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Tag: store design

  • Baby Bunting Lifts Australasian Sales as Store Upgrades Drive 20% Growth

    Baby Bunting Lifts Australasian Sales as Store Upgrades Drive 20% Growth

    Baby Bunting lifted sales across Australia and New Zealand between August 15 and October 4, driven by a 20 per cent cumulative revenue rise across its newly refurbished locations.

    Australian store sales rose 2 per cent during the period, while New Zealand operations jumped 8.7 per cent following capital investments in redesigned shop floors.

    Store of the Future rollout gathers pace

    The specialty nursery retailer poured $44.5 million into its Store of the Future program during fiscal 2026. Management plans to refurbish or open 120 locations across both markets before the overhaul finishes.

    Seven stores entered fiscal 2027 closed for renovations. The redesign swaps traditional category aisles for activity-based displays organised around nursery setup, feeding, travel and play routines.

    “The new format moves our stores from a category-led layout to an activity-led layout, designed around how parents actually shop, and the results speak for themselves,” Chief Executive Officer Mark Teperson said.

    Divergence between new and old formats

    Older stores without the redesign lagged internal sales targets as broader discretionary retail spending softened. The upgraded footprint carried total revenue higher instead.

    That divide mirrors challenges across specialty retail in Australasia. Big-box specialty chains face higher wage rates, utility bills and cautious consumer budgets, forcing operators to extract higher sales density from existing square metres rather than purely opening new doors.

    Landlords face increased scrutiny over tenant allowances and lease terms. Retailers willing to invest capital into physical experiential formats hold stronger use in lease renegotiations across key suburban homemaker centres.

    Margin targets and consumer headwinds

    The capital expenditure follows a fiscal 2026 recovery after inventory corrections and discount pressures weighed on earnings across the baby goods sector. The company disclosed the early fiscal 2027 figures in an ASX filing ahead of its annual general meeting.

    Teperson told shareholders the executive team is tracking interest rates and cost-of-living pressure on young households ahead of the peak year-end holiday shopping cycle.

    Baby Bunting aims to lift its earnings before interest, tax, depreciation and amortisation margin back above 10 per cent as the network refurbishment scales toward its 120-store target.

  • Converse Opens 2 Next-Generation Stores in Nanjing and Shanghai

    Converse Opens 2 Next-Generation Stores in Nanjing and Shanghai

    Converse opened two concept stores in Nanjing and Shanghai in September 2026 as part of an experiential retail push across mainland China. The footwear brand already distributes through more than 700 locations across the country. Those operations are led by its Star Concept and X-Ing shop formats.

    In Nanjing, the store follows the Converse Star Concept design. It pairs localized city storytelling with premium product allocations. There is also a dedicated Converse Select zone built for early-access releases and top-tier merchandise. The site served as the debut platform for the Chuck 70 X, an updated edition of the core sneaker with an altered structural fit and cushioned insoles.

    Community Formats on Yuyuan Road

    On Yuyuan Road in Shanghai, the brand launched a Converse X-Ing store. The location functions as an interactive hub rather than a transactional shop. It incorporates customisation workshops, art displays, rotating pop-ups, and collaborative workspaces for local designers.

    Converse said in an announcement detailing the Shanghai site that the store invites creators and consumers to connect through community programming.

    Shifting Floor Space to High-Touch Retail

    Sportswear brands in China face heavy margin pressure from domestic e-commerce channels and local rivals. Footwear labels are responding by reallocating capital into prime street locations and major mall units. These spaces serve as marketing assets rather than simple stock rooms. By splitting tiers between core Star Concept stores and creative X-Ing outposts, Converse aims to defend its pricing power and cultural cachet with younger urban shoppers.

    Higher overhead creates real risk for operators. Prime rents on strips like Yuyuan Road add up quickly alongside event production and staffing costs. If programming fails to drive repeat visits and full-price sales, concept spaces turn into costly marketing drains rather than profitable channels.

    Building Out the Asia Network

    These mainland openings follow the rollout of larger formats across Asia, including the launch of the brand’s largest flagship store in India in June 2026. Across the region, the company continues to refine its direct retail tiers. This separates basic wholesale distribution from high-margin specialty releases.

    Market watchers will track how the Chuck 70 X and Select zone lines perform across the wider 700-door mainland network before Converse takes the Star Concept format into secondary Chinese retail hubs.

  • Only 10 of 60 Top Independent Stores Make a Brand Argument

    Only 10 of 60 Top Independent Stores Make a Brand Argument

    A global review of 60 premier independent retail stores by Nick Gray in September 2026 found that only 10 build spaces enforcing a genuine brand argument.

    Standard retail metrics like sales per square metre and the ICSC occupancy cost benchmark of 8 to 15 per cent fail to capture whether physical rooms build customer loyalty or merely collect pre-decided transactions.

    The Limits of Square Metre Metrics

    Drawing on observations at Westfield Sydney between 2018 and 2022, retail property evaluations routinely confuse aesthetic execution with brand positioning. Apparel retailers commonly allocate more than 12 per cent of sales to occupancy costs, yet landlord scorecards measure space strictly by immediate financial yields rather than behavioural shift. Dwell time metrics count customer minutes without distinguishing between deliberate browsing and checkout friction, while year-one fitout uplifts inevitably register temporary newness rather than sustained productivity.

    High-conviction physical retail demands structural constraints that traditional finance departments often query. Andreas Murkudis in Berlin operates a former printing hall with museum-scale product spacing that permanently increases monthly floor holding costs per item. In Los Angeles, Maxfield operates without display windows and relies on unapproachable floor staff to filter casual traffic, while Dover Street Market executes a scheduled annual teardown where independent designers control internal pod architecture.

    Thresholds and Fixture Control

    Physical store performance splits across three operational choices: entry thresholds, fixture manufacture, and change cadence. Entry points represent low-cost positioning tools that select qualified buyers before entry. Los Angeles retailer Departamento routes shoppers through an active coffee shop entrance, while Darklands in Berlin operates unmarked doors strictly by appointment.

    Procuring standard fixtures from shared commercial shopfitters reduces a brand to generic category storage. Retail spaces function as commercial arguments only when bespoke display units cannot transfer into a competing tenancy. At the same time, scheduled annual teardowns keep retail floors on the same release cycle as seasonal buying, avoiding the delayed, reactive renovations common among regional department stores and mall tenants.

    Operational Gaps in Regional Malls

    For shopping centre operators across Asia-Pacific, the gap between landlord guidelines and store identity remains wide. Luxury activations and pop-up tenancies in prime centres frequently exhaust negotiations on ceiling heights, sightlines, and perimeter finishes rather than customer engagement. The result is uniform warm minimalism and portable design choices that fit generic landlord criteria but fail to distinguish rival brands.

    This disconnect originates early in commercial planning cycles. Corporate brand briefs routinely mandate broad concepts like modern luxury and effortless presentation, offering no actionable instructions for doorway thresholds, custom furniture, or thirty-second staff routines. Design partners consequently deliver attractive decorations because the initial brief provided no structural rules to engineer into the room.

    Between 2018 and 2022 at Westfield Sydney, Brand Space activations showed how strict fitout rules repeatedly prioritised aesthetic compliance over functional brand differentiation. Commercial landlords in prime Asian retail districts face the same recurring pattern across short-term luxury leases.

    Property directors tracking upcoming retail lease renewals will see whether tenant fitout budgets shift capital from decorative cosmetic upgrades into purpose-built spatial architecture.

  • Amouage Opens First Standalone Boutique in Indonesia

    Amouage Opens First Standalone Boutique in Indonesia

    Omani perfume house Amouage opened its first standalone boutique in Indonesia at Plaza Indonesia in Jakarta in September 2026.

    Founded in Muscat in 1983, the brand operates in more than 80 countries under parent company Sabco Group.

    Architecture and Store Layout

    Inside the Jakarta boutique, the design draws on Omani geography and traditional building methods. Travertine stone walls, walnut timber, and brushed copper fixtures frame the interior alongside structured, layered arches.

    Display tables shaped like inverted pyramids mirror Oman’s mountain topography. At the center of the sales floor, a dedicated installation titled the Gift of Kings arranges bottles in a radial format beneath an illuminated orb.

    “Indonesia has a deep relationship with scent, craft, and hospitality, and an increasingly sophisticated luxury clientele looking for depth and originality,” said Amouage chief executive Marco Parsiegla.

    Southeast Asian Luxury Demand

    Standalone retail units give niche fragrance makers direct control over pricing, presentation, and customer data. Wholesale department store counters cannot match that access. High-end perfumery maintains strong operating margins in Southeast Asia, where affluent shoppers bypass heritage fashion-house scents for specialized, high-concentration formulations.

    For Indonesian luxury landlords, beauty flagships fill high-yield ground floor units with compact footprints that generate strong sales per square meter. The main operational challenge is sustaining foot traffic and repeat buyers in central Jakarta once opening buzz cools.

    Muscat Heritage and Regional Expansion

    Founded in Muscat in 1983, Amouage built its global business on heavy, resinous perfumes centered on regional ingredients like frankincense, rock rose, and ambergris.

    The Jakarta opening follows an entry into India five months earlier, when the brand launched at Mall of Asia in Bengaluru in April 2026. Amouage is pacing its retail rollout across major Asian metropolitan centers to build a wider network of company-operated doors through 2027.

  • Starbucks Opens Vietnam’s First Signing Store in Ho Chi Minh City

    Starbucks Opens Vietnam’s First Signing Store in Ho Chi Minh City

    Starbucks opened its first Signing Store in Vietnam on Ho Chi Minh City’s Cao Thang Street on Wednesday, expanding a regional format that already runs 26 outlets across four other Asian markets.

    Deaf staff work alongside hearing employees across counter service and daily operations, using visual menus, gestures and written order systems rather than spoken prompts.

    Operations on Cao Thang Street

    The unit sits set back from the main roadway on Cao Thang Street with a garden-style layout planned to lower ambient street noise for staff and guests. It serves the chain’s standard beverage and food menu while changing the service counter workflow to accommodate point-and-sign ordering.

    Chi Nguyen, director of external affairs at Starbucks Vietnam, stated to local media that the location functions as an inclusive space where staff and visitors interact directly through visual methods.

    Format Expansion Across Asia

    Specialised format stores of this type allow multinational food and beverage operators to test altered counter workflows without changing back-of-house supply chains. Starbucks established its first signing outlet in Kuala Lumpur in 2016 before expanding the concept to China, Japan and South Korea, where dedicated customer communication tools were integrated into standard point-of-sale setups.

    For commercial landlords, quiet and garden-style layouts of this type offer ways to activate secondary street frontage and deeper, non-standard retail floorplates that struggle to accommodate high-turnover drive-throughs or standard counter lines. The operational friction sits in staff onboarding and maintaining service speed during peak morning trade, where non-verbal communication systems must process complex drink customisations without causing counter bottlenecks.

    Market Positioning in Vietnam

    Starbucks opened its initial location in Ho Chi Minh City in 2013 and has spent more than a decade building a store network across major commercial hubs including Hanoi, Da Nang and Binh Duong. The brand competes against established domestic chains such as Highlands Coffee and Phuc Long, which operate larger branch networks at lower price points across Vietnam’s urban centres.

    The Cao Thang unit brings the company’s regional signing store count to 27 locations across Asia, with operators watching whether the model will be adapted for additional high-density retail districts in Hanoi.

  • Ikea Installs Miniature Home Exhibits Across Melbourne, Beijing and Chengdu

    Ikea Installs Miniature Home Exhibits Across Melbourne, Beijing and Chengdu

    Ikea has installed miniature home displays across stores in Melbourne, Beijing and Chengdu to promote compact, affordable living.

    Stockholm artist Christopher Nordstrom built the three displays at a one-to-12 scale. They serve as the Swedish retailer’s latest visual merchandising test in the Asia-Pacific region.

    Scale Models for Compact Urban Spaces

    Each model tailors its interior details to local culture. In Melbourne, the display features a bookcase filled with novels, art prints and nods to local sports.

    Storage and decluttering for smaller homes sit at the centre of the push. “When you build in miniature, you cannot include everything,” Nordstrom said. “Every object has to earn its place.”

    Ingka Group, Ikea’s primary global operator, is steering marketing funds toward entry-level home organisation. Urban shoppers face increasingly tight quarters across major metro markets.

    Shifting Formats in Asia-Pacific

    This rollout ties into broader footprint adjustments across the region. Ikea continues to balance compact city-centre locations against traditional suburban big-box warehouses.

    Regional home furnishing chains are leaning on interactive features to lift foot traffic and basket sizes. Discretionary spending has seen several volatile quarters.

    Next, Ingka Group will track customer engagement around the three micro-exhibits across its Australian and Chinese locations.

  • Retailers Like Ikea Revamp Store Designs to Adapt to Digital Shopping Trends

    Retailers Like Ikea Revamp Store Designs to Adapt to Digital Shopping Trends

    IKEA is making waves in the retail world by swapping its iconic maze-like store design for a more straightforward, linear layout. This bold move reflects a larger transformation in the industry, one that champions efficiency, flexibility, and clear brand identity.

    A Retail Renaissance

    Rufus Turnbull, Founder and Creative Director at Studio X, notes, “We’re witnessing a shift towards smaller format stores that can offer a more agile shopping experience for consumers. Coupled with the rise of AI, there will be an even sharper focus on hyper-localization—tailoring product ranges to fit the specific needs of customers in their respective regions.” This redesign is part of IKEA’s global strategy to enhance in-store navigation and cut down on shopping time, responding to the increasing consumer demand for quicker and more efficient retail experiences—especially as online shopping sets higher expectations for physical stores.

    Rethinking Retail Inspiration

    Mike Lim, Director at DP Design, emphasizes that traditional, inspiration-driven retail models, like IKEA’s former printed catalog, are losing their relevance. “Today, consumers primarily turn to the internet for information,” he highlights, arguing for a re-evaluation of whether the classic show-and-tell shopfront really meets the needs of modern shoppers.

    Balancing Efficiency with Experience

    However, this shift does come with its own set of challenges. Turnbull warns against viewing the move to more efficient formats as an “all or nothing switch.” He suggests that large-format stores will continue to be crucial, while newly introduced smaller formats can facilitate product pickups and enhance customer service and returns.

    Lim also cautions against an overemphasis on speed and efficiency: “We must avoid the ‘efficient trap’—oversimplifying the shopping experience consumers crave,” he advises. Instead, he advocates for a “retail plus experience” model and “placemaking” that fosters emotional connections with shoppers. After all, who doesn’t want an enjoyable shopping adventure?

    Defining Brand Identity in Transition

    Maintaining a strong brand identity while adapting store functions remains a pressing concern. “A retail concept with a clear purpose is more likely to succeed,” Turnbull explains. He adds that the most sustainable environments are those that respond to market demands and endure over time, rather than simply showcasing trendy green features.

    Lim insists that a brand’s identity must be “singular and laser-focused,” with store design clearly reflecting that mission through layout, packaging, and customer service.

    As IKEA ventures into this new chapter, we can’t help but wonder what other surprises lie around the corner in the ever-evolving retail landscape!

    Questions & Answers

    What is the reason behind IKEA’s change in store layout? The shift to a simpler, straight-line design aims to enhance efficiency, streamline navigation, and respond to consumer demand for faster shopping experiences.

    How are smaller store formats expected to perform? Smaller stores will serve as agile hubs for customer service, product pickup, and returns while still complementing larger locations.

    What role does brand identity play in this transition? A strong, purposeful brand identity is essential; it should be reflected throughout the store’s design and operations to foster long-term success.

  • Clarks Shoes new store design showcased in Singapore store

    Clarks Shoes new store design showcased in Singapore store

    Singapore’s first Clarks Pure concept store opened its doors today, described as “a classic, understated and uncluttered retail space which reflects the brand’s history and modern spirit”. The new Clarks Singapore store is located in the Ion Orchard shopping centre. It is the first Pure store to be opened by the footwear brand in Southeast Asia and follows successful launches in Manchester and Glasgow, in the UK.

    Guillaume Nagy, president SEA & Oceania, at Clarks, said the store is designed to breath a new personality into the brand. It will be rolled out in other Southeast Asian markets during coming months.

    “We want to offer this elevated brand experience with the Pure store design,” said Nagy. “Singapore has an incredibly dynamic retail environment and we know the extension of Pure to Ion Orchard will be well received by existing and potential consumers. It is the first retail initial initiative of many to be implemented in the city state, turning Singapore into our flagship market and a centre of excellence for the region”

    Nagy said the focus of the store design was to make the shoe the star and to tell immersive stories that resonate with consumers.

    “Pure helps us achieve both in a way that is authentic to Clarks.”

    The new Clarks Singapore store features classic leather buttonback seats on birch floors and soothing neutral colours. It uses natural materials such as oak and timber to build on the themes of simplicity and honesty.

    Light boxes and opal resin podiums create a gallery-like display space for the collections. Brand and campaign imagery are displayed within the store for enhanced storytelling, while large-scale lightboxes draw consumers in and communicate key brand messages.

    The concept was designed by Stiff & Trevillion, whose spokesperson said Pure was chosen as the concept because it links to honesty.

    “Clarks uses honest design and materials in its shoes and we wanted the store design to reflect that through the use of natural materials and truthful lighting.”

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