Retail Unwrapped from The Robin Report

How Barnes & Noble Made a Comeback

Mark Faithfull — Thu, 05 Mar 2026 05:01:00 +0000

Depending on what you read, no one is reading books anymore. Are we addicted streamers? A 2025 study found that daily reading for pleasure dropped by over 40 percent in the last 20 years, with nearly 46 percent of U.S. adults not reading a single book in 2023. Americans are reading an average of 12.6 books per year. Invoking the 80/20 rule, in 2025, 19 percent of adults (those who read 10+ books) accounted for 82 percent of all books read.

The numbers would validate the fact that the iconic Barnes & Noble bookseller was pushed to the edge of extinction, accelerated by the unrelenting digital rise of Amazon. So, it is all the more counterintuitive that Barnes & Noble stands as one of the most remarkable retail turnarounds of the past decade.

How did Barnes & Noble turn around a dying business? And the answer is: James Daunt revitalized an iconic brand by re-humanizing the business.

B&N Rising from the Ashes

If you follow the readership numbers, it is surprising that under the leadership of James Daunt, the English-born bookseller has not only clawed back relevance but has also expanded to the point that its private equity owner is readying an initial public offering for the combined Barnes & Noble and Waterstones business.

Elliott Management is expected to hire investment bank Rothschild & Co. to advise on options for a public offering of its retail group, which could happen as early as the second quarter of this year and is likely to be on the London Stock Exchange. So just how did an ailing bookseller turn the tables on a global digital giant with endless bookshelves and its own e-readers glued to its proprietary screens? And then is the 20 percent of book-reading consumers responsible for Barnes & Noble’s success? It’s a logical assumption.

Elliott Takes Waterstones Formula to the U.S.

When Elliott Investment Management acquired Barnes & Noble in 2019 for $683 million, revenue was in decline, losses were mounting, and it faced a formidable competitor in Amazon; the digital behemoth had fundamentally changed how Americans bought and consumed books. For years, Amazon’s market dominance, ease of purchase, low prices and proprietary Kindle e-reader left traditional bookstores struggling to turn the page.

James Daunt’s arrival in New York was greeted with cautious optimism. A former banker, he had his own successful, eponymous bookstore group in the U.K, which he continues to own. Daunt brought a philosophy radically different from the corporate uniformity that had defined Barnes & Noble’s operations for years as a mall and main street staple. Drawing on his experience at Waterstones, where he had been at the helm since 2011, he insisted local stores be run more like independent shops than cookie-cutter chains. Daunt undertook a sweeping cultural overhaul. Local store managers were empowered to curate selections tailored to their communities, shelving displays were reimagined, and the emphasis shifted from broad and deep inventory to curated discovery.

“Everybody thinks that we must be doing one thing; either we must be going small, or we must be going large. The fact is, we’re doing everything,” Daunt told me about the range of store formats Barnes & Noble is now operating. He stressed his long-held belief that physical retail can compete with the utility of online bookstores as long as it offers variety and relevance to its local customers.

Barnes & Noble Expansion

The transformation has been dramatic. Barnes & Noble opened over 60 new stores across the U.S. in 2025 and pushed its holdings above 700 locations, with plans for 60 more in 2026. Waterstones in the UK is approaching 400 stores, with more expansion planned.

The company remains determined that the store portfolio will be just as eclectic as the site selection, although the new stores are generally smaller than its traditional larger-footprint outlets. This reflects the change of emphasis to a curated rather than all-encompassing offer and the more cost-effective nature of smaller units.

Daunt said that when expanding locations, he was less interested in the plethora of analytical location data and more focused on gut feel. New locations are driven by “self-observation” from the company’s field team, who identify possible sites and store managers ready for the next step to run their own stores. While he is reticent to admit his personal satisfaction, Barnes & Noble took over some former, shuttered Amazon Books stores. It’s hard not to conjure up the image of Daunt’s victory stroll through a repurposed and more relevant bookstore.

Building Loyalty

“The model that we now have, which devotes considerable responsibility and accountability to the store teams, means you can set up a store appropriate to the place in which you find yourself. We’re not trying to have the same store on the Upper East Side as we would if we’re opening in, say, Montana or indeed the Bronx, just a few miles away,” Daunt added.

In recent years, Barnes & Noble has also reconsidered what it sells, reducing reliance on technical or specialist volumes in favor of broader lifestyle offerings, including stationery, greeting cards, gift items, the prerequisite Starbucks café, and other categories that drive both discovery and sales. There are special events including readings and signings, a children’s area where they can sit and read (and be read to), and plenty of adult seating to settle in with a new book.

The company has “evolved the Amazon out of our bookstores,” as Daunt puts it and has firmly prioritized the human experience, including collaborations with, for example, children’s favorite Moomin to promote and create special areas within stores. B&N is reclaiming the role of a community hub, returning on experience.

Site Selection Based on Local Lore

Daunt’s highly unconventional approach to B&N’s expansion reflects his own history as a bookseller rather than as a retailer. “We’re not that traditional big-box retailer where it’s all driven by the real estate dynamic,” he said. “Of course, you need the landlord with properties who wishes to lease them to you. But we’re in places where we think we will do well and where people want to buy books.”

These changes have paid off. The combined Barnes & Noble and Waterstones business now generates more than $3 billion in sales and over $400 million in profits. Perhaps the boldest sign of confidence is the advanced talks over a public offering. The IPO isn’t just a financial event; it is a validation of a belief that brick-and-mortar bookselling can thrive in a world dominated by ecommerce.

The strategy of deferring to local taste over stock-wide uniformity and treating stores as community hubs rather than depots of inventory stands in stark contrast to Amazon’s homogenized and algorithmically curated marketplace. And while Amazon’s sophisticated recommendation engines and global logistics continue to dominate online book sales, they cannot replicate the serendipity of browsing a thoughtfully merchandised bookstore. It’s that gap that gives Barnes & Noble a competitive edge.

Postcards From the Edge

Daunt’s intuitive leadership and the company’s resurgence come at a time when broader consumer trends have shown renewed interest in physical books and demand for in-person experiences. Viral social media movements around reading, such as the #BookTok phenomenon, have highlighted how discovery can flourish in community settings far beyond algorithms.

That said, bookstore sales in the U.S. declined 8 percent over the five-year period from $8.6 billion in 2019 to $7.9 billion in 2024, according to the Census Bureau’s Annual Retail Trade Survey. Barnes & Noble is bucking the trends, appealing to core book buyers and providing meaningful experiences. The brand’s comeback under James Daunt is not just about surviving Amazon’s endless domination; it’s about reminding the market that respect for people’s desire for discovery, curation, and local engagement matter more than ever.

Korean Brands Are Moving into a Mall Near You

Mark Faithfull — Wed, 25 Feb 2026 05:01:00 +0000

For much of the past decade, the dominant narrative for global retail has been framed around China and its manufacturing scale, digital platforms, ultra-fast and cheap fashion platforms, plus its ability to flood global markets with low-cost goods. Yet as regulatory pressure on Chinese exports intensifies in both the U.S. and Europe and geopolitical friction disrupts supply chains, South Korea, fuelled by the global phenomenon of K-pop culture, is emerging as a dynamic Asian force across beauty, fashion, lifestyle and specialty retail.

Korean Cultural Influence

The rise of Korean brands reflects a structural shift in how global consumers discover, trust and buy products. The visibility of K-Beauty has reached a tipping point, most notably next to London’s Chinatown, where tourists literally trip over one K-brand after another. There is no doubt that South Korea has arrived as a world influence.

What began years earlier as niche experimentation with off-the-wall beauty treatments from sheet masks and snail mucin has matured into mainstream adoption across the major retail chains. Brands such as premium skincare brand Laneige, nature-inspired Innisfree, derm-focused COSRX and skincare specialist Beauty of Joseon have moved from Asian beauty stores into Europe’s biggest chains, including Boots, Sephora and Douglas.

Sephora’s European rollout of Korean skincare lines accelerated last year, with COSRX’s Advanced Snail 96 Essence consistently ranking among its top-selling serums in France and Germany, while Laneige’s Lip Sleeping Mask became a viral bestseller thanks to TikTok-driven campaigns in the U.K. and Italy. Consumer appeal was not just about novelty but about perceived efficacy, transparency of ingredients and a narrative of innovation.

What’s the latest trend in Asian imports? And the answer is: Watch Korean brands that resonate with consumers with storytelling, propelled by evergreen K-pop culture.

Korean Brands Invest in Europe

At the same time, Korean beauty conglomerates have been laying the groundwork in Europe. Amorepacific—Korea’s answer to Estee Lauder—expanded its European logistics hubs in the Netherlands and Poland in 2025, reducing delivery times and opening direct-to-consumer channels. LG Household & Health Care, an equivalent to Procter & Gamble beauty or Unilever, strengthened its partnerships with European retailers and invested in localized product development, launching SPF formulations adapted to EU regulatory standards and European skin-tone ranges.

CJ Olive Young, South Korea’s dominant beauty retailer. broadly in the mode of Sephora or Ulta Beauty, also accelerated its international ecommerce push, recording double-digit growth in European orders last year. And in January, it forged a strategic partnership with Sephora in a move that marks the Korean firm’s entry into the fast-growing ‘middle vendor’ market connecting K-beauty brands with global distributors.

Korean Brands Beyond Beauty

Beyond beauty, Korean retail brands began to appear in categories previously dominated by Chinese players. XimiVogue, originally founded in China but increasingly repositioned with Korean-inspired branding and partnerships, expanded aggressively across Europe in 2025, with stores in Spain, Italy and Eastern Europe, with an offer that has often seen it dubbed the Korean Miniso. By 2025, Korean streetwear brands such as Ader Error, luxury menswear Wooyoungmi and eyewear specialist Gentle Monster had established flagship stores in European capitals and cultivated loyal followings among Gen Z consumers. Gentle Monster’s experiential retail spaces in London and Paris blurred the boundary between art installation and eyewear retail.

XimiVogue’s strategic pivot toward Korean cultural references proved timely. As European regulators tightened scrutiny on Chinese imports, particularly around product safety, sustainability claims and product dumping concerns as a fallout from U.S. tariffs, retailers with Korean branding have faced far fewer political and reputational barriers.

Indeed, this regulatory context is crucial. The European Union has introduced stricter enforcement of the Digital Services Act and tightened customs controls on low-value parcels, notably hitting Chinese ultra-fast fashion and marketplace platforms. And the mood music suggests that trade barriers for China will only become more challenging. Korean brands, by contrast, have benefited from South Korea’s status as a trusted trade partner with strong intellectual property protections and a reputation for quality manufacturing.

Korean Fashions Expand in the U.S.

Musinsa, Korea’s biggest curated fashion ecommerce platform, launched cross-border services targeting European consumers, leveraging curated Korean brands rather than mass-market imports. The same dynamic has played out even more dramatically in the U.S., where Korean brands have moved from cult status to mainstream retail. By the third quarter of 2025, the U.S. accounted for more than 51 percent of K-beauty’s global online sales, overtaking China for the first time as the world’s largest e-commerce market for Korean beauty products, with sales jumping 37 percent year-on-year.

NielsenIQ reported that K-beauty sales in the U.S. reached roughly $2 billion in 2025, far outpacing the growth of the overall beauty market and driven by facial skincare and rapidly expanding haircare categories. Major American retailers have responded by racing to integrate Korean brands into their assortments, with Sephora, Ulta, Target, Walmart and Costco having all expanded Korean product lines, while some retailers have created dedicated K-beauty zones.

Torriden officially entered Sephora’s U.S. network in 2025, rolling out hydration and derma products its products across more than 400 stores and online after viral TikTok exposure and a successful pop-up campaign. Amorepacific’s Aestura launched at Sephora early last year, positioning dermatology-led Korean skincare as a credible alternative to legacy brands. Herbal skincare specialist Hanyul debuted in over 300 Sephora stores in the same year, while independent Korean companies such as make-up and skincare brand Tirtir, premium d’Alba and Beauty of Joseon have started showing up within U.S. chains including Ulta, Target and Costco, reflecting a broader push into physical retail presence.

In grocery, Korean-origin supermarket chain H Mart has announced plans to open its largest-ever U.S. location in California, transforming a former Kohl’s site in Pacific Commons Shopping Center into a 100,000-square-foot experiential retail hub combining groceries, a food hall and dine-in restaurants. Construction is expected to start late this year.

Korean Big Picture

Amid it all, the role of entertainment is key. K-pop and K-drama continued to act as global marketing engines for Korean products and the international success of series such as drama Queen of Tears, global hit Squid Game and the sustained global tours of a myriad of groups, most notably BTS, have provided constant exposure for Korean fashion and beauty.

But what distinguishes Korea’s retail expansion from China’s is not just aesthetics but strategy. Chinese platforms have often relied on price leadership and logistical scale, pushing vast volumes of low-cost goods through digital channels. Korean brands, by contrast, have emphasized brand equity, storytelling and innovation. The Korean approach aligns more closely with premiumization trends in Western markets and the Gen Z era of little treats in a world that is offering them little comfort.

Regulation at the Heart of the Korean Approach

Another critical factor is agility when it comes to regulation and compliance. Korean companies have historically operated within stringent domestic regulatory frameworks, particularly in cosmetics and electronics. This has translated into smooth adaptation to European standards and, as a result, when the EU introduced updated cosmetic ingredient regulations in 2025, Korean brands were able to reformulate and relabel products faster than many of their Chinese competitors. Similarly, Korean electronics and lifestyle brands have leveraged their existing compliance culture to expand into smart home accessories, wearable devices and design-led consumer electronics.

Yet as more Korean brands enter European and U.S. markets, competition is intensifying. The risk of overexposure, brand dilution and the loss of their first mover advantage is real, particularly in beauty, where dozens of Korean brands now compete for shelf space and digital attention amid a fickle and short-memory customer base.

Korean retail has also been caught up in the ever-fluctuating U.S. tariff battles, and although most beauty, fashion and general merchandise goods face a 15 percent tariff, some categories, such as automobiles, are currently facing 25 percent tariffs. Balancing global expansion with authentic identity will be the defining test of 2026.

The Chinese Are Coming

Mark Faithfull — Mon, 26 Jan 2026 05:01:00 +0000

While President Donald Trump continues to flip-flop on tariffs, the message coming out of this year’s MAPIC event in Cannes on the French Riviera was clear: Asian brands aren’t waiting around. They’re heading West, and they’re planning to scale up fast.

Westward Ho

The standout theme from MAPIC 2025—Europe’s biggest retail real estate event—was the surge of Chinese and Asian brands setting their sights on the U.S. and Europe, with aggressive expansion plans and a long-term outlook. “When it comes to the U.S., Chinese brands are in this for the long haul. They’re not chasing short-term profits. These companies are showing real confidence, creativity, and design strength,” said Sam Foyle, London-based Co-Head of Global Retail at broker Savills. As a result, he added that most Asian retailers appear to view tariffs as a temporary setback rather than as a deal-breaker.

Should U.S. and European retailers welcome the influx of Asian retail brands, or fear them? And the answer is: When it comes to expansion Chinese brands are in this for the long haul. They’re not chasing short-term profits. These companies are showing real confidence and most Asian retailers view tariffs as a temporary setback rather than as a deal-breaker.

Breakneck Expansion

Things are moving fast. As recently reported by The Robin Report, Chinese online giant JD.com is set to reshape the consumer electronics retail sector in Europe after it launched a takeover offer for Ceconomy, the parent company of German retail giants MediaMarkt and Saturn. The deal is valued at about $2.5 billion and is expected to be complete in the first half of 2026. Out of the gate, this positions JD to challenge Amazon’s dominance in Europe’s consumer electronics market.

But much of the activity is coming from brands with extraordinary aspirations. One of the fastest-growing is Miniso, a Guangzhou-based lifestyle retailer that’s been on a rapid global expansion streak. Founded in 2013, Miniso now operates around 8,000 stores across 111 markets, debuted in the U.S. in 2017 and has nearly 500 stores in Europe. Many American readers might first have taken note when it opened a flagship Times Square store in New York.

After breakneck expansion, Miniso has turned its attention to large-format superstores in high-traffic areas, leveraging partnerships with well-known IP brands like Marvel, Disney, and Barbie. After testing its Miniso Land concept in Shanghai, the company launched its first Miniso Land stores outside China in Madrid, Spain and Bangkok, Thailand and most recently at the West Edmonton Mall in Canada.

“The Miniso Land format averages about 10,000 square feet, much larger than our standard 3,000 square foot stores,” said Vincent Huang, Miniso Group Vice President and General Manager of Overseas Business. “They’re designed for experience, fun, and engagement, especially for younger shoppers.” According to Huang, one Miniso Land store in China has generated roughly $14 million in sales within its first nine months. While the company expects to slow its overall store openings slightly after years of rapid expansion, it plans to continue rolling out large flagship stores across major U.S. and European cities, focused far more on experience and engagement.

“While our store expansion pace may slow a little after some incredible years growing the brand around the world, we want to open more of these large stores where we can really showcase our IP collaborations and also our own IP,” he added. “I think that if you bring together products that really resonate with shoppers and then you are able to sell them at a great price, then you have a fantastic proposition,” he stressed.

Malaysia Joins the Road West

Another relative unknown in the West is Malaysia’s home improvement chain Mr. DIY, which continues to grow at an astonishing pace. Since launching in 2005, the chain has opened more than 5,200 outlets across 14 markets, including 1,000 new stores last year and another 1,200 expected by the end of 2025. The retailer is currently focused on expanding across Europe, including Spain, Poland, Turkey, and soon Romania, the Czech Republic, Hungary and perhaps Greece. “Germany and neighboring markets are a key focus for us as we maintain our current growth momentum,” said Mr. DIY Chief Operating Officer Leo Gann.

Children’s apparel brand Balabala, part of China’s Semir Group, has also been pushing international growth and debuted in California in November. With over 4,500 stores in mainland China and Hong Kong and 100-plus overseas, the company has opened its first U.S. store at the Stoneridge Shopping Center in Pleasanton, CA and its debut European stores will open in Italy in 2026, with three sites identified.

Nicole Zhou, Senior Director of Semir & Balabala’s International Division, said that as the global fashion market faces new challenges, brands are increasingly being driven to look beyond traditional boundaries to find growth opportunities. “Over the next year, we’ll strengthen our Asian presence and expand into markets where we don’t yet have a physical footprint,” Zhou said. “The Middle East remains a strategic focus; our store count there is expected to double within the next 12 months. We’ve finalized a development deal in Italy and are preparing for broader European entry.” Zhou added that North America is currently in a “test phase,” both online and offline, as the company studies consumer behavior to shape its future expansion plans.

China’s Answer to Urban Revivo?

Urban Revivo, often compared with Spain’s fashion powerhouse Zara, is also making waves. Founded in 2006, the fashion chain has been expanding into major capital cities, opening flagship stores in New York, London, and other fashion-forward markets to raise global visibility. “Tariffs have minimal impact on consumer retail,” said Urban Revivo CEO Leo Li. “Still, we’re optimizing our cost structure and sourcing strategy to offset any potential increases.”

Meanwhile, tech and electronics powerhouse Xiaomi, best known for cell phones, is setting its sights on opening about 10,000 new Mi Home stores globally within five years and has recently entered the electric vehicle space. “We’re building on our brand recognition and moving quickly to open EV showrooms and stores across Europe and the U.S.,” said Eva Niu, Xiaomi’s Head of Retail for Western Europe.

The Shein Paradox

The influx of Chinese retailers and Asian products has not gone without controversy, and a lot of that has swarmed around the November opening of super-cheap fashion retailer Shein within the BHV Marais department store in central Paris.

The run-up to Shein’s debut ignited a political, cultural and industrial backlash in France that has touched on questions of national identity, ethical consumption and the future direction of French fashion. Yet despite the furor, the store attracted “more than 50,000 visitors” in its opening days, according to Frédéric Merlin, the unapologetic President of Société des Grands Magasins (SGM), which owns BHV. He reported an average basket of over $52 for customers and said that “nearly 15 percent of them went on to shop in other departments” of the department store.

Yet in the wake, Galeries Lafayette pulled its name from four more department stores licensed to SGM that were also set to introduce Shein shop-in-shops. As a result, those plans were cancelled, while a string of brands including A.P.C., Agnès b, Aime Cosmetics, Figaret Paris, Le Slip Français, Maison Lejaby, Maison Serge Lesage and Odaje pulled out of the Paris BHV Marais store.

France’s parliament is also debating a proposed €2 ($2.15) levy on low-cost fashion imports, which could take effect in 2026 and would precede a similar European Union-wide tax that is not expected to be in place before 2028. The French initiative, intended as a stopgap ahead of the economic bloc’s delayed plans, would mark one of the first national attempts to rein in the surge of ultra-cheap apparel and merchandise flooding European markets from Asia.

Lawmakers are also considering introducing an additional environmental charge of up to $5.40 per parcel, which could rise to $10.80 by 2030, reflecting growing political pressure to address the environmental and social costs of fast fashion.

Industry bodies such as EuroCommerce have also called on the E.U. to rally the European nations around a more rigorous implementation of current rules and regulations over product compliance, claiming that many products targeting the continent do not meet European standards.

Gen Z Key to the China Syndrome

What is unquestionable is the deep ambition of Asian retailers to create a significant physical footprint in the U.S. and Europe, bolstered by their breakneck expansion rates to date, proving that they can do it just because they’ve done it.

Will Gen Z’s insatiable desire for cheap chic flag? That’s the hardest question to answer; a conscientious consumer generation that continues to be sidetracked by rock bottom prices, this conflicted demographic could be the key to whether the west can be won by Asia.

India’s Retail Frontier

Mark Faithfull — Wed, 31 Dec 2025 05:01:00 +0000

At a time when many major economies are stagnating, India offers high growth potential. The International Monetary Fund (IMF) and the Reserve Bank of India have revised GDP forecasts for 2026 upward to 6.6 percent and 6.8 percent, respectively, as the country’s middle class expands. This summer, Deloitte and the Federation of Indian Chambers of Commerce and Industry launched a report entitled Spotting India’s Prime Innovation Moment, which highlighted the immense potential of the sector, with total retail sales valued at $1.06 trillion in 2024 and projected to nearly double to $1.93 trillion by 2030. Evolving free trade agreements have helped India’s export competitiveness, despite tariff volatility, while rising domestic purchasing power is also fuelling greater brand confidence.

India’s consumer ecosystem is entering a defining decade, fuelled by a young, digitally fluent population, an expanding middle class and the rising economic influence of Tier II and III cities, which now account for over 60 percent of ecommerce transactions.

Retail Ecosystem Expansion

The retail sector contributes over 10 percent to India’s GDP and employs nearly 8 percent of the workforce, while Tier II and Tier III cities (those beyond its regional super cities), private labels and localized manufacturing are emerging as engines of growth.

“India’s consumer ecosystem is entering a defining decade, fuelled by a young, digitally fluent population, an expanding middle class and the rising economic influence of Tier II and III cities, which now account for over 60 percent of ecommerce transactions,” says Anand Ramanathan, Partner & Consumer Industry Leader, Deloitte South Asia.

Online marketplaces now influence 73 percent of purchase decisions, and India’s direct-to-consumer market crossed $80 billion in 2024 and is on track to exceed $100 billion in 2025. Gen Z consumers are set to account for 43 percent of total consumption this year, with a direct spending power of $250 billion.

International Growth

India is drawing fresh investment from international retailers who are seeing potential in a market that has promised much but delivered little. Often viewed as a complex, high-friction environment burdened by regulatory hurdles, fragmented logistics and low organized retail penetration, India has seen multiple international retailers try and fail. Local players, including Reliance Retail, Tata Group and Aditya Birla Fashion, have grown rapidly and positioned themselves as indispensable domestic partners for international brands seeking both compliance with foreign ownership rules and geographical reach.

This year, the market has seen a number of high-profile entries and expansions. Among those, Swedish home-furnishings giant IKEA is accelerating its India strategy with a combination of mixed-use formats and online fulfilment. Ingka Centres, part of the Ingka Group that operates IKEA Retail, is investing over $1 billion to establish two huge new mixed-use centers under the Lykli brand in the cities of Gurugram and Noida. The Gurugram center is set to open in 2026, followed by Noida, while IKEA plans to open smaller retail outlets in Delhi to cater to the local market. Currently, IKEA operates stores in Hyderabad, Mumbai and Bengaluru, with online delivery available across 62 districts in Maharashtra, Karnataka, Telangana, Andhra Pradesh, and Gujarat. The company’s next expansion phase includes opening stores in Chennai and Pune, followed by smaller-format stores and a continued focus on its omni-channel strategy.

Japanese apparel retailer Uniqlo has pushed southward with new stores and deeper local manufacturing ties. Levi’s operates an extensive store network with franchise partners, while sub-brand Dockers returned to India in 2024. H&M is approaching 70 stores nationally, while Inditex’s Zara has continued to recalibrate its Indian footprint, opening selectively in premium malls with a portfolio approaching 25 stores, while bolstering online delivery and refurbishing flagship stores in key metros.

Other retailers are tailoring their strategy. French sports chain Decathlon continues to expand aggressively, opening large-format outlets in both metros and regional cities and aiming to increase from circa 133 stores currently to 170 by 2027. Nike and Adidas have also grown store numbers across India. French retailer, Sephora, entered India in 2018, with its operations taken over by Reliance in 2023 and has over 25 stores now open.

In the F&B sector, a number of the major fast-food giants are present, while Starbucks, along with partner Tata, is closing in on 500 outlets and wants to double that in the longer term. U.K.-headquartered fast-casual brand German Doner Kebab announced in late October plans to enter India with a master franchise agreement for 450 locations over the next 15 years. The first restaurant is set to launch in early 2026.

A Parisian Bet

In mid-October, the century-old Parisian department store icon Galeries Lafayette opened its first Indian flagship in Mumbai — a five-story, 90,000-square-foot temple to luxury fashion and design housed within two restored heritage buildings in the city’s Kala Ghoda district. A second store in Delhi is also slated. Internationally minded Galeries Lafayette also has stores in Doha, Dubai, Jakarta, Luxembourg, Beijing, Shanghai, Shenzhen, and Macau.

With a wide range of luxury brands available under one roof, complete with concierge service, personal stylists and the aesthetic synonymous with the upscale emporium on Boulevard Haussmann in Paris, Galeries Lafayette’s arrival is emblematic of a sea change in Indian retail. The country’s luxury market, valued at about $18 billion, is projected to quadruple by the end of the decade.

For Galeries Lafayette, in partnership with Aditya Birla Fashion and Retail, the move marks a calculated wager that India’s luxury and premium consumer base has matured enough to sustain a full-scale, multi-brand department store. And Nicolas Houzé, Executive Chairman of Galeries Lafayette Group, called the launch “a defining moment” and “a new chapter” in its international journey.

Galeries Lafayette’s entry brings a new dimension to India’s economic evolution. While the department store format has waned in the U.S. and Europe, Asian department stores remain powerful, and the French retailer’s foray suggests that emerging markets may offer the kind of footfall and aspirational allure that can sustain large format, multi-brand retail.

Walmart’s Uneven Journey

And then there’s Walmart. Its journey in India has been an exercise in persistence, having first entered the country in 2007 through a joint venture with Bharti Enterprises and operating wholesale cash-and-carry stores under the Best Price brand. India’s restrictions on foreign direct investment in multi-brand retail meant Walmart could not open its trademark stores, and strategic differences led to a split in 2013.

After the breakup, Walmart took full control of the Best Price wholesale business and in 2018, made a bold move by acquiring a 77 percent stake in Flipkart for $16 billion, the largest deal in India’s ecommerce history. The acquisition gave Walmart a direct route to Indian consumers via online retail, effectively sidestepping FDI barriers, and since then, it has added to its stake and developed the business as a rival to Amazon.

Ongoing Challenge

Behind India’s consumer optimism lies structural change. India’s retail real estate is maturing, with badly needed upgrades to many of the country’s malls, improving infrastructure and technology. Vacancy rates in major metros are tightening, and logistics have improved, with integrated fulfillment networks making same-day and next-day delivery viable for more brands. For a consumer base accustomed to immediacy, that shift is crucial.

Even so, direct foreign investment rules, state-level regulations and local sourcing requirements continue to shape how international retailers structure their operations and make the huge potential difficult to tap. As a result, many rely on joint ventures or franchise models to mitigate risk, and these alliances often dictate the pace of expansion.

In addition, economic volatility, uneven regional development and lingering bureaucratic friction all complicate execution. Success in Mumbai or Delhi does not guarantee traction in Tier II cities, where spending power and tastes differ sharply.

As ever, timing is everything. Galeries Lafayette has rolled the dice that India’s affluent are ready for its luxury emporiums. The coming months will tell if it caught the right wave.

Chinese JD Moves West Into Europe

Mark Faithfull — Thu, 06 Nov 2025 05:01:00 +0000

Here’s a news dispatch from around the world. In a move that is probably no surprise to anyone watching the global headlines, the growing international ambitions of the Chinese, specifically online giant JD.com, could reshape the consumer electronics retail sector in Europe. In a recent move, JD.com has launched a takeover offer for Ceconomy, the parent company of German retail giants MediaMarkt and Saturn, in a deal valued at about $2.5 billion. The deal is expected be completed in the first half of 2026. Out of the gate, this positions JD to challenge Amazon’s dominance in Europe’s consumer electronics market.

The consumer experience is no longer defined by stores but by expectations shaped elsewhere thanks to the speed, convenience and frictionless service of digital platforms. The question we always ask is: What desire can we fulfil? It’s about experiencing electronics, not just completing a transaction.

Chinese Ambitions

Ceconomy is number one or two in 9 out of its 11 operating countries and additionally its marketplace offer is available in seven countries. MediaMarkt-Saturn serves 50 million loyalty card customers and records about 2.2 billion customer interactions annually. Its annual revenues total roughly $24 billion, making it the dominant player in European consumer electronics. As part of the agreement, JD.com and Ceconomy have pledged to retain the MediaMarkt and Saturn brands, keep its corporate headquarters in Düsseldorf, Germany, maintain the existing workforce, and retain co-decision making for an agreed-upon period

JD’s move is not just an acquisition but a bid to marry Chinese state-of-the-art digital logistics, supply chain efficiency, and data infrastructure with Europe’s largest consumer electronics retailer. It also represents a bold intervention in a retail landscape that MediaMarkt-Saturn’s Chief Executive, Kai-Ulrich Deissner, characterizes as “structurally challenged.” He adds, “Traditional retail is broken,” speaking at the National Retail Federation’s debut European event in Paris this September. “But this presents an opportunity to embrace and fix the sector rather than view it negatively.”

Brand Evolution

MediaMarktSaturn has been stepping away from its traditional product-focused identity to become what the company describes as a customer-centric service platform. Deissner has banked on innovative store concepts with high-level service, a focused assortment curated by location, and digital tools that enhance the shopping experience, notably superfast 90-minute delivery service.

The retailer is banking its future on its Lighthouse concept, designed as an experience space. By the end of the 2025/26 financial year, more than 750 of the group’s approximately 1,030 stores should have at least one experience space and there should be up to 20 Lighthouse stores in Europe. Flagship formats include live experiences, services and broad assortments that epitomize the new customer-first approach.

Looking ahead, Deissner argues the consumer experience is no longer defined by the stores themselves but by expectations shaped elsewhere thanks to the speed, convenience and frictionless service of digital platforms. “Space-as-a-service is an important strategic growth area for us, enhancing the in-store shopping experience and creating additional experiences with constantly changing themes and innovations,” he said. “Our customer experience is increasingly shaped by what people encounter elsewhere — convenience, zero patience, mobile-first solutions. The question we always ask is: What desire can we fulfil? It’s about experiencing electronics, not just completing a transaction.”

The Experiential Way

In outlining the company’s future direction, Deissner identified five growth priorities: expanding services and solutions, developing a marketplace for third-party sellers, investing in private labels, experimenting with space-as-a-service concepts, and building a retail media network. He cited the company’s Hamburg, Germany flagship, where an entire floor is dedicated to free gaming experiences, as a glimpse of the experiential future he envisions.

“We will not close stores. We believe in our investment,” he said, adding that MediaMarkt-Saturn has now delivered 10 consecutive quarters of growth in both revenue and profit. The JD transaction, Deissner suggested, offers a way to accelerate that momentum, as he described the share offer as a “complicated and sensitive process” but one that he believes will bring tangible benefits. “This means we will gain access to their supply chain. Our focus is always on what this means for the customer,” he said.

Bridging the Tech and People Gap

Deissner’s insistence that retail must be experienced rather than merely transacted hints at the philosophical shift underpinning the partnership. His emphasis on people, service and sensory engagement contrasts with the algorithmic precision of JD’s ecommerce engine and the alliance, in a best-case scenario, could bridge those worlds — bringing Chinese supply-chain scale to European main-street culture.

JD’s logistics expertise could also slash inventory costs and improve delivery speeds, while MediaMarkt-Saturn’s store network offers JD a dense network of pick-up points, showrooms and service hubs across Europe. That combination could create a model for omnichannel retail that rivals Amazon’s and could also allow JD to extend its private-label electronics into the European market, leveraging MediaMarkt’s deep customer relationships and local trust. “We have found a partner that will help us accelerate and achieve that,” Deissner declared of the potential benefits of the takeover.

Domestic Challenges

Indeed, for JD.com, the acquisition provides an instant footprint of over 1,000 stores across 11 European markets, a reach that would have taken years and billions of dollars to replicate organically. The deal also gives JD a powerful test lab for integrating its advanced logistics, artificial intelligence capabilities, and data-driven personalization into a mature Western retail network, positioning JD to challenge Amazon’s dominance in the region’s consumer electronics market.

The risks, however, are considerable. European consumer electronics is a notoriously low-margin business, dependent on promotional cycles, product innovation, and discretionary spending. Integrating technology systems, supply chains, and management cultures across 11 jurisdictions, each with distinct labor laws and consumer behaviors, will add further complexity.

Plus, the geopolitical backdrop remains challenging. Large-scale Chinese investment in critical European retail and data infrastructure is likely to draw continued political and regulatory scrutiny and Germany’s Federal Ministry for Economic Affairs retains the power to intervene on national-security grounds, even after the deal is completed.

Still, the transaction marks one of the most significant foreign investments in European retail in years. For JD, it offers a chance to showcase the efficiency of its logistics network, now among the most sophisticated in the world, within a traditional retail context. For MediaMarkt-Saturn, it promises the injection of capital, technology and operational agility needed to compete in an era when online expectations are shaping in-store behavior.

Beyond China

The move may also reflect increasing heat in JD’s domestic market. While competitor Alibaba has focused on diversifying its platforms and rolled out its own logistics systems, Pinduoduo has pushed into the market with bargain basement prices. As a result, in the upper price segment, JD is up against Alibaba, while Pinduoduo is eating away at its market share through discounts in the lower price categories. JD’s calculation is likely that in Europe, where the online share of total sales in electronics retail is still significantly lower than in China (MediaMarkt and Saturn sit at around 30 percent), it may be possible to build an advantage with technology and logistics expertise.

JD already attempted to take over the U.K. electronics retailer Currys at the beginning of 2024, an attempt that ultimately failed because of political concerns. The Ceconomy deal is its second chance to complete one of the biggest East-to-West retail deals.

A Ukrainian Mall Rises Out of the Ashes

Mark Faithfull — Mon, 13 Oct 2025 04:01:00 +0000

The Nikolsky Shopping and Entertainment Center is Kharkiv’s major mall, and its origin story and wartime rebirth tell one of the most remarkable stories of the brutal conflict in Ukraine. It remains a beacon of hope not just for residents in the besieged city, but for the world.

A Russian missile hit the mall's roof, causing a fire on the fourth floor. It destroyed the ventilation chamber on the fifth floor and affected multiple other areas, including the dome, façade, climate systems, glass installations, and multimedia displays. Inside, the atrium supports collapsed, glass storefronts shattered, and interior decor spanning the second to fourth floors was heavily damaged.

A Mall Story

It was never an easy run for Nikolsky Shopping and Entertainment Center. The mall opened during the latter stages of the pandemic, which was challenging enough, but little could prepare Kyiv-based mall developer and owner Budhouse Group for what was ahead. Less than a year after opening, Ukraine would be invaded by Russia and shortly after that, the Kharkiv shopping center would be extensively damaged by a missile.

Undaunted by the level of damage wreaked by the bombing or the ongoing threat of further missile attacks, the company was determined to restore the center as a symbol of hope and normality for the people in the eastern Ukrainian city of Kharkiv—and beyond.

“We had to go through challenges that none of us should have to go through,” Budhouse Group Chief Marketing Officer Dmytro Bushmakin said. “We opened at a very difficult time during the Covid pandemic. The world was in lockdown. Business was unstable. People were tired, but despite this, Nikolsky immediately became a favorite place for Kharkiv residents. From the very first days, Nikolsky began to break all possible records for shopping center activity across the whole country. We were happy. We made plans, huge plans, but life had a different scenario for us.”

The Mall in Wartime

When the Nikolsky Shopping and Entertainment Center opened its doors in May 2021, it made its debut with the kind of fanfare expected for a major new mall in an emerging retail market. Boasting Ukraine’s largest domed roof structure, the 1.1 million square foot mall – of which around half is dedicated to retail – offered over 150 stores, a hypermarket, restaurants, a multiplex movie theater, bowling, fitness facilities, and an entertainment zone for children.

The shopping center is located in the heart of the city, close to many well-known urban destinations, including the Kharkiv Choral Synagogue, Kharkiv State Scientific Library, Shevchenko Park, Pokrovsky Square, Kharkiv Historical Museum, and Constitution Square.

However, in February 2022, Russia invaded Ukraine, and on March 9, a Russian missile hit the mall’s roof, causing a fire on the fourth floor. It destroyed the ventilation chamber on the fifth floor and affected multiple other areas, including the dome, façade, climate systems, glass installations, and multimedia displays. Inside, the atrium supports collapsed, glass storefronts shattered, and interior decor spanning the second to fourth floors was heavily damaged. Thankfully, there were no casualties as the mall was empty at the time of the strike.

“Nikolsky was directly hit by a missile. Everything was destroyed, the city was under constant shelling, constant danger. Without hesitation, we decided to start reconstruction work as soon as possible and ensure the safety of visitors and staff by arranging shelters,” Bushmakin said. He stressed that the reason this was undertaken was not only for the sake of business recovery, but it was necessary to show that “life goes on, and we will not be broken.”

Restoration began in April 2022, prioritizing the underground level — home to the Silpo supermarket and parking lots — both for public use and as a makeshift shelter during ongoing air raids. “Four months later, we had already opened the first level, and every month, we launched a new level. Every day was a challenge, from the shortage of materials to the constant bombing of the city, but in October, we completely restored the entire center. It was not just reconstruction. We turned to the idea of socializing space. We begin to organize events that help people unite and distract from the terrible reality,” Bushmakin said.

By June 17, the first and second floors were operational again. The third floor followed on October 21, and by November 18, the fourth floor — along with the multiplex movie theater, sports facilities, a bowling alley, and food court — had reopened to the public.

“In particular, we conducted charity and social projects in the shelters, and one of the most emotional was a movie theater in the underground parking area,” he said. “We put up a huge screen, and people who stayed in the city came just to watch a movie. Our center in the city center was a place where you could find shelter and recharge your phone via the generators, because there was a blackout all over the country.”

By December 1, 2023, all the damaged retail space had been restored and handed over to tenants for their fitouts.

Restoration in a War Zone

According to Maksym Havriushyn, the mall’s COO, the decision to push ahead with the restoration process began despite the fact that Russian troops were just around six miles from Kharkiv. He emphasized the importance of reopening before winter, so the building would remain usable, and to restore infrastructure when much of the city’s retail was shut. He also noted the mall’s role in offering both shelter and a return to normalcy. The total cost of restoration approached $18 million, while overall losses, including depreciation, reached around an estimated $150 million.

The revitalized mall saw its visitor numbers rebound, and by February 19 this year, the Nikolsky Center had welcomed its 30 millionth visitor since opening. That is all the more remarkable given that currently the city’s population is estimated to be less than half of the 1.5 million who lived there pre-war. Resilience is a powerful mindset; the mall and bars remain busy, with the city’s epithet ‘unbreakable’ seen everywhere.

Nikolsky’s Bigger Story

In 2024, the total turnover of Budhouse Group’s shopping centers amounted to nearly $300 million, 33 percent up over 2023 in local currency. They have withstood unimaginable challenges, impacted by the closure of the Fabrika shopping center in Kherson, which was destroyed by Russian bombing.

“Nikolsky is like a phoenix that rose from the ruins and began its new life,” Bushmakin said. “Today we can broadly say again, the footfall has returned to pre-war levels, and now we are showing record results again. First of all, this is not a marketing achievement. No, it is more than that. It is a human achievement.

“We believe that Nikolsky is not about walls. It is not about commerce. It is about people. It is about the residents of Kharkiv who returned home. It is about the tenants who risked reopening stores. It is about the team that worked in basements without lights,” he said. “We want this story to become not only the story of Nikolsky, Kyiv, Kharkiv or Ukraine, but also an example for the whole world. The impossible is possible if you have great people and faith behind you.”

Mango’s Ambitious Expansion Plans

Mark Faithfull — Thu, 25 Sep 2025 04:01:00 +0000

Despite international tariff turmoil, Barcelona-based retailer Mango has continued its ambitious expansion in the U.S. Often overlooked for rivals such as Spanish powerhouse Inditex, Sweden’s H&M and Japan’s Uniqlo, Mango has deliberately and carefully built on its quintessential Mediterranean approach. And right now, it seems to have got its sunshine chic just right, rolling out stores across the globe.

What’s interesting about Mango’s approach is that it has stepped away from fast fashion and is pinning its expansion not only on leveraging its Spanish heritage but on slowing the fashion cycle and concentrating on durable, longer-lasting apparel.

Manifest Destiny

Two big things are happening that could help propel its U.S. presence further. First, it hit a landmark by reaching 50 U.S. stores in its North American campaign and secondly, an impending new flagship in Manhattan – set to be bigger and better than its current flagship – is aimed at putting its new brand positioning onto the biggest U.S. stage.

But what’s more interesting about Mango’s approach is that it has stepped away from fast fashion and is pinning its expansion not only on leveraging its Spanish heritage but on slowing the fashion cycle and concentrating on durable, longer-lasting apparel.

Mango is pushing its U.S. expansion plans. It has been present in the U.S. since 2006, but the company launched its more aggressive growth cycle in 2022 with the opening of its current flagship Fifth Avenue store. The Spanish global fashion retailer recently opened its 50th U.S. location over the summer in Portland, Oregon, in the city’s Washington Square shopping center. The new location focuses solely on Mango’s Woman line and became the brand’s second store in the city after opening at Pioneer Place earlier this year.

In keeping with its positioning around its Spanish heritage, the store features Mango’s ‘New Med’ concept, which the retailer has focused on as part of an emphasis on celebrating its Mediterranean location, in contrast to the site-neutral global approach taken by most of its rivals.

“Reaching this milestone (of 50 stores) is an important achievement for the entire Mango team and reaffirms our deep commitment to our U.S. clients,” Mango Chief Expansion & Franchise Officer Daniel López said at the time of the opening. He called it “a testament to the warm reception of our unique value proposition and to Mango’s ambition in the U.S.”

U.S. Expansion

Mango has already opened stores in Nevada, New Mexico, Washington and Oregon this year, while it also launched at Fashion Show Las Vegas, the largest shopping, dining and entertainment destination on the Las Vegas Strip, plus at Albuquerque’s Coronado Center mall.

It is also set to open its first store in Chicago on Michigan Avenue and will also increase its presence in California with a store in Costa Mesa’s South Coast Plaza. Its plan is to open 20 new stores by year’s end, resulting in around 65 company-owned U.S. stores by the close of 2025.

The highest profile of this U.S. expansion will come when Mango opens its fourth Manhattan store at 1976 Broadway, situated in the heart of Lincoln Square. The 13,000 square-foot store will become its new U.S. flagship and will stock the Woman, Man and Kids lines. Other locations are in Midtown on Fifth Avenue, in SoHo and at the Hudson Yards complex. Mango also reached an agreement with Parsons School of Design in New York to create training scholarships.

“We are thrilled to continue executing on our expansion plans by increasing our footprint in New York City, one of the most important fashion locations in the world,” López said. “This opening reaffirms our deep commitment to the U.S. market, a fundamental pillar in our global strategy, as well as the positive reception of our differential value proposition by our customers in the U.S., a key market that is experiencing double-digit growth.”

Mango New Med

Central to this differentiation and Mango’s big gambit is the ‘New Med’ identity, unveiled across its latest store designs and visual language, which it says channels the textures, warmth, and relaxed sophistication of the Mediterranean. To that end, stores feature natural woods, handcrafted finishes, earthy tones and an aesthetic that mirrors coastal light, evoking a lifestyle rooted in culture, sun, and authenticity.

While its rivals tend to concentrate on fashion seasonality, it has focused on design and lifestyle storytelling in a bid to reshape how consumers perceive the brand. Its strategy builds on the idea that fashion can be accessible without being disposable, with an eye toward longevity.

This should play well to its customer base, and right now it seems to have that playbook right. But trends change fast. While its performance has justified the approach, there is no escaping the fact that cautious expansion leaves it in danger of falling further behind the global fashion giants or fast-moving new entrants.

Economies of scale could be a factor, too. Growing to 50 stores and opening new DCs is one thing, but at that size and with tariff challenges, protecting margins and lowering its cost base are going to be tough unless it accelerates growth and creates regional hubs.

But certainly, the Med brand identity dovetails with a more environmentally conscious approach that favors longevity over constant churn, leaving it less vulnerable to sustainability challenges. It has also allowed Mango to carve out a middle space —affordable yet elevated, lifestyle-oriented yet approachable — which is clearly where it believes its future lies. “Our strategy is about depth as much as scale. We are not only opening more stores worldwide but also elevating what Mango stands for in each market,” Mango CEO Toni Ruiz said of the approach.

Mango’s International Growth

So, what about the rest of the world? The approach is global, and in Europe, Mango is reinforcing its presence in established markets. France and Germany, already among its top performers, are receiving larger flagship formats under the company’s New Med concept, while the U.K. and Italy remain important centers for growth, with expanded store networks in London and Milan.

In the meantime, in India, its partnership with Myntra continues to drive openings, with several new stores set to launch this year in Delhi, Mumbai, and Bangalore. The company is also strengthening operations in Southeast Asia, while Chinese expansion is being pursued cautiously, focusing on tier-one cities such as Shanghai and Beijing.

In Latin America, Mexico continues to be a key market, with Mango preparing new flagship stores in Mexico City and Monterrey in 2025, alongside additional sites in Guadalajara. Chile and Colombia are also expanding, with the brand strengthening its presence in Santiago and Bogotá, “Latin America is a region of enormous potential for Mango. We see a young, dynamic customer base that connects naturally with our brand identity,” López said of growth plans.

Will Slow Fashion Work?

Mango’s gamble is that a slower, more considered apparel offer will not only help differentiate it from the slew of fast fashion rivals but also appeal to customers concerned about the environment and looking for good quality wardrobe staples. Mango wants shoppers to know all about its Barcelona roots, and coupled with its proven supply chain agility, the format provides both scalability and brand elevation.

Will an American Icon Go Italian?

Mark Faithfull — Mon, 25 Aug 2025 12:00:00 +0000

In July, an American icon became part of an Italian family dynasty in an unexpected move that saw famous breakfast cereal company WK Kellogg acquired by Italian food group Ferrero, the family-owned business behind brands including Nutella spread, Tic Tac and Kinder candy.

Ferrero not only agreed to acquire the U.S. breakfast cereal giant in a deal worth $3.1 billion including debt, slated to pay $23 a share in cash for the maker of market-leading products such as Corn Flakes, Rice Krispies and Froot Loops, but it also bought into a business as American as apple pie. Its offer represented a hefty 40 percent premium to its average share price over the prior 30 days, the companies said in a statement, 31 percent above the closing price the day before the announcement.

But the biggest question is whether the American public will swallow it. On the face of it, it seems like a cultural mismatch that could cost both companies dearly. Yet with the ingredients of breakfast cereals under attack from the Trump administration, Kellogg could yet lean into an owner that knows all about how to navigate regulations and fast-track healthier options.

WK Kellogg founder Will Keith Kellogg invented his cornflakes in 1894, with the cereal group growing to become arguably the best-known cereal empire in the world. On the other side of the Atlantic, Ferrero was founded in 1946 by Italian confectioner Pietro Ferrero, and the company remains under family ownership, with Ferrero’s grandson Giovanni serving as Executive Chair.

Ferrero Targets WK Kellogg

Let’s take it back a snap. In 2023, WK Kellogg was spun off to operate as a standalone cereal brand by parent company Kellogg Co., which subsequently rebadged itself as Kellanova and retained popular snack brands such as Pop-Tarts and Pringles potato chips. Last year, food group colossus Mars agreed to acquire Kellanova in a $36 billion deal that was approved by U.S. officials but is currently facing antitrust scrutiny from European regulators.

However, Michigan-based WK Kellogg’s fortunes as an independent company have so far disappointed, and its shares have underperformed the wider market, with net debt of $569 million as of March this year. WK Kellogg reported its quarterly results on August 7, with net sales in line with expectations at $613 million in the quarter to June 28, down 8.8 percent from $672 million for the same period a year prior. However, adjusted EBITDA was off by nearly a third, reflecting the challenges facing the company. But there were a few clues on the direction ahead, as WK Kellogg suspended its financial guidance for full-year 2025 because of the takeover, talking blandly about supply chain optimizations as it set out plans to reverse its declines.

WK Kellogg Backs Acquisition

WK Kellogg’s largest shareholder is the charitable trust, the WK Kellogg Foundation, which holds about 16 percent of the outstanding stock. The foundation and the Gund family, another top shareholder, are backing the transaction, the companies said. “Over recent years, Ferrero has expanded its presence in North America, bringing together our well-known brands from around the world with local jewels rooted in the U.S.,” said Giovanni Ferrero, Ferrero’s Executive Chair, as he confirmed that Battle Creek, Michigan, will be Ferrero’s headquarters for North America cereals after the deal closes.

Looking at the potential upside, Kellogg’s products, often positioned as family-friendly, could complement Ferrero’s indulgence-driven image. With health trends increasingly influencing consumer choices, Kellogg’s cereals and snack brands could therefore provide Ferrero with a more balanced portfolio. Together, the companies might innovate by cross-leveraging expertise, such as introducing Nutella-branded breakfast cereals or Kinder-inspired snack bars, which might even elevate Kellogg’s slightly stodgy image

Then, inevitably, there is the tariff situation. This could make this acquisition more attractive for Ferrero as it gives the company a domestic manufacturing base that circumnvents the 15 percent E.U. tariff, as well as giving it an established distribution network.

Risks to Both Sides

However, Ferrero is a privately-owned, Italian-rooted company with a history of cautious, family-driven decision-making, while Kellogg is a publicly traded U.S. giant with different governance structures and corporate culture. Integrating these approaches could be difficult, leading to clashes in management style and strategy.

Financially, the acquisition is also expensive. And while Ferrero’s pockets are deep, if growth projections do not materialize, the company could struggle to generate sufficient returns. Additionally, Kellogg’s cereal business has faced its own challenges in recent years, as consumers have shifted away from traditional breakfast cereals in favor of fresher, less sugary or protein-rich options. This could mean Ferrero is buying into a declining segment rather than a growth engine.

According to NielsenIQ, breakfast cereal sales were $2.47 billion in 2021 but are expected to reach just $2.14 billion this year, continuing a decades-long decline. In fact, except for a brief period during the coronavirus pandemic, when many workers had time at home to sit down with a bowl of cereal and milk, sales of cold cereal have steadily fallen for at least 25 years.

Indeed, the move comes at a time when the U.S. food industry is facing unprecedented political pressure following the appointment of Robert F Kennedy Jr. as the top U.S. health official, who has avowed to remove harmful additives and artificial dyes from processed foods as part of his ‘Make America Healthy Again’ agenda.

No Sugar on Top for This Deal

On top of that, many American consumers have already spurned sugary cereals in favor of breakfast options they consider healthier, while other shoppers have switched to grocery store brands as a result of high inflation over recent years. Indeed, cereal has been struggling for multiple reasons, with the rise of more portable options like Kellogg’s Nutri-Grain bars and Mondelēz International Clif Bars, which both went on sale in the early 1990s, making it easier for consumers to grab breakfast on the go.

As a result of government mandates, Kellogg has pledged to remove synthetic colors from cereals in schools by the 2026-27 academic year and on August 14, it took that a step further and confirmed that it plans to remove artificial dyes from all its breakfast cereals in the next two and a half years.

Ferrero Banks On E.U. Experience

Regulations are probably where Ferrero believes it can bring its expertise. The European Union is far more regulated than the U.S. food industry, and many of the ingredients that need to be removed from Kellogg’s products are already absent from European foods. Companies operating within the E.U. are used to dealing with such complexities, and Ferrero is in an ideal position to make the process faster and less painful.

In its most recent reports, Ferrero generated revenue of nearly $21.5 billion in the 12 months to the end of August last year and has been on a spending spree to expand in the U.S. having bought ice cream maker and Halo Top owner Well Enterprises in 2022, plus Nestlé’s confectionery business for $2.8 billion in 2018, and candy manufacturer Fannie May in 2017.

WK Kellogg founder Will Keith Kellogg invented his cornflakes in 1894, with the cereal group growing to become arguably the best-known cereal empire in the world. On the other side of the Atlantic, Ferrero was founded in 1946 by Italian confectioner Pietro Ferrero, and the company remains under family ownership, with Ferrero’s grandson Giovanni serving as Executive Chair.

A match made in heaven or hell? If it’s to be the former, Ferrero will have to revive cereal sales, fast-track healthier ingredients and innovate with new products and categories. And it will have to take the American public on the journey, one spoonful at a time.

Ulta Beauty Scales Internationally with Space NK

Mark Faithfull — Mon, 28 Jul 2025 04:01:00 +0000

Ulta Beauty’s acquisition of U.K. retailer Space NK from its private equity owner Manzanita Capital not only looks like a great fit for both parties but heats up a global beauty market that is increasingly the domain of a few major players.

It also suggests that Ulta Beauty is not in the mood to just hang around in the States. Not only does the acquisition boost Ulta Beauty’s ability to challenge Sephora, Amazon, TikTok Shop, and U.K. player and Walgreens subsidiary Boots in international markets, it brings the brand to the global table in one deft move.

Space NK is still growing at pace. Last year, its earnings increased 34 percent to $265 million, powered by growth in its under-25 consumer cohort, the retailer’s fastest-growing demographic. Even with the return of Sephora in the U.K., and the growth of Boots, the domestic Walgreens-owned chain, which has also pivoted hard into beauty, Space NK has retained customers with its loyalty program and differentiated offer.

Expansionist Aspirations

Indeed, Ulta Beauty has long eyed international expansion, but the company was only too aware that establishing its presence outside the U.S. from scratch could be slow and expensive. In Space NK, founded with a store in London’s Covent Garden in 1993 by Nicky Kinnaird, Ulta Beauty inherits a current base of 83 U.K. and Ireland stores, with 10 more slated to open, plus a strong online presence offering an immediate and scalable platform.

At the same time, the two brands neatly complement each other. Space NK has built its reputation on curating innovative, primarily high-end labels and offers a blend of global and indie products. That caché has largely eluded Ulta Beauty, despite all its success with a primarily mass‑market portfolio. Space NK has also achieved a strong brand following among younger shoppers, giving Ulta Beauty access to a new demographic.

Space NK Niche

Indeed, Space NK excels in executing hyper-local, personalized in-store experiences alongside digital integration, and Ulta Beauty will no doubt seek any operational and experiential learnings it can import from its new subsidiary. For its part, Space NK will be allowed to continue operating independently under its existing management with CEO Andy Lightfoot and maintain its brand and customer experience ethos.

That’s good news for shoppers, as Space NK has proven that it can excel at high-touch, localized selling, and operates stores in prominent locations like Battersea Power Station in London and will soon open on Oxford Street adjacent to the new IKEA urban store at Oxford Circus. Many of Space NK’s stores are located in smaller, upscale towns around the U.K. or in upscale London postcodes. With its reputation as a curator of products and services. Space NK also has strong relationships with some of beauty’s coolest up-and-coming brands.

Buying Space NK gives Ulta Beauty immediate access to the U.K. beauty community, plus an established distribution network and rich customer data. In reciprocity, some smaller brands from the U.K. might get the chance to launch in the U.S. through the deal, giving Ulta Beauty a point of differentiation and some much-needed international credibility.

Integrating supply chains, ecommerce, data analytics and brand relationships positions both firms to scale faster, with Space NK benefiting from Ulta Beauty’s far deeper pockets. Ulta Beauty will gain instant reach with new consumers, and its well-oiled operations will support Space NK’s store rollout, loyalty program and ecommerce growth. Space NK’s personalization tools could feed back to improve Ulta Beauty’s domestic offerings, helping reinvigorate its underwhelming collaboration with Target.

Ulta Beauty Goes Global

Ulta Beauty President and CEO Kecia Steelman, who was only appointed to the top job in January 2025, has attempted to reinvigorate the beauty giant by launching a strategy emphasizing U.S. consolidation, an experiential in-store focus, plus international growth.

Meantime rumors that Space NK was courting buyers had gathered pace for more than a year and the company had already refocused its operations, selling off its U.S. operations to distribution firm PCA Companies in 2024, while also investing in new stores in the U.K. Steelman cited Space NK’s brand strength and established team, plus Ulta Beauty’s need to enter the region through an established banner, as she stressed that the company was eager to learn from Space NK’s success in the U.K. as it seeks formulas to expand its international presence.

And she has wasted little time in widening its global scope, following a joint venture with Grupo Axo in Mexico slated to launch in August and a licensing agreement with franchise giant Alshaya Group in the Middle East, with stores expected to open in Dubai and Kuwait by the end of the year. The acquisition of Space NK could be used as a platform into continental Europe, tapping adjacent markets once U.K. integration is established.

Ulta Beauty also plans to launch an Amazon-style marketplace this year despite a cooling market. Indie brands – not traditionally Ulta Beauty’s strong suit – might just attract shoppers into its stores if it can leverage Space NK’s prestige to plug an important gap. “International expansion is an integral part of our ‘Ulta Beauty Unleashed’ plan, and the acquisition of Space NK offers a unique and strategically compelling opportunity to enter the growing U.K. market with a successful and growing brand. Along with our initiatives in Mexico and the Middle East, we are creating a broader platform for Ulta Beauty to unlock long-term, profitable growth,” said Steelman at the announcement.

Ulta Beauty Reset

The acquisition also comes in the midst of a major management shift: Steelman, previously President and Chief Operating Officer, took the top CEO job; Lauren Brindley, formerly of the U.K.’s Revolution Beauty was appointed Chief Merchandising and Digital Officer; Kelly Mahoney was promoted to Chief Marketing Officer; Amiee Bayer-Thomas took the newly-created role of Chief Retail Officer; and Chris Lialos recently took over from Paula Oyibo as CFO.

The management shakeup came after slowing market share gains, prompting Steelman to announce in April that the retailer had paused opening new shop-in-shops in Target. That deal, inked in 2020, has seemingly failed to deliver on expected revenues, especially compared with the success of Sephora within Kohl’s. Despite rolling out in over 600 Target stores, both retailers announced that, for the time being, they are focusing on leveraging those locations rather than expanding them any further.

Fiscal Red Flags

Ulta Beauty is the largest specialty U.S. beauty retailer and operates 1,451 retail stores across 50 states. But for its fiscal year, it is expecting at best 1.5 percent sales growth. That is a warning flag reflecting tightening consumer belts and supply chain disruptions as a result of the on/off U.S. trade tariffs. Steelman’s recent moves are an attempt to kickstart growth and increase its competitive advantage against rivals Sephora and Amazon.

Despite its small geographical footprint, the U.K. is a pivotal beauty market, and Ulta Beauty’s choice to buy an existing operation mirrors the re-entry of Sephora into the U.K. through the acquisition of local e-tailer Feelunique in 2023 after a 17-year absence, following its ignominious exit in 2005, having opened just six stores in five years.

Space NK is still growing at pace. Last year, its earnings increased 34 percent to $265 million, powered by growth in its under-25 consumer cohort, the retailer’s fastest-growing demographic. Even with the return of Sephora in the U.K., and the growth of Boots, the domestic Walgreens-owned chain, which has also pivoted hard into beauty, Space NK has retained customers with its loyalty program and differentiated offer.

Buying an 83-strong chain, which is minuscule to the point that Ulta Beauty’s stock price hardly budged a notch on the news, is more than the sum of its parts. Space NK could be the springboard for Ulta Beauty to take on the likes of Sephora, Boots, Amazon and the slew of expansionist Korean brands. The question is how far it can leap.

Hotel Chocolat and Knoops Face Off with Godiva

Mark Faithfull — Tue, 01 Jul 2025 04:01:00 +0000

Now for some good news. Buoyed by sweet success at home and major global ambitions, not one but two luxury U.K. chocolatiers have the U.S. in their sightlines. And both have made no secret of their ambitions, with Hotel Chocolat now backed by confectionary giant Mars Inc. and upstart Knoops declaring that it has designs on a billion-dollar empire.

Hotel Chocolat’s Thirlwell described the acquisition of the 250-acre Rabot Estate in Saint Lucia and transforming it into a boutique hotel as “destiny.” After a customer sent Thirwell a 1920s book about chocolate making while he was visiting his father in the Caribbean, he was inspired to fulfill his dream to create a place where luxury, wellbeing and style could come together with, naturally, cocoa and chocolate.

Sugar High

Indeed, American consumers won’t have long to wait. Just in time for the annual Easter candy fest, premium U.K.-based chocolate and coffee retailer Hotel Chocolat is set to relaunch in the U.S. after its $679 million acquisition by confectionary giant Mars.

It’s returning to the U.S. this March with two stores slated for Chicago in former Foxtrot sites at Lincoln Park and Lakeview, just under three years after it shuttered five stores in New York following its first foray into North America. The Hertfordshire-based business previously opted to exit the U.S. market in July 2022 to focus on its more profitable U.K. operations.

But little wonder that Hotel Chocolat is feeling emboldened a second time around. Not only does it have the sweet firepower of a huge corporation behind it, but its expansion plans come after it posted a 10.4 percent year-on-year increase in group sales during the four weeks ended December 29, 2024, and a 33 percent year-on-year rise in café sales.

As a result, it is also seeking to bolster its U.K. presence with 25 new stores in its home market over the next 12 months, building on its 147 British locations, 68 of which include a Hotel Chocolat café. “Despite consumers continuing to feel the pinch, they went for quality this Christmas,” Angus Thirlwell, Founder and CEO, said of the results as he pointed to strong sales across accessible price points from $7.50 chocolate-filled table crackers up to its Velvetiser experience hamper, which retailed at over $250.

Hotel Chocolat has a small overseas presence. It operates 11 stores in Japan, all of which have an in-store café, as part of a joint venture with Tokyo-based Eat Creator in which Hotel Chocolat holds 20 percent equity. It also has a single site in Gibraltar (the U.K.-owned outpost off the southern Spanish coast) and a boutique hotel in St Lucia, where Hotel Chocolat operates a cacao farm.

Thirlwell described the acquisition of the 250-acre Rabot Estate in Saint Lucia and transforming it into a boutique hotel as “destiny.” After a customer clearing out an office sent him a 1920s book about chocolate making while Thirlwell was visiting his father in the Caribbean in 2006, he was inspired to fulfill his dream to create a place where luxury, wellbeing and style could come together with, naturally, cocoa and chocolate.

Along the way, other premium rivals sold out and became pedestrian and mainstream. While premium is difficult to succeed on crowded supermarket shelves, Hotel Chocolat doubled down on premium stores with contemporary visual merchandising and an emphasis on quality. In short, it encapsulated the concept of affordable luxury and gifting.

Second Time Round

This is not its first foray into international markets. Founded in 1993, Hotel Chocolat began selling chocolate products online that year, making it one of the U.K.’s earliest etailers. The brand opened its first retail outlet in 2004 and its debut café in 2010, before opening stores in Denmark, Hong Kong and the U.S. during an aggressive expansion push between 2015 and 2018.

At the heart of all their operations, the problem seems to be that while Hotel Chocolat had nailed the niche, it had not mastered the slick operational efficiency required to go from national to international. Then along came Virginia-based Mars, which said it would provide Hotel Chocolat with an enhanced platform for growth, avowing to scale the business across the U.K. and explore further international expansion. “Hotel Chocolat is a brand we have admired for many years, with its leading premium product offering, world-class quality and deep omnichannel retail expertise,” said Andrew Clarke, Global President, Mars Snacking of the deal.

He should know. Clarke presides over a business with annual revenues of $47 billion, and Mars manages a portfolio of brands under its Snacking and Food divisions that includes the Mars, Galaxy, Maltesers, M&Ms, Skittles, Snickers and Wrigley’s confectionary ranges.

Knoops’ Billion-Dollar Opportunity

Rival Knoops also announced robust Christmas trading and confirmed plans for a U.S. debut later this year. The chain currently operates 24 U.K. sites alongside one overseas outlet in Dubai and has plans to open 16 stores in its domestic market before the end of 2025.

In its latest trading update, Knoops reported 22 percent comp sales growth in the U.K. during the five weeks ended December 29, 2024, compared with the previous year and the business has forecast annual U.K. revenues will hit $19.6 million for the 12 months ending March 31, 2025.

Knoops previously announced plans to open 20 new U.K. stores this year as part of a goal to reach 200 domestic outlets within the next four years. However, the business has fast-tracked and is now seeking to open 40 new outlets across the country within the next 12 months as it targets 300 U.K. stores by 2028.

Knoops made its debut foray outside the U.K. in November 2024 when it opened its first outlet in Dubai, and it is planning to enter more Middle East markets this year. The premium-drinking chocolate and coffee chain is also in advanced discussions to enter the U.S. and China, with its first outlets in both markets expected before the end of the year.

Founded in 2013 in East Sussex (in England’s south), Knoops might be a new name to many, but it has brought serious experience to its board. To support international growth, Knoops has appointed Lush co-founder and former Hotel Chocolat chairman Andrew Gerrie to its board of directors, where he will work alongside Julian Metcalfe, co-founder of Pret A Manger (another British F&B chain with serious designs on the U.S.) and former Sanctuary Spa Group CEO Alice Avis.

It’s a far cry from the humble beginnings in small tourist town Rye where German founder Jens Knoop started a hot chocolate café that went viral after TripAdvisor recommendations and when in 2017, national newspaper The Telegraph called it “The best hot chocolate in the world!”

Knoops is certainly not short on aspiration. Just 12 months ago, CEO William Gordon-Harris unveiled plans to build a “billion-dollar brand” and raised over $18 million in funding rounds to support ambitious growth plans, based on a company-owned store expansion model.

“The growth levels are absolutely enormous. The Chinese partners we’re talking to at the moment scaled 3,000 to 4,000 units for one particular brand in 36 months. We’re an affordable luxury business but we are also a mass-market proposition. We’re a category killer. We have no competitors in the world that do what we do, and I think that with the right ambition, combined with the right systems and people, I don’t believe there’s any way we can’t build a billion-dollar brand here,” Gordon-Harris told The Times.

Sweet Expansion

The U.S. has not always been a happy hunting ground for U.K. brands but there is certainly no holding back on the confidence of Hotel Chocolat and Knoops. While the former is well known to its domestic market and did much to establish the premium chocolate market in the U.K., Knoops has opted to seek out international customers while it finds its feet on a national level.

Both luxury brands share origin stories with founders who have a genuine passion for chocolate. They must also retain that artisanal spirit within a corporate environment in the case of Hotel Chocolat and through fast-track scaling in the case of Knoops.

Is there a saturation point for upscale chocolate? The same could be asked of coffee chains, to which the answer appears to be a resounding no. In an age where demand for affordable luxury is rising and alternatives to alcoholic drinks are being sought by younger generations, the Brits are banking on the irresistible charm of chocolate.