Retail

The Retail industry is fast-paced and facing a period of unprecedented challenge and exceptional change, with technological opportunities and disruption, the acceleration of digitalization, evolving consumer behaviours, the rise of demand-driven retail, trade disruptions and the focus on supply chain sustainability.

Primary catalysts of change include:

• Retailers moving to large-scale deployment of generative AI, with AI being used to provide personalised shopping experiences, analyse market trends and customer feedback to guide product development, assist with inventory management by predicting demand trends and reducing overstocking, and to facilitate dynamic pricing based on demand and competition in real time;
• Retailers being constantly challenged to enhance customer engagement and streamline the shopping process, driving hybrid commerce with the blending of digital and physical shopping experiences and encouraging retailers to capitalise on technology to move to an 'optichannel' approach to engage more efficiently and meaningfully with consumers; and
• Consideration of and compliance with ESG matters remaining, for the time-being, a critical concern for retailers. Younger consumers continue to place emphasis on sustainability, prioritizing brands which demonstrate a commitment to ethical practice. The challenge for retailers is that, while consumers may demand sustainable products, they are not always willing to pay a premium for them. More broadly, a debate has begun as to the longevity of ESG as a key driver in decision-making as stakeholder attitudes evolve, but the continued push in many countries for further ESG-related regulations means that retailers will continue to be held to account for the foreseeable.

These trends indicate a dynamic retail landscape where technology, consumer preferences and ethical considerations are playing a pivotal role in shaping the future of the Retail sector.

We seek to help our Retail clients address these complexities and are committed to forward thinking to help our clients stay ahead of the curve and maximise opportunities whilst managing risk and uncertainty.

From strategic partnerships, M&A, financing and real estate, through to data and brand protection, payments and digital commerce, competition and consumer protection, employment, cybersecurity, and global investigations and litigation, we offer a broad range of legal services, working in tandem with Retail businesses. We advise Retailers on ESG issues, including on diligence and risk management across their supply chains. We guide our Retail clients through their commercial transactions, including franchising, logistics and distribution. We also frequently act on insolvency situations and have advised on some of the most innovative restructurings of Retailers in recent years.

Recognized for the breadth and depth of our industry knowledge, our dedicated Retail Sector group spans borders, offering our clients a global network as well as pragmatic and commercial solutions to their business challenges.

Representative matters

• ASICS on the sale of Haglöfs, a Swedish outdoor performance brand, to LionRock Capital.
• Castore, a premium performance sportswear brand and technology-enabled, end-to-end digital platform for global sports teams, on a GBP145m investment to fund future growth led by The Raine Group.
• Gerry Weber International AG, a fashion and lifestyle group, in connection with its extensive financial and corporate restructuring process.
• LVMH and Tag Heuer on the creation and commercialisation of the first luxury connected watch (in collaboration with Intel and Google). 
• Net-a-Porter on its GBP526m sale to Yoox, the Italian online fashion retailer.
• Pandora, the Danish jewellery company, in a dispute concerning unfair competition and trademark law due to misleading advertising and free-riding on a brand’s goodwill.

• Primark on its real estate work including the acquisition and expansion of stores in France, Italy and Germany. 
• A global retail company on the GBP181m sale of its Polish business to Salling Group and additional divestments of its Polish store estate.
• The lenders on the EUR15bn financing for the acquisition of Tiffany & Co. by LVMH.
• Under Armour on ESG strategy in the U.S. and globally, including advising on supply chain management, ESG benchmarking, product certifications and materials declarations, product transport matters, packaging waste issues, green marketing considerations and sustainability reporting.
• Versace on its space leasing program throughout the United States, with locations including: Bal Harbour (FL); South Coast Plaza (CA); SoHo (NY); Beverly Center (CA); Rodeo Drive Beverly Hills (CA); NorthPark Center (TX); and 200 Madison (NY).