What: Deloitte projects a return to pre-pandemic holiday sales growth rates, driven by resilient consumers and strong ecommerce performance.

Why it is important: The forecast highlights the increasing importance of ecommerce and value-driven strategies in a cautious retail environment.

Deloitte’s 2025 holiday retail forecast anticipates retail sales growth of 2.9% to 3.4%, totaling between $1.61 trillion and $1.62 trillion, marking a return to pre-pandemic growth levels. This moderation follows last year’s 4.2% increase and reflects a more cautious consumer outlook amid ongoing economic uncertainty, high credit and student debt, and only modest improvements in disposable income. Despite these headwinds, ecommerce is expected to expand by 7% to 9%, surpassing $305 billion, as consumers increasingly embrace digital channels and mobile shopping. The report notes that steady income growth can help offset economic pressures, supporting continued spending even as consumer confidence wavers. Retailers are advised to focus on value, competitive pricing, and private-label products to attract budget-conscious shoppers, especially as Gen Z signals a sharper reduction in holiday spending. The trend toward earlier holiday shopping, driven by concerns over potential price increases, further underscores the need for agile promotional strategies and a nuanced understanding of shifting consumer behaviors.

IADS Notes: Deloitte’s forecast aligns with recent industry analyses from September and October 2024, which identified a slowdown in holiday sales growth and highlighted the resilience of retail despite economic uncertainty. The surge in ecommerce, with global online holiday spending reaching $1.2 trillion in January 2025, reflects the sector’s digital transformation. Reports from July 2025 and January 2025 confirm that consumers remain adaptable, shopping earlier and using technology to maximize value, while retailers respond with competitive pricing and expanded private-label offerings to maintain profitability and meet evolving consumer expectations.

Holiday retail sales expected to top USD 1.61 trillion, Deloitte reports

What: Major Korean department stores are elevating VIP strategies, raising spending thresholds and offering curated experiences to secure consistent luxury demand during market downturns.

Why it is important: Targeting younger affluent consumers and enhancing VIP experiences positions department stores to maintain relevance and growth despite broader economic challenges.

Korean department stores are responding to economic headwinds by doubling down on their VIP customer base, recognising that these high-spending individuals provide a reliable source of revenue even as broader consumption slows. Lotte, Shinsegae, and Hyundai have all reported significant increases in the proportion of sales attributed to VIPs over the past five years, prompting them to raise spending thresholds and introduce new, more exclusive tiers. These programmes are increasingly personalised, offering curated experiences such as fine dining events with Michelin-starred chefs, exclusive access to rare luxury items, and invitations to high-profile cultural and sporting events. The evolution of these loyalty schemes is not only about exclusivity but also about appealing to younger affluent consumers, as seen in the creation of trendy VIP lounges and clubs for those under 45. By focusing on tailored engagement and strategic partnerships with luxury brands and restaurants, department stores are ensuring that their most valuable customers remain loyal, thereby safeguarding their position in a challenging retail environment.

IADS Notes:

As observed in January 2025, Korean department stores have raised VIP qualification thresholds and restructured benefits, intensifying their focus on high-value clients. June 2025 data confirms that the top 1% of spenders now generate a quarter of department store revenue, making VIP strategies crucial for business growth. The evolution of loyalty programs, highlighted in May 2025, shows a blend of digital innovation and personalised service, particularly targeting younger affluent shoppers. Strategic partnerships with Michelin-starred restaurants and luxury brands, as seen in June and February 2025, further enhance the exclusivity and appeal of VIP offerings, underscoring the sector’s shift toward highly curated, experience-driven engagement.

Korean department stores turn to VIPs to navigate economic slowdown

What: Changes to business rates will significantly increase costs for department stores and supermarkets, threatening their role as high street anchors.

Why it is important: Increased costs for anchor tenants could accelerate high street decline, echoing recent warnings from major retailers and industry analysts.

The upcoming changes to business rates, including a new surcharge on properties with a rateable value of £500,000 or more, are poised to hit department stores and supermarkets the hardest. These businesses, which serve as vital anchors for the high street, face substantial increases in operational costs, with research indicating up to £482 million in extra annual charges for physical retail, leisure, and hospitality premises. In contrast, online retailers and distribution warehouses will see a much smaller impact, undermining the policy’s stated goal of levelling the playing field. Experts warn that this blunt approach risks penalising the very businesses that drive footfall, employment, and economic activity in local communities. The policy, intended to support smaller retailers, may inadvertently weaken the broader retail ecosystem by destabilising its largest contributors. As supermarkets and department stores absorb these additional costs, the viability of their high street presence—and the health of surrounding local economies—could be jeopardised, raising concerns about the future of physical retail in the UK.

IADS Notes:

The risk posed by increased business rates to department stores and supermarkets is underscored by Frasers Group’s July 2025 warning that a £1.7 billion hike could halt store expansion, and by Primark’s November 2024 demonstration of anchor stores’ crucial economic impact. The government’s April 2025 review of customs thresholds aimed to address online competition, but recent muted growth and revenue losses in London’s West End, reported in February 2025, highlight the broader consequences of policy shifts that fail to support high street anchors.

Department stores hit hardest by UK business rates shake-up

What: Fortnum & Mason’s autumn window display uses recycled store materials and artist collaborations to spotlight sustainability and creative reuse.

Why it is important: The integration of recycled materials and artistic collaboration positions department stores as cultural leaders, responding to consumer demand for environmental responsibility.

Fortnum & Mason’s latest window display is a striking example of how sustainability and creativity can converge to redefine retail’s visual identity. By enlisting artists to transform store-generated waste—such as old uniforms, packaging, and restaurant materials—into animal sculptures, the retailer not only highlights the importance of reuse but also elevates its brand narrative through artistic storytelling. This initiative is emblematic of a broader industry trend, with department stores increasingly leveraging sustainability as a core value and differentiator. The display’s focus on resourceful animals and the creative repurposing of in-store materials resonates with consumers’ growing environmental consciousness and desire for authentic brand engagement. As visual merchandising becomes a platform for communicating values and fostering community pride, Fortnum & Mason’s approach demonstrates how experiential, sustainable strategies can set brands apart in a competitive landscape, reinforcing the evolving role of department stores as both cultural and commercial leaders.

IADS Notes:

Recent industry developments confirm the strategic value of Fortnum & Mason’s approach. C&A’s denim offcut flooring and the Great British Beauty Clean Up’s multi-retailer waste initiative illustrate the commercial and reputational benefits of sustainability. Artistic collaborations at Selfridges and El Corte Inglés have similarly transformed window displays into cultural statements, while circular economy strategies and the rise of secondhand shopping reflect a shift in consumer priorities. These trends underscore how creative reuse and visual storytelling are now central to retail differentiation and community engagement, as seen throughout the sector in 2024 and 2025.

Fortnum & Mason’s recycled materials window display

What: Ulta Beauty accelerates its global expansion with new store openings in Mexico and plans for the Middle East, leveraging partnerships and localised assortments.

Why it is important: Ulta’s international push and omnichannel investments reinforce the industry’s shift toward integrated, experiential retail to capture new consumer segments.

Ulta Beauty’s entry into Mexico marks a pivotal step in its global growth strategy, with two new stores opening in partnership with Axo and additional locations planned for 2025. This expansion is part of a broader international agenda that includes the upcoming launch of Ulta’s first Middle East store and the recent acquisition of Space NK in the UK. By combining joint ventures, acquisitions, and licensing agreements, Ulta is able to adapt its approach to each market, ensuring operational flexibility and local relevance. The retailer’s curated brand portfolio, which features both global names and Mexican favorites, demonstrates a commitment to localization and consumer engagement. Ulta’s focus on experiential retail, from grand opening events to immersive in-store experiences, is supported by investments in omnichannel capabilities and advanced fulfilment centers. These efforts position Ulta to compete effectively in dynamic international markets while maintaining its leadership in the U.S. beauty sector.

IADS Notes:

Ulta’s expansion into Mexico and the Middle East, alongside its acquisition of Space NK, reflects a growing trend among beauty retailers to pursue global growth through a mix of partnerships and acquisitions (July 2025). This approach is mirrored by other major players who have broadened their premium beauty offerings via collaborations (November 2024). The Mexican market’s strong growth and the success of localized brand strategies, as seen with Charlotte Tilbury’s entry (May 2025), underscore the importance of adapting assortments to local preferences. Ulta’s investment in omnichannel and experiential retail aligns with industry shifts toward integrating digital and physical experiences to engage consumers (November 2024, January 2025).

Ulta expands globally with Mexico store openings

What: Marks & Spencer is rebuilding its operations and brand strength after a severe cyber-attack, focusing on digital resilience, supply chain innovation, celebrity partnerships, and renewed investment in its store network.

Why it is important: M&S’s actions reflect broader industry trends in crisis management, supply chain transformation, and experiential retail.

Marks & Spencer’s recovery from the spring 2025 cyber-attack demonstrates the retailer’s ability to navigate operational disruption while maintaining customer trust and brand momentum. The company’s phased restoration of digital services, including the return of third-party brands and online orders, was managed with transparency and speed, helping to stabilize customer sentiment despite a £300 million profit impact and a £700 million loss in market value. Strategic leadership changes, notably the appointment of John Lyttle to oversee supply chain transformation, align with a wider industry movement toward transformation-driven management. Simultaneously, M&S has revitalized its brand through high-profile collaborations with designers like Bella Freud and innovative marketing initiatives, such as reality TV partnerships, which have attracted younger shoppers and driven fashion sales. The retailer’s £300 million investment in store rotation and modernization, including the redevelopment of its Marble Arch flagship and the introduction of self-checkouts, underscores a commitment to omnichannel growth and future resilience, positioning M&S as a benchmark for retail recovery and innovation.

IADS Notes:

M&S’s response to the cyber-attack in April 2025 set a new standard for crisis management, with phased digital restoration and transparent communication maintaining customer trust at 82% despite a significant drop in recommendation rates. The retailer’s leadership transformation and investment in omnichannel infrastructure mirror industry-wide shifts observed throughout 2024 and 2025, while its fashion revival through celebrity collaborations and experiential marketing has driven renewed customer engagement and sales. The approval of the Marble Arch redevelopment in December 2024 and the rollout of self-checkouts further illustrate M&S’s commitment to modernization and long-term growth.

Marks & Spencer CEO Stuart Machin reveals his masterplan

What: The UK’s statistics agency revised down retail sales figures for the first half of the year, revealing lower growth than previously reported and admitting to failures in seasonal adjustment.

Why it is important: The revisions highlight the challenges of accurately measuring retail performance and the risks these errors pose for business and policy decisions.

The Office for National Statistics has revised down its UK retail sales figures for the first half of the year, acknowledging significant failures in its seasonal adjustment process. This recalibration revealed that retail sales growth was weaker than initially reported, with the agency admitting that previous figures overstated monthly volatility due to incorrect adjustments for holidays such as Easter. The revisions have drawn criticism from policymakers and the Bank of England, who rely on accurate data to guide economic decisions. The ONS’s difficulties are not isolated to retail, as similar issues have affected other key data series, including labour market and inflation statistics. These persistent errors have complicated the work of economists and investors, who depend on reliable figures to assess consumer demand and forecast market trends. The episode underscores the fragility of consumer confidence and the heightened risks for retailers operating in an environment where data reliability is in question.

IADS Notes: The ONS’s downward revision of retail sales figures mirrors the volatility and unpredictability seen in the UK retail sector throughout the past year. Reports from June 2025 and March 2025 highlight how slowing sales growth, shifting consumer priorities, and regulatory pressures have already complicated strategic planning. The unpredictability of official data, with both surprise upswings and unexpected declines, has made forecasting difficult for retailers and policymakers. Business leaders’ optimism remains at odds with broader economic concerns, as many plan price increases amid persistent uncertainty, while retailers adapt by increasing discounts and focusing on essential categories to maintain demand.

UK retail sales figures revised down for first half of year

What: Jean-Marc Bellaiche steps down as president of Le Printemps after leading a significant transformation, including international expansion and a new flagship in New York.

Why it is important: Bellaiche’s departure marks the end of a transformative era for Le Printemps, highlighting the impact of leadership on department store reinvention and global strategy.

Jean-Marc Bellaiche’s resignation as president of Le Printemps signals the close of a pivotal chapter for the French department store group. Since 2020, Bellaiche has overseen a sweeping transformation, introducing a new visual identity, streamlining operations, and guiding the group through the challenges of the post-pandemic period. His tenure was marked by bold decisions, such as closing underperforming branches and reorganising the executive team, with a focus on diversity and corporate social responsibility. Bellaiche’s vision extended internationally, culminating in the opening of a flagship store in New York and a renewed focus on experiential retail and digital growth. These efforts not only repositioned Printemps as a modern, customer-centric brand but also returned the group to profitability, despite ongoing financial pressures from pandemic-era liabilities. As Bellaiche steps down, the executive committee will lead the group while the search for a new president begins, ensuring continuity as Printemps builds on the foundation of innovation and global ambition established during his leadership.

IADS Notes:

Jean-Marc Bellaiche’s departure follows a period of accelerated transformation for Le Printemps, highlighted by the launch of the New York flagship and a strategic pivot toward experiential retail and customer engagement (March 2025). The group’s strengthened executive team was instrumental in sustaining this momentum and supporting its international ambitions (April 2025). The Wall Street store’s innovative, hospitality-driven model has set a new standard for department store reinvention, prioritizing experience over traditional sales metrics (June 2025). Printemps’ blend of heritage and modern retail innovation positions it as a leader in experiential retail, offering a compelling blueprint for the future of the sector (July 2025).

Le Printemps President Jean-Marc Bellaiche steps down

What: Singapore retail sales rose 4.1% in July, driven by strong online growth and robust performance in technology, jewellery, and supermarket categories.

Why it is important: This growth reinforces Singapore’s resilience and ongoing digital transformation, as seen in recent sector analyses.

Singapore’s retail sector demonstrated solid momentum in July, with sales increasing by 4.1% year-on-year and total retail value reaching SG$3.6 billion. Online channels accounted for 15.5% of sales, underscoring the continued shift toward digital consumption. The strongest gains were seen in computer and telecommunications equipment, which surged 11.1%, while watches and jewellery, as well as supermarkets and hypermarkets, also posted notable growth. Department stores, cosmetics, recreational goods, and optical goods and books experienced moderate increases, further supporting the sector’s overall positive trajectory. However, some categories, including food and alcohol, apparel and footwear, and petrol service stations, faced declines ranging from 2% to 5.6%, highlighting ongoing shifts in consumer priorities. Food and beverage services saw a modest 1.7% rise, with online transactions representing a significant 25.9% of total sales. These results reflect a retail landscape marked by both resilience and transformation, as digital integration and evolving consumer behaviour continue to shape sector performance.

IADS Notes: Singapore’s July 2025 retail performance continues the year’s trend of fluctuating but resilient growth, with digital sales maintaining a strong presence as seen in May, March, and January 2025. The robust results in technology, jewellery, and supermarkets mirror earlier sector-specific gains, while persistent declines in apparel and petrol service stations underscore the ongoing polarisation of consumer spending. The high share of online transactions in food and beverage services further confirms the market’s successful adaptation to digital retail dynamics.

Singapore retail sales see strong growth as most industries record uplifts

What: The athleisure giant Lululemon is struggling with falling sales in the Americas, overstock, and a loss of brand buzz, as new rivals and changing consumer preferences reshape the global sportswear landscape.

Why it is important: This case demonstrates how external factors—such as tariffs, changing trends, and new competitors—can quickly erode market leadership, forcing established brands to rethink strategy and customer engagement.

Lululemon, once the undisputed leader in athleisure, is now facing a series of setbacks as sales decline in its core Americas market and inventories outpace demand. The brand’s recent product launches have failed to resonate with its loyal customer base, while efforts to attract younger shoppers with logo-heavy and casualwear lines have not generated the desired buzz. At the same time, new competitors like Alo and Vuori are gaining ground, and fashion trends are shifting away from fitted leggings toward baggier styles and denim. The company’s reliance on manufacturing in Vietnam and China has left it exposed to new US tariffs and the elimination of the de minimis waiver, raising costs and threatening margins. Heavy discounting of core products, such as its iconic black leggings, is further eroding brand value. Lululemon’s experience underscores the volatility of fashion retail and the need for continuous innovation, agile supply chain management, and adaptive marketing to maintain relevance in a rapidly evolving global market.

IADS Notes:

Lululemon’s recent challenges reflect broader shifts in the global fashion and luxury retail landscape. As reported by WWD (April 2025), even industry leaders like LVMH are experiencing revenue declines due to shifting consumer demand, market volatility, and the impact of tariffs. Forbes (June 2025) highlights a wider slowdown in luxury and premium retail, with brands facing inventory build-ups, increased discounting, and changing fashion trends—paralleling Lululemon’s struggles with overstock and the waning appeal of core products. Vogue Business (March 2025) explores how global trade tensions, the end of the de minimis waiver, and supply chain restructuring are raising costs and operational risks for brands sourcing from Vietnam and China, directly impacting Lululemon’s pricing and profitability. The Financial Times (June 2025) further underscores how tariff changes and the elimination of duty exemptions are forcing brands to rethink their e-commerce strategies and pricing models in the US. Collectively, these developments illustrate the heightened vulnerability of even top-performing brands to external shocks, the need for constant innovation, and the importance of agile supply chain and marketing strategies in a rapidly evolving retail environment.

How Lululemon fell out of fashion

What: Lotte Department Store is expanding its experiential VIP program through a partnership with Galeries Lafayette, enabling top customers to enjoy luxury lounge access, hands-free shopping, and curated benefits in Paris.

Why it is important: By integrating exclusive global services and cultural touchpoints, Lotte and Galeries Lafayette are elevating the VIP experience and reinforcing their positions as leaders in luxury retail innovation.

Lotte Department Store has renewed and expanded its VIP alliance with Galeries Lafayette, Paris’s leading luxury department store, offering AVENUEL VIP members exclusive access to the Le Concierge lounge, hands-free shopping, fast-track tax refunds, and curated gifts in central Paris. This partnership, first established in 2010, is part of Lotte’s broader strategy to deliver differentiated, experience-driven benefits to high-value customers and to mark the upcoming 130th anniversary of Korea-France diplomatic relations in 2026. The alliance reflects a shift in luxury retail from transactional shopping to curated experiences, with Lotte also partnering with Michelin-starred restaurants to further elevate its VIP offering. By integrating global services and cultural touchpoints, both retailers are setting new standards for customer engagement, loyalty, and cross-border collaboration in the competitive luxury market.

IADS Notes:

Lotte Department Store’s renewed VIP alliance with Galeries Lafayette reflects a broader trend in luxury retail toward cross-border partnerships and experience-driven customer engagement. As highlighted by Maeil Business Newspaper (July 2025), Korean department stores are increasingly evolving their premium offerings and customer experiences through international collaborations and exclusive benefits. The April 2025 coverage of Lotte’s premium lifestyle initiatives and strategic partnerships underscores the company’s commitment to attracting affluent customers with differentiated services. The Korea Herald (April 2025) further illustrates how Korean retailers are leveraging global alliances to create unique, memorable experiences that set them apart in a competitive market. Inside Retail (June 2025) provides insight into Lotte’s customer-centric transformation and innovation strategy, while Fashion Network (July 2025) details Galeries Lafayette’s focus on experiential retail and international appeal. Collectively, these developments show that both Lotte and Galeries Lafayette are setting new standards for VIP loyalty, blending luxury, culture, and service to create compelling value propositions for high-value customers and reinforcing their positions as global leaders in experiential retail.

Lotte announces a partnership with Galeries Lafayette

What: Kith Ivy will open as a luxury padel and wellness club in New York, featuring exclusive collaborations, wellness amenities, and Erewhon’s first presence in the city.

Why it is important: Kith Ivy’s launch reflects the retail industry’s shift toward experiential, lifestyle-driven spaces and exclusive membership models, as seen in recent luxury retail strategies.

Kith is set to redefine the boundaries of retail with the introduction of Kith Ivy, a members-only luxury padel and wellness club in New York’s West Village. This ambitious project marks Kith’s most comprehensive foray into hospitality, blending sport, wellness, and lifestyle services under one roof. The club will include rooftop padel courts, a state-of-the-art gym, exclusive dining in partnership with Cafe Mogador, and a spa curated by Giorgio Armani. A standout feature is the city’s first Erewhon outpost, offering its signature smoothies and juices through a members-only tonic bar and limited delivery options. Kith Ivy also debuts as a performance wear brand, launching a collection in collaboration with Wilson Sporting Goods. The club’s annual memberships will be extremely limited, emphasizing exclusivity and prestige. This initiative not only expands Kith’s brand universe but also exemplifies the growing trend of retailers creating immersive, community-focused environments that merge wellness, hospitality, and retail innovation to meet evolving consumer expectations.

IADS Notes:

Kith Ivy’s concept is emblematic of the retail industry’s transformation observed in January 2025, where brands increasingly prioritise experiential destinations and “third spaces” that foster community and engagement. The club mirrors  exclusive membership model by Selfridges. These developments collectively highlight a new era in retail, where holistic experiences and exclusivity drive customer loyalty and brand differentiation.

Kith is opening a padel club ‘Kith Ivy’ in NYC

What: Erewhon is entering New York with a wellness-focused smoothie bar inside Kith Ivy’s private club, expanding its lifestyle brand beyond Los Angeles.

Why it is important: The launch highlights how premium grocers are leveraging brand equity and limited-access experiences to build loyalty and expand into new markets.

Erewhon’s arrival in New York marks a significant step in its evolution from a celebrated Los Angeles grocer to a national lifestyle brand. By opening a wellness-centric smoothie and juice bar within Kith Ivy’s private club, Erewhon is strategically tapping into the city’s appetite for exclusivity, wellness, and experiential retail. The collaboration with Kith not only introduces Erewhon’s signature celebrity-endorsed smoothies to a new audience but also aligns the brand with a broader movement toward holistic lifestyle services, including fitness, spa, and wellness treatments. This approach leverages Erewhon’s strong brand identity and reputation for premium, health-focused offerings, while the limited-access model—available to club members and select delivery customers—creates a sense of scarcity and desirability. The move reflects a wider trend in retail, where grocers and specialty brands are expanding through partnerships, exclusive experiences, and membership-driven engagement to foster deeper loyalty and capture new markets.

IADS Notes:

Erewhon’s New York debut is consistent with its recent expansion into lifestyle products and apparel, as seen in December 2024, and its transformation into a luxury wellness brand highlighted in March 2025. The exclusive, member-focused model at Kith Ivy mirrors broader retail trends, with Selfridges launching a private club in June 2025 to deepen customer engagement and create premium experiences. These developments underscore how Erewhon is capitalising on the intersection of wellness, exclusivity, and lifestyle to redefine modern retail.

Erewhon is coming to New York 

What: The retail sector’s increasing reliance on AI affirmation is undermining human judgment, leading to complacency, misinterpretation of data, and diminished customer insight.

Why it is important: This development reinforces the need for a balanced approach, as recent industry data shows that sustainable retail success depends on integrating AI with human expertise and real-world validation.

The article explores the phenomenon of “AI psychosis” in retail, where over-reliance on AI systems—particularly those designed to affirm and agree—gradually erodes the industry’s foundation of critical thinking, intuition, and curiosity. As retailers increasingly depend on AI-driven forecasts, persona builders, and dashboards, the comfort of constant affirmation replaces the discomfort and doubt that once fueled innovation and adaptability. This shift leads to teams accepting machine-generated recommendations without question, resulting in costly missteps, such as failed product forecasts based on fleeting social media trends rather than genuine customer demand. The narrative warns that the illusion of certainty provided by AI can seduce executives into outsourcing their judgment, ultimately making businesses less resilient and less capable of responding to real-world complexities. The solution, the author argues, is not to reject AI, but to pair its speed and analytical power with the irreplaceable qualities of human curiosity, dissent, and direct customer engagement. Only by maintaining this balance can retailers avoid becoming mere mouthpieces for machine outputs and preserve their ability to innovate and adapt.

IADS Notes: The article’s concerns are strongly validated by recent industry findings. In June 2025, aggressive automation was shown to threaten long-term business sustainability, while only 10% of retailers have successfully scaled AI applications, highlighting the risks of complacency and automation bias. Employee engagement and emotional well-being are increasingly dependent on trust-building and values alignment, as seen in January and May 2025, with structured oversight and a human-centric approach proving essential. Consumer expectations for transparency and human oversight, reported in January 2025, challenge the illusion of certainty provided by AI, while successful AI adoption is consistently linked to CEO leadership, employee engagement, and continuous investment in both technology and people, as noted in March and April 2025. Persistent implementation challenges and the need for upskilling and strategic execution, especially in merchandising and personalization, further reinforce the necessity of integrating AI with human expertise.

Retail’s AI psychosis: The industry must not outsource its brain

What: Macy’s, Inc. delivered strong second quarter 2025 results, with Reimagine 125 stores, Bloomingdale’s, and Bluemercury driving comparable sales growth and prompting an upward revision of annual guidance.

Why it is important: This development confirms that Macy’s transformation strategy, including inventory management improvements and digital integration, is yielding tangible results, in line with recent market analyses.

Macy’s, Inc. reported robust second quarter 2025 results, surpassing its own guidance with net sales of $4.8 billion and adjusted diluted EPS of $0.41. The company achieved its strongest comparable sales growth in twelve quarters, led by the Reimagine 125 locations, which outperformed the broader Macy’s nameplate, and by continued momentum at Bloomingdale’s and Bluemercury. These results reflect the effectiveness of Macy’s Bold New Chapter strategy, which emphasises targeted reinvestment in high-potential stores, digital integration, and operational modernisation. Despite a 2.5% decline in net sales due to store closures, comparable sales rose, and the company raised its annual net sales and earnings guidance. Macy’s also demonstrated disciplined financial management, reducing long-term debt and returning $100 million to shareholders in the quarter. The company’s focus on inventory accuracy, cost containment, and customer experience has positioned it to adapt to evolving consumer behaviors and competitive pressures. Macy’s remains committed to its omni-channel approach and ongoing transformation, aiming for sustainable, profitable growth in a rapidly changing retail landscape.

IADS Notes:

Macy’s second quarter 2025 performance builds on the momentum documented in May 2025, where Reimagine 125 stores and luxury divisions outperformed the broader fleet, validating the Bold New Chapter strategy. The company’s resilience amid aggressive store closures and persistent market headwinds, as noted in March 2025, is further supported by its shift to cost accounting for improved inventory management reported in January 2025. The three-part strategy of store optimization, luxury expansion, and operational modernization, detailed in November 2024, and CEO Tony Spring’s omni-channel vision, have been consistently validated by strong pilot store results and enhanced customer experience initiatives.

Macy’s, Inc. reports robust second quarter 2025 results

What: Lotte Card detected and removed multiple types of malware from its servers after a cyberattack, with authorities investigating and no evidence of customer data compromise so far.

Why it is important: Regulatory scrutiny and transparent crisis response are now essential for maintaining customer trust and operational continuity in the face of rising cyber threats.

Lotte Card has reported a significant cyberattack after discovering malware on its internal servers during a routine inspection in late August. The company promptly filed a report with the Financial Supervisory Service and initiated a comprehensive review of its systems, uncovering two types of malware and five web shells across three servers. These malicious codes, which enable remote control and data exfiltration, were swiftly removed, and no evidence of customer data leakage or ransomware was found. The incident triggered an immediate regulatory response, with authorities launching an on-site investigation to ensure no personal information was compromised. Lotte Card, which serves nearly 9.6 million customers and holds a 10.1% market share in Korea’s credit sales, emphasised that all key customer data remains secure. This event follows a series of high-profile cyber incidents in Korea’s retail and payments sector, highlighting the urgent need for robust crisis management, regulatory compliance, and transparent communication to safeguard brand reputation and customer trust.

IADS Notes:

Lotte Card’s cyberattack reflects a broader surge in sophisticated threats targeting retail-affiliated financial services, as seen in recent breaches at Louis Vuitton Korea and regulatory actions against Apple Pay and KakaoPay. The operational and reputational risks are significant, with incidents like the Co-op breach in May 2025 affecting up to 20 million individuals and prompting industry-wide shifts toward enhanced cybersecurity partnerships and crisis protocols. The sector’s vulnerability is further underscored by the fact that ransomware and third-party breaches now account for the majority of retail security incidents, often resulting in substantial financial losses and increased regulatory scrutiny, as demonstrated by the coordinated attacks on M&S and Harrods in spring 2025.

Lotte Card reports cyberattack after malware found on internal servers

What: Hong Kong retail sales rose 1.8% in July 2025, supported by a 12% increase in tourist arrivals, but overall spending remains subdued due to changing visitor behaviour and currency effects.

Why it is important: The disconnect between higher visitor numbers and actual retail spending highlights the need for new strategies as luxury and apparel categories underperform.

Hong Kong’s retail sector recorded a modest 1.8% year-on-year sales increase in July 2025, reaching HK$29.7 billion, as tourist arrivals surged by 12% to 4.39 million. The majority of these visitors came from Mainland China, yet many were day-trippers whose limited spending failed to translate into significant retail gains. While this marks the third consecutive month of growth, the overall retail environment remains fragile, with sales for the first seven months of the year still down 2.6% in value and 4.0% in volume compared to 2024. The strong Hong Kong dollar continues to encourage local residents to shop across the border, further dampening domestic retail activity. Jewellery, watches, and valuable gifts saw a notable 9.4% increase in July, but apparel and footwear categories barely recovered from previous declines. Despite government efforts to stimulate the sector through tourism promotion and mega events, the persistent gap between rising visitor numbers and actual spending signals a fundamental shift in consumer behavior, requiring retailers to rethink their strategies for sustainable growth.

IADS Notes:

Recent months have shown that increased tourist arrivals, particularly from Mainland China, no longer guarantee retail growth in Hong Kong. March and June 2025 data reveal that “special forces” tourists now prioritize experiences over shopping, leading to lower per-visitor spending. The strong Hong Kong dollar has further complicated the landscape, deterring tourist purchases and driving locals to shop in mainland China. Despite government initiatives such as multiple-entry visas and mega events, retail sales continue to lag, especially in luxury and apparel categories, highlighting the need for a strategic shift toward experience-driven and adaptive retail models.

Hong Kong retail sales gain 1.8% in July amid rising tourist traffic

What: Hong Kong retail sales saw modest growth in July 2025, but ongoing structural challenges persist as increased visitor arrivals fail to translate into proportional spending.

Why it is important: The disconnect between foot traffic and spending underscores the need for Hong Kong’s retail sector to innovate, especially as luxury gifting categories remain volatile amid changing travel patterns.

Hong Kong’s retail sector reported a 1.8% increase in sales value in July 2025, marking the third consecutive month of gains and reaching HK$29.7 billion. Yet, this apparent growth masks underlying challenges, as sales volume rose by only 1% and the first seven months of the year still show a 2.6% decline in value and a 4% drop in volume compared to 2024. Despite a 12% rise in visitor arrivals—driven largely by mainland Chinese tourists—spending patterns have shifted, with many visitors opting for short, budget-conscious trips and local residents increasingly shopping across the border due to currency advantages. Luxury gifting categories such as jewellery, watches, and valuable gifts posted a robust 9.4% year-on-year increase in July, but broader retail categories remain volatile. Government efforts to stimulate retail through tourism and mega events have yet to reverse the underlying trend, as the sector continues to grapple with evolving consumer preferences and intensified regional competition.

IADS Notes:

Hong Kong’s retail sector has undergone a fundamental transformation over the past year, marked by a persistent disconnect between rising visitor arrivals and actual retail spending. As highlighted by Inside Retail in June 2025, retail sales continued to decline for the fourteenth consecutive month, even as tourist numbers grew, with jewellery, watches, and valuable gifts showing only marginal resilience. The Financial Times in May 2025 documented the emergence of “special forces” tourists from mainland China, who now prioritize experiences over shopping and spend significantly less per visit, a trend that has reshaped the city’s traditional retail dynamics. The strong Hong Kong dollar has further influenced both inbound and outbound consumption, as noted by Inside Retail in April 2025, deterring tourist spending and encouraging locals to shop across the border. Despite government efforts such as multiple-entry visas and mega event promotions, Inside Retail in May 2025 reported that these measures have provided only limited relief, with retail performance still lagging behind pre-pandemic levels. Regional competition, particularly from Hainan’s duty-free zone, and evolving consumer preferences have reinforced the need for Hong Kong retailers to adapt, as discussed in Retail Asia in March 2025, with a growing emphasis on experiential retail and digital integration to remain competitive.

Hong Kong retail sales rise for third consecutive month

What: AI agents are now mediating and automating e-commerce transactions, redefining the relationship between brands, retailers, and consumers.

Why it is important: This shift reflects a major reconfiguration of retail power structures, as tech giants and AI agents increasingly control consumer access and decision-making.

Agentic commerce is ushering in a new era where autonomous AI agents, rather than consumers, drive purchasing decisions and orchestrate the entire shopping journey. Major players like Amazon, Google, and OpenAI are rapidly deploying AI-powered features that automate transactions, negotiate terms, and personalize experiences, signaling a profound transformation in retail. This evolution is not only changing how products are bought and sold but also challenging the relevance of traditional e-commerce websites, as merchants must now optimize data and APIs for machine readability. The direct relationship between brands and consumers is being replaced by algorithmic mediation, forcing retailers to rethink engagement strategies and content creation. Even luxury retail, historically reliant on personal service, is adapting by leveraging AI for hyper-personalization and digital storytelling. While these advances promise operational efficiency and tailored experiences, they also raise concerns about the loss of brand identity, increased dependence on tech giants, and the opacity of algorithmic decision-making. The retail sector faces an urgent need to adapt, as the shift to agentic commerce is rapidly becoming the new standard.

IADS Notes: The rise of agentic commerce is validated by recent industry data showing 32% of consumer goods companies implementing generative AI and 38% of global consumers using AI shopping tools as of early 2025. This shift is driving a redistribution of power, with tech giants mediating consumer journeys and compelling brands to recalibrate digital strategies for machine readability. Customer relationships are being redefined, as AI agents automate and personalize experiences, delivering productivity gains of 15-30% in customer service, though employee readiness remains a challenge. Luxury brands like LVMH and Saks are also embracing AI-driven personalization to meet heightened consumer expectations, confirming that agentic commerce demands urgent adaptation across all retail segments.

Agentic commerce: When AI takes control of e-commerce

What: Pattern’s AI-powered platform helps brands accelerate profitable growth on global ecommerce marketplaces by optimizing advertising, content, pricing, and logistics across more than 60 marketplaces and 100 countries.

Why it is important: Pattern’s approach sets a new standard for brand-marketplace relationships, aligning incentives and leveraging real-time data to optimize every lever of ecommerce growth at scale.

Pattern has emerged as a leading ecommerce accelerator, offering brands a powerful combination of proprietary technology and on-demand expertise to navigate the complexity of global marketplaces. Operating across more than 60 platforms in over 100 countries, Pattern’s AI-driven platform utilizes more than 46 trillion data points to automate and optimize key growth levers, including advertising, content management, pricing, forecasting, and customer service. The company’s business model—buying products from brand partners and selling directly to consumers—gives it maximum control over the customer experience while aligning incentives for growth. This approach enables Pattern to accumulate comprehensive marketplace data, perform real-time testing, and build predictive models that drive above-market revenue growth. With a 35% CAGR over the last two years and a 5.9x growth multiple over the ecommerce segment, Pattern’s results underscore the value of scalable, expert-led solutions for brands seeking to thrive in a winner-takes-most digital retail environment.

IADS Notes:

Pattern’s approach to ecommerce acceleration reflects a broader industry shift toward AI-powered, data-driven platforms that help brands navigate the growing complexity of global marketplaces. As reported by WWD (April 2025), the launch of advanced AI forecasting tools like AlixPartners’ Profit Engine highlights the retail sector’s focus on optimizing pricing, promotions, and inventory through integrated data sources and machine learning. BCG (May 2025) emphasizes that successful merchandising transformation now relies on a balanced combination of technology adoption and operational expertise, with AI and automation enabling scalable, real-time decision-making. BoF (May 2025) documents how generative AI is revolutionizing ecommerce by enhancing personalization, product discovery, and operational efficiency, while Forbes (March 2025) notes that mainstream adoption of AI shopping tools is driving higher engagement and measurable business value. Collectively, these developments illustrate how platforms like Pattern—combining proprietary technology, on-demand expertise, and a business model aligned with brand partners—are setting new standards for efficiency, growth, and customer experience in the rapidly evolving global ecommerce landscape.

Meet Pattern, the full AI ecommerce player

What: Oxford Street will host a one-day pedestrianisation event in September, previewing plans for a permanent traffic-free shopping avenue.

Why it is important: This preview reflects a wider trend of cities leveraging pedestrian zones and public events to balance commercial vitality with community needs.

Oxford Street is set to become traffic-free for a special one-day event in September, offering a glimpse into the future of one of London’s most iconic shopping destinations. The initiative, supported by the Mayor of London and major retailers, aims to showcase the benefits of pedestrianisation, including enhanced accessibility, vibrant public spaces, and increased retail engagement. The event will feature themed zones, entertainment, and exclusive in-store promotions, encouraging both locals and tourists to experience Oxford Street in a new light. This move comes as the district continues its post-pandemic recovery, with vacancy rates at historic lows and significant investment from international brands such as IKEA. The pedestrianisation plan, which has garnered strong public and business support, is part of a broader strategy to transform Oxford Street into a world-class, community-oriented retail corridor. While permanent changes are still under consultation, the event underscores the growing importance of placemaking and urban policy in shaping the future of retail environments.

IADS Notes:

The one-day pedestrianisation of Oxford Street builds on recent momentum, with June 2025 seeing strong public and retailer backing for permanent traffic bans and a surge in private investment. Vacancy rates have fallen to 0.5%, and major projects like IKEA’s £378 million flagship reflect a strategic shift toward urban accessibility and mixed-use development. Policy changes, including the Mayor’s push for a development corporation, are aligning infrastructure and retail interests, while experiential events and placemaking are revitalising the district and setting a benchmark for urban retail transformation.

London’s Oxford Street to get one-day pedestrianisation preview

What: Debbi Hartley-Triesch, who led Nordstrom’s beauty, accessories, and home divisions, is stepping down after a distinguished 35-year career, with her successor yet to be named.

Why it is important: Hartley-Triesch’s retirement underscores the need for strong leadership pipelines as retailers face industry-wide talent and innovation challenges.

Debbi Hartley-Triesch will retire from her role as Executive Vice President and General Merchandising Manager of Beauty at Nordstrom in September, concluding a remarkable 35-year tenure with the company. Rising from a beauty adviser in 1990 to overseeing the beauty, accessories, and home categories, Hartley-Triesch played a pivotal role in shaping Nordstrom’s merchandising strategy and culture. Her leadership was marked by the launch of the influential Beauty Trend Show and the introduction of high-growth brands, while she also prioritised mentoring future leaders within the organisation. The announcement of her departure comes as Nordstrom, like many department stores, navigates a period of strategic transformation and heightened competition. The company has yet to name her successor, highlighting the critical importance of succession planning and talent development in today’s retail environment. Hartley-Triesch’s legacy is reflected in the strong relationships she built across the industry and her lasting impact on Nordstrom’s people and customer experience.

IADS Notes:

Debbi Hartley-Triesch’s retirement mirrors a broader trend of leadership transitions at major department stores, as seen in recent executive changes at Saks Global and Holt Renfrew in June and July 2025. These shifts often mark the end of transformative eras and prompt renewed focus on operational priorities and cultural alignment. Research from McKinsey and BCG in 2025 emphasises that systematic leadership development and a healthy corporate culture are crucial for financial performance and employee engagement. Meanwhile, the luxury retail sector faces a talent pipeline crisis, with 60% of brands struggling to recruit frontline staff and 93% facing challenges at the managerial level, making robust succession planning and early talent development more vital than ever.

Nordstrom Executive Vice President and General Merchandising Manager of Beauty to retire

What: The adoption of AI-generated influencers and marketing tools by major retailers is reshaping the creator economy, enabling scalable, customizable campaigns while raising new questions about authenticity and industry standards.

Why it is important: The rise of AI influencers signals a fundamental shift in retail marketing, where efficiency and control are weighed against the need for genuine connection and transparency with audiences.

Major retailers such as H&M, Mango, and Magalu are increasingly adopting AI-generated influencers and generative AI marketing tools, fundamentally transforming how brands create, scale, and personalize content. These digital avatars and AI-driven campaigns offer brands unprecedented efficiency, cost savings, and control over messaging, allowing for rapid adaptation and customization across markets. However, this shift is also raising important questions about authenticity, consumer trust, and the future role of human creators in the influencer economy. While AI influencers can deliver polished, studio-quality content at scale, data shows that human influencers still drive higher engagement and emotional connection. The trend is prompting brands and agencies to rethink disclosure, ethical standards, and the balance between technological innovation and genuine storytelling. As AI-driven content becomes more prevalent, the retail industry faces the challenge of leveraging these tools to enhance marketing impact while maintaining transparency and building lasting relationships with customers.

IADS Notes:

The rapid rise of AI influencers and generative AI in retail marketing is reshaping the industry’s approach to content creation, customer engagement, and operational efficiency. As reported by Inside Retail (March 2025), H&M’s use of AI-generated digital twins for campaigns highlights both the creative potential and ethical considerations of this technology. WWD (October 2024) and BoF (November 2024) document how brands like Mango are leveraging AI avatars to accelerate advertising and reduce costs, signaling a shift in the modeling and creative industries. The Robin Report (December 2024) notes that major retailers—including Magalu (Magazine Luiza)—are at the forefront of AI adoption, using these tools to personalize shopping experiences, boost engagement, and drive sales, especially during key periods like the holiday season. Collectively, these developments show that while AI offers efficiency and scalability, the retail sector must balance innovation with transparency, ethical standards, and the enduring value of authentic human connection to maintain trust and relevance in a rapidly evolving digital landscape.

The rise of the AI influencer 

What: Bluebell Group CEO Ashley Micklewright is stepping down after 15 years at the helm, with Philippe Guettat appointed as interim CEO to guide the luxury distributor’s next phase in Asia.

Why it is important: The change at the top underscores the importance of succession planning and operational expertise for luxury distributors seeking to maintain their position as key partners for global brands in a competitive region.

Bluebell Group, one of Asia’s leading distributors of luxury, premium, and lifestyle brands, is entering a new chapter as CEO Ashley Micklewright steps down after three decades with the company, including 15 years as chief executive. Philippe Guettat, who brings extensive experience in consumer goods distribution and brand building, will serve as interim CEO, working closely with the board and chairman Laurent de Rougemont. Under Micklewright’s leadership, Bluebell expanded its footprint across Japan, South Korea, Mainland China, Hong Kong, Taiwan, Macau, Singapore, Malaysia, Cambodia, and Australia, strengthening its role as a key partner for more than 150 global brands, including Moschino, Jimmy Choo, Manolo Blahnik, Brunello Cucinelli, and Venchi. The leadership transition reflects the group’s commitment to operational excellence and strategic succession planning as it navigates the evolving luxury retail landscape in Asia. Bluebell’s ability to adapt and maintain strong partnerships will be critical as the region’s retail environment becomes increasingly competitive and dynamic.

IADS Notes:

Recent leadership transitions at major luxury distributors and retail groups in Asia underscore the importance of experienced management and strategic vision in navigating today’s complex retail landscape. Chalhoub Group’s generational handover and new strategic roadmap highlight how family-owned distributors are evolving to maintain market leadership across Asia and the Middle East. Central Group’s appointment of Sean Hill as CEO of De Bijenkorf demonstrates the value of succession planning and operational expertise in regional luxury retail. Mytheresa’s restructuring of its leadership team and operational integration following the YNAP acquisition illustrates how multi-brand luxury groups are balancing continuity with transformation. Collectively, these developments show that leadership vision, operational excellence, and strong brand partnerships are critical for luxury distributors and retailers seeking to adapt and thrive in a rapidly changing market.

Bluebell Group CEO Ashley Micklewright retires