The gap between retail’s most and least digitized categories will grow even wider.
The news: Macy’s aims to boost in-store traffic this back-to-school season by expanding its assortment—most notably by adding select Abercrombie Kids items to its lineup. The move comes at a challenging moment, as we expect back-to-school sales to slow for the second straight year. Our take: Back-to-school is a perfect proving ground for Macy’s portfolio revamp. Parents and teens are already in “new‑gear” mode, so adding Abercrombie Kids now lets Macy’s showcase a fresher, youth‑centric mix when foot traffic naturally peaks. Pairing the drop with proven draws like Nike and Jordan turns a seasonal rush into a live test of Macy’s revamped merchandising—and gives shoppers a clear reason to visit the store before classes start.
On today’s podcast episode, we discuss the unofficial list of the most interesting retailers for the month of July. Each month, our analysts Arielle Feger, Becky Schilling, and Vice President of Content and guest host, Suzy Davidkhanian (aka The Committee) put together a very unofficial list of the top eight retailers they're watching based on which are making the most interesting moves: Who's launching new initiatives? Which partnerships are moving the needle? Which standout marketing campaigns are being created? In this month's episode, Committee members Arielle Feger and Suzy Davidkhanian will defend their list against Senior Analyst Blake Droesch, and Principal Analyst Sky Canaves, who will dispute the power rankings by attempting to move retailers up, down, on, or off the list.
The luxury sector is facing a “challenging” and “somewhat unprecedented” environment, Prada Group chairman Patrizio Bertelli said—causing even once-hot brands like the company’s namesake label to lose momentum. Luxury companies for the most part view the current downturn as a cyclical blip in an otherwise robust industry. But the prolonged slump is revealing structural challenges—namely, heavier reliance on American and Chinese consumers, as well as a tendency to lean on price hikes rather than innovation to drive sales.
Tariffs could reshape the fashion calendar as brands rethink their merchandising strategies to limit exposure. While Vince’s decision to lengthen its spring season was borne out of necessity, it could herald a larger shift in how fashion brands approach their calendars—particularly as tariffs force tougher decisions about what and how much inventory to bring in. Companies can either go faster—taking a page from the fast-fashion industry and launching new styles quickly and often—or slower, à la Vince, depending upon their customers’ preferences.
Deckers and Puma are proceeding with caution as tariffs complicate US operations and consumer sentiment. Of the two companies, Deckers is better equipped to manage the uncertain environment. It has considerably more pricing power than Puma, giving it more room to offset tariff costs. It also has significantly more runway to grow outside the US: International revenues surged 50% in Q1, while Puma is facing weakness in Asia and Europe in addition to North America.
LVMH’s sales fell more than expected in Q2 in yet another sign of trouble for the luxury industry. 2025 is shaping up to be another difficult year for the luxury industry—and not only because of tariffs. While the duties are certainly hitting consumer sentiment and buying power, limited innovation and a perceived lack of value are diminishing luxury’s appeal, even among shoppers who can afford it.
The news: The Nintendo Switch 2 shattered hardware sales records despite a $150 price hike over its predecessor and higher game and subscription prices. US sales hit 1.6 million units in June—the best console launch month ever—surpassing the PlayStation 4’s November 2013 record of 1.1 million. Our take: Nintendo’s end-to-end control over hardware, software, services, and first-party games sets it apart in a gaming industry chasing endless content and fragmented subscription models. By owning the full experience, Nintendo delivers consistency others can’t. To ride the wave, brands can partner with Nintendo for themed consoles, accessories or in-game downloads. Or, they could seek out third-party developers for subtle, story driven placements in games.
Retailers have been quietly sidelining plus-size clothing and reducing in-store quantities, even though most US women wear larger sizes. This shrinking presence isn't just a bad business decision; it's out of step with consumer preferences.
In this podcast episode, we discuss the importance of physical touchpoints for brands and explore what attracts younger generations to in-store shopping experiences. We also examine the expectations consumers have for engaging in person experiences. Join our conversation with Senior Director of Podcasts and host, Marcus Johnson, Chief Client Strategy & Integration; President of Quad Agency Services, Tim Maleeny, and Vice President of Content, Suzy Davidkhanian. Listen everywhere you find podcasts and watch on YouTube and Spotify.
The split screen: There’s a growing divide between affluent consumers and everyone else. Our take: It’s tempting to look at top-line numbers—like June retail sales—and assume the economy is holding steady. But much of the resilience is concentrated at the top. Moody’s estimates the wealthiest 10% of households—those earning $250,000 or more—now account for half of all US consumer spending, up from about one-third in the early 1990s. That dynamic helps explain why luxury brands like Burberry and RH continue to post gains, while value-focused chains like McDonald’s are seeing signs of softening demand. As inequality widens and economic anxiety builds, especially amid persistent inflation and trade uncertainty, the US economy looks increasingly bifurcated.
Only 28% of US luxury consumers felt optimistic about the economy in April 2025, down from 41% in January 2025 and 45% in April 2024, according to data from Saks.
The news: Circle K owner Alimentation Couche-Tard has dropped its bid to buy Japan’s Seven & i Holdings, casting doubt on whether the 7-Eleven operator’s planned US IPO will proceed, Bloomberg reported. Our take: As 7-Eleven continues efforts to strengthen its core business, the failed takeover bid offers lessons for retailers and brands. Decisions involving globally recognized brands should be strategic, not reactive. Retailers must maintain flexibility to revisit IPO or spin-off plans as business circumstances change.
On today's podcast episode, we discuss the state of some of our 2025 predictions, including GenAI’s influence on business growth, the influence of China’s e-commerce disruptors, the squeeze on retail media networks, and more. Then, we offer a few more slightly spicier predictions for the remainder of the year ahead. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Vice President Suzy Davidkhanian and Senior Analyst Carina Perkins.
The news: Cartier owner Richemont beat sales expectations for the quarter ended June 30, as wealthy shoppers weary of price hikes on designer handbags and apparel opted to spend their money on jewelry instead. Our take: Shoppers’ move away from products like Chanel handbags—seen by many as overpriced—and toward items like Cartier Love bracelets that are expected to better hold their value reflects the (partly self-inflicted) challenges luxury brands now face.
Ecommerce share varies greatly across categories. The average ecommerce penetration across US retail sales of 16.7% masks wide disparities: Rates range from as high as 70.1% for books, music, & video to just 5.9% for auto & parts.
Men’s care brand Every Man Jack employs a strategic calendar-based marketing approach that shifts focus throughout the year, responding to consumer behavior and competitive pressures.
The tactic: Levi Strauss is reducing its SKU count—even as it expands the range of items it sells—to minimize tariff costs and maximize full-price sales. Our take: SKU rationalization is becoming a necessity for Levi Strauss and other brands and retailers looking to manage the impact of tariffs.
The insight: The gulf between top-tier luxury brands like Brunello Cucinelli and the rest of the market is widening as ultra-wealthy consumers become the primary growth driver for the industry. Our take: Luxury brands have to work harder than ever to win over cautious consumers. While many are chasing the money by recalibrating their assortments—and price points—to woo high net worth individuals, this strategy could backfire by making brands even less appealing to the aspirational shoppers who still account for the majority of luxury sales.
The insight: Fashion M&A activity is drying up as uncertainty and structural challenges dampen investor interest. The number of deals in the apparel and accessories category fell nearly 40% YoY globally in Q2, according to PitchBook data reported by Modern Retail. Our take: The current macroeconomic environment is not conducive to most M&A activity, as uncertainty pushes companies to conserve resources and focus on their core businesses. But for retailers in a relative position of strength, now could be the time to make strategic acquisitions that either reinforce their existing advantages or enable them to diversify.