Retail news around the globe

Lego ups the sustainability ante The Lego Group has pledged to reduce its carbon emission per the Paris Agreement’s goal of keeping global warming below 1.5°C. The Science Based Target initiative has approved of the business’ plan to cut its total carbon emissions by 37 per cent by 2032. “Climate change poses one of the biggest risks to society and the planet that our children will inherit,” said Tim Brooks, Lego’s vice-president for environmental responsibility. “We are committed t

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tal responsibility. “We are committed to building a better planet for future generations, and that means stepping up efforts to reduce carbon emissions across our entire value chain.”

Lego’s target equates to 10 per cent of total emissions and includes energy use in factories, offices and stores, as well as from its supply chain, which makes up 90 per cent of emissions.

The company will invest $400 million for three years into its sustainability program, which is aligned with two United Nations Sustainable Development Goals: #4 Quality Education and #12 Responsible Consumption and Production.

LVMH Group introduces a new environmental strategy

LVMH Group, which owns luxury brands such as Louis Vuitton, Christian Dior and Givenchy, held LVMH Climate Week to mark the fifth anniversary of the Paris Agreement. The company invited its 160,000 employees to join the LIFE 360 (LVMH Initiatives For the Environment) program, which set an environmental roadmap for the company’s next three, six and 10 years.

From December 8 to 11, staff were brought together via an online platform for 12 focus sessions, with guests including several creative directors of the company’s brands, as well as senior executives and staff members. The week’s agenda was set around the call to action: “Be the change”, and discussed concrete solutions for sustainable luxury.

“The mobilisation of the entire LVMH Group and all our teams underscores the importance we place on this issue every single day,” said Antoine Arnault, LVMH’s director of image, communication and the environment.

“We want to send an extremely powerful signal as we embark on a new path forward, which is absolutely imperative given the urgency of the situation. This path is extremely ambitious, and at the same time, initiates a virtuous circle, because we know better than any company the power that springs from innovation and creativity. In the future, creativity will be virtuous, or it will not be.”

Turning plastic into fashion

H&M and Danone AQUA have teamed up for the bottle2fashion project, which takes plastic bottles from Indonesian beaches and repurposes them as recycled polyester.

This season, the program aims to collect and recycle 3.5 million PET bottles, which will then be blended with organic and recycled cotton and turned into a comfy yet cool kidswear collection.

“Bottle2fashion is another exciting step forward for a more circular and collaborative approach at H&M,” said Nellie Lindeborg, who manages assortment sustainability for the H&M Group. “To give a second life to disposable plastic bottles as recycled polyester is valuable in so many ways — to Indonesia’s environment, economy and social values — but also the world and our customers.”

The collaboration also supports The Indonesian government’s initiative against marine pollution by creating new jobs for locals who are collecting PET bottles for recycling.

Pomelo launches in Jakarta

Omnichannel fashion retailer Pomelo has opened its first store in Indonesia, in Jakarta’s Central Park Mall. In a departure from the brand’s other Southeast Asian stores, the new shop revealed an entirely new interior design and layout.

The new store has also embraced sustainability by using environmentally friendly materials in the fit-out and ensuring 90 per cent of the waste produced in the store each day is recyclable.

Along with the house brand’s range, Pomelo also carries Thai designers Milin Yuvacharuskul and Pomelo’s collaboration with Barbie. The company also rolled out its Tap Try Buy service, which allows shoppers to shop online and try on the clothes at their chosen branch, only paying for the items they keep.

“We look forward to expanding our offline footprint to even more customers across Indonesia over the coming months,” said Anders Heikenfeldt, Pomelo’s chief retail officer.

Pomelo will open its first Malaysia store in 2021.

Volkswagen rolls out new sales model in China

Volkswagen Group has launched a new fixed-prices sales model for electric vehicles in China, in a departure from the conventional sales system that is used by the industry.

In a joint venture with SAIC Motor, VW opened its first showroom in Hangzhou, called ID. Store X. Customers can order vehicles for a fixed price online, via the phone app or from authorised dealers.

SAIC-Volkswagen said it plans to open 40 of these types of showrooms in 29 Chinese cities in the next 18 months. According to the State Council, the demand for electric, plug-in hybrid and hydrogen-powered vehicles in China is expected to rise from five per cent of new car sales to 20 per cent in 2025.