes' October 2024 coverage , the company partnered with McKinsey to develop a comprehensive strategic plan following several years of financial adjustments. Inside Retail's February 2025 analysis revealed how the company has invested €428 million in upgrading 25 locations while expanding digital capabilities, demonstrating its commitment to balancing traditional retail strengths with innovation. Press Release's June 2025 report showed the strategy's early success, with FY2024-25 like-for-like growth of 4.3% and EBITDA reaching €1.2 billion. El Confidencial's March 2025 coverage highlighted how the creation of a new Transformation Office under CEO Gastón Bottazzini, along with expanded responsibilities for key executives, supports the implementation of these strategic initiatives. The new incentive plan's focus on operational efficiency, cost reduction, and digital transformation aligns with these broader strategic objectives, ensuring management's interests are directly tied to the company's long-term success.

El Corte Inglès new strategic plan focuses on performance and cost reduction

What: El Palacio de Hierro renews its commitment to UN Women's Women's Empowerment Principles (WEPs), implementing concrete initiatives like Women to Women mentoring while achieving its tenth consecutive ESR Distinction.

Why it is important: This dual achievement demonstrates how retailers can successfully integrate international standards with practical workplace initiatives, creating a measurable impact on gender equality whilst maintaining strong business performance.

El Palacio de Hierro has reinforced its commitment to gender equality through a symbolic renewal of its adherence to the UN Women's Women's Empowerment Principles (WEPs). The company, which first joined the initiative in 2022, aims to align its operations with international gender equality standards in the corporate sector. Maridelia Saucedo Wolf, Director of Wellness, Inclusion and Social Responsibility, presented the company's progress, highlighting internal equality policies, inclusion committees, and programmes such as Women to Women, which focuses on professional development through women-to-women mentoring. The company's renewed commitment to WEPs reflects its recognition of the importance of gender equity and its dedication to fostering a fair, inclusive, and equitable environment for all team members. This announcement coincides with El Palacio de Hierro receiving the ESR 2025 Distinction from Cemefi and AliaRSE, marking its tenth consecutive year as a Socially Responsible Company, acknowledging its sustained commitment to corporate ethics, environmental stewardship, workplace conditions, and community engagement.

IADS Notes: El Palacio de Hierro's commitment to gender equality and social responsibility comes amid a period of significant transformation and success. According to Modaes in February 2025, the company achieved impressive results with 11% revenue growth to $3.2 billion in 2024, demonstrating the effectiveness of its comprehensive strategy. This momentum continued as Modaes reported in April 2025 that the company secured 12% revenue growth and a 30% operating profit increase in Q1 2025, validating its balanced approach to business and social responsibility. The company's excellence was further recognised when Fashion Network announced in January 2025 that El Palacio de Hierro had been named the world's second-best department store. A significant milestone in the company's evolution came in May 2025, as reported by Press Release, with the appointment of Eléonore de Boysson as its first female CEO, exemplifying its commitment to gender equality at the highest level. This commitment to social responsibility was formally acknowledged in June 2025, when ExpokNews reported the company's achievement of its tenth consecutive ESR Distinction, underlining its sustained dedication to ethical business practices and social impact.

El Palacio de Hierro renews its commitment towards equality in the workplace

What: El Corte Inglés reports robust FY2024-25 results with €1.2 billion EBITDA and significant debt reduction, showcasing successful business transformation.

Why it is important: The results validate El Corte Inglés's comprehensive transformation strategy, combining digital innovation with operational efficiency, as evidenced by the €428 million investment in store renovations and the creation of a new Transformation Office in March 2025.

El Corte Inglés has delivered impressive financial results for FY2024-25, achieving €16,675 million in Total Transaction Revenue with like-for-like growth of 4.3%. The company's EBITDA reached €1,209 million, representing an 11.9% increase from the previous year, whilst Net Income grew by 6.7% to €512 million. The retail segment demonstrated particularly strong performance, with Fashion & Beauty leading at €5,704 million in revenue, followed by robust growth in Food & Restaurants at €3,044 million and Home & Electronics at €2,697 million. The company's digital presence continues to strengthen, with 891.7 million website and app visits, serving 14.9 million registered customers. Notable improvements in financial health include a reduction in Net Financial Debt, which now stands below 1.5 times EBITDA, positioning the company well for the 2025-2026 fiscal year.

IADS Notes: El Corte Inglés's FY2024-25 performance builds on a series of strategic initiatives throughout the year. In February 2025, the company invested €428 million in upgrading 25 locations , while March 2025 saw a significant management restructuring under CEO Gastón Bottazzini, including the creation of a dedicated Transformation Office . The company's focus on operational efficiency has yielded results, with Fitch upgrading their outlook to positive in June 2025 . These developments follow the successful first half of the fiscal year, which saw an 11% profit increase.

El Corte Inglés posts a FY2024-25 like-for-like growth of 4.3%

What: John Lewis modernises employee benefits structure by linking post-retirement perks to years of service, doubling eligible staff numbers while adapting to evolving retirement patterns.

Why it is important: The restructuring demonstrates the retail sector's need to modernise legacy benefit systems while maintaining attractive employment packages in a changing labor market.

John Lewis Partnership is revising its employee benefits package, replacing lifetime discount cards for long-serving retirees with a duration-based system linked to years of service. Under the new scheme, effective from September, staff leaving after 15 years of service will receive discount cards and partnership hotel access for a period matching their length of employment. For example, a 20-year veteran retiring at 65 would retain benefits until age 85. The company emphasises this change isn't cost-driven but rather reflects evolving retirement patterns and modern career trajectories. The restructuring aims to double the number of eligible employees while maintaining competitive benefits that exceed industry standards. This shift comes amid broader changes in UK retirement trends, with post-pandemic data showing an increase in early retirement among 50-to-64-year-olds from 25.2% to 28%.

IADS Notes: John Lewis's revision of its retirement benefits reflects broader changes in retail employment strategy. According to The Retail Bulletin in March 2025 , the company achieved tripled profits while investing £114 million in staff pay, demonstrating a shift from traditional benefits to immediate compensation. The Financial Times' March 2025 coverage  highlighted how this approach aligns with the company's £600 million investment in "self-funded" transformation, prioritising regular support over legacy perks. Drapers' March 2025 analysis  revealed the company's strategic pivot to monthly staff support rather than annual bonuses, with shop staff receiving a 7% pay increase. This evolution in benefits is complemented by significant investment in workforce development, as shown in Drapers' February 2025 report  of 5,000 apprenticeships across 30 different schemes, indicating a comprehensive approach to employee support. The modification of the lifetime discount card policy, while expanding overall eligibility, represents a modernisation of benefits to reflect contemporary retirement patterns, particularly as the share of early retirees aged 50-64 increased from 25.2% to 28% post-pandemic.

John Lewis to end lifetime staff perks as early retirement surges

What: John Lewis expands own-brand portfolio with new Editions collection, addressing identified gap in premium occasionwear market.

Why it is important: This strategic expansion of own-brand offerings demonstrates John Lewis's data-driven approach to portfolio management, addressing specific market gaps while complementing their existing premium brand partnerships.

John Lewis has unveiled a sophisticated 27-piece occasionwear collection under its new Editions label, strategically timed for the peak April-June event season. The premium collection, available in 10 stores and online, combines summer dresses with versatile separates, reflecting evolving customer shopping patterns. With prices ranging from GBP 79 to GBP 299, the collection features high-quality materials including pure silk and refined design elements such as tie-waist detailing and sheer panel construction. The range's colour palette focuses on butter yellow and soft lilac, complemented by coordinating jewellery pieces including hammered cuffs and statement earrings in both gold and silver finishes. Design director Queralt Ferrer emphasises the collection's versatility, with pieces designed to transition seamlessly between formal occasions and casual wear. The launch positions Editions alongside established brands like Florere, Ghost, and Sister Jane, enhancing John Lewis's comprehensive occasionwear offering.

IADS Notes: The launch of John Lewis Editions' premium occasionwear collection in May 2025 represents a strategic continuation of the retailer's transformation journey. The collection's price positioning (GBP 79-GBP 299) aligns with the company's revitalised pricing strategy, which has shown success since the September 2024 relaunch of "Never Knowingly Undersold". This launch builds upon February 2025's significant expansion of the fashion brand portfolio, while the focus on premium materials and versatile styling reflects the successful approach seen in their menswear transformation, where tailoring sales increased by 20%. The initiative is part of John Lewis's broader GBP 800 million investment in retail transformation, demonstrating how the retailer is strategically filling gaps in its own-brand offering while maintaining a balanced portfolio of both private and partner brands.

John Lewis spots gap in own-brand offer, launches premium occasionwear

What: Falabella implements comprehensive sustainability strategy across three pillars: environmental impact reduction, workforce diversity advancement, and community development, achieving concrete results in textile recycling, emissions reduction, and social inclusion.

Why it is important: The strategy's success in combining circular economy initiatives with gender equity and community engagement provides a blueprint for retailers seeking to transform their operations while maintaining strong financial performance, as evidenced by Falabella's profit increase in 2024.

Falabella's 2024 Sustainability Report outlines substantial progress across its three strategic pillars: +Green, Transformative Talent, and Local Development. The company's circular economy initiatives have yielded impressive results, with over 66,000 garments recovered through F Workshops, complemented by the recycling of 38 tons of clothing and 15 tons of footwear. The environmental impact reduction extends to electronics, with more than 6,600 devices refurbished, while the transition to renewable energy now covers 92% of operations, contributing to a 5% reduction in total emissions.

In the workforce dimension, Falabella has made significant strides in gender equity, increasing female executive participation from 25% to 42% regionally, with women now comprising 64% of the total workforce. The company's commitment to professional development is evident in its training programmes, with over 80% focused on enhancing women's career advancement opportunities.

The social impact extends beyond internal operations, with the Haciendo Escuela program benefiting more than 78,000 students. Additionally, the company has actively promoted entrepreneurship opportunities and employability initiatives for women in vulnerable situations, demonstrating its commitment to community development.

IADS Notes: Falabella's sustainability achievements in 2024 build upon several successful initiatives throughout the year. In February 2025, their circular economy efforts expanded through the Feria Trueque programme, which facilitated over 31,500 item exchanges, while their electronics reconditioning programme processed 1,800 devices across 10 stores. The company's environmental commitment was recogniSed by the Huella Chile program in November 2024, complementing their renewable energy transition. Their focus on gender equity manifested through innovative retail concepts like "Active Woman" and comprehensive employee health programmes, while community engagement flourished through Verde Talks and support for women entrepreneurs.

Falabella sets its sustainable agenda 

What: Breuninger strengthens its position as an experiential retail destination through a curated collaboration with Düsseldorf's The Paradise Now, combining local expertise with premium lifestyle offerings in a dedicated third-floor space.

Why it is important: This initiative reflects the growing importance of authentic local partnerships in premium retail, as department stores seek to differentiate themselves through carefully curated experiences that resonate with their community while maintaining their premium positioning.

Breuninger's latest collaboration with The Paradise Now marks a significant enhancement of its local engagement strategy in Düsseldorf. The "Endless Summer" collection, showcased on the flagship store's third floor until May 24, represents a thoughtfully curated retail experience that brings together fashion and lifestyle elements. The collection translates The Paradise Now's distinctive spirit into contemporary, wearable designs, featuring materials such as linen and cotton in a refined palette of navy, white, and cream.

The partnership extends beyond traditional retail boundaries, incorporating lifestyle accessories including caps and beach towels that embody the brand's Mediterranean-urban aesthetic. This comprehensive approach aligns with Düsseldorf's vibrant, diverse character and sophisticated style sensibilities. The collaboration culminated in a special opening evening that seamlessly integrated multiple touchpoints, from an insightful talk in the pop-up space to continued celebrations at Eduard's Bar and The Paradise Now, creating an immersive brand experience that resonated with the local community.

IADS Notes: This collaboration builds upon Breuninger's successful experiential retail strategy, which earned their Munich flagship "Store of the Year 2024" recognition in April. The initiative follows their proven format of creating distinctive shopping experiences, as demonstrated by their AMI Paris café concept and their art and fashion celebration in Berlin. This approach to local partnerships complements Breuninger's broader transformation, which has successfully balanced physical and digital experiences, while maintaining their commitment to creating memorable customer experiences through carefully curated events.

Breuninger brings The Paradise Now to Düsseldorf men's department

What: Falabella launches comprehensive Mother's Day campaign celebrating women through experiential retail and female entrepreneurship.

Why it is important: This initiative demonstrates how department stores can create meaningful connections through experiential retail while supporting local entrepreneurship.

Falabella's innovative Mother's Day campaign, themed "Her," represents a strategic blend of experiential retail and female empowerment. The initiative features a symbolic transformation of the company's logo, temporarily highlighting "Ella" (Her) by dimming "Falab," alongside the message "Here's to Moms, just as they are." The campaign's cornerstone is the traditional Bazar Mamá, showcasing eight women-led brands at Falabella Parque Arauco, complemented by additional pop-up carts at Alto Las Condes. The premium Market F further enriches the offering with exclusive Spanish and Chilean brands. The retailer is implementing nationwide experiential elements, including interactive murals and prize giveaways across 43 stores, while Taller F provides personalisation services in 14 locations. Enhanced customer services include Personal Shopper sessions with complimentary MAC Cosmetics gifts and special pricing on customisation options, creating a comprehensive retail experience that extends beyond traditional shopping.

IADS Notes: This campaign aligns with recent retail trends in experiential marketing. According to March 2025 data, successful department stores are increasingly focusing on creating immersive destinations rather than traditional sales spaces. The integration of local entrepreneurs mirrors Breuninger's successful April 2025 strategy of combining retail with local partnerships, while the personalisation services reflect the growing importance of customisation in retail experiences, as demonstrated by Ripley's December 2024 transformation of its store spaces into lifestyle destinations. This multi-faceted approach to retail activation has proven successful, with similar initiatives driving increased customer engagement and sales across the sector.

Falabella launched experiential Mother's Day campaign supporting women and local entrepreneurs

What: John Lewis Partnership secures planning approval for 428-apartment mixed-use development above West Ealing Waitrose, including 83 affordable homes and store modernisation.

Why it is important: The development represents a strategic evolution in retail property management, combining modernised retail space with residential solutions to maximise asset value and community impact.

John Lewis Partnership has achieved a significant milestone with the approval of its West Ealing development plan following a planning appeal. The ambitious project will transform the existing Waitrose store site into a mixed-use development featuring 428 rental apartments, including 83 affordable homes. The development, part of a GBP 500 million joint venture with investment company Abrdn, represents a key component of the Partnership's strategy to optimize its property portfolio while addressing housing needs. The project, scheduled for completion in 2029, includes a comprehensive modernization of the Waitrose store with improved parking facilities. This development forms part of John Lewis Partnership's broader vision to create 10,000 new homes over the next decade, with similar projects planned for Bromley and Reading. Katherine Russell, director of build-to-rent, emphasises the development's alignment with policy commitments supporting brownfield development near transport hubs.

IADS Notes: The approval of John Lewis Partnership's West Ealing development in May 2025 marks a significant milestone in the retailer's property optimisation strategy. This project, featuring 428 rental apartments including 83 affordable units, builds upon the successful Bromley development approval in July 2024, demonstrating the company's growing expertise in mixed-use developments. The initiative aligns with the Partnership's refined approach to retail transformation, supported by their March 2024 GBP 542 million investment in store refurbishments and further reinforced by an GBP 800 million retail enhancement program announced in October 2024. The modernisation of the Waitrose store within the development complements Waitrose's broader GBP 1 billion investment in store renovations announced in September 2024, showcasing how the Partnership is effectively balancing property development with core retail excellence.

John Lewis rental home scheme gets go-ahead

What: Mexican department stores thrive through localisation, financial services, and brand identity while US counterparts struggle with declining foot traffic and digital disruption.

Why it is important: This development shows how regional market understanding and strategic adaptation can help traditional retail formats succeed despite global digital disruption.

While US department stores face declining relevance and digital disruption, their Mexican counterparts demonstrate remarkable resilience through strategic market adaptation. El Palacio de Hierro leads the luxury segment with immersive brand environments and cultural integration, exemplified by their Polanco flagship store's design reflecting Mexico City's historic neighborhoods. Liverpool combines department stores with specialty concepts and financial services, leveraging private-label credit cards to serve underbanked consumers. Coppel's success stems from combining retail with financial inclusion, operating over 1,600 stores focused on credit-enabled furniture and electronics sales. Grupo Comercial Control's Del Sol and Woolworth chains maintain relevance through accessibility and regional familiarity. This contrast with struggling US retailers like Macy's, Sears, and Kohl's highlights how Mexican retailers' mix of localised merchandising, store credit, and multi-format presence creates a successful model of strategic adaptation.

IADS Notes: The contrasting fortunes of US and Mexican department stores reflect different approaches to market adaptation. According to Modaes' April 2025 coverage , El Palacio de Hierro achieved 12% revenue growth and 30% operating profit increase in Q1 2025, with digital sales growing 27%, demonstrating successful digital transformation while maintaining strong physical presence. Modaes' February 2025 analysis  showed how El Palacio de Hierro's 11% revenue growth to $3.2 billion in 2024 was driven by improved gross margins and controlled operating expenses, highlighting the effectiveness of their balanced operational approach. Modaes' October 2024 report  revealed how the company's expansion strategy, including a new León store and 34% growth in digital sales, successfully combined physical and digital retail experiences. Bloomberg's January 2025 coverage  of Coppel's MXN 14.2 billion investment in physical stores demonstrated how Mexican retailers are leveraging local market understanding and financial services integration to drive growth. These successes contrast sharply with US department stores' struggles, suggesting that strong local market adaptation and balanced channel strategies remain crucial for retail success.

Department store retailing remains a bright spot in Mexico vs. the USA 

What: El Palacio de Hierro announces leadership transition as Juan Carlos Escribano steps down after ten successful years, with LVMH veteran Eléonore de Boysson becoming the company's first female CEO.

Why it is important: This leadership change marks a significant milestone in Mexican retail, combining continuity of successful strategy with fresh perspective from an experienced luxury retail executive.

El Palacio de Hierro has announced a significant leadership transition, with CEO Juan Carlos Escribano stepping down on June 25 after a decade of successful leadership. Under his tenure, the company has evolved into a leading luxury omnichannel retailer in Mexico, building a team of over 10,000 employees and establishing an unparalleled offering of global luxury brands. Eléonore de Boysson will make history as the company's first female CEO, bringing extensive experience from senior management positions at major global companies including LVMH, Disney, and Boston Consulting Group. Escribano expressed gratitude to Grupo BAL's leadership, particularly Don Alberto Baillères and Don Alejandro, while highlighting the company's achievements in enriching customer experiences through luxury retail. He expressed confidence in de Boysson's ability to lead the company into its next phase of development, supported by the existing team's proven track record of commercial growth and brand prestige.

IADS Notes: The leadership transition at El Palacio de Hierro comes amid significant business momentum. According to Modaes' April 2025 coverage , the company achieved 12% revenue growth and 30% operating profit increase in Q1 2025, reaching $650 million in sales, with digital sales growing 27%. Modaes' February 2025 analysis  highlighted how the company's transformation under Juan Carlos Escribano delivered 11% revenue growth to $3.2 billion in 2024, with online sales increasing 28%. Press Release's January 2025 report  detailed the company's technological advancement through partnerships like Enactor, implementing next-generation POS solutions across 450 points of sale. Modaes' September 2024 coverage  showed the company's physical expansion strategy, exemplified by the 35,000-square-meter León flagship store featuring over 200 luxury brands. Eléonore de Boysson's appointment as CEO, bringing experience from LVMH, Disney, and Boston Consulting Group, positions the company to build on this strong foundation while advancing its digital and experiential retail strategy.

Palacio de Hierro Group changes leadership

What: Private equity firm Boyu Capital acquires significant minority stake in SKP Beijing, valuing the business at $4-5 billion.

Why it is important: The deal structure preserves SKP's successful operational model while providing capital for expansion, showing how Chinese luxury retail is maturing.

Boyu Capital's acquisition of a 42-45% stake in SKP Beijing marks a significant development in China's luxury retail landscape. The transaction, valued between $4-5 billion, will see Boyu's fifth U.S. dollar fund become a financial investor while maintaining the existing operational structure. Prior to the deal, ownership was split between Radiance Investment Holdings (60%) and Hualian Group (40%). Post-transaction, Radiance will retain a matching 42-45% stake and continue controlling the luxury retailer. SKP Beijing's market presence remains strong across multiple cities, with market shares ranging from 10-15% in Beijing and Chengdu to 15-20% in Xi'an. Despite facing challenges in 2024 with sales declining 17% to ¥22 billion, the company showed resilience with an 18% year-over-year growth in Q1 2025. The retailer operates four locations in Beijing, Xi'an, Chengdu, and Wuhan, with future projects planned in Guangzhou and Hangzhou, demonstrating its continued commitment to strategic expansion across China./nbsp]

IADS Notes: The Boyu Capital investment comes at a pivotal time in China's luxury retail evolution. As noted in August 2024, SKP successfully launched its Wuhan location, generating ¥100 million in opening day sales and attracting over 100,000 visitors. This expansion aligns with broader market trends identified in March 2025, showing increased luxury spending in lower-tier cities while tier-1 markets experienced some decline. The deal's timing is particularly significant as April 2025 data shows Chinese department stores increasingly focusing on experiential retail and digital integration, with 16% of retail space now dedicated to entertainment zones, reflecting SKP's successful model of combining luxury retail with cultural experiences.

SKP Beijing to sell 42 to 45% stake to Boyu Capital