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Investors saw the news as a positive sign the company is on track with the $2.5 billion worth of annual cost savings it promised the market at the launch of the T22 strategy last year.

“It is favourable for earnings that they can actually achieve these cost savings,” said Investors Mutual's senior portfolio manager Hugh Giddy. “This is a sign they are very focused on it.”

"We will continue to see role reductions as we replace our legacy systems, digitise and simplify how we work, and respond to things like declining NBN and call volumes, but if a final decision is made on the proposal announced today we expect the majority of our T22 restructure will be behind us," said Mr Penn.

JP Morgan analyst Eric Pan said the firm was forecasting a 5,000 headcount reduction in 2019, but cautioned that a lot of the actual cost savings from the 6,000 job cuts won't be realised this year.

He also said the reduced depreciation and amortisation costs from the writedown will help boost earnings.

Telstra said it has started consultation with unions and staff over the job cuts, and expects the process to conclude in mid June. The extra $200 million in restructuring costs that are expected to be recognised this year will raise the total bill for this fiscal period to $800 million.

Mr Penn said the $500 million writedown of legacy systems is due to the progress it has made in setting up its new systems.

"It's a beacon of the fact that we are making very solid progress on the digitisation part of our T22 program so we're pleased about that," said Mr Penn said on a conference call.

The Fair Work Commission delivered a pay rise to 2.2 million Australians on Thursday, as it confirmed it will raise the minimum wage by 3 per cent as of July 1, 2019.

The increased minimum wage will amount to $740.80 a week, or $19.49 an hour. That is $21.60 per week more than the current weekly figure. All modern award minimum wages will also increase by 3 per cent.

The National Retailers Association warned that this increase could create problems for retailers, as they head into a potentially more challenging period ahead.

“The NRA remains concerned that the challenging period experienced by the sector is not over, which is why we advocated for a minimum wage increase of no more than 1.8 per cent,” NRA chief executive Dominique Lamb said. 

“Although we remain wary about the impact this rise may have on mum-and-dad small businesses, we most certainly welcome the fact that the FWC strongly rejected the job-destroying increase of 6 per cent proposed by the [Australian Council of Trade Unions].”

FWC president Ian Ross said the current economic conditions justified the wage increase, and that it was not likely to see a measurable negative impact on employment. 

Employsure founder and managing director of workplace relations Ed Mallett noted that the decision has a disproportionate effect on small businesses. Customers likely won’t see a 3 per cent rise in prices, meaning businesses will need to make up the difference themselves. 

“In just over a month, businesses will need to absorb these changes and will be expected to be compliant,” Mallett said.

“Wages have been a part of the national debate for the past few months and it’s important to strike a balance between employees and employers. 

“Wages will always change and that is just the nature of the economy, but that doesn’t mean businesses won’t struggle.”

Woolworths has revealed plans to further reduce promotions and focus on everyday value in stores in an effort to gain better “price trust” among consumers.

Speaking at the Australian Food and Grocery Council’s (AFGC) Food & Grocery Australia conference on Thursday, Woolworths’ director of buying, Peter McNamara, said the rising cost of living is a key concern of customers. 

Woolworths’ shopper feedback revealed that price is the most important element of customer’s trust and is a key area of focus for the retailer. 

McNamara highlighted the importance of “value beyond price”, saying that customers want to feel like they are getting the best deal and that they can trust this is what they are getting from the retailer. 

“We want to be competitive in the marketplace, customers expect us to be competitive,” McNamara told conference attendees.

“Price trust is consistently one of the key metrics of store choice.” 

In an effort to combat increased cost of living pressures, Woolworths is also investing in better productivity and in-store technology. 

The retailer is hoping that its strategy of providing “good food, good prices, good acts,” will help grow sales in an increasingly competitive market. 

McNamara was joined by Woolworths Supermarkets managing director, Claire Peters and director of Fresh Foods, Paul Harker in highlighting four other common themes in customer feedback.

Customers revealed a need for better convenience offerings due to being time-poor, an increasing awareness of health, wellbeing and the planet, a desire for new and different choices as well as the importance of being able to trust that the retailer is supporting the community and its supply partners. 

Peters highlighted the impact of the Woolworths app in improving convenience and changing how people shop in particular through the “Don’t forget your bags” prompt on arrival in stores, an alert to stores when click-and-collect customers are a short distance away and an in-store option which allows customers to find special offers off the digital catalogue to save time. 

Peters also reiterated the need for more smaller format stores, a “more physical presence, closer to the customer”, following on from the success of Metro stores. 

Citigroup estimates imminent tax cuts could boost retail spending by 1.0 per cent to 1.5 per cent in the September quarter.  Jeff de Pasquale

Wesfarmers, which owns Bunnings, Kmart, Target and Officeworks, rose 1.1 per cent to $36.74, Domino's Pizza gained 1 per cent to $40.00 and Super Retail Group was up 4.5 per cent at $8.54.

The under-pressure housing sector has also received a reprieve from Labor’s plans to curtail negative gearing and cut back capital gains tax discounts.

Retailers exposed to the housing sector posted the biggest gains, with Harvey Norman shares up 4.2 per cent to $3.99, JB Hi-Fi, which owns appliances chain The Good Guys,  up 5.4 per cent to $26.97, lighting retailer Beacon adding 4.3 per cent to $1.09 and bedding chain Adairs up 5.7 per cent to $1.75.

"With negative gearing (changes) off the table, whether or not housing prices have got to their rock bottom yet or whether they'll go a bit further is irrelevant," Mr Zimmerman said.

"If you start to see people get confidence in investing because they know they're not going to be affected by negative gearing [changes], that will certainly assist the [housing related] retailers," he said.

Low consumer confidence, flat wages and the falling housing market had hurt sales, which have fallen 2.7 per cent in the year to date on a same-store basis, the company said.

Profitability was also hurt by major supermarkets and department store competitors cutting prices in some of its key product categories, forcing it to also cut prices.

"One of the key priorities for the new leadership of the business is to generate sales growth and develop strategies to respond to the challenging retail environment," Mr Stevens said.

Since Mr Thomas' departure, Woolworths Holdings chief executive Ian Moir has been running David Jones on an interim basis and overseeing its ambitious $400 million refurbishment of the flagship Elizabeth Street Sydney store, which is due to be completed in March 2020.

Woolworths outlaid $2.1 billion for David Jones in 2014 and paid another $240 million to take full control of Country Road Group.

David Jones has not performed to Woolworths' initial expectations, despite heavy investment in new systems, stock and refurbishments.

Profits have more than halved since the takeover, falling from $161 million in 2015 to $63 million last year, with further falls expected this financial year. Woolworths had originally forecast earnings growth from David Jones of between $130 million and $170 million by 2019.

However, Mr Moir said in February he was confident David Jones would return to profit growth in 2020 when capital expenditure returned to more normal levels and disruption from the Elizabeth Street refurbishment was over.

David Jones has been discounting constantly to lure shoppers, adding to the pressure on Myer, which has been attempting to reduce its reliance on price-based promotions.

The under-pressure housing sector has also received a reprieve from Labor’s plans to curtail negative gearing and cut back capital gains tax discounts.

Retailers exposed to the housing sector posted the biggest gains, with Harvey Norman shares up 4.2 per cent to $3.99, JB Hi-Fi, which owns appliances chain The Good Guys,  up 5.4 per cent to $26.97, lighting retailer Beacon adding 4.3 per cent to $1.09 and bedding chain Adairs up 5.7 per cent to $1.75.

"With negative gearing (changes) off the table, whether or not housing prices have got to their rock bottom yet or whether they'll go a bit further is irrelevant," Mr Zimmerman said.

"If you start to see people get confidence in investing because they know they're not going to be affected by negative gearing [changes], that will certainly assist the [housing related] retailers," he said.

The strategy review is focused on better curating Dan Murphy's range to suit traditional customers and Millennials and responding to demand for more convenience, including offering on-demand deliveries.

“The team at Dan Murphy’s has been working hard at re-establishing sales momentum while also strengthening key foundational areas to better serve changing customer needs," Mr Donohue said on Friday.

“The business has a long history of success with strong customer loyalty, however rapid market changes require us to transform Dan Murphy’s for sustainable long-term growth.

“We are pleased to have Alex joining us at this exciting time for our business."

Mr Donohue said Mr Freudmann had expertise in leading initiatives that delivered significant improvement in customer experience and had a proven track record for responding to market disruption and changing customer preferences.

“Alex will be responsible for driving forward the Dan Murphy’s strategy in line with Endeavour Drinks’ broader ambition to connect everyone with a drinks experience they’ll love.”

Mr Freudmann's start date has not been decided and he is likely to have to serve out a notice period after leaving Coles.

Woolworths executive Faye Ilhan, who is general manager e-commerce sales and digital innovation, has been interim managing director at Dan Murphy's since Mr Stott's departure and will continue in the role until Mr Freudmann takes the helm

Adidas, Nike and PUMA on Tuesday have urged US President Donald Trump to prevent the shoe industry from falling victim to the trade war with China, saying new tariffs could be “catastrophic.” 

In a letter to Mr Trump, those big name manufacturers joined forces with more than 170 other American shoe manufacturers and retailers calling for footwear to be exempted from a new round of punitive tariffs on $US300 billion in Chinese goods.

In the escalating trade war with Beijing, Mr Trump this month increased existing tariffs on $US200 billion in Chinese imports to 25 per cent, and is threatening to extend those duties to nearly all Chinese products imported into the United States.

That would mean additional taxes on a range of consumer goods, including electronics and clothing, such as athletic shoes and iPhones, which has sparked fear in retailers and producers who rely on goods from China.

“The proposed additional tariff of 25 per cent on footwear would be catastrophic for our consumers, our companies, and the American economy as a whole,” the letter from the shoe coalition states.

The firms said the industry already pays $US3 billion in duties and that additional tariffs would increase costs and prices.

“There should be no misunderstanding that US consumers pay for tariffs on products that are imported,” the companies said, refuting Mr Trump’s frequent erroneous statement that China pays the tariffs, creating a windfall for the US Treasury.

While Mr Trump has called on industries to move away from China or produce their products in the United States, the shoe industry firms said they need “years of planning... to make sourcing decisions and companies cannot simply move factories to adjust to these changes.” The shoe industry -- including other names like Reebok, Ariat and Crocs, as well as retailers like FootLocker -- is the latest to wade into the debate.

While many companies and industries want to see changes in China’s policies, including resolving the issue of theft of US technology, they oppose using tariffs as the primary weapon.

In a letter just after the new tariffs were announced, a group of 17 industry groups urged Mr Trump to reconsider, given their reliance on China for goods.

“In 2017, China accounted for about 41 per cent of all apparel, 72 per cent of all footwear, and 84 per cent of all travel goods imported into theUnited States,” the letter said.

The US Trade Representative’s office published a list of products that would be targeted by new tariffs, and has called forpublic comment, including a hearing set for June 17.

In prior rounds of tariffs, the White House granted exemptions for some critical products at the request of US industries.

A new-look H&M has opened in west London that may be aimed at a more mature shopper, or perhaps intends to alter the perceptions of its existing customers. 

Most retailers would probably be aware of what might be termed the ‘logo test’, whereby if a sign indicating the name of a shop were removed, most shoppers would still know the name of the store they were looking at.

Head to the Kings Mall shopping centre in Hammersmith in west London and there is a store that fails the test spectacularly in the shape of the refurbished 2,300 sq m, three-floor H&M, which looks, well, nothing like an H&M.

The point of this store, which the retailer calls a test that “seeks to improve customer experience and build upon the strength of the H&M brand”, is that it represents a move away from what the Swedish fashion giant normally does and perhaps is a lesson either in moving with your shoppers or taking them with you.

To this end, the branch may be intended for a more mature demographic. Walking into the store with an acquaintance who would not be a core H&M shopper, the comment made was: “Oooh, I like this.”

More sophisticated than your average H&M

At first and probably second glance, those familiar with the Banana Republic store of yore on Regent Street might have a mild sense of déjà vu.

Again, applying the logo test, the store exterior is a black metal and glass affair with greenery in window boxes above the main door: nothing like a workaday H&M.

Outsize carriage lamps, either side of the entrance, complete a level of sophistication that might be a stretch for the teens to early 20-something shopper. The green plant theme is continued in the low-key windows, giving the store a quietly affluent feel, in keeping with the well-heeled nature of Hammersmith itself.

Stepping inside, this is not the bright and in-your-face interior that any dedicated H&M shopper might anticipate. Instead, the brown walls and semi-industrial ceiling of the ground floor look almost as if the space has been given a sepia wash with hero lighting provided by multiple spots on overhead tracks.

In this it bears a passing resemblance to the recently opened Urban Revivo (aka ‘The Chinese Zara’) store in the nearby Westfield London shopping centre.

Equipment levels are much lower than in a standard H&M outpost, meaning that views across the whole of this deep and broad interior are wide-ranging and similar to the newly opened H&M Home standalone in the nearby Westfield London shopping centre, an area has been set aside for a florist offering cut and potted flowers.

Once more, green plants have been used to provide focal points for the sweeping gaze, and low tables display accessories that serve as an adjunct to the mid-floor product displays.

A Mediterranean feel

If there is a single feature that commands the view, however, it is the mid-shop staircase: escalators have been eschewed.

This is a see-through structure with ridged steel treads on each stair, and wrought iron and dark wood are used to promote an upscale ambiance, rather than the more normal grab-and-go environment beloved of fast-fashion retailers.

Also worth noting – and a real departure for the retailer – is the low product density. This not only ensures that there is more room to move, but puts the store in a retail arena that is a world away from what purveyors of budget fashion would consider best practice.

Head downstairs and it is menswear in the basement, which has a semi-Mediterranean feel thanks to the herringbone-pattern brick flooring (a feature also used in the fitting room area for women on the ground floor, which comes with a slatted plain wood ceiling and neutral, ‘natural’-coloured curtains), coupled with the tiered terracotta plinths that are fitted in around the space, beside the mid-floor display tables.

The top floor is about kidswear, and although it would be normal for this to be bright and almost at odds with the rest of the offer in a multi-category store, even here H&M has pulled back and played the sophistication card, rather than deploying fake rubber cacti and primary tones, as might normally be assumed.

Repairs, embellishments and self-checkout

There is much to set this store apart from anything else in the H&M estate, but as well as style and ambiance, this is a space that represents something different as far as the service side of things is concerned.

Foremost among these is the ‘Repair and Remake’ station where, conscious perhaps of the negative press about disposable fashion, H&M has installed a counter at which repairs on customer-owned H&M clothing can be effected.

Personalisation is also possible in this ‘department’ in the shape of customised embroidery with prices starting at around the £3 mark.

And in a nod towards the fact that this is still an H&M store, screens show images of customers wearing recent purchases that they have shared using the #HMxME hashtag on Instagram.

Finally, there is the matter of payment. Following the trail blazed by Zara in its most recent flagship stores, this shop is the first H&M in the UK to use self-checkouts in addition to normal till points.

As in Zara stores that have this service, the customer is left to get on with it, but a close eye is kept on things by a member of staff, ready to help the shopper through the process.

In total this is an almost complete rethink by H&M and there is nothing else like it currently. The real question is whether it represents a shift in thinking and a realisation that shops have to change with their shoppers.

This store does not have a ‘young’ feel about it, yet it still manages to feel both contemporary and almost aspirational.

Whether this means that young shoppers are being offered something different or that it is aimed at a more mature demographic is a moot point, but it does look a very good new store and one that seemed to be garnering admiring glances on opening day.

WH Smith has found a new group chief executive in the form of Carl Cowling, who will succeed his predecessor Stephen Clarke who has helmed the business for the past six years.

Clarke has previously signalled his intent to quit on 31 October 2019, sparking a period of succession planning at the stationery business, which has now asked Cowling to assume the mantle from 1 November.

Cowling was elevated to the WH Smith board in February of this year and currently serves as managing director of the chain's high street business, having cut his teeth as managing director of the retailers travel business upon first arriving in 2014.

Prior to this Cowling built his career during a decade spent with Dixons where he rose through the ranks to become managing director of Dixons Travel.

Clarke commented: “I am fully committed to working with Carl in order to ensure a smooth transition. After I leave WHSmith, I have no immediate plans other than to take a break.”

Addressing his own plans for the business Cowling said: “I am committed to continuing to deliver excellent shareholder returns and look forward to leading WH Smith to its next stage of growth, supported by the excellent teams across our Travel, International and High Street businesses."

WHSmith has become heavily invested in its travel business amid flagging high street sales, setting aside £155m to acquire US airport digital accessory specialists InMotion last year.

Myer has bolstered to its board with the addition of Jacquie Naylor as a non-executive director, effective May 27, 2019.

“Jacquie Naylor is one of the most respected retailers in Australia, and I am delighted that she is joining the Myer board,” Myer chairman Garry Hounsell said.

“With over thirty years of retail experience, Jacquie brings a wealth of knowledge of both women’s and men’s apparel, homewares and outdoor brands.”

Naylor has also served as a non-executive director for outdoor brand Macpac, Cambridge Clothing Company, and boutique apparel and homeware company Husk. She has also served as an executive director at the Just Jeans Group, where she was responsible for driving merchandise, marketing, and brand strategies for Just Jeans, Jay Jays, Portmans, Jacquie E, and Dotti.

Myer has faced criticism over the collective retail inexperience of its board, which is largely made up of experts from different fields. Naylor will be the exception, and will serve in an advisory role to Myer chief executive John King.

At the department store’s annual general meeting in November, Hounsell noted that the aim of the Myer board was not to have 10 directors with retail experience telling King how to do his job on a day-to-day basis, but rather to bring a breadth of knowledge to the table.

“Jacqui has a record of improving the financial performance of the companies that she has been associated with and driving their strategic direction,” Hounsell said.

“In addition, she brings considerable e-commerce experience from her retail career and as a strategic advisor at Practicology, a digital marketing and e-commerce agency.”

Naylor also brings e-commerce experience, which Myer might lean on as it seeks to modernise and improve its online offering.

Zara’s Australian sales are now approaching those of H&M, which booked sales of $353 million in 2018, down from $363 million the previous year.

According to Macquarie Equities, Zara, H&M and Uniqlo account for about 2.1 per cent of the Australian clothing, accessories and department store sector, up from 1.6 per cent two years ago.

While their combined market share is small, the global chains have forced Australian brands to cut prices, invest in product design and store refurbishments and overhaul supply chains.

Growing chains

Macquarie analysts said the global chains would likely continue to gain share, although their store roll-outs were largely complete and any further gains would come from like-for-like sales growth in stores and online.

The growth of the international chains will continue to affect department stores such as Myer and discount department stores such as Target and Big W, which are all looking to reduce their physical footprints by either closing stores or handing back surplus floors.

In May last year, the Lew family ended its 18-year relationship with Inditex. Solomon Lew’s son Peter sold his 10 per cent stake in Zara Australia to Zara’s parent and stepped down from the board.

Zara Australia paid an interim dividend of $5 million in January and a $30.9 million final dividend last May, even though it earned a net profit of only $8.9 million in 2017. The Australian company has a $45 million loan from its parent and received a $15.5 million capital injection last year.

Zara's growth comes amid growing consumer concerns about environmental damage from the fashion industry, which is the second largest polluter in the world after the oil sector, emitting 1.2 billion tonnes of greenhouse gas emissions a year.

Both Zara and H&M have launched sustainable and ethical clothing collections, and Zara has vowed to stop sending unused textiles to landfills by 2020. But these initiatives have largely been dismissed as publicity stunts while they continue to pump out 80 billion garments a year.

Humanitarian denim label Outland Denim has reissued the Duchess of Sussex’s favourite skinny jean, the Harriet.

The jean sold out following the Duchess’ day in Dubbo during the Royal Tour of October 2018.

Her appearance in them set in motion 25,000+ social media engagements, a 3000% boost in website traffic, global media exposure and a sizeable waitlist for the jeans. 

The high-waisted Harriet jean was worn multiple times by the Duchess during her tour of Australia and New Zealand.

Her first appearance in the staple black skinnies was made only two days after her pregnancy was announced by Kensington Palace.

Thanks to the “Meghan Markle Effect”, Outland Denim has been able to offer employment opportunities to a further 46 seamstresses in its production facility in Cambodia.

The new Harriet jean (AUD$199.90) is available from at select David Jones, Myer stores or online via www.outlanddenim.com.au.

Wages are growing at 2.3 per cent per year but economists say this is still not enough to keep the Reserve Bank of Australia from cutting interest rates.

Wages grew at 0.5 per cent in the March quarter, according to the Australian Bureau of Statistics, slightly less than economists' expectation of 0.6 per cent.

BIS Oxford chief economist Sarah Hunter said despite robust jobs growth, it seemed, for now at least, there was little upward pressure on wages in the labour market.

"Although the recent drop in inflation means that the average worker is now enjoying relatively robust growth in real wages at 1 per cent, the data are disappointing.

"The data will add yet more pressure to the RBA board to cut the cash rate," she said.

The bank, which signalled it could cut interest rates to new record lows if the jobless rate does not fall below its current 5 per cent, also noted in its Statement on Monetary Policylast Friday that wage growth would continue to be "gradual".

"It is likely that the labour market still has some capacity to absorb additional labour demand before anything more than gradual upward pressure is generated for wage and price inflation."

UBS economist George Tharenou said not even "gradual" wage growth should be counted upon anymore.

"Despite decade-low unemployment, wages are arguably no longer gradually trending up."

But Commonwealth Bank senior economist Gareth Aird argued that "the detail was a little more encouraging than the headline numbers".

"Private sector salaries are trending higher from a trough in the second quarter of 2017 of 1.8 per cent to 2.4 per cent in the first quarter of 2019."

The private sector's quarterly rise of 0.5 per cent in the March quarter also exceeded that of the public sector in seasonally adjusted terms.

ABS chief economist Bruce Hockman noted that the electricity, gas, water and waste services industry recorded the highest quarterly rise of 1 per cent, but that the main contributors to growth were the regularly scheduled wage rises in the healthcare and education.

Global sporting goods retailer Decathlon is set to take a bigger share of the $6.8 billion Australian sports equipment and apparel markets by expanding its range, opening new stores and relaunching its e-commerce site.

As the French-based retailer launched on Monday with a cut-price ski-wear range that threatens to take sales from Super Retail Group's Rebel chain, Kathmandu, Anaconda and Aldi, chief executive Olivier Robinet said his long-term dream was to have a Decathlon store within 30 minutes of about 80 per cent of the Australian population.

Decathlon opened its first Australian bricks-and-mortar store in December 2017, 16 months after setting up a dedicated Australian online store.

The stores are about 3800 square metres – two to three times the size of most Rebel stores – and carry more than 7000 products across more than 70 sporting goods and outdoor categories.

It now has four mega-stores – two each in Sydney and Melbourne – and plans to open a fifth, at Moorabbin in Melbourne, before the end of the year.

Decathlon relaunched its e-commerce platform this week and expects online sales, which represent about 7 per cent of total sales, to accelerate as customers take advantage of two-hour click-and-collect and free delivery for orders over $80.

Customers key

Mr Robinet said the ultimate number of stores would depend on Decathlon and its willingness to invest more capital in Australia. Decathlon, which has 1500 stores in 49 countries and annual revenues of about €11 billion ($17.7 billion), is controlled by the founding Leclercq family.

"We're a family-owned company so what I say doesn't matter," Mr Robinet told The Australian Financial Review.

However, he said Decathlon's performance since the launch 14 months ago had been "better than expected" and customer satisfaction – one of Mr Robinet's key performance metrics – was high.

The company's original store in Tempe in Sydney's inner south has 140,000 members, many of whom are highly engaged, constantly reviewing products and offering recommendations.

Price is right

Mr Robinet said Decathlon's decision to launch a year-round snow gear range, with about 150 products ranging from helmets and masks to boots and beanies, stemmed partly from member feedback.

Australian consumers were sick of paying steep premiums for ski gear that was usually available for a limited period.

To illustrate his point, Mr Robinet outlaid $360 for a Helly Hansen mens ski jacket from Anaconda over the weekend. For the same price ($365) he could have bought an entire outfit, including jacket, pants, helmet, gloves, socks, beanie from Decathlon's Wed'ze private label brand.

Decathlon's products, all of which are designed in house, are 50 to 70 per cent cheaper than branded products, according to a Citigroup price survey.

Decathlon has augmented its private label ski and snow range with branded skis and binding packages from brands such as Rossignol ($449) and Atomic ($399) to test demand.

Mr Robinet, who learnt to ski at the age of 4, said Decathlon had initially underestimated the level of interest in skiing in Australia and he was stunned to learn that many Australians bought heavily discounted ski gear from discount supermarket chain Aldi.

Aldi launches its annual ski sale on May 18 and Kathmandu launched its new snow collection earlier this month.

"Our idea is to disrupt the disruptor, " he said. "Our prices are better than anyone's ... we just want to make sports more accessible to Australians."

PVH Corp, the US-based owner of Calvin Klein, Tommy Hilfiger, Van Heusen and a slew of other global fashion brands, has announced a new corporate responsibility strategy centred on sustainability.

Dubbed ‘Fashion Forward’, the three-pronged plan involves reducing the company’s negative impacts to zero, increasing its positive impacts to 100 per cent and improving the lives of more than one million people across its value chain.

The company laid out 15 priorities across the three areas and set a key target for each in a digital hub dedicated to the Fashion Forward strategy to ensure accountability and transparency going forward.

Some of these priorities include eliminating carbon emissions, with the goal of powering all PVH offices, warehouses and stores by 100 per cent renewable electricity by 2030, and reducing emissions in the supply chain by 30 per cent by 2030, and achieving zero waste and eliminating single-use plastics in all offices, distribution centres and stores by 2030.

PVH Corp has also made a commitment to improve its ethical and sustainable sourcing, with the goal that 100 per cent of its suppliers will meet or exceed its social and environmental standards by 2030. Some specific goals in this area include ensuring that migrant workers in its tier 1 and tier 2 suppliers will not pay recruitment fees by 2025, and that 100 per cent of workers in two key production countries will earn a living wage by 2025, and in four key production companies by 2030.

The company is also establishing professional development and life skills development programs for hundreds of thousands of people in its supply chain and tens of thousands of people in its workforce.

This is a step up from PVH Corp’s previous corporate responsibility efforts, according to Emanuel Chirico, chairman and CEO of PVH Corp.

Co-founders Edwina Forest and Adrian Norris have done this through a combination of good design and quality – an Aje T-shirt worn and washed regularly looks the same after two years – as well as educating consumers that a good T-shirt is interchangeable with a shirt or knit in terms of outlay and value.

"There is much beauty in simplicity," explains Forest. "We have a lot of pieces that have an incredible amount of detail. But those pieces need to be paired ... with something simple. In the beginning [11 years ago], we had lots of 'wow' pieces but not much to work with them to let those have their 'moment'. Having the tee allows that, and having the logo allows people to identify them as being part of the brand."

Since launching their brand, Forest said the Aje tee has had more than 50 iterations, including the most famous style, which has the brand emblazoned on the front in sequins and sells for $190.

David Jones womenswear buying manager Teneille Oakley says the allure of the logo T-shirt "is they allow the customer to buy in to a brand at an entry price. Australian consumers love being branded and showing everyone what they're wearing."

According to Oakley, Australian consumers are quite relaxed about being, at the crudest level, wearable billboards for brands ranging from Bonds to Balmain (Aje is stocked at David Jones). And though "logo culture" has hit saturation point, she says it's far from over, given the trend towards more casual dressing.

"It’s become acceptable to wear a T-shirt to work," Oakley says. "The challenge designers have is how they evolve the tee and make it relevant to the consumer."

Forest says affordable luxury brands such as Aje need to strike the balance between the more commercial pieces, such as tees, and the fashion pieces that show their design mettle.

"While you want something to continue to sell and evolve ... you don't want it to define you either," Forest says. "It’s also important to have elements of newness but not too many [garments] so we can showcase our work."

Aje will open Mercedes-Benz Fashion Week Australia in Sydney today with a presentation of its resort 2019 collection. This will include its first jewellery collection and an expanded accessories offering.

While many Australian brands, including Camilla and Marc and Viktoria & Woods, have also adopted the logo tee, Forest says Aje has always run its own race when it comes to what's in fashion.

"It’s a decision we made a long time ago not to be trend-driven as a brand. It’s been more difficult sometimes because what's reported on in the media is quite trend-based. It’s allowed us to have a unique point of view."

This may or may not have something to do with the fact that Tamara Ralph, 37, and Michael Russo, 39, partners in business and in life, are Australian.

“Hello, how are you!” they chorus, smiling as they enter a room corralled by pieces from their Spring/Summer 2019 Couture Collection: a corseted minidress adorned with silver chains and pom-poms; a bubble-gum neoprene suit speckled with multicolour crystals; a high-collared powder-blue shift dress with embroidered train and matching wide-brimmed hat. Prices start at £30,000 ($55,000) but really, if you have to ask …

“We’re building a complete lifestyle empire that spans all product categories,” they tell me in their understated, courteous way.

Nearby in Kensington is an atelier workshop magicking pieces that sometimes sell the moment they appear on a runway, as excited clients tap their orders via WhatsApp. Here at Ralph & Russo HQ, such garments can be touched, stroked, tried on, and the creative process demystified and explained.

“We try to make things easy,” says Russo.

“Do have a cake,” says Ralph, gesturing towards a silver tray. It’s easy to see why the Brisbane-raised Russo (in Tom Ford blazer and jeans) has called his fiancée the embodiment of the Ralph & Russo woman. Elegant and focused, Ralph is a vision in heels and black silk coat gown, diamond studs on her ears, gold Rolex around her wrist, her hair honey-streaked and bouncy.

She always presents this immaculately to clients, sketching out ideas using skills that were nurtured by her mother and grandmother – both former couturiers – as a girl growing up in beachside Cronulla, Sydney.

The young Tamara sold her first piece aged 12 and made clothes for friends and private clients as a teenager, honing her craft with a degree at Whitehorse Institute of Design in Surry Hills, her mind’s eye on the catwalks of Paris. “Back then, the sort of couture art pieces we do now were my passion,” she says of Ralph & Russo’s feminine, golden-era silhouettes with their emphasis on the waist. “I knew I wanted to work overseas.

We decided to build a global luxury brand organically, and the smartest way was to start at the top with couture.

— Michael Russo, Ralph & Russo

“Luckily, I’m a big believer in fate,” she adds, throwing Russo a smile.

In 2006, four hours into her first visit to London, Ralph was walking down Chelsea’s Kings Road when she bumped into Russo, an investment banker, and they started chatting. A year later, they were living in leafy Richmond, in a flat with a spare room just big enough for a mannequin and a sewing machine.

“I’d never thought about going into fashion until Tamara compelled me into it,” grins Russo. “We decided to build a global luxury brand organically, and the smartest way was to start at the top with couture and get on a par with the big names as quickly as possible.”

When Ralph wore a self-made gown – “a backless halter neck with embroidery detail, very clean and classic” – to a black-tie event, a wealthy high-profile woman (they’re not saying who) put in an order.

One client became 10, then 50. Within a year, Beyoncé and Angelina Jolie were calling. Today, they have thousands of clients including babies, grandmothers and new brides (“bridal is a large part of the business”); their 2016 couture show closed with a gigantic wedding dress that took 50 people to create. They employ 312 people, including an atelier team with 45 nationalities, and keep growing out of their offices.

Their London base has proved convenient for an international clientele with homes and children at school in the capital, and younger women from emerging markets – China, Russia, the Middle East – who come to London to shop. “They used to have to go to Paris to see these gowns,” says Russo. “We flipped it and made it easier for them to interact with the product.”

In 2017, Ralph & Russo diversified into the ready-to-wear market. “The Angelina is a bestseller,” says Ralph, indicating a silver asymmetric gown displayed on a nearby mannequin, as originally worn in black satin by Angelina Jolie at the 2017 Toronto International Film Festival and later by the couple’s great friend, Kylie Minogue, in dusky pink.

Fragrance, eyewear and beauty products are in the works. There are plans for boutiques in New York and Miami, and further down the track, in Sydney: “Australia has really developed as a market in terms of luxury,” says Ralph. “When I grew up there was one Chanel store and that was it. Now there are all these luxury brands offering beautiful retail experiences.”

Russo nods. “We’re looking at Australia as a destination flagship, especially because we’re seeing a lot of sales online, which also reflects the camaraderie many Australians feel towards other Australians who have succeeded globally.”

You have certainly done that, I say, and they laugh good-naturedly. “We’ve been fortunate,” replies Ralph. “But there’s so much more to do.”

Mother’s Day is just days away, and for some, that means a flurry of last-minute shopping to find the “perfect present”.

According to the latest research from IBISWorld, Australian consumers will spend more than $78 per capita on Mother’s Day gifts this year. That’s approximately $1.62 billion in total, which is up from the $733 million consumers spent last year, according to a survey from Finder.com.au.

Behind these figures is a global network of online retailers, physical stores and shopping centres fighting to catch consumers’ attention to present objects worthy of the receiver.  

Karim Mradmi, Body Shop Australia’s retail director, said this year they have focused on building an easier shopping journey for both their new and existing customers and loyalty members in both retail and e-commerce level by improving on their customer experience.

“Our gifting offers were strategically selected to generate interest and drive traffic into our stores and to the website,” Mradmi said.

“Our visual merchandising activation in store and digital content across both online and social media were diligently crafted to tell the story of the product, gifting, special buys and offers to create a compelling reason to engage and shop.”

Mradmi said the brand offerings in particular were supported with window assets featuring their Mother’s Day ‘Real Mum Moments’ campaign.

Inside Retail spoke to a number of retailers and shopping centres to see what they’re doing to appeal to Mother’s Day shoppers this year. As has been the case for the past few years, the focus is squarely on personalised gifts and experiences.

Design a bag for mum

Personalised handbag and accessories retailer Mon Purse is offering 30 per cent off on items bought on their site for the occasion.

The local design-your-own-bag brand has also announced on its Facebook page that they are hosting an in-store Mother’s Day party at their Paddington and Doncaster boutiques, offering complimentary hair and makeup touch-ups by Luxit makeup artists.

The first 25 customers to spend more than $100 in-store will receive a free Mother’s Day giftbox including a Mon Purse cosmetics case, face cream, lip gloss or multipurpose face paint and bath soak. Non-alcoholic drinks and treats by the Cake Inn will be served.

Think inside the box

The Body Shop has made it easier for customers to pick a present for Mother’s Day by offering discounted mini treats, fragrances and beauty and skincare essentials in gift boxes and reusable bags. Customers can put a personal touch to the presents by creating their own personalised box, bag or pouches.

The cosmetics retailer said it has also launched a new fragrance in time for Mother’s Day, its new White Musk Flora Fragrance and Limited Edition Cactus Blossom range.

“Both ranges also provided the opportunity to leverage our vegan, cruelty-free and community trade messages to create buzz and interest on this key gifting date,” the retailer said.

Lee Rodgers, The Body Shop Australia’s commercial director, said Mother’s Day is the perfect time to launch a fragrance, especially their floral feminine scent.

“White Musk Flora has performed incredibly strongly and has outsold our expectations,” Rodgers said. “Cactus Blossom featured a suite of strong assets, with a soft ‘feminine’-looking pack and floral theme, perfect for Mother’s Day.”

Buying in-store will also impress environment-conscious mums with the launch of Body Shop’s In-Store Recycling Scheme.

Initially available in five countries, the UK, Australia, Canada, France and Germany, the move allows customers to return their empty bottles, jars, tubs, tubes and pots in Body Shop stores for recycling.

“The stores in the five countries mentioned will feature a recycling bin where customers can return any five empty products from The Body Shop and receive an incentive,” the retailer said. It added that it aims to rapidly expand schemes like this within its global network and ensure every store has an in-store recycling solution.

“Ultimately, the company plans to close the loop and re-use the plastic in packaging, or in shop fixtures.”

Gift packs for a relaxing weekend

Bras N’ Things has introduced a new range of sleepwear in time for the special occasion featuring satin, florals, fleece and fun prints.

“At Bras N Things we always celebrate strong, empowered women, so Mother’s Day is a special campaign for us,” said Natalie Chalmers, Bras N’ Things national marketing manager.

“It’s a great time to honour the female role models who inspire and support you – whether that’s your mother, aunt, grandmother, close friends or a mentor.”

Personalised bouquets

Sunshine Plaza is offering a bouquet workshop on May 11 complete with a hand scripted card for mum by Pixiedust Calligraphy. Customers can also have their gifts wrapped by SunnyKids charity for a gold coin donation.

The shopping centre has also announced it is offering prizes to be won for Mother’s Day gift packs to the value of over $1000.

“Head to @SunshinePlazaOfficial Instagram account and find the Mother’s Day Competition Post, like and comment on ‘What you love about your Mum!’,” Sunshine Plaza said in an announcement.

Mother’s Day pop-up

E-commerce giant Amazon has launched its own Mother’s Day online gift shop featuring personalised presents for mums, handmade gifts, flowers, chocolates and more.

The online “pop-up” also includes deals under $20 for online consumers to browse through.