Baby-Boomer bashing has become a favourite Millennial and Gen Z past time. Yes, yes, we know they’ve taken our futures, they own everything, have everything and our lives won’t materialistically match theirs, but they should be aspired to rather than looked at enviously and begrudgingly. This is the youngest generation of older people ever and they are staying in good health for longer.
Left - The Young Old - It's very hard to find an image which isn't patronising or a stereotype of the elderly
They are also choosing to work longer. A recent survey by jobs website, ‘Rest Less’, shows almost one in 12 of people in their 70s are working, compared with one in 22 a decade ago. Admittedly, there are more older people, overall, but, it is a growing trend driven partially by skills shortages. There has been an increase of 285,000 workers over 70 over the past ten years.
Due to better health and an appetite for a certain standard of lifestyle many of this generation is lucky enough to enjoy working and are using the additional income on luxury holidays and prestige cars. I look at my parents and they are both working past traditional retirement ages. Mortgages paid off, free travel, fuel allowance! and in good health, they see no reason to retire. This is the energetic generation of the 1960s and they don’t want to slow down just because they are getting older.
Stuart Lewis, of Rest Less, said, ‘Gone are the days of working hard five days a week for four and a half decades before suddenly stopping. We can see that part-time work is growing in popularity among the over-70s, both male and female.’
Baby boomers were born between 1944 and 1964. They're currently between 55-75 years old. They are the most successful generation of people ever and represent nearly 20% of the American and UK public.
Netwealth, a wealth manager, analysed the Office for National Statistics’ Wealth and Assets surveys between 2006 and 2016 (the most recent data available) and found those aged over 65 owned 28 per cent of the UK’s household wealth in 2006, a figure which had increased to 36 per cent 10 years later. The analysis also found that one in five (20 per cent) of over-65s in the UK to be a millionaire, compared with 7 per cent in 2006. The total wealth owned by over 65s nearly doubled - from £2.4trillion to £4.7trillion - in the decade between 2006 and 2016, while in comparison, those between 25 and 54 years old saw their wealth increase by just 9 per cent in real terms during the same time. That means that for every £1 of UK household wealth, Baby Boomers own the biggest share of 36p.
Author, Camilla Cavendish, has just published a new book called ‘Extra Time: 10 Lessons For An Ageing World’. She cites Mick Jagger, still touring at the age of 75, as an example of the so-called “young-old”; the growing number of people who extend an active and healthy middle age into their late Seventies. According to Cavendish, dementia rates have actually fallen by 20 per cent in the past 20 years in the UK.
“It’s not old age that’s getting longer, it’s middle age,” she writes. “We need to . . . stop lumping everyone from 60 to 100 together, and accept its normal to be vibrant and capable in your 70s”.
During the same period we’ve seen a massive decrease in traditional killers of older men and women. According to the British Medical Journal, between 1990 and 2013 cardio vascular disease death rates in England declined by 52%, coronary heart disease (CHD) by 60%, and stroke by 46%. The reason has been attributed to the reduction in smokers and also the banning of smoking in public places in 2007.
Many people lose their sense of purpose when they no longer work and if you don’t want to retire why should you when we live in a country of record employment and the demand is there for workers with experience? Old age should be a balance and many of these people are choosing to work part time which goes to pay for their more indulgent free time. So, what does it mean for businesses and brands?
I think we saw an example late last year when LVMH bought the travel company Belmond. LVMH, paid $25 per Belmond share, a premium of more than 40 percent on the company’s closing price, a deal valued at $2.6 billion. Established over 40 years ago with the Hotel Cipriani in Venice, Belmond owns and operates a collection of the world’s finest hotels and luxury travel companies in 24 countries including Hotel Splendido in Portofino, Copacabana Palace in Rio de Janeiro, Le Manoir aux Quat’Saisons in Oxfordshire, plus the Venice Simplon-Orient-Express and Belmond Royal Scotsman luxury trains and cruises such as Belmond Afloat in France fleet and Belmond Road to Mandalay.
Bernard Arnault, Chairman and Chief Executive Offer of LVMH, said, “Belmond delivers unique experiences to discerning travellers and owns a number of exceptional assets in the most desirable destinations. Its heritage, its innovative services, its excellence in execution and its entrepreneurship resonates well with the values of the Group and is complementary to our own Cheval Blanc maisons and the Bvlgari hotels activities. This acquisition will significantly increase LVMH’s presence in the ultimate hospitality world.”
This “ultimate hospitality world” is targeted squarely at those with the time and disposable incomes. LVMH has just unveiled plans to open a Cheval Blanc hotel in Mayfair. The Cheval Blanc brand was created in 2006 and has locations in Courchevel, the Maldives, Saint-Barthelemy and Saint Tropez. The former department store La Samaritaine in Paris is due to reopen as a Cheval Blanc hotel later this year. Estimated to cost £500 million, the development would be a joint project between LVMH and real instate investor O and H Group, which owns the sites on 8-14 Grafton Street, 163-164 New Bond Street and 22-24 Bruton Lane. If planning permission for the London hotel is granted, work would begin at the start of 2020, with a view to opening the Foster and Partners designed hotel in the third quarter of 2022.
A natural progression from owning and running the luxury retail stores of Bond Street for LVMH, another new luxury hotel and apartment development is The Residences at Mandarin Oriental Mayfair. Currently being built, and due to open in 2021, they are next door to Fenwicks on Hanover Square and residents will enjoy privileged access to a full suite of services and amenities provided by the integrated Mandarin Oriental Mayfair Hotel, including in-residence dining & house keeping, 24/7 Concierge, valet parking, an opulent spa and roof terrace bar overlooking Mayfair.
Left - The Old Old - One way not to hit 100?!
A big opportunity for brands is there. A move away from material goods to holidays and experiences actually makes more sense for this older generation than it does for Millennials. These people have enough stuff and they’ve often outgrown the novelty and fripperies of fashion while at the same time having the leisure time to take more holidays and at higher price points. This ‘Young Old’ generation has the luxury of time and money. They are healthier and more active. They’ve worked hard and have been blessed with the rise of property values and generous pension schemes. By choosing to work longer they are topping up their incomes and as such are a very attractive demographic for businesses specialising in life's luxuries. Sadly, for subsequent generations, working past traditional retirement ages could be less of an option and more of a necessity.
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While the majority of UK cities are struggling to deal with the implosion of their high-streets, London is a juggernaut that keeps people spending. Thanks to tourist dollars and and an increasingly high-spending visitor, Bond Street, arguably London’s premier luxury shopping street, has seen a raft of new openings hoping to tap into London as the global retail destination. From Alexander McQueen to Loewe, this historical street has seen glorious new retail spaces tailored to this exclusive location open to entice more money from shoppers.
Left - Alexander McQueen's new three storey store
The Office for National Statistics has just released the final International Passenger Survey (IPS) results covering 2018 and it’s still looking good for London. While the number of visits to the UK in 2018 fell slightly (-3%) - 2017 was a record - to 37.9 million, the data from the last 10 months shows visitors spending huge amounts and are visiting Bond Street, in particular.
Data from Global Blue, a tourism shopping tax refund company headquartered in Nyon, Switzerland, shows that the average spend on Bond Street among international visitors increased by 4% year-on-year from January to October 2018. International shoppers spent a huge average of £1,341 per transaction during this time.
Global Blue has also just opened its first VIP Globe Shopper Lounge on Albemarle Street in Mayfair, just a stone’s throw from Bond Street. According to their figures, the top spenders were visitors from the UAE, Qatar and Hong Kong. UAE shoppers spent £2,074 per transaction, up 19% year-on-year. Qatari shoppers spent £1,964 per transaction (up 7%), while Hong Kong shoppers spent £1,837 per transaction (up 15%).
Interestingly, the biggest increase was seen amongst Indonesian visitors, averaging £1,551 per transaction, up 20% compared to 2017.
Right - Staircase in the new Celine menswear store
Paris is London’s closest luxury shopping competition and the 'yellow vests’ or Gilet Jaunes protests have been affecting its attractiveness and is putting off visitors. "We lost between one and two growth points in 2018 due to the yellow vests," said Mathieu Grac, Global Blue's vice president of intelligence strategy.
The weakness of the pound is making shopping in London more attractive and better value for money. The Chinese, in particular, have always chosen Paris over London, but this could be starting to change with new stats show record breaking results for the end of 2018 for London. Visits to the UK from China in this period were up 52% to 94,000 – the 9th consecutive record quarter for visits. These visitors spent £160 million in the UK between October and December 2018 – 30% up compared to the same period in 2017. In total there were a record 391,000 visits from China to the UK in 2018, up 16% on 2017.
Overall, UK visitor spend in 2019 is forecast to be £24.9B, up 7.8%, on a forecast of 38.8m visitors.
While many designer brands are closing stores and trimming their global retail network, others are realising that in order to stay ahead, you need to invest heavily in the world’s finest locations. The days of copy-cat, identikit stores are over and brands know they need to make something unique for its location.
Proving this point is the new ‘Casa Loewe’. The Spanish brand, Loewe, owned by LVMH, and famous for its puzzle bags, has opened a three storey boutique designed in the vision of creative director, Jonathan Anderson. Like an art gallery with clothes, but with a personality and warmth, the London store features work by a selection of internationally renowned artists, including three oak sculptures by Ernst Gamperl (winner of the LOEWE FOUNDATION Craft Prize in 2017) alongside 15 photographs by Alair Gomes, the ‘Vulcano Table’ by Anthea Hamilton, a long- standing LOEWE collaborator, William Turnbull’s 1956 sculpture ‘Idol 4’ and Grayson Perry’s ‘Mum and Dad’ vase.
Left - Casa Loewe showing Anthea Hamilton's 'Vulcano Table'
It feels a very creative space and is one of the few luxury boutiques on Bond Street to give you this full idea of a lifestyle. The sales assistant I spoke to said Anderson was often in the store talking to them through the product and also making sure things were working correctly. She also said they had a great many Chinese customers.
Further down Bond Street is the new Celine menswear boutique. The first time Celine has done menswear under new creative head, Hedi Slimane, it feels very déjà vu in the Saint Laurent mould and looks like all those other marbled minimal retail palaces from brands such as Neil Barrett or End Clothing in Soho. On the corner of New Bond Street and Grafton street, in the old Boucheron store, it is exactly what fans of Slimane will want and the quality of the clothes do look good. Downstairs is a compact tailoring area and while none of the extra skinny clothes had a price tag on, the raised front doors are automatic, just in-case those super-skinny rockstars don’t have enough strength to open them. Disappointly, this concept will look the same the world over.
Into Old Bond Street, Alexander McQueen has amalgamated all three of their London stores into the large, former DKNY outlet. The three storey boutique is a beautiful, sweeping space by Chilean architect Smiljan Radic, his first retail project. It truly flows with giant glass tubes linking the floors and acres of matt walnut covering every surface including the two spiral staircases.
The ground floor is home to womenswear and the first floor to menswear. The top floor is like a museum, probably hoping to capitalise on the popularity of ‘Savage Beauty’, it illustrates the artistry of the current collections while being dotted with archive pieces. This area will also be used to host a programme of exhibitions and talks aimed specifically at inspiring students. It left me with a renewed respect of the work of the brand which I’ve often dismissed since McQueen’s death. There was a men’s coat, hand embroidered with silver graffiti, on sale for £100,000.
Stella McCartney has moved her store from the Edward Barber & Jay Osgerby designed Bruton Street to Old Bond Street. A difficult space, it is linked by a huge metal staircase reminiscent of the tanks at Tate Modern. More concrete and terrazzo, the front ground floor is peppered by giant boulders and moss. A small glade of silver birches decorate a roof garden and 'Airlabs' technology makes this the first indoor commercial space in London with the cleanest air possible.
The store carries all the brand’s collections including women’s and menswear ready-to-wear, accessories, lingerie, swimwear, kids, eyewear, fragrance and adidas by Stella McCartney. Stella McCartney said, “Old Bond street, it’s probably one of the most prestigious retail locations in the world. And for me being born and bred in London and having our business headquarters there and design studio, it’s an incredible honour for us. This store really tells the story of the World of Stella McCartney; incorporating sustainability, fashion and luxury.” Louis Vuitton’s giant Bond Street store is also being refurbished and will hopefully offer something bespoke to this prestigious location.
Right - Stella McCartney's ground floor showing boulders running through the centre
What this group of shops show is the huge investment still going into physical retail. If you’re going to entice those shoppers, you'll need to offer something original, something they'll want to investigate and explore and ultimately an experience of buying something truly great and memorable. By working and competing as a group, it gives more incentive to brands and people to make this the greatest destination and a positive cycle of openings and continued openings will keep this firmly as one of the most thriving luxury retail destinations in the world.
It was the mid-nineties, I’d been shopping on a Saturday afternoon and somehow I’d found myself locked out of my house. I took refuge with the neighbours next door. Surrounded by shopping bags, my older neighbour took umbrage at something written on the side of one of them. In large, bold lettering, the white paper bag read ‘F.C.U.K.’. I thought nothing of it because I’d been a fan of French Connection for a few years and naively thought everybody knew what it stood for. I didn’t think it was rude, he clearly didn’t agree.
Left - French Connection brings back FCUK with Urban Outfitters
This simple shock tactic abbreviation devised by advertising executive Trevor Beattie, having noticed FCHK (French Connection Hong Kong) on an internal memo, was a revolution for French Connection’s marketing campaigns. It really was one of the best and most fashionable upper high street stores at the time and condensing French Connection United Kingdom down to this four letter word in 1997 came to symbolise the division between those who got it and those who didn’t. It was brilliant. The subsequent poster campaign, which read "FCUK fashion", received complaints from the Advertising Standard Authority, MPs and even the Church of England at the time.
Unfortunately, French Connection didn’t know when to let it go. It’s about to come around yet again with a new, exclusive collection with US Urban Outfitters. The FCUK + Urban Outfitters collaboration is taping into 90s nostalgia with a collection ranging in price from $39 to $129 and featuring the FCUK slogan loud and proud.
“Our brand has always been driven by innovation and change,” said Stephen Marks, founder and chairman of French Connection. “When FCUK launched in the ‘90s, it pushed boundaries and was wildly popular with a youth that celebrated individuality and self- expression. The timing is right to bring this back and introduce it to a new generation that shares this attitude and energy.” he said.
FCUK looks comparatively tame today. Fast forward over 20 years and we’re in an age of ‘Fucking Fabulous’ and ‘Bollocks To Brexit’. In a time of ‘alternative facts’ and fake news, people and brands are starting to say it exactly how it is. It feels like there isn’t time for tip-toeing around and the B.S. of previous generations.
Tom Ford originally launched his perfume ‘Fucking Fabulous’ as a limited edition for his Spring Summer 2018 catwalk presentation.
Right - Tom Ford saying how we all feel (sometimes)
According to American website Coveteur on how the name came about; “We were sitting in a meeting smelling the fragrance and Tom said, ‘This is fucking fabulous,’” recalls John Demsey, executive group president of the Estee Lauder Companies, which owns Tom Ford Beauty. “I said, ‘Yeah, it is fucking fabulous.’ He said, ‘Well, why not [call it] Fucking Fabulous?’ So we did. It’s a descriptive. Some people talk about fragrance ingredients; we talk about how it smells.”
For the conservative, American beauty giant Estée Lauder to sign this off was a bold move, especially considering how sensitive the middle of America can be.
“Tom Ford is the consummate gentleman. No one cares more about manners than he does,” adds Demsey. “I understand that this could be offensive to people, but it’s been done in a super elegant, high-end way with good taste. There is a very fine line between what’s salacious and what’s pornographic, what’s erotic and what has a sense of humour. Tom is one of those people who has the ability to do both.”
The PR at Tom Ford Beauty told Coveteur when I asked whether there was any resistance to the name: “This was 100% a Tom decision. We don’t negotiate with Tom Ford.”
Tom Ford has the power and track record to get what he wants and there wouldn’t be many brands or designers brave enough or powerful enough for this to make it through to market. ‘Fucking Fabulous’ has become a cult product even though the scent isn’t particularly memorable.
“I haven’t had this many requests since Tom first went into business with us ten years ago,” Demsey told Coveteur. “Everyone’s asking me, ‘Aren’t I fucking fabulous?’” he said.
This is a case of saying exactly what people think or what you hope they will think, and so it turns to the forthcoming European Elections. The Liberal Democrats slogan ‘Bollocks To Brexit’ isn’t original to them. People have been using it since the referendum, but they have been brave enough to use it and tap into people’s frustrations. It’s definitely a first for politics to be this brave and out there when it comes to campaign slogans. Some have describe it as “coarse” or “crass”, but it’s a very clear message and is exactly what people need today with so much noise on social media and confusing issues and conflicting arguments. It’s decisive.
Lib Dem leader Sir Vince Cable has defended titling the party manifesto “Bollocks to Brexit”, after the BBC’s Andrew Marr refused to read out the name on-air. Marr said: “This is the first manifesto whose title I cannot read out on Sunday morning television. Do you not feel a little embarrassed about the coarseness of your main election slogan?” Sir Vince responded: “A few people objected to it. I looked up the etymology of ‘bollocks to Brexit’ and the first thing I read was it was a word with a long and distinguished history going back to the 18th century.”
Left - Liberal Democrats slogan for the European Elections 2019
What was pioneered by French Connection’s FCUK, has been taken and run with by Tom Ford’s 'Fucking Fabulous’ and the Lib Dems' ‘Bollocks To Brexit’ and shows there isn’t time to pussy-foot around to get your message across. For brands and companies, labels, slogans and names like these are a risk, but this bravery, when it pays off, is rewarded with the both positive and negative energy needed to gain attention in today’s crowded and fractured marketing mix.
Making people feels a little bit uncomfortable and pushing the envelope of polite language and what is deemed acceptable, resonates, leaves a lasting impression and gets people to remember your product. But, it’s a gamble, some will fall fantastically flat. It’s a question of judgement, but the potential gains are worth it.
It’s the modern version of shouting and waving. Staying safe now means getting lost in the middle somewhere. This is like the classic Ronseal type of marketing, saying exactly what’s on the tin, but, now, it’s just what you would say to those closest to you or in private. Say it like it is.
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If you hadn’t already heard it’s time to start buying back into Bottega Veneta. The Italian luxury goods brand known for more weave than Beyoncé, they call it ‘Intrecciato’, has a new Brit designer at the helm, Daniel Lee.
The replacement for Tomas Maier, Lee, 32, was previously director of ready-to-wear at Céline, but a relative unknown. He is a graduate of Central Saint Martins and has worked at Maison Marginal, Balenciaga and Donna Karan, before joining Céline in 2012.
His first full show of AW19 luxe-grunge caused a frisson when it was shown in February, but the pre-fall collection is available now.
Leather trousers are something that have been bubbling up for a few seasons. They fit into that naff, retro aesthetic pioneered by Balenciaga. These are subtly Bottega with the woven knees and will tell everybody you’re in the know with the hottest label right now. Wear with biker boots and oversized anything.
Left & Below - Bottega Veneta - Trousers In Lamb Satiné - £3825
Arguably the finest looking retail street in London, Regent Street’s sweeping thoroughfare is home to the world’s largest Burberry store. The former theatre and cinema is a huge, cavernous stage for the only domestic luxury mega-brand the UK has. What you’ll notice recently, as you walk past, there is never anybody in it. Worryingly, the store always looks empty of customers, and, as is often the case in fashion, you don’t need to see financials or figures to see whether something is instinctively selling or not.
After two distinctly underwhelming, but vast collections under new Creative Director Riccardo Tisci, the first results are in and it doesn’t bode well. Sales are flat in a market that has seen stellar performances from Kering and LVMH. Burberry’s sales grew by just 2% to £2.7B over the year to March 2019 with an adjusted operating profit of £438m. According to Bain & Company, the luxury goods and experiences market grew by 5% in 2018 and to put this into further context, LVMH was up 10% and Kering was up an incredible 26.3% over the same period.
Left - Gigi Hadid in Burberry's latest campaign. The collection could easily be confused with Fendi
After Burberry’s huge growth under previous Creative Director, Christopher Bailey, the brand’s new strategy is to take the brand more upmarket and completely change the feeling and identity of the brand. Marco Gobbetti, Chief Executive Officer, who hired Tisci, puts a positive spin on it in the brand’s latest financial release, “We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations. Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for FY 2020.”
The two stores Burberry had in Knightsbridge have closed and are now a trashy souvenir shop and while they said they are taking a new store above the Tube station, it is a long way off from opening with only the facade currently standing.
The only hope is that they are still selling in China. There was a report in Jing Daily, the leading digital publication on luxury consumer trends in China, in April, that said Burberry had shut down four retail stores in Shanghai since August 2018, with the latest closure occurring on March 31, when the brand ceased the operation of its flagship store at the city’s L’Avenue, which it opened in 2013. The article said “the company had been laying off Chinese staff in preparation for the closure until only seven of them remained”. The publication also said the permanent closure of the L’Avenue store represented a “landmark event” in Burberry’s perceived exit from Shanghai.
According to the results, in Asia, it’s seen low single digit growth in Asia Pacific, Korea and China, stable in Hong Kong and declining in Japan. Which is worrying. Burberry is also cutting costs to shore up the balance sheet.
The company is pinning all its hopes on the new Tisci product. The statement said “The first deliveries of Riccardo Tisci’s products arrived in stores at the end of February. Although it is currently a small portion of our offer, the initial reaction from customers has been very positive with sales of the new collections delivering strong double-digit percentage growth.” It’s not clear what the growth is in comparison to.
The company says it is currently on a multi-year journey to transform and reposition Burberry. “FY 2019 and FY 2020 are foundational years where we will re-energise the brand, rationalise and invest in our distribution and manage through the creative transition, after which we will accelerate and grow.”
In retail, they say they are focused on refreshing flagship stores, with over 80 retail doors expected to be “aligned” by the end of FY 2020. "To ensure we are focusing our resources on the most impactful locations, we will also be closing 38 smaller, non-strategic retail stores in secondary locations. In wholesale, we stepped up our wholesale rationalisation in the second half of the year, phasing out non-luxury doors.” says the financial statement. In total, Burberry closed a net 18 stores (seven mainline, nine concessions and two outlets) in the year and new openings included the relocation and expansion of the Dubai flagship and openings in Shin Kong Place, Xian (China). Fourteen retail stores had been aligned to the new aesthetic by the end of the period.
Tisci’s first collection ‘Kingdom’ hit stores in February, but it didn’t create the much needed desire within the fashion community which ripples out to consumers. In that period, we’ve seen Givenchy fly, Gucci continue to power on and Bottega Veneta get a new designer and start to make waves. Unless you make positive gains from the energy around a new star creative designer, the energy quickly falls flat and the new Burberry seems to have been striped of identity during its rebrand.
Riccardo Tisci’s and Christoper Bailey’s Burberrys were always going to be very different. One was incredibly successful and turned the company into a global, billion dollar player, the other, was a fresh start, hoping to equal the growth and appeal of its predecessor but with a new, more street-like aesthetic while trying to elevate the brand.
Burberry feels like a brand going into reverse and unless new collections start to create some form of excitement people won’t be willing to pay more. The momentum it has built up over the past decade will disappear and it will be a tough job to get that back. This feels like a brand to ‘sell’ before the evidence of the failure of this new strategy becomes even clearer.
There was a time when ‘if you build it, they will come’ rang true for retail. Large out-of-town sheds have been encouraging people to pile into their cars since the 1980s. But, traffic is slowing and retailers are starting to realise that in order to survive, you need to go to the people, because they won’t be coming to you.
Left - B&Q's new neighbourhood concept, GoodHome by B&Q
People’s time is precious and the thought of driving to a shop, potentially getting snarled up in traffic or fighting for a parking space, when you could simply go online, is making these expensive retail parks less and less viable. Following the march of the supermarkets with their local formats other retailers are now realising it’s all about ease and convenience if you’re going to compete with online. Mix in the fact that car ownership and young people passing their driving tests is falling, then you have a perfect storm for the retail parks and out of town shopping centres.
In a sleepy suburb in South London, Wallington, Zone 5, home and DIY retailer, B&Q, has just unveiled its new smaller format, “GoodHome by B&Q”. The new, boldly coloured and contemporary space offers automated key cutting machines, touch screens to browse the range, a complimentary coffee machine and “over 6000 products available today”. It is a warm, compact space with friendly staff to offer advice, in comparison to one of their rundown, draughty mega stores, run on a skeleton staff, without anybody to help or offer advice. This is the first of these neighbourhood B&Qs which they hope to roll out nationwide.
In October, 2018, IKEA, the ultimate in out-of-town-spend-all-day-and-dine retailers, opened it's brand new mini store – the IKEA Planning Studio – on London’s Tottenham Court Road. It specialises in kitchens and bedroom storage and is more a showroom than a smaller version of the larger store. This week, IKEA launched their first store in central Paris. “Paris is a magnet of trends and fashion,” said Jesper Brodin, chief executive of the main retail arm of Ikea, Ingka Group. “We hope to use the Paris store as a loudspeaker for the rest of the world. If we are successful we could do a lot more of these.” he told The Financial Times.
The new IKEA store in Paris is 5,400 sq m across two floors and includes a 150-seat restaurant. About 1,500 items are available to buy in-store. Located in Paris’ 1st arrondissement, it will be followed by similar openings in Lyon and Nice. “There’s not a typical online customer or offline customer; people are mixing channels,” said Mr Brodin. “They still want to be able to touch the product and have a physical experience of the product”, he said.
Over in America, the luxury department store chain, Nordstrom, is rolling out its ‘Nordstrom Local’ formats. First trialled in California, it is now planning two in New York to complement its new full line department stores opening at the end of summer 2019.
Right - Inside B&Q's new smaller format, GoodHome by B&Q
According to the company’s research, Manhattanites don’t particularly want to leave their neighbourhoods if they can help it which is the crucial reason for adding these hubs. The smaller stores will not carry merchandise, they are places for online pickups and returns, as well as services like tailoring and personal styling.
The first Nordstrom Local opened in 2017 in Los Angeles, where it, now, has three shops. Some offer individual services, like manicures or shoe repair, based on their location. Most importantly, the company said customers who visited a ‘Local’ spent on average two and a half times what other Nordstrom shoppers did and made returns earlier, which allows the retailer to turn its inventory faster.
What many large retailers and shopping centres rely on is the car and the attraction of free and easy parking. Government-backed research shows that the number of teenagers holding a driving licence has plummeted by almost 40% in two decades.
The number of young people with a driving licence peaked in 1992-94 at 48% of 17 to 20-year-olds. By 2014 only 29% of the age group had a licence. Among people aged 21 to 29, the number of licence holders dropped from 75 to 63% over the same period. The decline in car use was more rapid among men than women.
The study, published in Feb 2018, said that rejection of car ownership was likely to become the “new norm” as more people communicated online rather than face to face.
Left - Nordstrom Local in Brentwood, LA
Commissioned by the Department for Transport, it found that changes in living circumstances meant that most young people no longer gained a driving licence or regularly drove a car. It said that a rise in lower-paid and less-secure jobs, a decline in home ownership and an increase in university participation had an impact on how people used transport. The study also cited the high cost of driving and a preference among young people to communicate online. It quoted figures showing that young men aged 17 to 29 were spending 80 minutes more per day at home in 2014 compared with 1995. Women in the same age group spent 40 minutes more at home.
The study by the University of the West of England in Bristol and the University of Oxford, said that many young people had become “accustomed to a lifestyle in which private car use is less central than it has been for previous generations”. The report added: “It is possible that the changes in young people’s travel behaviour described above are the first phase of a social change that will continue through successive generations.”
If this trend is continued by successive generations than it will be bad news for out of town shopping centres with poor public transport. It could also mean, in future, entire families will be without a car or driving license and unable, or, will find it more difficult, to visit these huge out of town shopping centres or retail parks.
It is already starting to take its toll on shopping centres with footfall down and retailers reducing the number of stores they run or open. At the beginning of this year, shopping centre landlord Intu took a £1.4bn hit on the value of its properties. Intu said the value of its portfolio dropped 13.3% to £9.2bn during the year. The drop in property values pushed the company to a loss of £1.2bn, down from a profit of £203m a year earlier
Retailers are realising that transport is key and is where the volumes of people are. Walk through St Pancras station or New Street station in Birmingham, and the range and quality of the stores is nothing like the sad Upper Crusts or Boots of a few years ago. From Tiffany to Ted Baker, these stations are much more glamorous and attractive places to quickly pick things up or drop things off than they were before and compete just as well with any modern shopping centre.
Right - Inside a Nordstrom Local, LA, California
One British retailer proving the value in travel retail is W H Smith. W H Smith could have disappeared like its main products; magazines, newspapers and music or been flatlined by Amazon on books, but instead has flourished by going for convenience and the captive audience of people in stations and airports.
Since WH Smith demerged its news distribution business in 2006, the travel business has been able to grow its profits in every year since. The size of the business has increased from 309 stores in 2007 to 867 in 2018. With the acquisition of American airport retailer, In-Motion, it will probably have more than 1,000 stores by August 2019.
WH Smith had 581 stores in the UK at the end of August 2018; 149 were at airports,127 in railway stations and 131 in hospitals. Around 125 are located in motorway service areas and are franchised stores, with the remainder in workplaces and bus stations. Internationally, it had a total of 286 stores located in airports, recently opening eight stores in Madrid Terminal 4 and six outlets in Rio de Janeiro. While not the most exciting of retailers, it shows that you can thrive if you go where the people are.
Smaller and more cost-effective neighbourhood shops could be the answer for some brands. Businesses built on big stores will need to think about how people get to them if they are to survive. The automated car will offer some relief to the out of towners, if and when it arrives, but it feels like it will continue to become a strange concept to drive large distances out of your way to go shopping, especially for the younger generations.
Nobody came as a row of tents or Christmas, but the ‘Camp’ theme, to go along with the New York museum’s new exhibition, isn’t exactly new to the Met Gala. The Met Gala is Fashion Christmas and is definitely not for those who don’t want to stand out.
The more you think about camp, the most confusing and harder it is to define. But, we’ll probably all agree, it’s about colour, print and bigger-is-best outlandishness and there was plenty of competition for the craziest and most attention seeking outfits. Here are TheChicGeek takeaways from the men on the pink carpet:
The Boy With The Pearl Earring
With Gucci the main sponsor, their poster boy, Harry Styles, was the Co-Chair along with their Creative Director, Alessandro Michele. Harry’s become known for his bold Gucci looks and this didn’t really take it up a notch on the night. It was pretty standard Gucci uniform. But, it was the drop pearl earring that left a lasting impression. Vermeer in his ear, Harry’s pearly earring is a romantic renaissance addition to your jewellery box.
Left - Harry Styles in Gucci
For those a little nervous to embrace the full Liberace campness, it was all down to the shoes. Go for something striking in glitter, studs or sequins.
Right - Ezra Miller in Burberry, Far Right - Rami Malek in Saint Laurent
Still Obsessed With Pink
Pink has become the beige of our era, but it still looks fun and fresh. Especially when it perfectly matches the carpet.
Left - Anderson Paak in Gucci
This idea is straight from the Gucci catwalk, but to have your own version of a Madame Tussauds head tucked under your arm is really something. Jared Leto going out for a pint of milk is pretty camp, at the best of the times, but this stepped it up and added some Adams Family spookiness.
Right - Jared Leto in Gucci
The Mind Fuck
This make-up reminds me of the creepy Chemical Brothers video, Let Forever Be. While the outfit is meh, the artistry of this is full face look is technically brilliant. Look into my eyes…
Left - Ezra Miller in Burberry
All camp roads lead to Gucci and the king is Alessandro Michele, but this feels more sloppy Studio 54 reject than emperor of camp.
Right - Alessandro Michele in Gucci
The Party Poopers
Move over Normcore, this is Bore-core. I’m sure if you sliced these two in half they’d be a rainbow inside.
From Left - Frank Ocean in Prada, Kanye West in Dickies