What: Veesion raises EUR 53 million total investment to scale its AI-powered retail security solution that detects suspicious behaviour in real-time.

Why it is important: The investment addresses a critical retail challenge, as shoplifting costs have reached EUR 120 billion globally, with traditional security measures proving insufficient.

Veesion, a French startup founded in 2018, has secured EUR 38 million in Series B funding from White Star Capital, Red River West, and Bpifrance, supplemented by EUR 15 million in non-dilutive financing. The company's AI-powered solution analyses video surveillance feeds in real-time to identify potential shoplifting attempts through customer posture detection. Currently serving 5,000 establishments across 25 countries, including 500 in the United States, Veesion's technology can detect 100,000 suspicious gestures, significantly outperforming human security personnel. The company plans to establish its American headquarters in Florida, targeting expansion across key states including New York, Texas, and California. With EUR 11 million in annual recurring revenue for 2024, of which 62% is international, Veesion aims to equip 50,000 businesses within five years and achieve EUR 100 million in annual recurring revenue. The funding will support international growth and technology development, with plans to explore applications beyond retail security.

IADS Notes:Recent industry data from May 2025 highlights the urgency of Veesion's solution, as retail crime has reached record levels with violence and abuse incidents exceeding 2,000 per day. In January 2025, retailers reported that 91% of security executives observed increased shoplifter aggression compared to 2019. The technology's potential is further validated by March 2025 data showing that early AI adopters in retail achieved revenue increases of 6% or more, while February 2025 research revealed that only 10% of retailers have successfully scaled their AI applications, positioning Veesion at the forefront of this technological transformation.

Veesion raises €38 million to reduce shoplifting

What: Lowe's expands AI implementation with Mylow Companion, an OpenAI-powered tool deployed across 1,700+ stores to enhance employee product knowledge and customer service capabilities through natural language interaction.

Why it is important: This rollout illustrates the evolution of retail AI from customer-facing applications to comprehensive solutions that empower employees while improving service quality

Lowe's has expanded its AI implementation by launching Mylow Companion, an associate-focused tool built on the same foundation as its March 2025 customer-facing Mylow app, across all 1,700+ stores in its network. The OpenAI-powered system responds to natural language queries through voice-to-text functionality, allowing hands-free operation while providing detailed product information and problem-solving guidance. According to Chief Digital and Information Officer Seemantini Godbole, the tool ensures consistent expert-level advice delivery regardless of an employee's tenure, whether they've been with the company for five weeks or five years. The technology's development in collaboration with OpenAI includes continuous evolution based on direct in-app feedback. This initiative builds upon Lowe's broader digital strategy, which includes the November 2024 introduction of a Digital Home Platform offering loyalty program members personalised information about their home products and appliances.

IADS Notes: Lowe's deployment of Mylow Companion across its 1,700+ stores represents a significant advancement in retail AI implementation. According to Inside Retail's March 2025 analysis , 71% of consumers now expect personalised interactions, making AI-powered tools essential for modern retail operations. McKinsey's January 2025 report  revealed that AI implementations are delivering 15-30% improvements in customer service efficiency while reducing resolution times from 11 to 2 minutes. WWD's May 2024 coverage  highlighted how partnerships with OpenAI are enabling more sophisticated, human-like interactions in retail settings, particularly through natural language processing and voice-enabled technologies. Forbes' March 2025 analysis  showed that leading retailers are achieving 4.5% annual productivity growth through AI integration, compared to the industry's traditional 0.3% rate, demonstrating how tools like Mylow Companion can enhance both employee capabilities and operational efficiency. The integration with Lowe's loyalty program through the Digital Home Platform further shows how retailers can combine AI-powered staff support with personalised customer experiences to create comprehensive service solutions.

Lowe’s deploys AI-powered Assistant for associates chainwide

What: Pathlight Capital sues Saks Global for USD 8.8 million in unpaid fees related to restructuring the company's debt ahead of the Neiman Marcus acquisition, while Saks claims the lender's actions led to Hudson's Bay's liquidation.

Why it is important: The lawsuit highlights the complex financial challenges facing luxury retail consolidation, as Saks Global struggles to manage debt obligations while implementing a USD 500 million cost-reduction strategy amid declining bond values. The legal dispute between Pathlight Capital and Saks Global centres on USD 8.8 million in unpaid fees stemming from debt restructuring that facilitated the USD 2.7 billion Neiman Marcus acquisition. While Pathlight claims it fulfilled its obligations and is owed two installments of USD 4.4 million each, Saks alleges the lender's lack of good faith cooperation prevented Hudson's Bay from securing crucial refinancing, ultimately forcing its liquidation. The conflict emerges at a challenging time for Saks Global, with its bonds trading at 38 cents on the dollar and a USD 120 million interest payment due in June. The company faces additional pressures from vendor relationships, with new payment terms and past-due bills requiring attention. The lawsuit adds another layer of complexity to Saks' broader transformation efforts, which include significant cost reductions and operational changes across the merged entity. The timing is particularly delicate as the company works to reset the U.S. luxury retail landscape while managing various stakeholder interests.

IADS Notes: The Pathlight lawsuit over USD 8.8 million in unpaid fees emerges at a critical juncture in Saks Global's post-merger journey. Since completing the USD 2.7 billion Neiman Marcus acquisition in December 2024, the company has faced mounting challenges in managing its transformation. In February 2025, the implementation of 90-day vendor payment terms and a 25% reduction in brand partnerships sparked significant industry backlash, suggesting broader financial pressures. These tensions escalated in April 2025 with the elimination of 550 positions as part of a USD 500 million cost-reduction strategy. The current situation, with bonds trading at 58 cents on the dollar and a looming USD 120 million interest payment due in June 2025, while maintaining USD 350-400 million in liquidity, reflects the complex challenges of balancing financial obligations with operational transformation in luxury retail consolidation.

Lender Pathlight sues Saks after clearing the way for the Neiman’s deal

What: Estée Lauder partners with Microsoft to launch ConsumerIQ, an AI-powered platform that transforms vast amounts of company data into actionable insights across its 25-brand global portfolio.

Why it is important: This strategic AI implementation addresses the retail industry's 4.5% loss in gross sales due to inefficiencies, while positioning Estée Lauder to capitalise on the growing consumer demand for personalised experiences that has created a $570 billion market opportunity.

The Estée Lauder Companies has embarked on a transformative partnership with Microsoft to develop ConsumerIQ, an advanced AI-driven platform that revolutionises how the company analyses and utilises consumer and market data. This innovative tool, powered by Microsoft Copilot Studio and Azure OpenAI Service, integrates diverse data sources into a centralised platform, enabling swift access to crucial information through natural language processing and generative AI. The system's ability to reduce analysis time from weeks to minutes represents a significant advancement in operational efficiency, facilitating faster innovation and more agile marketing strategies. Microsoft's recognition of ELC in its inaugural Agents of Change list underscores the initiative's significance in driving technological advancement. With operations spanning 25 brands across 150 countries, ELC's implementation of ConsumerIQ not only streamlines data analysis but also positions the company to enhance its marketing strategies and product offerings in response to evolving consumer trends, setting a new precedent for AI adoption in the retail sector.

IADS Notes: Estée Lauder's launch of ConsumerIQ aligns with significant industry developments observed throughout 2024-2025. As reported in March 2025, 87% of retailers implementing AI witnessed revenue increases of 6% or more, while McKinsey's February 2025 findings revealed that 71% of consumers now expect personalised interactions. The urgency of this initiative is underscored by Coresight Research's November 2024 report showing retailers lose 4.5% of gross sales due to inefficiencies. The scale of this implementation mirrors Walmart's successful processing of 850 million data points, demonstrating how large-scale AI adoption can transform retail operations and customer experience.

Estée Lauder leverages custom AI to streamline retail data management

What: "Morrisons expands loyalty program with digital-only features and over 300 partner brands, enabling customers to earn points across diverse retail categories through its app and website."

Why it is important: "This development illustrates the retail industry's shift toward integrated digital loyalty ecosystems that combine convenience, partnerships, and expanded earning opportunities."

Morrisons has enhanced its loyalty offering with new digital-only features, significantly expanding earning opportunities for More Card members. The program now incorporates over 300 participating brands, including major retailers like eBay, Very, Just Eat, Expedia, and Asos, accessible through the Morrisons More App or website. The streamlined process allows customers to browse and shop with partner retailers while automatically tracking and accumulating More Points. This digital integration aims to accelerate customers' progress toward earning More Fivers through everyday purchases beyond grocery shopping. According to Kate Lavery, Morrisons' loyalty director, the enhancement directly responds to customer feedback requesting additional reward-earning opportunities. The initiative forms part of Morrisons' ongoing investment in delivering greater value and convenience for More Card members, with all purchases requiring completion through the company's digital platforms to qualify for points.

IADS Notes: Morrisons' digital loyalty expansion reflects broader industry transformation in customer engagement strategies. According to BCG's December 2024 coverage , traditional loyalty programs are evolving beyond points-based systems as consumers increasingly demand personalized, digitally integrated experiences, with over 35% planning to cancel traditional memberships. WWD's February 2025 analysis showed how retailers like Selfridges are innovating through digital "keys" and experiential rewards, demonstrating the shift toward more sophisticated engagement models. Inside Retail's April 2025 report revealed how successful loyalty programs are learning from airlines' strategic partnerships and psychological engagement techniques to build both emotional and calculative commitment. Inside Retail's May 2025 coverage highlighted how luxury retailers are balancing digital capabilities with personalized experiences, as demonstrated by contrasting approaches from various industry leaders. Morrisons' expansion to over 300 partner brands and focus on digital-only features aligns with this industry-wide evolution toward more integrated, partnership-driven loyalty ecosystems.

Morrisons expands loyalty scheme

What: Hong Kong's retail sales dropped 3.5% year-on-year to HK$30.1 billion in March 2025, marking the 13th consecutive month of decline, while visitor numbers increased by 12.2%.

Why it is important: This continued downturn, occurring despite multiple government initiatives, signals a structural transformation in Hong Kong's retail landscape, challenging its position as Asia's premier shopping destination and highlighting the need for strategic adaptation.

Hong Kong's retail sector continues to face significant headwinds as March 2025 marks the thirteenth consecutive month of declining sales. The latest figures show a 3.5% year-on-year decrease to HK$30.1 billion, with sales volume falling 4.8% compared to the previous year. Despite welcoming 3.82 million visitors, a 12.2% increase from March 2024, the retail sector struggles to convert foot traffic into sales. The jewellery, watches, and valuable gifts category saw a 3.9% decline, while clothing and footwear experienced a more substantial 10.4% drop. The government acknowledges that while mainland China's economic growth and efforts to boost consumption through tourism and mega events might provide some support, the sector faces ongoing challenges from global economic uncertainties and evolving consumption patterns. The strong Hong Kong dollar continues to influence shopping behaviour, encouraging locals to shop across the border while affecting tourist spending power.

IADS Notes: Hong Kong's March 2025 retail decline of 3.5% represents the latest chapter in a prolonged downturn that has fundamentally transformed the city's retail landscape. The trend began gaining momentum in July 2024 when, despite increased duty-free quotas, sales continued to decline. By August 2024, analysis revealed tourist expenditure had plummeted to 48% below pre-pandemic levels, highlighting a growing disconnect between visitor numbers and actual spending. The situation worsened in November 2024, marking nine consecutive months of decline, leading to the government's March 2025 implementation of multiple-entry visas for Shenzhen residents. However, this initiative failed to reverse the trend, as evidenced by February 2025's 13% plunge, the steepest decline in a year. The current data suggests that Hong Kong's retail challenges stem from structural changes rather than cyclical factors, with the strong Hong Kong dollar and evolving consumer preferences reshaping the traditional relationship between tourism and retail performance.

Hong Kong retail sales fall further, with no reprise in sight

What: EU commits €500m to attract international researchers amid global competition for talent and innovation.

Why it is important: The initiative could accelerate retail innovation in Europe by attracting top talent in AI, digital transformation, and sustainable retail solutions.

The European Commission's €500m investment to attract international researchers marks a significant shift in global innovation dynamics. This "Choose Europe for Science" initiative, announced by Ursula Von Der Leyen in Paris, aims to establish Europe as a premier destination for research talent through 2027. The programme emerges as US research faces increasing restrictions and funding cuts in areas like climate change and technology. The EU's commitment extends beyond this immediate funding, with plans to invest 3% of GDP in research and development by 2030, up from the current 2.22%. A new European Innovation Act and Startup/Scaleup Strategy will streamline the transformation of research projects into businesses, removing regulatory barriers and improving access to venture capital funding. This comprehensive approach aligns with broader EU initiatives, including a €200bn investment in AI infrastructure and innovation hubs.

IADS Notes: Recent developments underscore the retail sector's potential to benefit from this research initiative. In February 2025, the EU launched a €200bn InvestAI programme, including funding for AI gigafactories, while June 2024 data showed retail leading other sectors in AI deployment and revenue growth. The initiative complements existing retail innovation trends, with October 2024 seeing the launch of tech-driven retail concepts like Future Stores in London, demonstrating €20 million investments in immersive shopping experiences. This confluence of research funding and retail innovation suggests a transformative period for European retail, particularly in AI implementation and customer experience enhancement.

EU unlocks €500m to become a “magnet for researchers”

What: ABFRL shares drop 67% as company implements demerger plan separating Madura Fashion operations into independent listed entity, with Rs 3,000 crore debt distribution.

Why it is important: The demerger highlights the evolving nature of Indian retail, where companies are separating diverse business portfolios to enhance operational efficiency and shareholder value.

Aditya Birla Fashion and Retail's shares experienced a significant 67% decline to Rs 88.80 on the NSE during the record date for its approved Madura Fashion & Lifestyle demerger. The share price movement reflects the demerger structure, where ABFRL shareholders will receive one equity share in Aditya Birla Lifestyle Brands Ltd (ABLBL) for each existing share. The newly formed ABLBL will manage key fashion brands including Louis Philippe, Van Heusen, Allen Solly, Peter England, Reebok, and international casual wear brands American Eagle and Forever 21. The financial restructuring involves distributing the existing Rs 3,000 crore debt, with Rs 1,000 crore transferring to ABLBL and ABFRL retaining Rs 2,000 crore. The company plans to secure additional funding of Rs 2,500 crore within 12 months post-demerger, including promoter contributions.

IADS Notes: Aditya Birla's demerger reflects broader transformation trends in Indian retail. According to BoF's April 2024 coverage , the separation of Madura Fashion & Lifestyle, which contributes over 70% of revenue, aims to optimise capital structures and enhance shareholder value while allowing targeted growth strategies. Inside Retail's May 2024 analysis  revealed how the company faced challenges despite 12.7% revenue growth to 139.96 billion rupees, with losses reaching 7.36 billion rupees, highlighting the need for strategic restructuring. Inside Retail's November 2024 report  showed continued pressure with Q2 losses of 2.15 billion rupees despite 13% revenue growth, driven by acquisition costs and increased borrowings. ET Retail's November 2024 coverage  demonstrated how India's luxury retail sector is evolving, with major players restructuring operations to capture growth opportunities in the maturing market. The demerger, transferring Rs 1,000 crore of debt to ABLBL while maintaining identical shareholder ownership, represents a strategic move to create focused entities better positioned for their respective market segments.

Aditya Birla Fashion and Retail demerger, with consequences on shares

What: UK retailers face 10% cyber insurance premium increases following major attacks on Marks & Spencer, Harrods, and Co-op, reflecting heightened industry-wide security risks.

Why it is important: The rise in premiums reflects the growing sophistication of cyber threats targeting retailers, forcing the industry to reassess its security investments and risk management strategies.

The UK retail sector faces significant increases in cyber insurance premiums, with rates expected to rise by 10% following recent high-profile attacks. This reverses the previous trend of declining premiums, which had fallen by up to 20% in 2023 and 15% in 2024. The shift comes as major retailers grapple with sophisticated cyber threats, exemplified by attacks on Marks & Spencer, Harrods, and the Co-op. With retailers typically paying £20,000 per £1 million of coverage, the industry faces mounting pressure to enhance security measures. The impact of these attacks extends beyond immediate operational disruptions, potentially resulting in substantial business interruption claims. Tesco's response, incorporating crisis simulations and regular security testing, demonstrates the industry's growing recognition of cybersecurity as a critical operational priority. As retailers balance digital transformation with security vulnerabilities, the insurance market's reaction signals a fundamental shift in how cyber risks are assessed and priced.

IADS Notes: The projected 10% increase in cyber insurance premiums reflects a critical turning point in retail cybersecurity. The recent wave of attacks, including M&S's April 2025 incident that wiped £700 million off their market value, demonstrates the severe financial implications of cyber vulnerabilities. This is further evidenced by April 2025 industry data showing ransomware accounting for 30% of retail security incidents, with average losses reaching £1.4 million per attack. The sophistication of these threats was highlighted when the Scattered Spider hacking group targeted M&S, causing £3.5 million in daily digital sales losses. The Co-op's subsequent data breach, affecting up to 20 million individuals, underscores how third-party vulnerabilities can compromise even robust security systems. These incidents have prompted a fundamental shift in industry approach, moving from prevention-focused strategies to emphasising rapid recovery capabilities, while insurers reassess risk pricing in response to the evolving threat landscape.

UK retailers face 10% rises in premiums after cyber attacks

What: Adidas reports customer service data breach through third-party provider, joining a wave of major retailers recently targeted by cyber attacks.

Why it is important: This breach, following recent attacks on M&S, Harrods, and Co-op, highlights the growing vulnerability of retail supply chains to third-party security breaches, which now account for 41% of reported incidents.

Adidas has disclosed a significant cyber security breach where unauthorized external parties accessed customer data through a third-party customer service provider. The compromised information primarily consists of contact details from customers who had previously engaged with Adidas's customer service. The sportswear giant has confirmed that no passwords, credit card information, or other payment-related data were exposed in the breach. The company has responded swiftly by implementing containment measures and launching a comprehensive investigation in collaboration with leading information security experts. Adidas is actively notifying affected customers and has engaged with relevant data protection authorities and law enforcement agencies. This incident follows a series of cyber attacks targeting prominent retailers, including Marks & Spencer, which recently projected a GBP 300 million profit impact from a similar breach.

IADS Notes: Recent data reveals an alarming trend in retail cyber security breaches. In April 2025, ransomware attacks accounted for 30% of retail security incidents, with average losses reaching GBP 1.4 million per attack. The impact has been particularly severe, as demonstrated by M&S's GBP 300 million profit hit in May 2025. This wave of attacks has transformed the cyber insurance landscape, driving a 10% increase in premiums across the UK retail sector. The growing sophistication of these threats is evident in the targeting of third-party providers, which now account for 41% of reported breaches, highlighting the complex challenge retailers face in securing their extended digital ecosystem.

Adidas hit by cyber-attack as customer data stolen

What: Walmart achieves remarkable transformation under CEO Doug McMillon, evolving from traditional retailer to tech-powered enterprise while maintaining market leadership with $680bn revenue.

Why it is important: This evolution illustrates the potential for legacy retailers to reinvent themselves through technological adoption while maintaining their core competitive advantages.

Under Doug McMillon's leadership, Walmart has transformed from a traditional retailer into a technology-driven powerhouse. The contrast between McMillon's early experience loading trucks in an Arkansas warehouse and today's automated facilities, equipped with AI-powered systems and robotic arms, symbolises this evolution. With $680 billion in revenue and 2.1 million workers, Walmart has become the world's largest company, capturing 10% of US retail spending excluding cars and 25% of grocery expenditure. The company's successful adaptation to e-commerce competition has been achieved by reinvesting profits into new technologies while leveraging its extensive physical infrastructure of 5,000 stores. Investors have recognised this transformation, driving Walmart's market capitalisation up by over 50% to $750 billion, with a premium valuation exceeding those of major tech companies. The company's ability to maintain 3-4% sales growth while navigating trade disruptions demonstrates the resilience of its reinvented business model.

IADS Notes: Walmart's transformation under Doug McMillon exemplifies successful retail evolution. According to Financial Times' February 2025 coverage , the company  achieved record revenue of $681 billion while building a marketplace of over 700 million items, demonstrating its successful pivot to digital retail. WWD's February 2025 analysis  revealed how strategic investments in e-commerce and digital capabilities, with capital expenditures reaching $23.8 billion, have driven revenue diversification and operational efficiency. Retail Dive's August 2024 report highlighted Walmart's sophisticated use of AI to enhance 850 million product catalog data points, significantly improving customer experience and operational efficiency. Fashion Network's December 2024 coverage  showed how this transformation attracted higher-income consumers, with households earning over $100,000 accounting for 75% of market share gains. The company's evolution from traditional retailer to tech-powered enterprise, while maintaining its core value proposition of "everyday low prices," demonstrates how established retailers can successfully adapt to compete in the digital age.

How Walmart became a tech giant—and took over the world 

What: German department store chain Galeria announces abrupt leadership change as CEO departs over strategic differences, with responsibilities split between Chief Sales Officer and CFO.

Why it is important: This change reflects the delicate balance between maintaining operational stability and implementing new strategic directions in retail transformation.

Galeria has announced the immediate departure of CEO Olivier van den Bossche, with his responsibilities being divided between Chief Sales Officer Tilo Hellenbock and Chief Financial Officer Christian Sailer. While the exact reasons for the abrupt exit remain unclear, German business magasine WirtschaftsWoche suggests the departure was not voluntary. The company acknowledged van den Bossche's contribution as "crucial to the positive development of the company," despite the sudden nature of his exit. The leadership change comes as Galeria continues to navigate its recovery following the dramatic collapse of its former owner, the Signa Group, and the downfall of businessman René Benko. Sources indicate that strategic disagreements between van den Bossche and the company's new owners, particularly regarding his proposal to increase collaboration with external partners, may have precipitated the departure.

IADS Notes: The departure of Galeria CEO Olivier van den Bossche reflects ongoing challenges in the company's post-bankruptcy transformation. According to Fashion United in August 2024 , Galeria had emerged from its third bankruptcy with new ownership under NRDC and an investment company led by Bernd Beetz, with plans to relocate headquarters and modernise operations. Fashion Network's April 2024 coverage  detailed the closure of 16 stores and reduction of workforce to 11,400 employees, highlighting the scale of restructuring required. Fashion Network's April 2024 analysis  revealed plans to maintain over 70 stores under new ownership, with success dependent on rental agreement renegotiations. Fashion Network's May 2024 report  showed creditor approval for the restructuring plan, including a rebranding initiative dropping the Karstadt and Kaufhof names. Van den Bossche's sudden departure, particularly over disagreements about external partnerships, suggests tensions between different visions for the retailer's future strategy, even as the company implements its approved transformation plan.

Galeria dismisses CEO Olivier van den Bossche

What: Dior agrees to pay EUR 2 million and implement new supplier vetting protocols following an Italian competition authority investigation into labour exploitation in its supply chain.

Why it is important: The case demonstrates how regulatory scrutiny is compelling luxury brands to take concrete actions on supply chain transparency, moving beyond voluntary commitments to measurable reforms.

Dior has reached a settlement with Italy's competition watchdog, agreeing to pay EUR 2 million to support labour exploitation victims and implement enhanced supplier monitoring protocols. The Authority for the Guarantee of Competition and the Market closed its investigation without establishing infringement after Dior committed to comprehensive reforms. These include revising ethics and social responsibility statements, implementing new supplier vetting procedures, and providing training in labour law and ethics. The settlement follows earlier Milan court rulings that had required special administrators to oversee improvements at Dior's outsourced handbag suppliers, where investigations revealed concerning conditions among Chinese workers. The agreement demonstrates Dior's commitment to supply chain transparency, with the company pledging to train marketing and communications employees on consumer protection laws. This development is particularly significant for the luxury sector, where brands increasingly face scrutiny over their manufacturing practices and the disconnect between premium pricing and supply chain ethics.

IADS Notes: Dior's EUR 2 million settlement with Italy's competition authority marks a pivotal moment in luxury retail's evolving approach to supply chain oversight. This development follows the brand's December 2024 establishment of an in-house industrial division, demonstrating the industry's shift towards greater manufacturing control. The settlement coincides with broader challenges in supply chain reporting, as revealed in February 2025 :cite[o6], where luxury brands struggle with complex compliance requirements. This regulatory pressure has prompted industry-wide responses, exemplified by new sourcing protocols implemented in January 2025. The timing is particularly significant as the luxury sector faces its first value creation decline since 2016, forcing brands to balance ethical commitments with financial pressures. The industry's response, including LVMH's March 2025 restructuring, suggests a fundamental transformation in how luxury brands approach operational control and ethical compliance.

Dior to pay EUR 2mn to help labour abuse victims in Italian watchdog settlement

What: Korean fashion retailer Matin Kim deploys Proto hologram technology across five stores, featuring AI-powered digital models that can interact with customers in multiple languages and display products in 360 degrees.

Why it is important: This implementation demonstrates how retailers can combine hologram technology with AI to create interactive, multilingual shopping experiences that enhance customer engagement while showcasing products effectively.

Matin Kim has introduced Proto hologram technology at five of its Matin Kim and Hago Haus locations, implementing digital models capable of 360-degree movement to showcase various outfits. The Los Angeles-based Proto technology incorporates cameras, microphones, speakers, and touch screens, enabling the holographic avatars to engage with shoppers and answer product queries in multiple languages through AI Persona tools. The company plans to expand the technology's capabilities to include real-time interactions with special guests through holographic projections. This technology has already gained traction in the fashion sector, with major brands like H&M, Burberry, Nike, and Adidas adopting it. Beyond fashion, the application extends to big-box retailers like Walmart, Target, and Best Buy, while grocery chains like Asda are exploring holographic displays for promotional messaging and aisle navigation. The technology serves both as a footfall driver and an enhanced customer experience tool, particularly valuable for retailers with international appeal.

IADS Notes: Matin Kim's implementation of Proto hologram technology represents a significant advancement in immersive retail experiences. According to Coresight's November 2023 research , 61% of retailers have invested in virtual stores, with 88% reporting increased total sales and 91% seeing higher online sales from such technologies. Inside Retail's March 2025 analysis  revealed that 71% of consumers now expect personalised interactions, with retailers leveraging AI and holographic technologies to enhance customer engagement. The Journal du Net's January 2025 report  highlighted how physical stores remain dominant, with 99% of brands and 96% of consumers favoring in-store experiences, particularly when enhanced with innovative technology. This trend is further validated by Retail Week's November 2024 coverage  of H&M's innovative store concept, where interactive technology integration led to significant increases in customer engagement. The adoption of Proto hologram technology by major retailers like H&M, Burberry, Nike, and Adidas, along with its expansion into non-fashion sectors, demonstrates how immersive technologies are becoming essential tools for enhancing customer experience and driving footfall across retail segments.

Korean retailer Matin Kim deploys in-store holograms 

Click here to view the video - Youtube

What: Gymshark introduces a four-tier loyalty programme rewarding both purchases and digital engagement through experience points, offering members early access to events, partnership discounts, and app-based workout benefits

Why it is important: The programme's dual focus on purchases and digital engagement reflects the retail industry's shift away from traditional points-based systems, addressing growing consumer demand for more sophisticated loyalty experiences.

Gymshark has unveiled its inaugural loyalty scheme, marking a significant evolution in its customer engagement strategy. The programme innovatively combines traditional shopping rewards with digital engagement through the Gymshark Training mobile app, where members earn experience points (XP) through both purchases and workout participation. This comprehensive approach to customer loyalty extends beyond mere transactions, offering members access to exclusive benefits including early event access, partnership discounts, and purchase vouchers. The programme's four-tier structure encourages ongoing engagement, whilst early adopters joining within the first two weeks receive a welcome bonus of 100 experience points. Chief Digital Officer Carly Natalizia emphasises that the programme was developed with direct community input, ensuring rewards align with customer preferences. This launch follows Gymshark's strong financial performance, with reported revenue reaching GBP 607.3m for the year ending July 2024, representing an increase from GBP 556.2m the previous year.

IADS Notes: Gymshark's loyalty scheme launch aligns with significant transformations in retail loyalty strategies observed over the past year. In December 2024, BCG research revealed that traditional points-based systems were losing effectiveness, with over 35% of members planning to cancel memberships . This trend has driven innovative responses, as seen in February 2025 when Selfridges launched their 'Unlocked' program with digital "keys" that reward both purchases and experiences . Gymshark's approach of combining shopping rewards with app-based workout engagement mirrors this shift toward more sophisticated engagement models. The timing is particularly relevant following the May 2025 World Retail Congress, where industry leaders emphasized the importance of building authentic community connections through loyalty programs . This launch also reflects broader competitive movements in the sportswear sector, as retailers seek to differentiate their loyalty offerings through digital integration and experiential rewards.

Gymshark introduces loyalty scheme

What: Macy's demonstrates resilience in Q1 2025 with better-than-expected performance across all nameplates, as Reimagined stores outperform the broader fleet.

Why it is important: The performance gap between core Macy's stores and optimised locations demonstrates the effectiveness of the Bold New Chapter strategy, providing a blueprint for department store transformation. Macy's, Inc. delivered stronger-than-anticipated first quarter 2025 results, with net sales of  USD 4.6 billion exceeding guidance despite a 5.1% year-over-year decline.

The company's differentiated portfolio strategy showed continued effectiveness, with Bloomingdale's achieving 3.8% comparable sales growth and Bluemercury marking its 17th consecutive quarter of growth. The Reimagine 125 locations demonstrated superior performance compared to the broader Macy's fleet, with significantly smaller comparable sales declines. Financial management remained robust, with the company maintaining strong liquidity of USD 932 million in cash and returning USD 152 million to shareholders through dividends and share repurchases. The results reflect successful execution of the Bold New Chapter strategy, balancing store optimization with digital integration while navigating persistent market challenges.

IADS Notes: As documented in March 2025, Macy's transformation strategy began showing tangible results with the First 50 pilot stores demonstrating consistent growth and improved customer satisfaction. The current quarter's performance builds on momentum seen in December 2024, when Bloomingdale's reported strong comparable sales growth under CEO Olivier Bron. The success of the Reimagine 125 stores validates the company's targeted investment approach, while the continued outperformance of luxury divisions aligns with broader market trends observed in January 2025. Despite ongoing pressure from activist investors, Macy's balanced approach to store optimization and digital integration appears to be gaining traction, though challenges remain in the core business.

Macy’s posts declining, yet better-than-expected 2025 Q1 sales

What: Littler's annual employer survey reveals most organisations will preserve DEI initiatives despite Trump administration's opposition, though concerns about related litigation have nearly doubled since 2024.

Why it is important: As retailers navigate complex DEI transformations, with examples ranging from Walmart's successful policy adaptation to Target's USD 10 billion valuation loss, understanding how companies can maintain inclusive practices while managing legal risks becomes crucial for industry survival.

The latest Littler survey reveals a nuanced picture of corporate America's response to political pressure on DEI initiatives. Despite the Trump administration's efforts to end private-sector DEI programs, 45% of respondents plan no rollbacks, while 32% anticipate only minor changes. However, concerns about DEI-related litigation have increased significantly, rising from 24% in 2024 to 45% in 2025. The survey, which polled nearly 350 in-house lawyers, executives, and HR professionals, indicates that companies are particularly focused on potential policy changes in DEI, immigration, and LGBTQ+ protections. The findings suggest that organisations are adopting strategic approaches to maintain inclusive practices while managing legal risks, with many focusing on implementation methods rather than wholesale program changes. This measured response reflects a growing understanding that effective DEI practices require careful balance between maintaining inclusive workplaces and navigating evolving regulatory requirements.

IADS Notes: The Littler survey's findings about maintaining DEI programs despite political pressure reflect significant developments in retail industry practices. In January 2025, Walmart demonstrated successful adaptation by maintaining inclusion practices while modifying terminology , achieving strong market performance and providing a model for the article's observation that most employers plan minimal DEI changes. This contrasts sharply with Target's February 2025 experience of a USD 10 billion valuation loss and 9% drop in store traffic following DEI policy changes , validating the survey's finding of increased concern about DEI-related litigation. The industry's broader challenges are evident in March 2025 data showing that while FTSE 350 retailers achieved 42% female board representation, only half meet the 40% women in leadership target , underscoring the article's emphasis on maintaining effective DEI practices while adapting to new regulatory pressures. This evolution has led to the emergence of new approaches like the FAIR framework , offering retailers a way to balance inclusive practices with changing political and legal requirements.

DEI may go largely unchanged despite Trump attacks, Littler says

What: Tesco announces leadership changes with CCO Ashwin Prasad replacing Matthew Barnes as UK CEO, while creating new transformation role amid strategic initiatives including F&F relaunch.

Why it is important: The changes reflect the retail industry's broader shift toward integrating commercial expertise with transformation leadership to drive growth in a competitive market

Tesco has announced significant leadership changes with Chief Commercial Officer Ashwin Prasad succeeding Matthew Barnes as UK CEO, effective from 30 June. Barnes, who held the position since March 2024, is departing to pursue other opportunities. Prasad brings valuable experience from his executive team tenure since 2020 and previous roles at Mars and BOC. The restructuring includes the appointment of Natasha Adams, current CEO for Ireland and NI operations, to a newly created position as chief strategy and transformation officer. Geoff Byrne, currently chief operating officer in Ireland, will be promoted to Ireland & NI CEO. Group CEO Ken Murphy emphasized the company's strong market performance and strategic progress, noting that these changes leverage internal talent to maintain competitive momentum. The announcement coincides with Tesco's recent relaunch of F&F online, featuring over 2,200 products across multiple categories.

IADS Notes: Tesco's leadership transition reflects broader transformation trends in retail management. According to Drapers' October 2024 coverage , Tesco has demonstrated strong performance in clothing and home categories with 0.3% growth, while preparing for strategic initiatives like the F&F online relaunch. Retail Gazette's October 2024 analysis showed how major retailers are experiencing significant leadership changes as they adapt to evolving market conditions and pursue new growth opportunities. The appointment of former Tesco UK CEO Jason Tarry as John Lewis Partnership chair in April 2024 highlighted the industry's focus on returning to core retail operations and abandoning diversification strategies. El Confidencial's March 2025 report revealed how retailers like El Corte Inglés are creating transformation-focused roles and restructuring leadership teams to drive digital integration and operational efficiency. The elevation of Ashwin Prasad to Tesco UK CEO, combined with Natasha Adams' appointment as chief strategy and transformation officer, demonstrates how retailers are balancing operational expertise with transformation capabilities in their leadership teams.

Tesco CEO steps down after year in top role

What: IKEA invests £378 million plus renovation costs in Oxford Street location as part of strategic shift from suburban warehouses to urban accessibility, combining immediate purchase options with home delivery services.

Why it is important: This transformation highlights the broader trend of retailers adapting their formats and locations to meet evolving consumer preferences, particularly in urban centers.

IKEA's strategic expansion into London's Oxford Street represents a significant shift in its retail approach, driven by customer feedback indicating difficulties accessing suburban locations like Wembley during weekdays. The company's £378 million acquisition of the Grade II listed former Topshop flagship, plus substantial renovation investment, demonstrates its commitment to urban accessibility. The three-floor, 5,800-square-metre space will offer approximately 6,000 products, with half available for immediate purchase and larger furniture items accessible through home delivery or click-and-collect services. This development is part of IKEA's broader strategy to combine digital and physical retail presence while bringing stores closer to customers. The location will include a Swedish deli featuring IKEA's signature meatballs, maintaining brand identity while adapting to urban retail requirements. CEO Jesper Brodin expressed confidence in the Oxford Street location's success and indicated plans for similar expansions in other major cities.

IADS Notes: IKEA's Oxford Street investment represents a significant evolution in urban retail strategy. According to Fortune in September 2023 , the company learned valuable lessons about customer preferences in city locations, with shoppers still desiring guided experiences despite space constraints. The Wall Street Journal's January 2024 coverage  of IKEA's downtown strategy showed how the company refined its approach since its 2019 Paris debut, expanding product ranges from 1,000 to 2,600 items to meet spontaneous shopping needs. Fashion United's November 2024 report  on the 'Hus of Frakta' pop-up demonstrated IKEA's sophisticated approach to market entry, using temporary concepts to build brand presence while preparing permanent locations. Retail Insight Network's December 2024 analysis  highlighted how IKEA's investment contributes to Oxford Street's broader renaissance, with vacancy rates dropping below 5% and major retailers investing in flagship locations. The £378 million investment in the former Topshop building, combined with additional renovation costs, shows IKEA's commitment to creating accessible urban retail experiences that balance immediate purchase options with home delivery services, while maintaining brand elements like Swedish food offerings.

Ikea aims to lure city dwellers with store on London’s Oxford Street

What: Kohl's struggles with executive stability and strategic direction as it seeks its fourth CEO in three years while implementing store closures and operational changes.

Why it is important: The combination of leadership turnover and operational restructuring at Kohl's demonstrates the complex challenges retailers face in balancing corporate governance, strategic partnerships, and network optimisation.

Kohl's Corporation faces a critical juncture following the scandal-driven departure of CEO Ashley Buchanan, who was terminated for directing business to a romantic partner without proper disclosure. This marks the fourth leadership change in just three years, highlighting significant governance challenges at the retailer. The company's market position has steadily eroded, with sales declining from $20.2 billion in 2018 to $15.4 billion last year, while its stock price has plummeted to just over $7 from $25-27 a year ago. Despite some successful initiatives, such as the Sephora partnership and the popular Kohl's Cash programme, the retailer struggles to differentiate itself in an increasingly competitive market. The search for a new CEO is complicated by a limited pool of qualified candidates willing to take on this challenging turnaround situation, particularly given the requirement to relocate to Menomonee Falls, Wisconsin. The company must also address growing leverage concerns, with $353 million in debt due in July requiring refinancing.

IADS Notes: The recent termination of CEO Ashley Buchanan in May 2025 represents the latest challenge in Kohl's ongoing transformation journey. While the company has seen some success with strategic initiatives, particularly the Sephora partnership generating $1.4 billion in sales as of March 2024, the frequent leadership changes - four CEOs in three years - have complicated its turnaround efforts. The January 2025 announcement of 27 store closures and the shutdown of its San Bernardino e-commerce facility reflects a broader restructuring strategy, as the company shifts towards store-based fulfillment and operational efficiency. These developments highlight the complex balance Kohl's must strike between maintaining stability, implementing successful partnerships, and optimising its retail footprint.

What can Kohl’s do to survive?

What: Five major Latin American department stores achieve combined sales of USD 11.16 billion in Q1 2025, with growth rates ranging from 2.3% to 11.7% across different markets.

Why it is important: The diverse growth rates among major players highlight how Latin American retailers are successfully balancing traditional retail expansion with digital innovation, setting new benchmarks for regional retail transformation.

Latin American department stores demonstrated robust performance in the first quarter of 2025, with the five largest groups achieving collective growth of 6.3%. El Palacio de Hierro led the sector with an 11.7% increase, reaching sales of USD 661.9 million, while Cencosud recorded the most modest growth at 2.3%, though maintaining its position as the largest regional retailer with USD 4.285 billion in revenue. Liverpool and Falabella showed strong performance with 10.4% and 9.1% growth respectively, while Ripley achieved a 7.3% increase. Profitability improvements were widespread, with Falabella tripling its net income to USD 240 million, and both Cencosud and Ripley returning to profit. Only Liverpool experienced a profit decline of 19.6%, attributed to exchange rate fluctuations and higher import costs. The sector's combined net profit reached USD 538 million, reflecting successful digital transformation initiatives and strategic market expansions.

IADS Notes: The strong Q1 2025 performance of Latin American department stores, with 6.3% collective growth, reflects successful regional retail transformation strategies. El Palacio de Hierro's market-leading 11.7% growth builds on its successful 2024 performance, where it achieved 11% revenue growth and 28% increase in online sales. Falabella's strategic focus on digital capabilities, evidenced by its USD 166 million technology investment announced in December 2024, demonstrates the sector's commitment to omnichannel excellence. Liverpool's mixed results, with 10.4% revenue growth but 19.6% profit decline, highlight the challenges of balancing growth with profitability while pursuing international expansion through the Nordstrom partnership. This performance comes amid broader regional retail transformation, as shown by Ripley's successful margin improvement strategy in Q1 2025, demonstrating how Latin American retailers are effectively managing growth while maintaining profitability.

Latin American department stores gain momentum: 6.3% growth in Q1 2025

What: Singapore's City Square Mall leverages AI and immersive design in a $50 million renovation to create a more human-centric shopping experience, combining sustainability education with innovative retail concepts.

Why it is important: This renovation represents a new benchmark in retail development, showing how shopping centres can successfully integrate technology, sustainability, and community engagement to remain relevant in an increasingly digital world.

City Square Mall's comprehensive transformation demonstrates how physical retail spaces can evolve beyond traditional shopping experiences. The $50 million Asset Enhancement Initiative (AEI) strategically combines technological innovation with sustainability education and community engagement. A centerpiece of this transformation is the CDL EcoTrain, Singapore's first decommissioned SMRT train converted into a solar-powered classroom, where children learn about environmental issues through AI-powered storytelling modules. The mall's revamped Gastro Square on Level 4 exemplifies the blend of community space and culinary experiences, hosting various events from music showcases to family workshops. Throughout the renovation, the mall has emphasised circularity, incorporating upcycled materials like bamboo chopsticks for wall cladding and PET bottles for panels. This systematic approach integrates sustainability, community building, and design thinking into the retail environment, creating a space that serves both commercial and social purposes. The transformation reflects a deeper understanding that technology alone cannot sustain retail spaces; instead, success comes from creating meaningful experiences that engage and educate visitors.

IADS Notes: City Square Mall's $50 million transformation reflects broader trends in retail space evolution throughout 2024-2025. The integration of AI and sustainability initiatives, particularly the CDL EcoTrain project, aligns with successful implementations seen across Asia, such as The Mall Group's award-winning AR navigation system that achieved a 31% increase in customer engagement. The focus on experiential retail and community spaces mirrors developments at Mall of the Emirates, where a $1.36 billion transformation plan demonstrates the industry's shift toward comprehensive lifestyle destinations. The mall's emphasis on sustainability education and public programming echoes successful cultural integration strategies observed in Bangkok, where mall operators have achieved 120% sales increases through similar initiatives. This approach to blending technology with human-centric experiences follows the industry trend identified in March 2025, where 60% of Gen Z consumers now primarily visit malls for social and experiential purposes rather than traditional shopping.

How Singapore’s City Square Mall reinvents shopping mall experience

What: Urban Outfitters launches 'On Rotation' experience with Nike across five US cities, featuring over 150 products in lounge-like settings designed to create community-driven retail experiences targeting Gen Z consumers.

Why it is important: The initiative represents a significant shift in retail strategy, where traditional product-focused spaces are transformed into community-driven environments, reflecting the industry's broader movement toward creating emotional connections and memorable retail experiences.

Urban Outfitters and Nike's strategic collaboration introduces an innovative retail concept through the "On Rotation" experience, launching across five key urban markets. The initiative transforms traditional retail spaces into lounge-like environments, offering customers access to an expanded assortment of over 150 Nike footwear and apparel products through both digital and in-store experiences.The partnership demonstrates Urban Outfitters' understanding of Gen Z consumers' evolving needs, with a particular focus on creating community-driven, memorable retail moments. This is evidenced by the initiative's comprehensive approach, which extends beyond product display to include immersive elements that encourage discovery and engagement.The collaboration's local market focus is particularly evident in Los Angeles, where a limited capsule collection celebrates the Nike After Dark Tour, featuring an exclusive Vomero 18 sneaker colorway. The initiative's community engagement extends through a four-month training journey involving over 20 influencers and college-aged community members, creating a dynamic connection between the brand and its target audience.

IADS Notes: This collaboration aligns with significant retail trends observed over the past year. The initiative reflects the industry's shift toward experiential retail, following the success of Future Stores' dynamic, Gen Z-focused environments launched in October 2024 . The approach mirrors Nike's successful experiential retail strategy demonstrated at Centre Pompidou , while addressing Gen Z's increasing demand for personalised, immersive retail experiences . The community-focused approach aligns with the emerging "third spaces" trend , where retailers prioritise creating environments that foster genuine connection and engagement over traditional sales metrics.

Urban Outfitters launches 'On Rotation' retail concept with Nike as first partner

What: Gen Z's increasing adoption of ChatGPT for fashion advice and shopping recommendations signals a fundamental shift in how young consumers approach style decisions, challenging traditional retail and influencer dynamics.

Why it is important: This shift represents a critical turning point in retail, where AI-driven recommendations are reshaping traditional shopping patterns, with 72% of consumers expecting AI-enhanced experiences and retailers seeing significant revenue increases from early adoption.

ChatGPT has emerged as a prominent styling tool for Gen Z consumers, who are increasingly turning to the AI platform for personalised fashion advice and shopping recommendations. OpenAI's April 2025 update has enhanced this trend by introducing direct buy links, aggregated reviews, and image-based recommendations through natural language chat. The platform's product lead, Saguna Goel, notes significant user creativity, including the upload of existing items for mood board generation and shopping suggestions. While some industry voices, including content creator Macy Eleni, express concerns about the potential loss of personal style development, the shift represents a broader transformation in how consumers approach fashion decisions. The trend has gained such momentum that even traditional fashion publications and influencers are now following their audience's lead, testing and reviewing ChatGPT's styling capabilities, though questions remain about the impact on individual creativity and style expression.

IADS Notes: The emergence of ChatGPT as a preferred styling tool for Gen Z, as reported in May 2025, represents a significant shift in retail dynamics that aligns with broader industry trends. According to March 2025 data, 72% of consumers now expect AI-enhanced shopping experiences, while retailers adopting these technologies have seen revenue increases of 6% or more. This transformation is particularly significant for small brands, as ChatGPT's current lack of paid placements creates a more level playing field for discovery. However, this trend raises important sustainability concerns, as noted in recent studies showing AI's considerable environmental impact through energy consumption and potential acceleration of fast fashion cycles. The shift also challenges traditional influencer dynamics, with Adobe's research showing a 304% year-over-year increase in AI-tool-directed traffic to retail sites, suggesting a fundamental change in how consumers discover and engage with fashion brands.

Gen Z is using ChatGPT as their stylist