
Chairman Patrick Chalhoub: "I am not at all worried about luxury industry"
Chalhoub was interviewed at the World Retail Congress in London about his time with the group. The conversation began with his victories, but quickly turned to the state of the luxury industry at the moment. 'I am not worried at all,' Chalhoub said confidently. 'Luxury is a necessity for a human being. It helps us to strive and it brings pleasure.'
The chairman quickly provides the context that the luxury market and the fashion industry in general has always had ups and downs. 'Look at the pandemic, for example. Soon there was revenge buying.' Chalhoub is referring to the fact that after the initial caution of consumers when the pandemic started, there was indeed a catch-up when the shops reopened.
'A period in which one has to adapt, that can certainly happen.' However, he warns that one should not make crazy leaps like a cornered cat too quickly. 'Don't be tempted to betray your values because you are afraid.'

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Reuters
26-06-2025
- Reuters
Luxury sector pins hopes on Middle East despite clouds from conflict
PARIS, June 26 (Reuters) - With Middle East airspace reopening and the U.S.-brokered ceasefire between Israel and Iran appearing to hold, the luxury sector is still counting on the region's wealthy shoppers to help offset weakness in its main U.S. and Chinese markets - for now. The Middle East, helped by strong tourist flows and local wealth, has bucked a recent global slowdown in luxury sales that is expected to deepen this year, with some brands growing sales there at double-digit rates. Luxury sales in Gulf countries were up 6% to $12.8 billion of the nearly $400 billion market last year, outpacing a global drop of 2%, with strong appetite for high-end fashion, jewellery and beauty products, retail consultant Chalhoub Group said. However, that trade is heavily dependent on the region's burgeoning tourist trade, with consulting firm Bain estimating that some 50-60% of the Middle East's luxury sales come from tourists. This month's outbreak of an air war between Israel and Iran emphasised the ongoing risks in a region in which unrest was already simmering, with airlines cancelling flights and rerouting planes following Israel's strikes against Iran on June 13 - measures that are now being unwound. "At this point, we have not adjusted our long-term growth forecast, as we continue to see considerable potential in the region," said Federica Lovato, senior partner at Bain. "However, short-term volatility has increased in the last few weeks and may continue, depending on how the situation develops." The region is an important hub for travel spending, favoured by Russian oligarchs but also wealthy Asians, and has increased in importance since Russia's invasion of Ukraine triggered sanctions and the rerouting of flights between Europe and Asia from more northerly routes to the Middle East. It also serves as a gateway for high-end brands to reach wealthy shoppers from India, where high tariffs have kept companies like LVMH ( opens new tab from expanding store networks. Max Heinemann, co-CEO of travel retail group Gebr Heinemann, which recently expanded into Saudi Arabia and operates airport fashion retail stores carrying luxury brands in Jeddah, said the region's travel market has shown long-term resilience despite unrest. He remains optimistic. "Dips may be witnessed, but growth will remain," he said. At Prada (1913.F), opens new tab, first-quarter sales in the region rose 26% year-on-year, while Hermes' ( opens new tab sales there were up 14%. High-end fashion and jewellery brands have been opening new stores and hosting splashy events. Milan-based menswear label Zegna (JN0.F), opens new tab this month took its spring collection to the opera house in Dubai, the region's leading luxury hub, for a catwalk show in an elaborate set evoking an Italian villa. Elie Saab held its 45th anniversary show in Riyadh last November, featuring a performance from Celine Dion. Dior, Saint Laurent and Valentino last year opened stores in Bahrain, while this year Louis Vuitton brought guests to the Dubai desert for a dawn meal and Chanel hosted a dinner in Abu Dhabi linked to a high jewellery launch. But maintaining visitor numbers to Middle Eastern destinations will be vital to bringing shoppers through the doors. Luxury travel agency Global Travel Moments says that for now, its long-term travel volumes to the Middle East have been unaffected by the latest unrest. However, given recent events, there is currently "certainly more caution" before finalizing trips to the broader Middle East, it said. ($1 = 0.8546 euros)


Fashion United
26-05-2025
- Fashion United
World Retail Congress: Experts discuss the reality of AI in retail
London - Prior to the event, it was already clear that the theme of AI would be unavoidable at the World Retail Congress in London. Although it is still a hot topic, the hype and initial panic have given way to reflection and well-considered steps. There were certainly advocates and fans of AI. Scott Price, chief executive officer of DFI Retail Group, stated: 'If you don't aggressively pursue AI, then you will lose. Your proposition simply won't be as personalised as other companies',' during a panel about the growth engines of retail. The use of AI with the help of data makes it possible to further personalise the customer experience. More cautious and sometimes even critical voices were also heard. Georgina SmallWood, chief product, data and technology officer of card service Moonpig, described what is possible with the help of AI. 'We can now make real-time recommendations for, for example, a gift with your card based on what they see you write in the card.' She gave the example of someone sending a card to their father with a reference to a fishing trip. This person then receives recommendations for a fly fishing workshop. 'We have to be careful with its use. We've all opened our phones, seen an advert and thought: Is my phone listening? We don't want to slap you in the face with the fact that we use AI.' Level-headed view of ai according to retail experts at world retail congress Another critical voice came from Elsa Pedro do Souto, global senior manager insights and analytics at Mars. 'We also need to think about the sustainability of AI and the energy it costs. If we can map a process, that means we can automate it. But should we want to?' In addition, there were also some disclaimers, for example from Catherine Brien, partner and managing director of consultancy AlixPartners. 'AI isn't a strategy, it's a tool you can use with a strategy.' AI is also dependent on the data you can feed it. If you don't have good or enough data, AI won't be able to help either. This also fits with what Ken Pilot of Pilot Ventures said during one of the panel talks. He is enthusiastic about AI and the possibilities in the design process, but he is also clear that people are still needed. 'We're replacing the bicycle with a car, but the designer still needs to be the one driving.' The metaphor refers to the fact that AI can create countless options for, for example, a white T-shirt, but a designer still has to safeguard the values and style of the brand they work for in that design. The arrival of AI has certainly turned the business world upside down, and the retail and fashion industry is no exception. However, every major change takes time to be fully embraced and implemented. 'When electricity was introduced, it took 50 years to reorganise the production chains,' Brien warned. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@


Fashion United
16-05-2025
- Fashion United
ABG and Saks top executives on new luxury group: "Necessary for American fashion industry"
US fashion companies Authentic Brands Group and Saks Global announced their collaboration, 'Authentic Luxury Group', in 2024. At the World Retail Congress in London, chief executive officer Jamie Salter (CEO Authentic) and Richard Baker (executive chairman Saks) shared further details about the collaboration. The joint interview, led by congress host Steph McGovern, revealed that the collaboration between the two companies had been about 12 years in the making. It took a long time to get everyone at Saks Global on board. Recently, it became clear that collaboration was necessary, not only for the two companies but, according to them, for the US industry as well. 'We had to do it, otherwise there would be no US industry left.' Salter stated that he had wanted to enter the luxury and premium industry with Authentic Brands Group for some time. 'For years, we were only about distribution, and if you want to enter the luxury industry with your brand portfolio, you also need to have a distribution channel.' For this, he had his eye on the Saks Global brands (Bergdorf Goodman, Neiman Marcus and Saks Fifth Avenue). It was only when it became clear how much the consumer landscape was changing that everyone at Saks realised they could also benefit from the collaboration. Baker said during the event: 'There is 600 million dollars in synergy between our companies'. Buying luxury from Amazon will "feel natural" in five years The top executives indicated that there is an industry in which too many discounts are given, there are too many suppliers, and there is not enough margin. This is not sustainable in the long term. Within the joint venture between Saks and Authentic Brands Group, hundreds of suppliers are being cut, poorly performing brands are being divested, the company is moving further away from private label, and it is putting premium partnerships in the foreground. Part of the new partnership is also the link with Amazon. Saks has opened its own online shop within Amazon. Although Amazon is not directly linked to luxury items at the moment, Baker believes that in five years this will 'feel very natural'. This luxury feel of Authentic Luxury Group is to be enhanced by entering the world of luxury homes and hotels. The execs said that some are already in the making. These residences have an entire Saks look and feel. 'If a building in Bangkok says it is a Saks building, then the US expats immediately know it is a luxury residence.' After the duo interview at the World Retail Congress, it is clear that the two have big plans for Authentic Luxury Group. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@