asers Group CEO Michael Murray. There were also Aussie legends like Solly Lew, Brett Blundy and Bernie Brookes. After three days, dozens of presentations, and hundreds of sangria-fueled conversations, here are my top five lessons learned. 1. Stabilising economic conditions The global economy is far from where we want it to be (low growth and high inflation) but the rate of change has slowed from the volatile ups and downs of the last three years. And there is a sense of predictability for the near future. Dr Ira Kalish, chief global economist at Deloitte, thinks a recession is likely for fragmented markets like Europe, but that markets like the US and China are likely to escape a recession based on low unemployment, high household savings and continued growth in spending. And I would say Australia fits into the latter category, too. What does this mean for retail? Most executives I spoke to have engaged in some level of cost cutting. But with that complete, they are reasonably bullish on the near future, with a focus on share growth via investments in two key areas – stores and brand. 2. Stores are back with a bang Consumables and low-cost retail are performing well online but for everything else, shoppers are coming back in-store. Beauty giant Sephora recently made a comeback in the UK and on the day that it opened its new flagship in London, there were customers lined up around the block – despite its e-commerce offer. “We’re off to a fabulous start. We’re 300 per cent better than we expected within the first eight weeks. On the opening day, we had 5,000 people queuing outside the store. Some people started queuing from midnight,” said Christopher de Lapuente, chair and CEO of selective retailing at LVMH.  “It’s the power of the brand. They didn’t come to buy lipstick at half price, they came to discover the products, the assortment – it’s part of the Sephora magic. Last Sunday, it was so packed, you couldn’t move. Sixty people were waiting outside…It’s early days, but so far, so good.” De Lapuente said traffic in many of LVMH’s stores is 20-30 per cent higher than pre-Covid. Chris de Lapuente, chairman and CEO of selective retailing at LVMH (r) Lane Crawford group CEO Jennifer Woo recounted the moment the luxury retailer opened its Hong Kong store especially for one excited customer at 11 o’clock one night.  “After the borders opened, we had a customer who hadn’t been to Hong Kong for three years and got in touch with the staff and said: ‘I’m landing now and I want to come by and see the staff!’ ” Woo said.  “So our team opened the store at 11pm and they had so much fun. They were doing fashion montages, mix-and-matches, midnight feasts and having a music party. And they closed an exceptional transaction at 2am.” I shudder to think what an “exceptional transaction” means for Lane Crawford. 3. Virtue signalling on sustainability There were some inspiring case studies of retailers who have sustainability baked into their business models, like Patagonia, Allbirds and The Body Shop. But for the most part, retailers talked a big game on some very small moves. One of the best examples of virtue signalling was when Shein executive vice chair Donald Tang steered his interview towards Shein’s ESG initiatives (which included a resale platform called Shein Exchange and a recycled polyester range called Evolushien). It made for a feelgood conference session, but was a pimple on an elephant when you look at the real social and environmental impact that business makes. That said, Professor of Marketing Scott Galloway from New York University’s Stern School of Business said virtue signalling isn’t all bad, and that it’s hard to expect the private sector to lead the way on ESG when their structures and incentives are strongly geared towards making a profit.  “Structurally speaking, we need to support companies to make profits, tax them hard and then lean on our governments to make long-term investments in people and the environment,” Galloway said. NYU Professor of Marketing Scott Galloway (l) 4. Bridging the gap between tech and humans While there was a lot of discussion around how AI is transforming retail, Marks & Spencer CEO Stuart Machin admitted that he still struggles to find the balance between technology going too fast and too slow for his customers. In some cases, he’s even asked his 72-year-old mother, an avid Marks & Spencer shopper, for her thoughts on his business decisions.  “I worry about this constantly. Sometimes I’m the person internally who challenges how fast we go, like with internal supply-chain systems, where I want to go really fast, but then I worry our colleague won’t keep up,” Machin revealed. “When it comes to customer technology, I really worry. We have a loyalty program called Sparks with 16.5 million customers on it. Now we’re removing the [physical] card because it’s on the app. Well, my mum has a card, how will she cope with that? She’s a big shopper. She goes in every day and uses her card.” Marks & Spencer serves 10 million customers, ranging from late teens to 90-year-olds, some of whom are only just getting the hang of self-checkouts and mobile shopping with assistance from the team, Machin said. So from his point of view, retailers need to find a way for technology to meet customers’ needs and abilities, wherever they are within the shopping journey.  5. The new face of DEI Diversity, equity and inclusion (DEI) seemed to be one area where the Congress saw some major upside, from both marketing and labour perspectives. During a panel hosted by National Retail Association deputy CEO Lindsay Carroll, Victoria’s Secret chief diversity officer Lydia Smith detailed the controversial lingerie retailer’s DEI turnaround.  Victoria’s Secret is known for its infamous runway shows that feature mostly white, leggy ‘Angels’. Two years ago, after it split from parent company L Brands, the retailer embarked upon a long DEI journey. Smith says Victoria’s Secret has been intentional about undergoing a transformation “from the inside out”, with accountability at every level of the organisation.  “One of the things we did for the first time last year was introduce DEI goals for all leaders. That meant everyone at the VP or above level was responsible for actually having a goal specifically tied to DEI. It wasn’t just the HR team’s job or the DEI team’s job, but all our leaders. Then we expanded upon that this year and cascaded it to everyone’s roles in the organisation,” Smith explained. “That culture of accountability is allowing us to see impact and be able to track tangible results.” From a labour perspective, I was introduced to the concept of open hiring. It’s a practice pioneered by Bernie Glassman, a former Buddhist monk and founder of US brand Greyston Bakery that was designed to break down employment barriers for marginalised communities – and unlock new hiring opportunities for businesses.  Candidates from all walks of life, no matter their background or (lack of) experience, are encouraged to apply, and when their name reaches the top of the list, they are immediately hired, no questions asked. Some may have refugee backgrounds, others may have experienced homelessness or may be carers. Ikea, Amazon and Pepsico are among some of the major organisations around the world that have adopted open hiring. The Body Shop tested this practice for hiring its distribution teams and after much success with finding and training reliable, hardworking people, extended it to the shopfloor. “You still have to be good enough to thrive in this environment, we’re just removing the barriers to getting a job. It’s been an amazing program for us,” The Body Shop CEO David Boynton said. “So far, 5,000 people have come through our open hiring program who were otherwise excluded from the dignity of paid work.” In summary, I left the World Retail Congress feeling buoyant about the outlook for retail in Australia and around the world. Although there is still a mix of challenges like economic pressure, cost of inputs, supply-chain instability and a tight labour market, most retailers seem to have processed the impacts of those issues. Now, they are more focused on innovating around the customer experience, building trusted and desirable brands, investing in stores and chasing market share.