Kmart Group’s new managing director Aleks Spaseska has outlined plans to double the discount department store’s sales to $20 billion within a decade by focusing on younger shoppers and expanding its beauty range.

At the centre of the Wesfarmers-owned retailer’s massive expansion strategy is its wildly popular Anko home brand, which Spaseska hopes to expand internationally, including with stand-alone stores in the Philippines. If successful, Kmart could roll out stores across South-East Asia.

Spaseska, 41, outlined her plans at a Wesfarmers strategy day after becoming the youngest divisional head at the conglomerate in April. Kmart Group runs its eponymous department stores, as well as the Target chain and a growing Anko business that started in-house and now has tie-ups with international retailers, including Walmart Canada and toy giant Mattel.

While Perth-headquartered Wesfarmers operates national stationery brand Officeworks and a major hardware chain in Bunnings, alongside a large lithium and chemicals division, its discount department store business has been powering the company’s earnings growth in recent years.

It had targeted $10 billion in sales, and surpassed that milestone last year. Spaseska told investors on Thursday that she aimed to double that figure and reach $2 billion in earnings over the next five to 10 years.

To achieve that, the company is planning a new store format targeting shoppers aged under 30 with a more curated fashion and beauty display. It has also introduced click-and-collect options, a technology that appeals to younger shoppers. Spaseska pointed to the growing number of users active on the Kmart app every month – doubling over the year to some 1.3 million – as evidence that the strategy was beginning to work.

Kmart is also opening a new $200 million distribution centre in Sydney’s west. The 100,000 square metre site will begin operating late in 2027 and will be used for stores and online orders for both Target and Kmart to replenish products faster, improve availability and reduce costs.

Anko was established as Kmart’s own brand in 2019 and now sells more than 1 billion items – from linen to fashion and toys – in Australia each year. Last year, Wesfarmers revealed the brand accounted for 85 per cent of sales at the department store, more than $4 billion in six months. Jarden analysts have previously valued Anko alone at more than $8 billion.

Spaseska is trialling stand-alone stores in the Philippines, where it is hoping to target a growing middle-class and already has two outlets. Three more will open by the end of the year, and if successful, the company may roll out stores across the region, Spaseska said in an interview.

“We’re taking a very methodical approach,” she said. “We’ll be able to test how that performs in different shopping centres and across different demographics across the country, and that’s going to provide critical data because it will allow us to be able to estimate how big it could be.”

Having already trialled selling products in the United States, Anko homewares and furniture is now on sale through Walmart Canada. The brand has also signed a distribution deal with European supermarket Action. “They are very large, and they are rapidly growing, and we see them as a really great partner into a number of European markets,” she said.

Tom Kierath, a Barrenjoey analyst, said that while Spaseska had not provided a clear timeline for the $20 billion sales target, the plan “illustrates the confidence management has in the Kmart growth trajectory”.

Kmart had “a number of growth drivers”, he said, which included the new format stores, the rollout of Anko internationally, and productivity improvements from new technology. Management “flagged it expects earnings to outpace sales growth”, indicating higher margins, Kierath said.

Wesfarmers’ chief executive, Rob Scott, said the Anko brand was crucial to the conglomerate’s growth, as were several other businesses. Among those were the company’s Priceline pharmacies business, which Wesfarmers has been investing in since acquiring its owner, Australian Pharmaceutical Industries, off the ASX in 2021 for more than $760 million.

The company is also developing its Atomica brand in a bid to capitalise on the booming demand for beauty and skincare products. The Australian Financial Review reported in March that Wesfarmers had begun experimenting with a new-look rebrand of some Priceline stores to compete with top-end Mecca and the lower-end MCoBeauty in the booming beauty category.

“It’s still early days, we only have a handful of stores that we’ve opened, but the attractive thing has been customers when they come into the store, they spend more, and international brands see it as a really exciting format,” Scott said about the success of the trial Atomica stores.

Scott, in an interview after the strategy day, said the Reserve Bank of Australia’s decision to cut interest rates this month was welcome news, but the central bank would need to cut twice more to spur spending. Small businesses, in particular, are important for Wesfarmers’ biggest division, Bunnings, and Officeworks.

Barrenjoey’s Kierath said that Wesfarmers continued “to execute well and delivered a measured but relatively strong earnings growth outlook across the board”, although he was more wary of its chemicals division.

Wesfarmers shares fell 97¢, or 1.2 per cent, to close at $83.09 on Thursday.

Author Credits- Carrle La Frenz
FINANCIAL REVIEW

Crocs‘ Terence Reilly is going to be busy creating brand heat for both the Crocs and Hey Dude brands.

Reilly, who rejoined Crocs in April 2024 as president for the Hey Dude brand, is now set to take over the newly created role of executive vice president and chief brand officer for both brands, effectively immediately.

According to the company, the former Crocs chief marketing officer — he left in 2020 to become president of the Stanley brand — will have both marketing and communications oversight for the two brands. He will continue to report to Crocs Inc. chief executive officer Andrew Rees, and will collaborate with both Anne Mehlman, executive vice president and brand president for Crocs, and the Hey Dude brand leadership team to drive strategy and execution. Rees will serve as interim president for the Hey Dude brand until a permanent structure is announced, the company said.

During Reilly’s tenure as brand president, he built a brand leadership bench that included bringing in Rupert Campbell as chief commercial officer and Kerstyn Chang as chief product and merchandising officer. Both Campbell and Chang will continue to drive forward the Hey Dude vision and will report to Rees.

“The power of the Crocs and Hey Dude brands is unlike anything I’ve seen in my 25-plus years of connecting with consumers and culture to drive lasting business results. We have two of the largest casual footwear brands in the world, loved by communities of passionate fans,” Reilly said. “While we have seen remarkable success over the last decade from Post Malone to Jelly Roll and so much in between, I believe we are just getting started.”

The collaboration between American rapper and singer Post Malone and Crocs began in 2018, while the first collaborative shoe between singer and songwriter Jelly Roll and Hey Dude was launched in October 2024. Crocs acquired the Hey Dude brand in 2022.

“Since Terence rejoined Crocs, Inc. in 2024, the Hey Dude brand has seen significant traction under his leadership. He has galvanized a team, sharpened the brand’s strategic focus and re-established authentic connections with our consumers. I am confident that the green shoots we are seeing today are building the foundation for sustainable long-term brand growth,” Rees said. “With Terence in this new role and in partnership with our proven leadership team, this shift will create an elevated focus on driving heat and energy for both our brands and spark disruptive innovation as we engage with our consumers and customers around the world.”

Reilly’s appointment as the firm’s chief brand officer comes at a time when growth in athleisure footwear is viewed as a period of opportunity for Crocs. UBS softlines analyst Jay Sole said in April that the global footwear industry has a compound annual growth rate of 5 percent to 6 percent, skewed to sports footwear. Athleisure is expected to drive the category, possibly at an annual 8 percent pace. And with other growth factors such as casualization and the focus on healthy lifestyles, Sole said the trend has extended to casual and comfort shoe styles, which he sees as a benefit to the Crocs brand.

The company on May 8 posted first quarter earnings results that bested Wall Street’s expectations. Net income was $160.1 million for the quarter ended March 31, on revenues of $937.3 million. Adjusted diluted earnings per share (EPS) were $3.00. Wall Street had expected adjusted diluted EPS of $2.49 on revenue of $907.9 million. While Crocs revenues were up 2.4 percent to $762 million, Hey Dude revenues were down 9.8 percent to $176 million.

During the company conference call after it posted earnings results, Rees said the Crocs brand was making progress in new product introductions, such as sandals. At Hey Dude, he said the team continued to make progress on “stabilizing the brand.”

Author Credits- Vicki M.Young
WWD

The retail industry in the GCC is undergoing a sweeping transformation. Once dominated by traditional models, the sector has now emerged as a key enabler of economic diversification, technological innovation, and consumer-centric growth, according to a report by LOGIC Consulting.

The sector is expanding rapidly and is projected to reach over $390 billion by 2028, driven by digital innovation, changing shopper behavior, and strategic government initiatives, stated LOGIC in its report, titled ‘Revolutionizing Retail: Unveiling GCC’s Five-Year Transformation.’

Retail is no longer just a transactional space in the region, it is becoming a cornerstone of national development agendas, fostering private investment and energizing adjacent sectors such as logistics, real estate, and tourism, it added.

The report highlights the evolution of consumer expectations across the GCC. Shoppers are now more digitally fluent, time-sensitive, and experience-driven.

With 87% of consumers in the region using both online and offline channels to make purchases, the retail experience is no longer linear – it is “phygital.”

Food, non-food retail on the rise

The GCC’s retail ecosystem is broadly split into two pillars: food and non-food, each showing robust but distinct growth paths.

Food retail is expected to grow from $127.2 billion in 2023 to $162 billion by 2028, supported by rising urbanization and shifting dietary preferences.

At the same time, non-food retail – including luxury, electronics, and fashion – is surging faster, with a CAGR of 6.2%, expected to hit $243.6 billion within the same period.

Saudi Arabia and the UAE continue to lead the region, representing over 75% of all retail sales today – a share set to grow further.

Digital retail taking centrestage

From AI-enabled platforms to hyper-personalized e-commerce journeys, retailers are reinventing themselves at breakneck speed. The emergence of “quick commerce”; ultra-fast delivery in under 30 minutes, is reshaping how consumers access everyday essentials.

Digital-first players like Noon and Amazon.ae are competing head-to-head with legacy giants such as Carrefour and Lulu, who are now embedding AI, live inventory, and omnichannel logistics into their operating models.

The report outlines how organized retail is expanding, with nearly 4 million sq m of new retail space expected by 2028. Yet the future lies beyond square footage, experiential shopping, augmented reality, and predictive personalization are becoming the norm.

“Retailers in the GCC are no longer just selling products, they are curating journeys and building ecosystems,” stated Rabie. “Success hinges on who can best merge the physical with the digital,” he added.

The rise of value and purpose

While luxury retail continues to thrive, a powerful countertrend is emerging: value-driven retail. Private labels, cooperative societies, and budget-friendly chains are resonating with a growing middle class and price-sensitive consumers, said the report.

Simultaneously, ethical and sustainable retail is gaining momentum, with over half of GCC consumers now prioritizing environmentally responsible brands, it added.

The report concludes with five strategic calls to action for retailers aiming to thrive in the region’s evolving landscape:

*Define a compelling USP in a saturated, digitally competitive market.

*Embrace operational transformation through lean processes, data intelligence, and agile supply chains.

*Navigate market fragmentation with readiness for consolidation and joint ventures.

*Build strategic partnerships and ecosystems that drive innovation and speed to market.

*Adapt deeply to local market dynamics, tailoring everything from inventory to customer service.

As the region becomes a hub for tech-savvy, high-income, and experience-driven consumers, the retail sector is poised to become a defining pillar of the GCC’s post-oil economy, stated Rabie.

“The GCC is not just catching up to global retail trends, it is helping define them,” he noted. “This is a moment of reinvention, and those who lead now will set the tone for the next decade,” he added.

News Credits – ZAWYA BY LSEG

Amazon is testing AI-powered short-form audio summaries on select product detail pages, the e-commerce giant said on Wednesday, as tech companies continue to integrate artificial intelligence across their platforms.

The new feature offers summaries about products based on an AI-driven analysis of product details, customer reviews, and other related information from the internet.

Currently available for a subset of U.S. customers, the company plans to expand to more products and customers in the coming months.

Users can access these audio summaries by tapping the “Hear the highlights” button in the Amazon shopping app.

Amazon has intensified its focus on AI integration across its business, recently revitalizing Alexa+, a voice assistant powered by generative artificial intelligence.

The company has also integrated tools such as Rufus, its generative AI-powered shopping assistant that answers various shopping queries, and Shopping Guides, which provide guidance and product recommendations, onto its website.

Tech companies have been rapidly deploying AI tech to consumers, spurred by the popularity of OpenAI’s ChatGPT chatbot.

Last month, OpenAI updated ChatGPT’s web search capabilities to improve online shopping for users with personalized product recommendations with images, reviews, and direct purchase links.

Big Tech majors, including Google and Meta, have constantly rolled out new AI-driven features and updates across their products.

News Credits- FASHION NETWORK

Top South Korean companies, including the conglomerate Lotte Group, are planning to invest and expand into the Philippines, with a focus on food service, franchising, and retail modernization.

In a statement, the Department of Trade and Industry (DTI) said Secretary Cristina Roque met with officials of Lotte Group and other leading South Korean companies during her trade mission in Seoul, South Korea, last week.

The DTI said the meeting highlighted the companies’ plans to leverage their operational expertise and advanced retail models to contribute to the country’s growing economy.

“These companies aim to invest in joint ventures, master franchise agreements, and localized operations that will generate employment, strengthen supply chains, and modernize retail distribution in the country, progressing beyond exporting their brands,” it said.

During the meeting, Lotte GRS, the restaurant service arm of the Lotte Group, shared its intention to launch its flagship fast food brand Lotteria in the Philippines.

Upon launching, Lotteria aims to open at least 30 stores in the country over five years, harnessing local sourcing and workforce development.

Without disclosing the names of the companies, the DTI said some have also outlined plans to introduce “modern convenience store formats” tailored to the “urban Filipino lifestyle.”

The agency said these firms are looking to build on their success in markets such as Vietnam and Mongolia through partnerships with local operators.

The Korean companies told the DTI chief that they are committed to sourcing at least 95 percent of the products in their local stores within the Philippines itself.

Aside from food service and retail ventures, a number of firms are also exploring opportunities in restaurant expansion and import-export channels for the country’s agricultural and seafood products.

The DTI said one company, which it did not name, has recently signed a partnership with a local firm. It will reportedly open its first location in Manila by August.

Roque said the growing confidence in the Philippine market reflects the country’s young and dynamic population, as well as the strength of the economy.

She noted that the government is fostering an investor-friendly environment through strong incentives and streamlined processes, such as those under the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.

“The Philippines is open for business, and we are committed, aligned, and prepared to grow with our partners,” said Roque.

“As the Philippines continues to attract world-class partners, the DTI continues to work towards supporting foreign investors through services such as partner matchmaking, regulatory assistance, and investment facilitation,” she added.

Author Credits- Dexter Barro II
MANILA BULLETIN

Nike is set to raise prices on several of its products starting next week and will also return to selling its products at online retail giant Amazon, according to media reports, as President Donald Trump’s tariffs disrupt global supply chains and impact retailers’ profits.

The company, which sources a significant portion of its footwear from China and Vietnam, will increase prices on apparel and equipment for adults between $2 and $10, while footwear priced between $100 and $150 will see a $5 hike, CNBC reported.

Nike will also return to selling products on Amazon for the first time in six years, the Information reported, as the footwear maker works to regain market share from newer and trendier competitors, amid a turnaround under CEO Elliott Hill.

Nike and Amazon did not immediately respond to Reuters requests for comment.

Shoes costing more than $150 will see their prices increased by $10, while products costing less than $100 will not experience any price hikes. Nike’s Air Force 1 shoes, which cost $155, are exempt from the increase, CNBC reported, citing a person familiar with the matter.

With the critical back-to-school shopping season fast approaching, the company will maintain current prices for children’s products, the report added.

Nike’s products on Amazon are currently sold by independent merchants, and the footwear maker stopped selling on Amazon after two years on the platform in 2019, as it shifted focus to sales on its own websites and in stores.

Amazon notified some of those merchants that it will ban them from selling certain Nike products beginning July 19 because it was working with Nike directly, the Information reported, citing a message sent to merchants by the company.

German sportswear brand Puma also said earlier this month it had reduced shipments from China to the U.S. and might increase prices in the country due to tariffs.

News Credits- FASHION NETWORK

Home improvement retailer Lowe’s (LOW.N), opens new tab posted a smaller-than-expected drop in first-quarter sales on Wednesday and said it plans to keep its pricing competitive, without ruling out the possibility of price hikes on some items due to tariffs.
In a conference call on Wednesday, CEO Marvin Ellison said Lowe’s is “not donating share to any competitor by sitting back and not being price competitive.”

The comments were in contrast to those of competitor Home Depot (HD.N), opens new tab, which on Tuesday vowed to keep prices steady, but the companies maintained their annual forecasts.

Lowe’s CFO Brandon Sink said he expects profit margins to remain flat this fiscal year, noting that price impacts from tariffs would be concentrated in the second half of the year due to the company’s practice of selling older stock first.

Prices are a key topic in retail in the wake of U.S. President Donald Trump’s imposition of big tariffs on key trading partners. The levies could even rise further in the coming months.

Walmart (WMT.N), opens new tab last week warned that shoppers could soon face higher prices due to the U.S. tariffs, while Target (TGT.N), opens new tab lowered its annual sales and profit forecasts on Wednesday, citing weakening demand among shoppers.

Meanwhile, Lowe’s’ primary rival, Atlanta-based Home Depot, bet on its diversified supply chain and a strong hold on professional customers like contractors to mitigate tariff impact. But company executives admitted that if tariffs on certain items became untenable, they could disappear from shelves altogether.

Sales at Home Depot and Lowe’s have been hurt by tariff fears, which have contributed to a plunge in consumer sentiment and discouraged large-scale renovation projects that typically require customers to take out new loans.

Still, Lowe’s reported a smaller-than-expected drop in first-quarter comparable sales on Wednesday, helped by steady demand from construction professionals.

Ellison said strategic investments in its stores and technology helped it navigate better amid economic uncertainty and a slow housing market.

Last month, the company acquired Artisan Design for $1.33 billion to improve its focus on demand from professional home builders and property managers.

Lowe’s has also diversified its supply chain and added more local suppliers to help it mitigate the impact from U.S. tariffs.

About 60% of Lowe’s’ purchase volume comes from the U.S., Ellison said on the call, while 20% is sourced from China.

Bill Boltz, Lowe’s’ executive vice president of merchandising, said that items imported from China – the country most in Trump’s crosshairs – include holiday trees, ceiling fans, small appliances and tools.

The company expects 2025 comparable sales to be flat to 1% higher and earnings per share in the range of $12.15 to $12.40.

“Lowe’s guidance is in-line with current market expectations, which has to be seen as a net positive in this environment,” said Sheraz Mian, director of research at Zacks Investment Research.

The company reported a 1.7% drop in same-store sales for the quarter ended May 2, compared with analysts’ average estimate of a 2% decline, according to data compiled by LSEG. It earned $2.92 per share, above estimates of $2.87.

Shares of the company were down 2%.

Author Credits- Savyata Mishra and Nicholas P Brown
Reuters

Shopify on Wednesday rolled out a generative artificial intelligence feature that would allow merchants on its e-commerce platform to set up their online stores by entering descriptive keywords.

The “AI Store Builder” generates three store layouts, complete with images and text, based on the keywords, helping sellers significantly reduce the time and resources required to design their store website.

While Shopify has offered various AI-based tools and third-party applications to assist merchants in building their stores, the AI Store Builder is the first integrated feature that fully automates the website setup process.

“Instead of just having a merchant click and drag and fill out text fields on how they want their site to look – which can be really daunting for some – we thought why not ask them more open-ended questions and set up their store in the best likeness we can imagine, using AI,” said Vanessa Lee, vice president of product at Shopify.

Shopify has bet heavily on AI products to draw more merchants to its platform, offering tools that range from image generation to inventory management.

News Credits- FASHION NETWORK

Candere, a lifestyle jewellery brand from Kalyan Jewellers has signed Bollywood actor Shah Rukh Khan as its brand ambassador.

With this association, the brand aims to expand its presence in the men’s jewellery category and banking on the actor’s popularity with Indian audiences across all age groups to boost sales.

Khan will feature in the brand’s multimedia campaigns spanning across digital, television, print, and in-store experiences.

Commenting on the association, Ramesh Kalyanaraman, director of Candere in a statement said, “In Shah Rukh Khan, we found a partner whose cultural resonance, timeless appeal, and emotional connect mirror the values we stand for. He bridges generations while remaining powerfully relevant to today’s audience. His presence will help us articulate the idea that Candere’s jewellery is no longer just about adornment – it’s a thoughtful, personal expression of identity and intent.”

Shah Rukh Khan added, “Jewellery has always been a powerful expression of love, memories, and identity. I’m excited to partner with Candere, a brand from the House of Kalyan Jewellers, which offers a modern and fresh perspective on how people wear and gift jewellery today.”

Candere retails its jewellery through its e-commerce platform and over 75 retail stores across India.

Author Credits- Maverick Martins, FASHION NETWORK

Investors can experience the 360-degree lifecycle of their investment, while agents gain deeper insights into their customers’ buying journey

Dubai, UAE: DAMAC Properties has unveiled the Middle East’s first fully experiential e-commerce property website, redefining the future of real estate transactions with a seamless blend of technology, transparency, and immersive engagement.

This world-class digital platform allows users to explore DAMAC’s luxury properties through interactive 3D virtual tours, check live inventory, and reserve units in real time all in seconds.

Ali Sajwani, Managing Director of Operations, Finance and Hospitality at DAMAC, commented: “The launch of our new e-commerce platform represents a bold step forward in redefining how real estate is experienced and transacted for our buyers in the UAE and globally. Combining immersive technology with seamless functionality empowers buyers and brokers with more access, convenience, and confidence.”

Integrated with metaverse capabilities, multilingual and geo-targeted features, and end-to-end CRM and telesales support, the platform brings unprecedented convenience to investors, home buyers, and brokers. It offers agents personalised links with lead attribution, 15-day tracking, full EOI (expression of interest), and invoicing capabilities.

Key projects in DAMAC’s portfolio, including the latest launch, Chelsea Residences by DAMAC, are now available on the portal for users to submit their EOI.

The new website also integrates with DAMAC Properties’ internal inventory management pipeline, ensuring the near real-time availability of units across its portfolio.

As DAMAC Properties continues to expand its reach and enrich its customer offer, the launch of this new platform represents our commitment to innovation and delivering exceptional experiences for buyers and brokers.

Visit the website: www.damacproperties.com

About DAMAC Properties

DAMAC Properties has been at the forefront of the Middle East’s luxury real estate market since 2002, delivering award-winning residential, commercial and leisure properties across the region and internationally, including in the UAE, Saudi Arabia, Qatar, Jordan, Lebanon, Iraq, the Maldives, Canada, the United States, as well as the United Kingdom.

Since then, the company has delivered more than 48,000 homes with over 50,000 more in diverse planning and development phases. Joining forces with some of the world’s most eminent fashion and lifestyle brands to create tremendous living experiences, such as with Versace, Roberto Cavalli, or de GRISOGONO. With a consistent vision and momentum, DAMAC is building the next generation of luxury living across the globe.

News Credits- ZAWYA BY LSEG