What: Ssense’s bankrupt cy protection filing has triggered a conflict with creditors, as management seeks to implement its own restructuring plan amid regulatory and liquidity pressures.

Why it is important: The conflict highlights the growing instability in digital-first luxury retail, where external shocks and creditor-management disputes threaten established business models.

Ssense, once a leader in luxury and avant-garde e-commerce, is now at the center of a high-stakes conflict between its creditors and management. The Montreal-based retailer has filed for bankruptcy protection under the Companies’ Creditors Arrangement Act, following a liquidity crisis intensified by the recent elimination of the U.S. de minimis exemption for goods under $800. This regulatory change, combined with tighter liquidity and increased trade pressures, forced the company’s primary lender to initiate a sale process, directly opposing management’s own restructuring plan. CEO Rami Atallah has emphasised the need to protect the company’s assets and rebuild for the future, arguing that management’s approach better serves employees, customers, and vendors. The crisis has already led to significant layoffs, heavy discounting, and strained relationships with emerging brands, as Ssense stopped paying deposits and struggled to maintain vendor trust. With the court set to decide between competing plans, the outcome will determine whether Ssense can stabilise and adapt or be sold off, reflecting the broader volatility and transformation facing the luxury retail sector.

IADS Notes:

Ssense’s turmoil closely mirrors recent industry developments, such as LuisaViaRoma’s restructuring and Hudson’s Bay’s bankruptcy protection in March and July 2025, both driven by financial strain and creditor negotiations. The elimination of the U.S. de minimis exemption in April and June 2025 has upended cross-border e-commerce, exposing the fragility of digital-first models and forcing rapid operational resets. Vendor relationship challenges, as seen with Saks Global’s payment term backlash in early 2025, further illustrate the sector’s struggle to balance cost control with brand partnerships. The strategic tension between creditors and management, highlighted in the Saks/Neiman Marcus merger and LuisaViaRoma’s negotiations, underscores the complexity of navigating stakeholder interests in today’s luxury retail landscape.

Ssense files for bankruptcy

What: Lotte Department Store will introduce a new HR system that evaluates and promotes employees based on expertise and job responsibilities rather than years of service, marking a major shift in talent management strategy.

Why it is important: By aligning promotions and compensation with job complexity and skill, Lotte is building a more dynamic, future-ready workforce and raising the bar for employee engagement and operational excellence.

Lotte Department Store is set to implement a professional growth-centered HR system, moving away from its traditional seniority-based pay and promotion model. With 95.3% of employees consenting to the change, the new system will reward and promote staff based on job expertise, difficulty, and responsibility, rather than tenure or rank. Promotions will be determined through separate level-up assessments, independent of years of service. This reform is part of a broader group-wide initiative at Lotte to modernize personnel and wage systems, with job analysis processes classifying roles into five grades according to complexity and importance. The shift aims to foster a culture of meritocracy, upskilling, and agility, positioning Lotte as a leader in HR innovation among Asian retailers. By prioritizing expertise and operational excellence, Lotte is building a more dynamic, engaged, and future-ready workforce to meet the demands of a rapidly evolving retail landscape.

IADS Notes:

Lotte Department Store’s shift to a professional growth-centered HR system is part of a broader transformation strategy that emphasizes innovation, agility, and workforce development. As reported by Inside Retail (June 2025), Lotte’s leadership has prioritized structural reorganization and technological advancement to stay competitive in an increasingly digital market, with a focus on customer value and operational excellence. Korea JoongAng Daily (October 2024) highlights Lotte’s significant investment in modernization and technology integration, reflecting the company’s commitment to adapting its business and talent strategies to changing consumer preferences and market dynamics. The Korea Times (October 2024) further underscores Lotte’s ambitious growth targets and international expansion plans, noting the importance of workforce transformation and upskilling in achieving these goals. Collectively, these developments show that Lotte is positioning itself as a leader in HR innovation among Asian retailers, aligning its talent management practices with the demands of a rapidly evolving retail landscape and setting new standards for meritocracy, expertise, and employee engagement.

Lotte Department Store launches expertise-based HR system to boost employee growth

What: Kohl’s margin gains and improved profit outlook reflect disciplined cost controls and strategic brand partnerships, despite ongoing sales declines.

Why it is important: This development demonstrates how operational discipline and brand partnerships can drive profitability even as sales decline, reinforcing trends seen in recent retail analyses.

Kohl’s has begun to see the early results of its turnaround strategy, with second-quarter reports showing margin gains and a raised profit outlook for 2025, even as sales continue to decline. The company’s net income rose to $153 million, up from $66 million a year earlier, though adjusted net income slipped slightly. Net sales fell by 5.1 percent, and comparable sales dropped 4.2 percent, but gross margin improved by 28 basis points, largely due to a greater focus on proprietary brands, category mix, and better inventory management. Expense controls, particularly in stores and marketing, led to a 4.1 percent reduction in SG&A costs. Kohl’s has also expanded its impulse queue lines and streamlined assortments, while the full rollout of Sephora is on track to become a $2 billion beauty business. Leadership remains in flux, with Michael J. Bender serving as interim CEO following recent governance challenges. Despite these headwinds, Kohl’s disciplined operational approach and brand partnerships are beginning to resonate, positioning the retailer for gradual improvement.

IADS Notes:

Kohl’s recent performance echoes findings from August 2024, when effective cost controls and inventory management led to a profit forecast upgrade despite sales declines. The Sephora partnership, which generated $1.4 billion in sales by March 2024, and the introduction of new proprietary brands have been key to category growth. Operational changes, such as leaner inventories and expanded impulse queue lines, align with broader industry moves toward efficiency. Leadership instability, highlighted by Michael J. Bender’s appointment as interim CEO in May 2025, remains a challenge, but the company’s strategic direction and operational discipline continue to support its turnaround.

Kohl’s turnaround efforts start to kick in, but sales still declining

What: Decathlon strengthens its local strategy by launching a new City store in Paris, focusing on proximity, hybrid retail, and specialized urban sports offerings.

Why it is important: The move highlights how proximity and convenience are driving urban retail strategies, aligning with trends of smaller, experience-focused stores.

Decathlon’s latest City store opening in Paris marks a strategic evolution in urban retail, as the brand intensifies its focus on proximity and convenience for city dwellers. By integrating its compact format within a Boulanger store on Rue de Rennes, Decathlon not only leverages cross-sector synergy but also responds to the growing demand for accessible, specialized sports equipment in dense urban environments. The City format, under 1,000 square metres, is tailored to mobility, running, fitness, and yoga, reflecting a broader shift in consumer habits toward health and active lifestyles. This approach is reinforced by recent consumer data showing increased interest in gym attendance and fitness activities, particularly among millennials. The hybrid concept aims to create a neighborhood hub, blending sporting passion with personalized service, and is supported by a team of twenty Decathlon staff. With 39 stores in Ile-de-France and 1,817 globally, Decathlon’s 5.2 percent turnover growth in 2024 underscores the effectiveness of its localized, experience-driven strategy in a competitive retail landscape.

IADS Notes:

Decathlon’s Paris City store launch reflects a wider industry trend toward compact, digitally integrated formats and cross-sector partnerships, as seen with Uniqlo’s small-format touchpoint in Singapore (June 2025) and Magasin du Nord’s local units (October 2024). The hybrid approach mirrors 10 Corso Como’s collaborations with established retailers in late 2024, while CBRE’s June 2024 analysis and IKEA’s May 2025 Oxford Street investment confirm the growing importance of proximity and urban accessibility. Decathlon’s pivot toward lifestyle and specialized formats, highlighted in November 2024 and May 2025, further aligns with the sector’s move toward experiential, convenience-focused retail.

Decathlon bets on compact stores

What: Macy’s will allow advertisers to manage sponsored product campaigns on its website using Amazon’s ad-serving and measurement tools.

Why it is important: Macy’s adoption of Amazon’s ad tech demonstrates how retailers are using innovative partnerships to drive revenue growth and adapt to evolving digital marketing demands.

Macy’s is launching a pilot program with Amazon’s Retail Ads Service, enabling advertisers to manage sponsored product campaigns on Macy’s website through Amazon’s established ad console and APIs. This integration allows for streamlined campaign management, leveraging Amazon’s advanced targeting and measurement capabilities while maintaining Macy’s control over its ad experience. The partnership is set to begin in early Q4, strategically timed for the holiday season, and is designed to complement Macy’s existing self-serve and managed campaigns. By collaborating with Amazon, Macy’s aims to offer advertisers greater efficiency, scale, and performance, while addressing industry concerns about data privacy through dedicated systems and access controls. This move not only positions Macy’s at the forefront of retail media innovation but also reflects a broader trend among retailers to adopt sophisticated digital advertising solutions to enhance customer engagement and drive new revenue streams. The initiative underscores the growing importance of retail media networks in holiday marketing strategies and the ongoing evolution of digital advertising in the sector.

IADS Notes: Macy’s partnership with Amazon for retail ads is emblematic of a wider industry transformation, as seen in January 2025 when Amazon’s ad tech strategy raised both opportunities and concerns around data control. Macy’s ongoing innovation in media, highlighted by its February 2025 NBCUniversal deal, has already demonstrated the value of multi-platform engagement. The Coresight report from July 2024 documented Macy’s rapid retail media revenue growth, while October 2024 and April 2025 industry analyses emphasized the sector’s push for scale, efficiency, and standardization—trends that Macy’s is now actively shaping through this collaboration.

Macy’s partners with Amazon for retail ads ahead of holiday season

What: Alo is launching a line of Italian-made leather handbags priced up to $3,600, marking its transition from athleisure to luxury.

Why it is important: This move reflects a generational shift in luxury, with wellness and lifestyle values redefining what younger consumers seek from high-end brands.

Alo’s bold foray into the luxury handbag market signals a significant evolution for the brand, as it introduces Italian-made leather bags priced between $1,200 and $3,600. CEO Danny Harris is confident that Alo’s strong community, built around wellness and mindfulness, will embrace these high-ticket items, even in a landscape dominated by heritage luxury players. The launch is supported by a campaign featuring major celebrities and a concierge-style online experience, reinforcing exclusivity and craftsmanship. Alo’s strategy leverages the growing convergence of health, wellness, and luxury, particularly appealing to Gen Z and millennials who increasingly view wellness as a status symbol. The brand’s focus on scarcity, with limited releases and annual price increases, mirrors traditional luxury tactics while infusing them with modern values. As younger consumers redefine luxury through the lens of lifestyle and self-care, Alo’s move positions it at the intersection of these trends, challenging established norms and offering a fresh alternative to legacy brands.

IADS Notes:

Alo’s luxury pivot is closely aligned with recent market shifts, as seen in March 2025, where luxury brands are prioritizing exclusivity and authentic storytelling to maintain desirability. May 2025 data confirms that Gen Z and millennials are redefining necessities, placing wellness and lifestyle at the core of their purchasing decisions. The rise of affordable luxury alternatives in April 2025 further underscores the need for brands to offer genuine value and personal relevance. January 2025 reports highlight the centrality of experiential luxury and wellness for younger consumers, validating Alo’s strategy of combining scarcity, experience, and a wellness-driven narrative.

Yoga brand Alo to sell $3,000 bags

What: Saks Global names Emily Nahas as SVP of e-commerce, tasking her with driving growth and innovation across Saks, Neiman Marcus, Bergdorf Goodman, and Amazon platforms.

Why it is important: This appointment reflects Saks Global’s commitment to accelerating digital transformation and unified management across its luxury retail brands, as seen in recent organizational changes.

Emily Nahas’s appointment as senior vice president of e-commerce at Saks Global marks a significant step in the company’s ongoing transformation following its merger with Neiman Marcus. Nahas, who brings experience from Cole Haan, Saks Fifth Avenue, and Neiman Marcus, will oversee all major e-commerce platforms, including Saks.com, NeimanMarcus.com, BergdorfGoodman.com, and Saks on Amazon. Reporting to President and Chief Commercial Officer Emily Essner, Nahas is expected to lead efforts in digital growth, AI-driven personalization, and seamless customer experiences. Her arrival follows a series of executive changes and a broader organizational restructuring aimed at integrating talent and operations from Saks and Neiman Marcus under a unified, technology-driven leadership. Saks Global’s digital channels now account for a third of its revenue, with 700 million annual site visits, underscoring the importance of e-commerce in its growth strategy. The company’s recent investments in AI and digital platforms are designed to reinforce its position as a leader in luxury retail, even as it navigates financial pressures and evolving market dynamics.

IADS Notes:

Emily Nahas’s appointment aligns with Saks Global’s comprehensive transformation since the December 2024 merger with Neiman Marcus. The company established a unified commercial leadership team under Emily Essner in January 2025, merged buying teams in April, and streamlined executive roles in June. Saks Global’s focus on digital integration and AI-driven personalization, supported by partnerships with Salesforce and NuOrder, has been central to its strategy for operational efficiency and customer experience. These efforts are particularly significant as the company addresses financial challenges and seeks sustainable growth, as highlighted in reports from January, April, June, and July 2025.

Emily Nahas to head Saks Global e-commerce

What: Central Retail’s latest results reveal declining same-store sales and profits, as the company’s heavy reliance on tourism and expansion is challenged by weak domestic demand and operational struggles in Vietnam.

Why it is important: This case demonstrates that sustainable retail growth in Southeast Asia now depends on balancing new store openings with strong local demand, efficient operations, and adaptive responses to shifting economic and tourism trends.

Central Retail Corporation has reported a decline in same-store sales and profits, reflecting the growing risks of over-reliance on tourism and aggressive expansion in Southeast Asia’s evolving retail landscape. Despite opening new supermarkets and specialty stores in Thailand and Vietnam, the company’s overall revenues fell 0.8% year-on-year, with same-store sales down 5% across all segments. Food sales grew modestly, but same-store sales in food, hardlines, and fashion all declined, with Vietnam’s Go! hypermarkets and Nguyen Kim appliance chain performing particularly poorly. Mall occupancy in Vietnam remains low at 83%, and the company’s profits dropped 31% in the second quarter. Central’s ongoing investment in tourist-centric retail and mixed-use developments has not offset the impact of fewer international arrivals, high consumer debt, and intensifying regional competition—especially as Vietnam’s retail sector surpasses pre-Covid levels. The results underscore the need for a more balanced approach, focusing on operational efficiency, local consumer engagement, and resilience to shifting tourism and economic dynamics.

IADS Notes:

Central Retail’s recent performance highlights the risks of tourism dependence and the operational challenges of regional diversification in Southeast Asia. As detailed by Inside Retail Asia (August 2024), the company’s mixed results are driven by persistent same-store sales declines—particularly in Vietnam, where the Nguyen Kim appliance chain continues to underperform despite ongoing expansion. Inside Retail (November 2024) reports that aggressive store openings and tourism recovery have not been enough to offset weak organic growth, with mall occupancy in Vietnam stuck at 83%. Inside Retail (October 2024) notes Central’s $461 million investment plan targeting tourist hubs like Krabi and Chiang Mai, reflecting the sector’s reliance on international arrivals and the need for innovative, mixed-use retail formats. Inside Retail Asia (June 2025) further emphasizes the impact of currency fluctuations, consumer debt, and regional competition, as Vietnam’s retail sector surpasses pre-Covid levels while Thailand lags behind. Collectively, these sources from August 2024 to June 2025 illustrate that while Central Retail continues to invest in expansion and mall development, sustainable growth will require a more balanced approach focused on operational efficiency, local consumer engagement, and resilience amid shifting tourism and economic dynamics.

Tourism is impacting Central in Thailand

What: Handsome accelerates its French expansion with a TIME Paris pop-up at La Samaritaine and a System Homme boutique at Galeries Lafayette, aiming to strengthen its European presence.

Why it is important: This move exemplifies how Korean brands use strategic partnerships with iconic department stores to build presence and test new markets, as seen in recent European retail trends.

Handsome, a subsidiary of Hyundai Department Store Group, is intensifying its expansion in France by launching a TIME Paris pop-up at La Samaritaine and announcing a System Homme boutique at Galeries Lafayette Haussmann. These initiatives are designed to increase brand visibility and establish a stronger foothold in the European luxury market. The TIME Paris pop-up, opening at the end of August, will run for two months in the recently renovated La Samaritaine, targeting both French and international shoppers. In January 2026, System Homme will debut its official boutique at Galeries Lafayette, following the brand’s strong performance in a previous pop-up, where it consistently ranked among the top five in monthly sales. Despite a slight decline in overall revenue and operating profit in Q2 2025, Handsome’s online sales have grown, buoyed by new customers and higher transaction values. The company’s broader strategy includes further European expansion, wholesale partnerships with global retailers like Harrods, and leveraging its diverse portfolio of 41 brands to reach ambitious revenue targets by 2030.

IADS Notes:

Handsome’s strategy closely mirrors the successful approaches of other Asian brands in Europe, as seen in the double-digit growth of Galeries Lafayette Haussmann in July 2025, driven by international partnerships and luxury brand expansion. The popularity of Korean aesthetics among European consumers is reinforced by the success of Shinsegae’s K-beauty pop-up at Printemps in June 2025. Korean retailers, facing stagnating domestic sales, are increasingly focusing on international growth and portfolio diversification, with Handsome’s ambitions aligning with these broader industry trends.

Handsome (Hyundai Department Store Group) accelerates French expansion

What: Department stores in Korea have transformed their culture centers into community hubs, using experiential programming like baby classes to engage parents, boost loyalty, and enhance the in-store experience.

Why it is important: By integrating education, entertainment, and social experiences, Korean department stores are setting a new standard for customer engagement and adapting to changing family dynamics and consumer expectations.

Korean department stores are redefining the retail experience by transforming their in-store culture centers (munsen) into vibrant community hubs that offer a wide range of experiential programming for families. Affordable and highly sought-after baby and parenting classes—often featuring themed activities and photo-friendly moments—have become a modern rite of passage for new parents, driving footfall and fostering loyalty. Registration for these classes is highly competitive, with popular instructors and courses quickly filling up, especially during peak seasons. The integration of education, entertainment, and social experiences not only attracts young families but also taps into social media culture, as parents eagerly share their children’s participation online. While these programs have sparked some debate over inclusivity, particularly regarding father participation, they reflect a broader trend of department stores evolving into lifestyle destinations that prioritize community engagement and customer connection. This approach positions Korean department stores at the forefront of experiential retail, responding to shifting consumer expectations and the need for differentiated, value-added services.

IADS Notes:

Korean department stores’ culture centers (munsen) and baby classes are emblematic of a broader shift toward experiential, community-driven retail strategies in the sector. As reported by Maeil Business Newspaper (July 2025), Galleria’s focus on premium experiences and cultural programming—including family-oriented activities—demonstrates how department stores are evolving beyond traditional shopping to become lifestyle destinations. The January 2025 analysis in Maeil Business Newspaper highlights how stagnating sales have prompted leading retailers like Lotte, Shinsegae, and Hyundai to differentiate through entertainment, education, and community engagement, with munsen classes becoming a modern rite of passage for young families. Yonhap (October 2024) further illustrates this trend, showing how department stores are partnering with local governments to offer multilingual services, cultural events, and educational programs for diverse audiences. Collectively, these developments underscore the growing importance of experiential retail, digital engagement, and inclusive programming in driving footfall, building loyalty, and maintaining relevance in a competitive and evolving Korean retail landscape.

In Korea, department stores are a magnet for babies and their moms - The Korea Herald

What: Debenhams Group increased EBITDA despite declining GMV, with Debenhams outperforming and PrettyLittleThing under review for sale.

Why it is important: The group’s transformation highlights the value of marketplace models and targeted cost reductions in achieving sustainable growth.

Debenhams Group’s latest annual results reveal a company in the midst of significant transformation, with adjusted EBITDA rising 3% to £41.6 million despite a decline in gross merchandise value. The standout performance of the Debenhams brand, which saw a 34% increase in GMV to £654 million, contrasts sharply with the underperformance of PrettyLittleThing, now under strategic review for a potential sale. CEO Dan Finley’s leadership since November has focused on stabilizing the business, implementing aggressive cost-saving measures, and repositioning the group’s youth brands. The group’s shift to a capital-lite, stock-lite, and cost-lite marketplace model has been central to its turnaround, enabling substantial reductions in stock holding and capital expenditure. While total revenue and margins declined, the group’s operational efficiency and brand focus have begun to yield results, narrowing losses and improving profitability. This multi-year strategy aims to leverage Debenhams’ digital-first success as a blueprint for the wider group, reflecting a broader industry trend of adapting business models to evolving consumer preferences and market challenges.

IADS Notes:

Debenhams Group’s transformation, initiated with its rebranding from Boohoo in March 2025, has been anchored by the success of its marketplace model and decisive operational changes. By December 2024, Debenhams had achieved a 65% increase in GMV and doubled EBITDA, validating the digital-first approach. These results, set against the backdrop of broader revenue declines for the group, underscore the importance of focusing on high-performing brands and operational efficiency, as also seen in the repositioning of youth brands and the adoption of marketplace strategies by leading retailers in late 2024.

Debenhams Group results show EBITDA up

What: Frasers Group has made a strategic minority investment in We Do Play, marking its debut in the leisure sector and expanding its experience-led retail ecosystem through brands like Sports Direct.

Why it is important: The investment highlights the growing importance of experiential retail and the integration of leisure concepts as key drivers of customer loyalty, destination appeal, and future-proofing for retail property assets.

Frasers Group has taken a significant step into the leisure sector by acquiring a minority stake in We Do Play, a UK-based operator of experience-led brands such as Flip Out, Activate, Putt Putt Social, and Rumble Rooms. This strategic move aligns with Frasers’ broader vision to create a dynamic, experience-driven consumer ecosystem by integrating leisure, retail, and property assets. The partnership will enable the rapid expansion of innovative leisure concepts, with plans to launch more than 40 Activate locations nationwide, leveraging synergies with Sports Direct and Frasers’ growing real estate portfolio. By actively acquiring leisure operators and integrating them with its retail brands and shopping centres, Frasers is positioning itself as a leading retail destination that offers high-energy experiences and cross-selling opportunities. This approach not only drives footfall and engagement but also future-proofs its property assets in a changing retail landscape, setting a new benchmark for ecosystem-driven retail strategy in the UK.

IADS Notes:

Frasers Group’s diversification into leisure and experience-led retail is part of a broader transformation strategy that leverages property acquisition, brand integration, and ecosystem development. As reported by Retail Week (October 2024), the group’s aggressive expansion in the UK retail property market—including the acquisition of shopping centres like Princesshay, Fremlin Walk, and the Olympus Centre—demonstrates a commitment to controlling key retail destinations and enhancing the tenant mix with both retail and leisure brands. Retail Gazette (September 2024) highlights Frasers’ focus on revitalizing high streets and regional shopping centers, while Financial Times (October 2024) underscores the group’s strategic investment spree across multiple sectors to build a multi-brand, multi-format retail ecosystem. The May 2025 Retail Week coverage details the rollout of integrated loyalty schemes and the Elevate retail media network, illustrating how Frasers is connecting its diverse portfolio to drive customer engagement and cross-selling opportunities. Collectively, these developments show how Frasers Group is setting a new standard for retail diversification, using leisure, property, and digital innovation to create a dynamic, interconnected consumer ecosystem.

Frasers Group takes stake in leisure specialist We Do Play

What: Lotte Department Store will introduce a broader range of art-focused courses and exclusive tours this fall, targeting increased engagement from younger and VIP customers.

Why it is important: This expansion highlights how department stores are leveraging cultural programming and exclusive experiences to attract new audiences and strengthen customer loyalty.

Lotte Department Store’s decision to significantly expand its art-focused courses and exclusive tours for the fall semester underscores a strategic shift toward experiential retail and cultural engagement. By offering participatory programs, high-profile docents, and tailored VIP experiences, Lotte is responding to the rising demand for immersive art content, particularly among younger consumers and affluent clientele. The initiative includes preview classes for major exhibitions, on-site art tours, and exclusive events such as private museum visits and curated wine tastings, all designed to foster deeper connections with customers. This approach not only differentiates Lotte from competitors but also positions the department store as a cultural destination, blending retail with lifestyle and community. The popularity of these programs, especially among VIPs, demonstrates the effectiveness of exclusive, high-touch engagement in building loyalty and driving repeat visits. As department stores face increasing competition from digital channels, such innovative programming is becoming essential for sustaining relevance and growth in the evolving retail landscape.

IADS Notes:

Lotte’s expansion of art courses and participatory cultural programming mirrors a broader industry movement, as seen with Galleria Department Store’s “Art Week” in August 2024 and Selfridges’ art-driven experiences in May 2025. Lotte’s investment in experiential retail and exclusive lifestyle offerings, including the launch of Sporty & Rich’s first department store location in April 2025, demonstrates a commitment to engaging younger demographics and VIPs. Across the sector, experiential and art-focused initiatives are driving customer engagement and loyalty, with premium, tailored experiences proving crucial for department stores’ differentiation and growth.

***Lotte department store will significantly expand art courses***

What: Nordstrom and FIT have launched a specialised certificate course to train the next generation of retail tailors and alterations specialists.

Why it is important: Nordstrom’s investment in alterations and workforce development demonstrates how service excellence can be leveraged as a key differentiator.

Nordstrom and the Fashion Institute of Technology (FIT) have partnered to launch a nine-week certificate course in custom alterations and tailoring techniques, targeting adult learners and early career professionals. The programme, taught in-person at FIT by Broadway costume builder Michael Harrell, is designed to provide advanced, hands-on training in garment alterations, fitting, and specialized sewing skills. By offering tuition assistance, the initiative aims to remove financial barriers and broaden access to a career in retail tailoring, particularly within Nordstrom’s extensive network of tailor shops. Graduates will be well-positioned to meet Nordstrom’s hiring standards, benefiting from a curriculum co-developed by industry and academic leaders. This collaboration not only addresses the pressing need for skilled alterations specialists but also reinforces Nordstrom’s commitment to maintaining high standards of personalised service. The partnership exemplifies how targeted educational initiatives can create direct pathways to employment, ensuring the sustainability and evolution of specialised retail services in a competitive market.

IADS Notes:

Nordstrom’s collaboration with FIT to develop a specialized tailoring course reflects a wider movement in retail, as seen with John Lewis’s expanded apprenticeship programs in February 2025, which aim to build diverse talent pipelines. The focus on advanced, hands-on training aligns with industry evidence from July 2025 and September 2024, showing that retailers who invest in expert-led, personalized service are better equipped to meet evolving customer expectations. Nordstrom’s ongoing investment in service hubs and luxury styling roles, highlighted in February and June 2025, further demonstrates how service innovation and workforce development are central to sustaining competitive advantage in retail.

Nordstrom and FIT launch certificate course in custom alterations and tailoring

What: Saks Global’s ongoing payment delays and restructuring have strained vendor relationships and weakened its competitive position.

Why it is important: Saks Global’s struggles illustrate the importance of maintaining strong supplier relationships during major retail transformations.

Saks Global’s ongoing payment delays and restructuring efforts have intensified scrutiny from vendors and analysts, as the luxury conglomerate struggles to stabilize after its $2.7 billion merger with Neiman Marcus. Despite CEO Marc Metrick’s assurances and a commitment to begin settling overdue invoices in July, many suppliers remain unpaid, with some brands threatening legal action or halting shipments altogether. The introduction of 90-day payment terms and a 25% reduction in vendor partnerships, intended to achieve $500 million in annual cost savings, has disproportionately impacted smaller brands, eroding trust and prompting industry backlash. These operational strains are compounded by a sharp decline in sales—Saks Fifth Avenue and Neiman Marcus both reported double-digit drops—while competitors like Bloomingdale’s and Nordstrom have gained market share by focusing on customer experience and digital innovation. The company’s weakened financial position, reflected in a credit rating downgrade and mounting overdue bills, underscores the risks inherent in large-scale retail consolidation. As Saks Global attempts to navigate these challenges, its ability to restore vendor confidence and operational stability remains uncertain.

IADS Notes:

Throughout 2025, Saks Global’s payment delays and new 90-day terms have triggered significant backlash, particularly among smaller vendors, as reported in February and March. By June, some improvement was noted, but concerns about financial stability and strained supplier relationships persisted. July saw further deterioration, with sales declines and competitors capitalizing on Saks’ operational weaknesses. These developments collectively highlight the complex challenges of post-merger integration, vendor management, and the risks of aggressive cost-cutting in luxury retail.

Saks Global not following through on vendors overdue payments

What: Galleria Department Store is hosting Art Week at its Seoul Luxury Hall, showcasing works by Choi Byung-so and vintage furniture, as part of its strategy to blend premium cultural content with luxury retail.

Why it is important: The event highlights the growing role of art partnerships and experiential programming in driving customer loyalty and positioning department stores as cultural destinations.

Galleria Department Store’s Art Week at Seoul Luxury Hall is a showcase of curated cultural content, featuring the works of renowned artist Choi Byung-so and a selection of vintage furniture in collaboration with Wooson Gallery. The event, timed to coincide with Korea’s largest art festival, reflects Galleria’s commitment to integrating art and retail, offering VIP customers and art enthusiasts a unique, immersive experience. Interactive elements, such as an Instagram quiz event with exclusive artist collaboration goods, further engage visitors and reinforce the store’s premium positioning. This initiative is part of Galleria’s broader strategy to differentiate itself in the competitive luxury retail market by providing high-value clientele with exclusive access to cultural programming and experiential events. By blending art, design, and retail, Galleria is redefining the department store as a destination for both shopping and cultural enrichment, setting a new standard for customer engagement and loyalty in the luxury sector.

IADS Notes:

Galleria Department Store’s Art Week is part of a broader strategic shift among Korean luxury retailers to integrate premium cultural content and experiential events into the retail environment. As reported by MK.co.kr (August 2024), Galleria’s inaugural Art Week features collaborations with global and local artists, immersive installations, and VIP-focused programming, positioning the store as a destination for both shopping and cultural engagement. Maeil Business Newspaper (July 2025) highlights Galleria’s success in diversifying its premium offering—particularly in jewelry and watches—while leveraging art exhibitions and partnerships to enhance brand exclusivity and customer satisfaction. This approach mirrors a wider trend in the luxury department store sector, where experiential retail, art collaborations, and curated events are used to differentiate, attract high-value clientele, and reinforce market leadership. Collectively, these developments demonstrate how Galleria and its peers are evolving beyond traditional retail to become cultural and lifestyle destinations, setting new standards for customer engagement and loyalty in the luxury market.

Seoul: Galleria Department Stores will host a “Galleria Art Week”

What: Place des Tendances is leveraging customer loyalty, advanced logistics, and a streamlined product strategy to achieve ambitious growth and European market expansion.

Why it is important: This development underscores the importance of combining digital innovation, exclusive customer experiences, and selective expansion to remain competitive in the evolving retail landscape.

Place des Tendances, under the leadership of Guillaume Grimbert, is pursuing an ambitious growth strategy centered on customer loyalty, proprietary logistics, and a sharpened focus on its core categories of fashion and beauty. By introducing segmented loyalty tiers and exclusive services, the company aims to deepen engagement with its most valuable customers, many of whom have been loyal since its inception. The decision to withdraw from less successful segments, such as home and decor, and concentrate on fashion and beauty mirrors a broader industry move toward portfolio rationalisation for profitability. Place des Tendances is also investing in logistics, utilising its own warehouse and technology to ensure rapid fulfillment and a superior customer experience. International expansion is being driven by a marketplace model that allows for agile brand testing and adaptation to local markets, with a particular focus on European growth. These strategies are designed to position the company for sustainable success amid increasing competition from global e-commerce giants and shifting consumer expectations.

IADS Notes:

The evolution of loyalty programmes highlights the sector’s shift toward personalised, tiered engagement and exclusive experiences, a direction Place des Tendances is now embracing. The company’s logistics innovation aligns with the industry’s adoption of automation and AI for operational efficiency, as reported in February 2025. Its focus on core categories and withdrawal from underperforming segments reflects the rationalisation strategies of Galeries Lafayette and BHV, while its marketplace-driven international expansion parallels Printemps’ and 10 Corso Como’s recent moves to broaden their European reach through partnerships and digital growth.

Printemps Group’s Place des Tendences bets on loyalty and logistics to fuel growth

What: Saks Global’s merger of Saks and Neiman Marcus aims to create a technology-driven luxury retail powerhouse but faces operational and reputational challenges.

Why it is important: Claiming Saks Global is the pillar the U.S. luxury market needs, the article offers a different perspective on the Saks merger, apart from the negative media noise. The challenges faced by Saks Global underscore the impact of media narratives and operational execution on the success of major retail mergers.

Saks Global’s creation through the $2.7 billion merger of Saks and Neiman Marcus represents a bold attempt to redefine the U.S. luxury retail landscape. Led by Marc Metrick and supported by technology partners Amazon and Salesforce, the merger was designed to deliver scale, operational efficiencies, and technological innovation, positioning the company as a leader in the sector. The new entity promised enhanced customer choice, better service, and a platform for emerging designers, aiming to sustain the health and creativity of the luxury ecosystem. However, the integration has proven complex, with significant organizational changes, vendor payment issues, and declining sales reported in the months following the merger. Media coverage has amplified these challenges, often overshadowing the company’s strategic ambitions and fueling skepticism about its future. Despite these setbacks, Saks Global’s efforts to balance tradition with innovation highlight the ongoing transformation of luxury retail, where leadership, adaptability, and public perception are as critical as operational scale.

IADS Notes:

The Saks Global merger, completed in December 2024, has been a defining event for luxury retail, as noted in Forbes and Bloomberg in early 2025. While the deal brought together iconic brands and promised technological integration, BoF’s July 2025 analysis revealed mounting operational and reputational challenges, including sales declines and strained vendor relationships. WWD’s January 2025 coverage emphasized the merger’s potential to support designers and innovate, while Monocle’s May 2025 report on Liberty London reinforced the vital role of multi-brand retailers in sustaining a diverse luxury market.

Is Saks Global luxury’s last best hope?

What: Maison Margiela is launching “Line 2,” a series of arts and culture collaborations branded as ‘intangible products’ to deepen community engagement.

Why it is important: The strategy highlights the growing importance of experiential and intangible offerings in luxury retail, aligning with recent analyses of brand innovation.

Maison Margiela is embarking on a new chapter with the introduction of “Line 2,” a program of arts and culture collaborations that the brand describes as ‘intangible products.’ This initiative, which debuts with an installation by Korean artists Heemin Chung and Joyul during Frieze Seoul, is designed to foster deeper connections with Margiela’s community and expand the brand’s influence beyond traditional fashion. CEO Gaetano Sciuto emphasizes that these collaborations are intended to be as significant as any physical product, reflecting a shift toward experiences and storytelling as core elements of luxury branding. The move comes as luxury houses increasingly invest in cultural partnerships, exhibitions, and immersive events to engage audiences and reinforce their reputations for creativity and innovation. Margiela’s approach, rooted in its conceptual heritage and enigmatic identity, seeks to balance intellectual edge with broader inclusivity under creative director Glenn Martens. With the brand’s recent growth and heightened visibility, this strategy positions Margiela at the forefront of a luxury sector where experiential and narrative-driven offerings are becoming central to sustained relevance and customer loyalty.

IADS Notes:

Margiela’s launch of “Line 2” mirrors a broader luxury industry movement toward experiential innovation and cultural engagement. Recent analyses throughout 2024 and 2025 have highlighted how leading brands are investing in arts collaborations, digital storytelling, and immersive retail experiences to differentiate themselves and deepen customer relationships. Margiela’s initiative, with its focus on intangible value and community-building, exemplifies this trend and reinforces the importance of narrative and experience in contemporary luxury retail.

Maison Margiela enters fashion’s culture race with line of ‘Intangible Products’

What: Duty-free sales at Japanese department stores fell 36.3% year-on-year in July, as a stronger yen and higher luxury prices dampened tourist spending, prompting retailers to launch new promotions and diversify their offerings.

Why it is important: The ongoing decline in duty-free sales highlights the risks of over-reliance on currency-driven tourism and luxury demand, forcing department stores to rethink their value proposition and adapt with new experiential and pop culture-driven strategies.

Japanese department stores are facing a sharp downturn in duty-free sales, which dropped 36.3% year-on-year in July, marking the fifth consecutive month of declines and the third straight month with drops exceeding 30%. The average spend per tourist also fell 23%, as the yen’s appreciation erased Japan’s price advantage for luxury goods, and price hikes further discouraged high-end purchases. While the number of foreign visitors and their overall spending in Japan reached record highs in the first half of the year, the influx is increasingly made up of middle-class tourists who are more cautious with their spending. In response, department stores are launching new strategies to attract customers, such as pop culture events like Daimaru’s Gundam Base Pop-Up World Tour and major expansions of cosmetics floors at Seibu’s Ikebukuro store. These initiatives reflect a broader shift away from reliance on luxury tourism, as retailers seek to engage a wider audience and create experiences that are less vulnerable to currency fluctuations and global economic shifts.

IADS Notes:

The July 2025 decline in Japanese department store sales and tax-free revenue underscores the sector’s acute vulnerability to shifts in tourism, currency fluctuations, and global sentiment. As reported by Japan Times (June 2025), tax-free sales dropped 40% year-on-year, with average tourist spending falling sharply due to the yen’s appreciation and changing shopping patterns among international visitors. Mint (July 2025) and BoF (July 2025) highlight how this downturn follows a period of record-breaking growth in 2024, revealing the risks of over-reliance on inbound tourism and luxury spending. The situation is further complicated by external factors such as geopolitical tensions, rumors affecting Hong Kong visitors, and a sustained decline in South Korean travelers. These developments have prompted major department stores to accelerate digital initiatives, enhance domestic market appeal, and diversify revenue streams. Collectively, these sources illustrate the sector’s urgent need to balance international and domestic demand, adapt to volatile market conditions, and rethink the traditional department store model for long-term resilience.

Duty-free sales at Japanese department stores dropping as yen rises

What: Amid falling revenue and strained vendor relationships, Saks Global is undergoing further restructuring and cost-cutting, raising questions about its growth strategy, luxury positioning, and long-term viability.

Why it is important: The company’s struggles underscore how operational missteps, debt, and a lack of clear differentiation can threaten even the most established department store brands.

Saks Global has initiated its third round of layoffs, eliminating 90 positions as part of a broader effort to address declining sales, mounting debt, and persistent vendor payment issues following its merger with Neiman Marcus. The company’s Q1 revenue fell nearly 16% year over year, and multiple vendors have voiced concerns over overdue payments and the reliability of Saks Global as a partner. Industry experts have questioned the effectiveness of recent growth strategies, including partnerships with Amazon and Costco and the push for AI-enabled personalization, arguing that these moves may dilute Saks’ luxury positioning rather than strengthen it. Analysts warn that the company’s reliance on price increases, rather than customer growth or enhanced experience, leaves it vulnerable as its core customer base ages and aspirational shoppers face economic pressures. While a recent $600 million capital raise provides a temporary lifeline, skepticism remains about Saks Global’s ability to achieve a sustainable turnaround without further restructuring or asset sales. The situation highlights the critical need for renewed customer-centricity, vendor trust, and clear brand differentiation in the luxury department store sector.

IADS Notes:

Saks Global’s third round of layoffs, ongoing vendor payment issues, and mounting financial pressures are emblematic of the deep challenges facing large-scale luxury retail consolidation. As reported by Forbes (February 2025), the company’s post-merger restructuring has included closing Neiman Marcus’s headquarters, consolidating operations, and implementing controversial 90-day vendor payment terms, which have sparked significant industry backlash and strained supplier relationships (BoF, February 2025; WWD, March–April 2025). Sales declines of 16% at Saks and 10% at Neiman Marcus, highlighted by BoF (July 2025), underscore the operational and competitive difficulties of integrating legacy brands while maintaining customer experience and brand equity. Despite a recent $600 million capital raise and a $350 million financing commitment (Vogue Business, June 2025), analysts remain skeptical about the company’s ability to achieve a sustainable turnaround without further restructuring or asset sales. The situation illustrates the risks of aggressive expansion, the importance of restoring vendor trust, and the need for a renewed focus on customer-centricity and curated experiences to regain market relevance in a contracting department store sector.

Saks Global’s struggle: layoffs, debt and the fight to stay relevant

What: Hudson’s Bay is seeking court approval to sell 25 former department store leases to B.C. billionaire Ruby Liu, sparking a legal battle with landlords and creditors over the future of these legacy retail spaces.

Why it is important: This case highlights the risks and challenges of department store bankruptcies, as stakeholders navigate conflicting priorities, uncertain business plans, and the evolving landscape of retail redevelopment.

Hudson’s Bay’s plan to sell 25 former department store leases to B.C. billionaire Ruby Liu has ignited a contentious legal battle with landlords and creditors, revealing the complexities of retail restructuring in the wake of bankruptcy. While Pathlight Capital, the retailer’s main lender, supports the $69.1-million deal to recoup its investment, landlords including Cadillac Fairview and Oxford Properties have voiced strong opposition, questioning Liu’s experience, business plan, and the compatibility of her entertainment-focused concept with existing lease terms. The landlords argue that the sale primarily benefits Pathlight at their expense, and warn that Liu’s lack of retail infrastructure and brand recognition could leave them with vacant properties if her venture fails. The dispute underscores the high stakes involved in repurposing legacy department store assets, as landlords seek to reclaim control for redevelopment and creditors push for maximum recovery. The case exemplifies the broader challenges facing North American retail real estate as iconic brands collapse and new players attempt to reinvent the department store model.

IADS Notes:

Hudson’s Bay’s attempt to sell 25 former leases to Ruby Liu amid creditor protection proceedings is emblematic of the complex and often contentious process of department store restructuring in North America. As reported by WWD (March 2025), the company’s bankruptcy filing and subsequent liquidation reflect broader sector challenges, including failed digital investments and the prioritization of real estate assets over retail operations. Inside Retail (March 2025) and BoF (April 2025) highlight how private equity ownership and leveraged buyouts have exacerbated Hudson’s Bay’s decline, with landlords and lenders now at odds over the fate of legacy retail spaces. The Fashion Network (May 2025) details the court-approved lease sale to Ruby Liu, which has become a flashpoint for disputes between Pathlight Capital, landlords, and other creditors, all seeking to maximize their recovery. The Robin Report (March 2025) provides historical context, illustrating how real estate-driven strategies have led to value destruction and operational instability in the department store sector. Collectively, these developments underscore the high stakes and competing interests involved in repurposing legacy retail assets, the risks for landlords and creditors, and the uncertain future for new department store concepts in a rapidly evolving retail landscape.

Hudson's Bay wants to sell leases to billionaire to appease lender's cash demands

What: Marks & Spencer has partnered with eBay to launch an official online pre-loved resale store, enabling customers to trade in and purchase second-hand M&S clothing.

Why it is important: Marks & Spencer’s initiative aligns with recent market shifts, where digital innovation and sustainability are driving growth and transforming traditional retail business models.

Marks & Spencer’s collaboration with eBay to introduce an official pre-loved resale store marks a significant evolution in the retailer’s approach to sustainability and digital commerce. By enabling customers to trade in and purchase second-hand M&S clothing, the brand is responding to a growing consumer appetite for sustainable shopping options and circular fashion. This initiative builds on M&S’s broader strategy, which includes partnerships for clothing repair and a strengthened digital presence through third-party marketplaces. The move not only addresses environmental concerns but also positions M&S alongside other major retailers who are rapidly adapting to the surge in secondhand retail, as seen with H&M, Harvey Nichols, and John Lewis. The integration of digital platforms is now central to retail success, and M&S’s entry into the resale market underscores the necessity for legacy brands to innovate and collaborate in order to remain competitive. This development reflects a fundamental shift in retail, where sustainability and digital transformation are no longer optional but essential for future growth and relevance.

IADS Notes:

Marks & Spencer’s partnership with eBay is part of a broader transformation in retail, as legacy brands embrace circularity and digital innovation. This follows M&S’s August 2024 collaboration with Sojo for clothing repairs and aligns with the December 2024 surge in secondhand retail, which saw traditional retailers like H&M, Harvey Nichols, and John Lewis adapt their business models. The integration of digital platforms, as demonstrated by Debenhams’ marketplace success and M&S’s own online expansion, is now central to retail strategy. Circular economy practices, highlighted in March 2025, are becoming essential, with major brands entering the second-hand market and department stores expanding their resale and repair offerings, setting new standards for sustainable retail.

M&S partners with eBay to launch pre-loved resale store

What: Dillard’s and Trademark Property have acquired Longview Mall in Texas, signaling renewed investment and confidence in regional malls through property upgrades and tenant mix improvements.

Why it is important: Dillard’s and Trademark’s approach provides a blueprint for how department stores and developers can collaborate to transform aging malls into thriving, experience-driven destinations.

Dillard’s, in partnership with Trademark Property, has acquired the 646,000-square-foot Longview Mall in Texas, marking a strategic move to revitalize a key regional shopping center. The mall, which draws over 3.7 million visitors annually and is the only enclosed regional mall within a 45-mile radius, will undergo upgrades to both its property and tenant roster. This acquisition reflects a growing trend of department stores and developers joining forces to breathe new life into aging malls, focusing on community relevance, location, and experiential enhancements. Trademark’s previous success with La Palmera in Corpus Christi demonstrates the potential for such partnerships to transform tertiary market malls into top-performing retail destinations. The Longview Mall case challenges the narrative that only A malls can thrive, showing that with targeted investment and anchor tenant leadership, regional malls can remain vital parts of the retail landscape. The move also aligns with broader industry shifts, as major players like Walmart and Simon Property Group invest in and refurbish B and tertiary market malls across the U.S.

IADS Notes:

Dillard’s and Trademark Property’s acquisition and planned revitalization of Longview Mall reflect a broader resurgence of investment and innovation in regional and tertiary market malls across the U.S. As reported by WWD (December 2024), Simon Property Group’s $1.3 billion in redevelopments and focus on community-driven, experiential strategies have contributed to a 6.4% increase in mall traffic, challenging the narrative of inevitable mall decline. PYMNTS (February 2025) and CNBC (February 2025) highlight how major retailers like Walmart are also acquiring and redeveloping mall properties, often transforming them into mixed-use destinations that combine retail, dining, entertainment, and even residential elements. WWD (November 2024) underscores the importance of attracting younger consumers and maintaining high occupancy rates through innovative leasing and experiential retail. Collectively, these developments demonstrate that well-located, regionally relevant malls—especially those with strong anchor tenants—are attracting renewed attention and capital, with department stores like Dillard’s playing an increasingly active role as both retail anchors and property stakeholders in the evolving retail real estate landscape.

Dillard’s buys a shopping mall