Kohl’s reported a better-than-expected Q2 profit as it controlled expenses and reintroduced phased-out product assortments, hinting at early signs of traction despite sales declines. The retailer is taking steps to stabilize, but it faces a mammoth challenge to move sales to growth—not just lessen the declines. As shoppers scrutinize every dollar they spend, Kohl’s needs to show it can deliver the right products at the right price—and find ways to stand out in an increasingly crowded field by bolstering loyalty perks, leaning more on personalized offerings to consumers, and communicating clearly what it wants to be known for. That won’t be easy for a retailer whose core shoppers remain heavily reliant on coupons and discounts.
Lego continues to outperform the toy industry by delivering products that appeal to both children and adults while expanding brand awareness in Asia. While we expect US toy and hobby sales to grow just 2.0% this year, Lego is increasingly in a league of its own. The company’s all-ages appeal, IP partnerships, and brick-and-mortar strategy are working in tandem to drive sales and encourage lasting loyalty.
The luxury industry has a counterfeit problem. Counterfeits pose a serious challenge for brands and the growing number of secondhand platforms that specialize in luxury resale. The more convincing these superfakes get, the harder it will be for companies like LVMH to justify their high price points—and harder still for platforms like Vestiaire and The RealReal to keep fake goods off their marketplaces.
The news: Urban Outfitters is partnering with Levi’s for the second iteration of On Rotation, its limited-time concept launched earlier this year with Nike to deliver community-driven, experience-rich retail environments for Gen Z. Our take: On Rotation recasts retail as a series of limited-edition experiential drops, with physical and digital spaces that vanish almost as quickly as they appear. It’s a storytelling-fueled scarcity play that’s designed to train a generation of shoppers who never grew up as mall rats to return again and again in search of novelty. The approach reframes the store—and the website—as a medium for culture, not just commerce, and offers a playbook that department stores and other retailers would be smart to test.
Labubu is well on its way to being a $1 billion business for maker Pop Mart. The retailer’s Monsters IP, which includes Labubu, generated RMB 4.81 billion ($671 million) in the first half of 2025, a staggering 668% increase YoY. While the history of toy fads suggests that the Labubu craze will soon fade, it could be extremely lucrative in the short term—and not just for Pop Mart. Although the retailer is fiercely protective of its IP, plenty of brands and retailers would be happy to benefit from a temporary Labubu bump.
Louis Vuitton’s forthcoming beauty launch will test its pricing power. The brand is betting that premium packaging and high-quality products designed by makeup maven Pat McGrath will convince shoppers to spend $160 on a single lipstick—a risky assumption given the headwinds plaguing the luxury industry. In order for La Beauté Louis Vuitton to succeed, the brand will have to prove to customers that its products are worth the hefty price tag. That’s easier said than done, given waning enthusiasm for premium beauty and the growing popularity of low-cost dupes.
On today’s podcast episode, we discuss how to best decide who to partner with, the right conditions for a successful store-in-a-store relationship, how to approach long-term partnerships versus one-off collaborations. Join Senior Director of Podcasts and guest host, Marcus Johnson, Vice President of Content, Suzy Davidkhanian, and the Founder and CEO of Mack Weldon, Brian Berger. Listen everywhere and watch on YouTube and Spotify.
The situation: TJX is thriving as shoppers flock to its off-price value proposition. Our take: Off-price retailers like TJX’s T.J. Maxx and Marshalls are poised to thrive this holiday season, when consumers are likely to be both budget-minded and eager for discovery. TJX’s model allows it to avoid much of the tariff pain weighing on full-price retailers, since it sources excess merchandise at steep discounts. At the same time, retailers frontloading inventory in anticipation of tariff impacts may unintentionally flood the off-price channel with fresh product. That could create a double advantage heading into Q4: sharper values for shoppers, and a “treasure hunt” experience that can pull traffic away from department stores and specialty chains at a time when promotional intensity will be fierce.
US retail sales advanced in July as consumers took advantage of major sales events. However, signs are emerging that consumers are becoming more pessimistic as inflation expectations rise. With pressure from rising food prices, higher housing costs, and uncertainty about higher tariffs, consumers remain cost-conscious—and are wary about what’s ahead. Still, it’s clear that they’re willing to spend when they see clear value, providing a roadmap for retailers to capture sales.
Nearly two-thirds of US consumers (63%) believe businesses are taking advantage of the challenging economic climate to raise prices, according to a survey by The Harris Poll. Still, consumers shouldn’t be surprised by tariff surcharges at checkout. Businesses should avoid the urge to use tariffs as an excuse to pad their margins and instead aim to keep prices on popular items as steady as possible while clearly explaining unavoidable increases.
A key inflation gauge that excludes food and energy prices picked up in July, suggesting tariff-related cost increases are being passed along to consumers. Core CPI, which strips out energy and food, rose 3.1% YoY, up from 2.9% in June. On a monthly basis, that closely watched measure rose 0.3%, the highest increase since January and up from June’s 0.2% advance. Retailers and producers are exhausting their early strategies to shield consumers and will need to plan for sustained cost pressures. Some strategies retailers can take on include negotiating with suppliers on cost-cutting measures or the use of lower-cost materials, exploring investments in onshoring production to avoid tariffs, and increasing D2C sales in a bid to improve profit margins.
Swiss footwear company On posted raised its full-year sales and gross margin outlook, citing broad-based geographical strength as Gen Z consumers scoop up its premium-priced athletic shoes.
Over half (56%) of US adults commonly purchase private label grocery/food and beverage products, the most popular category of private label purchased, according to April 2025 data from First Insight.
Saks Global has yet to make good on its pledge to resume payments to vendors, per Retail Dive, despite CEO Marc Metrick’s promise to tackle overdue balances starting in July. Saks’ acquisition of Neiman Marcus is looking increasingly like a costly misstep. The current environment is unfavorable to both luxury and department stores, as shoppers prioritize retailers and goods that deliver value. With numerous headwinds working against it, Saks will need to find a way to woo big spenders and reassure vendors—and investors—that it has the funds to cover its obligations.
The RealReal is upbeat about its prospects as tariffs and the uncertain environment boost resale’s appeal. While the company is not yet profitable, it is winning over more shoppers who see the circular economy as an opportunity to snag a good deal on luxury merchandise. Demand for resale is accelerating as consumers look for ways to escape tariffs and find better deals—not to mention shop more sustainably. While shoppers worried about saving money are unlikely to patronize a luxury-focused resale platform, The RealReal is in a good position to win spending from aspirational customers who are interested in luxury but are otherwise unwilling—or unable—to pay retail prices.
Ralph Lauren posted higher-than-expected quarterly results and raised its full-year revenue outlook, though it warned that tariffs could pressure consumer spending in the second half. Amid economic uncertainty, Ralph Lauren’s performance highlights the resilience of brands that sit at the intersection of aspiration and accessibility. The company appears better positioned than some of its luxury peers to weather volatility. Its quarterly results offer a blueprint for its retail peers, showing the value of a diversified supply chain and brand equity over aggressive discounting and heavy dependence on a single market.
Michael Kors owner Capri credited a sequential improvement in demand for its better-than-expected quarter and upgraded FY forecast. In an otherwise difficult quarter for luxury, Capri’s bullishness stands out. But it has a lot of work to do to revive its brands—particularly Michael Kors, which, following the sale of Versace, now accounts for nearly 70% of revenues.
The results: The US toy industry returned to growth in the first half of 2025 after a flat 2024 and a sales decline in 2023, per a new report from Circana. Dollar sales rose 6% YoY, and unit sales increased 3%. The average selling price also climbed 3%, its first meaningful increase after three years of stagnation. Our take: The toy industry is at a crossroads. While Hasbro and Mattel have both raised their full-year outlooks, short-term risks—from tariffs to economic anxiety—are building. If those pressures persist, the category’s recovery could quickly stall. To stay resilient, brands should double down on the strongest demand drivers: licensed IP and the fast-growing “kidult” segment.
Coach plans to open more than 20 of its Coach Coffee Shops in retail and outlet stores this year, per Business of Fashion. There’s a reason so many luxury brands are turning to hospitality concepts: They are an excellent way to get shoppers through the door, and to keep them spending—even if it’s just on a cup of coffee or branded baseball cap.
Ulta Beauty is tapping into trends like Korean beauty and wellness to stay relevant with younger consumers while Pop Mart has created viral excitement around its collectibles through smart digital marketing and gamification. In addition, Urban Outfitters has launched a back-to-school dorm makeover contest and Away Luggage is enhancing the travel experience with a giveaway. Here are the eight most interesting retailers and brands from last month, as ranked on our “Behind the Numbers” podcast.