SWL's Retail Radar - 12/12/24

Retail Radar, from SWL, provides you with a snapshot of the latest retail news from the UK and around the globe. These narratives highlight key events, emerging trends, and notable advancements, providing a deep dive into the dynamic retail landscape.

John Lewis and Waitrose introduce Caffè Nero cafés within their stores

John Lewis Partnership is deepening its relationship with Caffè Nero by launching branded cafés across several of its department stores and supermarkets.

Five new Caffè Nero cafés, blending the coffee chain’s offerings with Waitrose & Partners food selection and operated by trained Waitrose staff, have already opened in Billericay, Godalming, Keynsham, Locks Heath, and Stroud.

Additionally, a dedicated Caffè Nero café is set to open within the John Lewis & Partners store in White City, West London. This outlet will feature a full menu of Caffè Nero’s signature drinks, deli options, and barista service.

The collaboration builds on a partnership that began in 2021, initially providing My Waitrose loyalty card members with complimentary hot drinks. Although Waitrose had previously ended its free coffee initiative in 2018, customer demand prompted its return. Now, free hot drink machines are installed in 320 Waitrose locations, dispensing nearly 25 million beverages since the scheme’s relaunch.

Under the new café model, customers will receive free coffee served directly by baristas, offering a more refined experience compared to the earlier self-service option. The retailer explained that the cafés are designed to elevate the shopping experience, creating a welcoming space for customers to unwind with a drink or enjoy a snack or meal.

Charlotte Di Cello , Waitrose’s Commercial Director, highlighted the community role of their stores, noting that customers appreciate the opportunity to relax with refreshments after shopping.

Will Stratton-Morris , CEO of Caffè Nero UK, described the partnership as an ideal collaboration, expressing optimism about the potential for further growth.

This café initiative aligns with the John Lewis Partnership’s broader strategy to strengthen customer engagement and reclaim its position as a prominent retail leader. The company reported a 2% year-on-year sales increase to £5.9 billion in the first half of the year and expects to surpass last year’s £42 million profit.

Charles Tyrwhitt reaches 50-store milestone with new Southampton opening

Charles Tyrwhitt has reached a major milestone by unveiling its 50th store at the Westquay shopping centre in Southampton, signalling the brand’s continued growth across the UK.

This new location showcases the retailer’s comprehensive selection of menswear, spanning formal and smart casual attire. Shoppers can explore a variety of shirts, suits, polos, knitwear, shoes, and accessories, alongside the latest autumn/winter collections. The store also offers personalised styling sessions, reflecting the brand’s commitment to making it easy for men to achieve a polished and confident look.

In support of sustainability, the store highlights the ‘Tyrwhitt or not’ donation programme, where customers can bring in pre-loved shirts and suits in exchange for discounts. This initiative has contributed over £3 million to The British Heart Foundation, reinforcing the brand’s dedication to both style and social responsibility.

Joe Irons , the company’s Chief Marketing Officer, expressed enthusiasm for the Southampton opening, calling it a pivotal step in connecting with a broader audience nationwide. He emphasised the importance of the location, citing the city’s dynamic economy, rich cultural history, and its role as a major retail hub on the south coast.

Positioned in the bustling Westquay Shopping Centre, the store is poised to attract a diverse clientele, including locals, tourists, and professionals. The brand looks forward to welcoming both long-standing patrons and newcomers to enjoy its high-quality products and exceptional service in this vibrant new setting.

SPAR Hungary enhances its retail offering through significant investment

SPAR Magyarország has taken significant steps to enhance customer experiences while championing environmental sustainability through targeted investments in modernising and expanding its operations.

A total of €2.9 million (£2.45 million) was allocated to upgrade the INTERSPAR hypermarket in Székesfehérvár. The renovation introduced state-of-the-art refrigeration systems and prioritised material recycling throughout the refurbishment.

Although the retail space remains the same, the redesigned layout provides a more efficient and seamless shopping experience, with improved navigation through beverages, dairy, frozen goods, and general merchandise.

Employing 81 staff, the updated hypermarket features LED lighting, an energy-efficient refrigeration system that utilises carbon dioxide for heat recovery, and fridges equipped with energy-saving doors.

In addition, SPAR Hungary invested over €1.7 million (£1.43 million) to revitalise three supermarkets in Miskolc, Sopron, and Tatabánya. These refurbishments focused on interior redesign, energy efficiency, and sustainability enhancements.

The Sopron store underwent a transformation costing more than €697,000 (£588,000), introducing an improved store layout, an upgraded produce section, and revamped checkout areas.

The Tatabánya supermarket benefited from a €689,000 (£582,000) investment, which included repositioning the entrance, redesigning the layout, enhancing the deli section with grilled food options, and modernising the checkout zones.

In Miskolc, €407,000 (£344,000) was spent on incorporating SPAR Hungary’s signature design elements, ensuring consistency and a refreshed look.

A key milestone for SPAR Hungary was the launch of its 300th store, located in Lenti and operated by the independent retailer Fe-Zo Kft. Fe-Zo Kft also manages four other stores in western Hungary. Following extensive renovations, the Lenti convenience store spans 286 square metres and offers a variety of services, including freshly baked goods, a delicatessen, meat counters, and a self-service cheese section.

Since its debut in 2012, SPAR Hungary’s independent retailer network has grown to employ nearly 3,700 people across its 300 stores. The network achieved a turnover of €328 million (£276 million) last year and plans to open seven additional stores by the end of 2025.

Primark grows its presence by opening new stores across four countries

Primark has achieved a significant milestone in its global expansion journey, opening four new stores across four countries on the same day.

The new stores are located in Glasgow in Scotland, Tours in France, Madrid in Spain, and Queens in New York City. Together, they represent a total investment of £37 million and add 130,000 square feet of retail space to Primark’s operations. These new stores have created 580 jobs, reinforcing Primark’s contribution to local economies and its commitment to growing its international footprint.

In Queens, the new store becomes the retailer’s tenth in New York and the second in the borough. Backed by a £14 million investment, it forms part of Primark’s ongoing expansion in the United States, where it now operates 28 stores across 11 states.

In the UK, the Glasgow Fort store is a key element of a £100 million investment plan for 2024. It is the 21st Primark store in Scotland and the 195th in the UK, reflecting the brand’s strong domestic presence.

In France, the first-ever Primark store in Tours has opened at the L’Heure Tranquille Shopping Centre. This £8 million investment has brought 100 new jobs to the region.

The Madrid store, relocated to the Parquesur Shopping Centre, has doubled in size compared to its previous site. This expansion highlights Spain’s importance as one of Primark’s largest markets.

Primark CEO Paul Marchant described these simultaneous openings as a defining moment in the company’s history. He emphasised that opening four stores across two continents in one day showcases the brand’s ambition to bring affordable fashion to more people. He also noted the positive impact these stores have on local communities, both in terms of job creation and the so-called Primark halo effect, which boosts footfall and benefits surrounding businesses.

Abercrombie & Fitch is set to enter the Indian market

Abercrombie & Fitch Co. is set to enter the Indian market through a long-term franchise agreement with Myntra Jabong , the business-to-business wholesale division of Myntra .

The partnership will involve Myntra Jabong establishing a physical retail presence for Abercrombie & Fitch across India. It will also oversee the launch of regional ecommerce platforms and branded digital storefronts, which will be managed by licensed and independent third-party operators.

The collaboration includes Abercrombie & Fitch’s Hollister brand, further broadening the scope of the initiative.

Abercrombie & Fitch Co.’s Chief Executive, Fran Horowitz, highlighted the importance of the move, noting the vibrant and diverse nature of the Indian market. The company sees significant long-term growth potential in the region and views this expansion as a key part of its strategy to build a stronger global presence.

Nandita Sinha , Chief Executive of Myntra, emphasised Myntra’s role in leveraging its expertise in fashion and technology to introduce Abercrombie & Fitch and Hollister to India’s expanding fashion market. The partnership is expected to replicate Myntra’s success in scaling numerous other international brands within the country.

India’s growing lifestyle and fashion sector offers a promising opportunity for global brands, and Myntra Jabong’s involvement will play a pivotal role in driving Abercrombie & Fitch’s growth journey in this dynamic market.

Amazon successfully tests drone delivery in Italy

Amazon has successfully concluded an initial trial of its drone delivery service in Italy, marking a major milestone in its efforts to bring Prime Air to Europe.

The trial took place on 4th December in the town of San Salvo, located in the Abruzzo region. It featured Amazon’s advanced MK-30 drone, a highly automated device equipped with cutting-edge technology to ensure safe and efficient operations.

This innovative drone is designed with “sense and avoid” capabilities, enabling it to navigate safely around obstacles while safeguarding people, animals, and property. Additionally, the MK-30 operates with significantly reduced noise, thanks to propellers engineered by the Prime Air flight science team to lower perceived sound levels by nearly half. With an extended range that doubles the reach of earlier models, the MK-30 is capable of delivering to a wider customer base.

Amazon is collaborating closely with Italian regulators to meet all necessary requirements, with the goal of launching Prime Air in Italy by 2025.

The company highlighted the significance of this achievement, noting that its delivery drones flew over Italian skies for the first time on 4th December. The trial showcased Amazon’s advanced computer vision system, which helps the drones avoid obstacles and maintain safe separation from other aircraft in the area.

This trial builds on Amazon’s October 2024 announcement to expand its drone delivery service to Britain, Italy, and a third location in the United States. In the UK, the aviation authority is overseeing six projects, including one led by Amazon, to explore the use of drones for deliveries and emergency response.

Prime Air, which began its first drone deliveries in December 2022, is currently operational in select locations across the United States and is gradually expanding. Earlier in 2024, Amazon revealed plans to introduce a drone delivery programme in Arizona, targeting a launch by the end of the year.

Apple reveals its plans for retail growth in Saudi Arabia

Apple has revealed its plans for retail growth in Saudi Arabia, which include the introduction of an online store and the opening of multiple flagship stores across the country.

The company will launch its online Apple Store in Saudi Arabia by the summer of 2025, offering a full range of products along with Arabic language support and customer service for the first time.

Starting in 2026, Apple intends to open the first of several flagship stores throughout the nation. These stores will offer Saudi customers more opportunities to interact with Apple teams and explore the brand's products and services. In the early stages of development, Apple is also planning a store at Diriyah, a UNESCO World Heritage site.

Tim Cook, Apple’s CEO, expressed excitement about the upcoming expansion, emphasising the significance of the online store launch in 2025 and the flagship locations beginning in 2026. The Diriyah store, in particular, will be a landmark project. He noted that the company is eager to strengthen its connections with customers and to bring the best of Apple’s offerings to help individuals in Saudi Arabia pursue their passions, develop their businesses, and elevate their ideas.

This expansion is part of Apple’s broader commitment to the region, building on previous investments such as the opening of Saudi Arabia's first Apple Developer Academy in Riyadh.

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