Aritzia’s mirrorless fitting rooms are beloved, bemoaned and occasionally satirised by the Canadian retailer’s customers.

Veronica Uy, 28, a dental hygienist and part-time content creator, lives close to Aritzia’s hometown flagship in Vancouver, but says she’ll mostly shop online to avoid having to model potential purchases in front of other shoppers at the communal mirrors positioned outside the changing stalls.

“If you feel insecure, you still have to go out there because it’s the only way you can see yourself,” Uy said.

For Laura Hogya, 37, a freelance publicist in Orange County, California, the mirrors — placed under flattering lighting amid lounge seating affectionately known as boyfriend sofas, are a draw.

“It is a little genius, having shoppers validate each other on what they’re trying on. Like, ‘Oh girl, those jeans look great on you,’” Hogya said. “You step out, see other people and you become part of this community.”

On one point Uy and Hogya both agree: Whatever they think of the mirrors, they love, love, love Aritzia’s clothing. Both described the retailer’s wardrobe staples, which include workwear and leggings alike, as high quality and extremely flattering — “snatching,” as Uy put it.

Those controversial mirrors are just one example of how Aritzia’s idiosyncratic approach to retail has ignited a passionate, and rapidly growing, fandom. Founded four decades ago, the company sells what it bills as “everyday luxury,” a category teeming with retailers selling basics at every price point, from H&M to Toteme. Aritzia occupies a space in the less-crowded middle of the market, with $100 dresses and $50 tops priced above Zara or Gap, but at one-half or one-third contemporary labels like Reformation or Ganni.

Unlike most of its competitors, Aritzia rarely goes big with glossy advertisements and seldom taps celebrity ambassadors (though a campaign with Pamela Anderson scored considerable press last year). Instead, the company is focused on growing its network of stores, which chief executive Jennifer Wong told The Business of Fashion she considers the company’s most effective marketing tool, and its wide selection of 10 private brands, each designed to serve a different occasion in the lives of its customers as they transition from teenagers to middle age and beyond.

Taken together, Aritzia’s approach has inspired an unusual degree of evangelism among customers, who post countless try-on haul videos on TikTok, most of which the company said is organic. It’s now counting on that passion as it opens dozens of stores in the US, including giant new flagships in New York and Chicago. Some 100 locations are planned in the coming decade, on top of 124 stores in the US and Canada today.

“Our culture is methodical, structured and organised,” said Wong, who started at Aritzia as a sales associate in 1987 and took the helm in 2022 after founder Brian Hill stepped down after 38 years in the role. “I always say we’ve been on a 40-year continuous improvement track.”

The Price-to-Quality Ratio

A critical ingredient for the retailer’s popularity in recent years is its position in the market as neither fast fashion nor luxury.

It’s a price point that few retailers target, catching both fast-fashion shoppers who see Aritzia as a splurge and customers who perceive it as an affordable, high-quality alternative to premium brands.

“There’s no one that does exactly what we do because we don’t put ourselves in a category or a box,” said Wong.

Ina Yang, 31, said she typically shops from brands like Maje and Acne Studios, as well as on resale platforms for higher-end luxury pieces. Aritzia is the only mass retailer she frequents. Yang owns five pairs of its best-selling Effortless pants and still wears an Aritzia leather jacket she purchased 10 years ago.

Nichelle Laliberte, 27, said Aritzia has been great for building a new capsule wardrobe that’s longer lasting than fast fashion.

“Instead of buying the same product every year because it’s worn out or broken down, I’d rather have something for several years and be able to pass it down to my children,” she said. “I’m in the process of rehabilitating my closet space and it’s one of the main stores I gravitate towards in order to do that.”

That value proposition is at the heart of Aritzia’s brand, Wong said.

“I think of it as two axes. There’s the fashion quotient and then there’s the price quotient,” she said. “I would position us with a high fashion quotient and an attainable price point.”

Quality and consistency are terms that come up again and again in conversation with Aritzia shoppers.

“Aritzia has the best quality pieces that I’ve owned, that I’ll probably keep forever,” said Jules Jacobson, 30, a content creator based in New York. She said she owns 40-odd pieces from the brand, though some were gifted, including different versions of the same styles such as the Effortless pants and sweat sets.

Creating the Perfect Shopping Experience

Aritzia’s culture of perfectionism is embodied by the tactful Wong. Even with internal matters, Wong strives for constant improvement. Last week, she delayed a company-wide earnings memo by two days in order to draft a better version.

“We’re always iterating even to the 11th hour,” she said. “There are times where it’s really tough … But it was just reported to me that [the memo] had one of the highest click-through rates. And that’s with internal staff.”

In fact, like Wong, 11 percent of the company’s corporate employees have been with the retailer for 10 years or longer.

Outwardly, Aritzia’s pursuit of excellence has certainly made a difference in customer satisfaction. Shoppers point to the stores’ easy-to-navigate setup, as well as convenient online functions that few other retailers seem to offer.

“What Aritzia does so well is integrating online with offline,” said Leigh Sevin, co-founder of retail marketing platform Endear. “When you go online to locate a store, all the important information is there, including a green tag that tells you, ‘We’re open today until 9 p.m.’”

Each Aritzia store has its own web page with factoids about the location, the services offered there and other attractions in the neighbourhood, such as restaurants and art galleries.

Its superfans also highlight Aritzia’s compelling visual merchandising in-person and online, and straightforward wayfinding inside the stores.

“Their layout of all the clothes is very special,” said Laliberte. “They have sections dedicated to business casual, casual, gymwear and loungewear, and I’ll know exactly where I’m going to find something I need … If I go to other places everything tends to be mixed together.”

Aritzia relishes any customer feedback it receives, according to Wong.

“We’re always striving to get five out of five stars, and from teams in the atelier, at the service counter or on the sales floor, we’re always getting feedback,” she said. “We’re very obsessed with what the customer wants.”

That doesn’t mean Aritzia tries to please everyone, all of the time. The retailer plans to keep the mirrors out of changing rooms in its new stores, though each boutique now has at least one stall with its own mirror.

“While it’s not for everyone, the overwhelming majority of our clients have responded to it, and you can see that in the level of activity, energy and traffic that happen in our stores,” Wong said.

Don’t Say ‘Minimalist’

When quiet luxury dominated the trend cycle last year, Aritzia was at the forefront with bestsellers like the wide-leg crepe Effortless trousers, body-hugging Contour tops and wool-cashmere blend double-breasted coats.

“They just have so many great casual basics and staple pieces,” said Laliberte. “Each one I’ve found to fit me perfectly and it’s always super comfortable.”

Customers today see the retailer as a destination for these pared back minimalist staples, but Wong said she rejects the notion that Aritzia has a specific signature style. Rather, its product strategy is very much rooted in delivering on the trends du jour, albeit through a subdued — or “sophisticated,” as Wong referred to it — lens.

“It might be a minimalist moment in fashion right now, but there was a time when it was a maximalist moment and our brands played that up too,” she said. “If there’s an athleisure moment, we have items that can play to that moment. If suiting is having a moment, we can have items that can play up to that. There’s not one word that can describe our style”

The magic perhaps lies in the styling and easy-to-wear nature of each piece, its shoppers say. “They’re so good at putting outfits together, so if you’re feeling lost in fashion right now but you like Aritzia’s basic style, they’ll show you what to wear with something in particular or multiple ways,” said Jacobson.

Product pages include other items featured in the modelled look; for instance, the Cozy Fleece Mega Sweatpant in grey is paired with an oversized navy blazer and a white T-shirt.

Ultimately, it’s Aritzia’s compelling products that make it irresistible to patrons. Even those who complain about the semi-private fitting rooms can find forgiveness in the face of good, reliable fashion.

“Aritzia clothes just make you hot,” said Uy. “There’s something about the way it fits. Even a T-shirt.”

Less than two years into the role, The RealReal chief executive John Koryl has exited the company and will no longer serve on its board, the resale platform announced Monday morning.

In his place, the company has appointed president and chief operating officer Rati Sahi Levesque, who will assume the position effective immediately. Levesque helped found the company in 2011 and was its first employee. In her tenure, she has held leadership roles across the organisation, from sales and merchandising to marketing.

Under Levesque and former chief financial officer Robert Julian — the duo served as interim co-CEOs after founder Julie Wainwright resigned in 2022 — The RealReal set out on a path to profitability that included drastic changes to its commission structure that favour high-value items like jewellery and Hermès handbags.

In early 2023, the company brought in Neiman Marcus alum Koryl to seal the deal on narrowing losses. Koryl continued to iterate on the commission structure and helped revamp customer service offerings. In the fourth quarter of 2023, the company finally accomplished EBITDA (earnings before interest, tax, depreciation and amortisation) profitability, the first time since its IPO in 2019.

In fiscal 2024, The RealReal expects to post adjusted EBITDA of between $4.5 million to $7.5 million, it said as part of its CEO  announcement Monday. That’s compared to an adjusted EBITDA loss of $55 million in 2023 and loss of $112 million in 2022.

But as The RealReal reduced losses, its topline shrank. Last year, it posted $1.7 billion in gross merchandise value, reflecting a 5 percent drop from the year prior. This year, it’s expecting annual GMV of about $1.8 billion.

“Rati and the leadership team have the full confidence of the board and are well-positioned to drive the business forward,” Karen Katz, chairperson of the board, said in a statement. “We wish John well as he begins his next chapter and takes time to focus on his family.”

Learn more:

Wall Street Loves The RealReal’s New Direction. Users Have Mixed Feelings

The fashion resale company finally became profitable last year, but it was at the cost of losing consignors who complain that reselling is no longer as lucrative as it once was on the platform.

When Rhode opened a pop-up in New York in June, there were about one thousand people lined up before the doors even opened, every one of them hoping to buy the brand’s new blush or secure a glimpse of founder Hailey Bieber.

The pyjama-maker Petite Plume is taking a more low-key approach when it comes to its next big activation. For the holiday season, the brand will be launching its new line of homeware at Maman, a New York bakery with outposts across the US Northeast. Petite Plume will be sold on shelves in select locations, while baristas and other staff will don the brand’s aprons.

As a small, self-funded brand — and one without a celebrity like Bieber involved, though founder Emily Hikade’s background as a CIA officer is just as intriguing — Petite Plume’s real-life marketing strategy is to insert itself into buzzy locales rather than try to build one of its own from scratch. The brand has also partnered with the Colony Hotel in Palm Beach, the Hotel del Coronado in San Diego, and developed a collaboration with Veronica Beard that was stocked in 30 of that brand’s stores.

“The whole idea is meeting the customer where she is but finding a relevant way to do it,” said Fanny Quehe, Petite Plume’s chief marketing officer. “These partnerships help us capitalise on brick-and-mortar experiences without the massive investments that go into them,” she added.

Increasingly, it’s Rhode’s approach that’s the exception that proves the rule. Before the pandemic, temporary stores were a popular marketing strategy for online, direct-to-consumer brands; many had plenty of funding to throw into building elaborate setups that would only exist for a few months, and there were plenty of vacant storefronts in top-tier shopping neighbourhoods.

The glory days of pop-ups are long gone, however. Retail vacancies are at a decade-low in the US, and landlords are less willing to accept short-term leases. The expense is another hurdle: in the part of SoHo where Rhode had its pop-up, asking rents rose 27 percent year-over-year in the second quarter of 2024, according to CBRE. A few blocks over, another shopping corridor saw rents soar 60 percent in the same period. That doesn’t consider the cost of actually building out a temporary store, or staffing it.

Still, there’s a reason so many brands rushed to open pop-ups in previous years: creating a physical space that reflects a label’s vision is a compelling form of marketing, particularly when compared to social media ads and sponsored influencer posts. When done well, a pop-up could even get customers to do a brand’s marketing for it, in the form of in-store selfies and word-of-mouth.

Some brands are finding creative ways to produce that real-life magic on a budget. Petite Plume’s strategy of popping up in unexpected locations is one approach. Trunk shows and launch parties give people the opportunity to meet a brand’s founder over free champagne while they shop. Major events provide another opportunity: spa tools line HigherDose sets up wellness lounges featuring its infrared recovery mats and sauna blankets at Coachella and Art Basel. Draper James, the clothing line founded by actress Reese Witherspoon, will set up shop inside Hilton’s Graduate Hotels in college towns during big football weekends.

“The stickiness with a customer is much greater when you’ve had a personal interaction,” said Meg Bedford, chief executive of Loops Beauty, which hosts events with sororities and other clubs on college campuses. “It goes further than if it was just them buying our product at Target.”

Beyond Stores

Having a variety of different physical channels is important for brand-building, even when a company has stores of its own (as Draper James does), according to Murali Gokki, co-leader of the retail performance improvement practice at consulting firm Berkeley Research Group.

“Our data shows that customers right now have a plethora of choices and what they’re looking for is an excitement in how they purchase,” said Gokki.

Instead of opening a flagship, the skincare brand Orveda recently opened a spa in Manhattan’s Upper East Side neighbourhood, to create a more “high-touch” experience for customers than regular stores, according to Coty, Orveda’s parent company.

At Orveda’s spa, customers learn about the brand’s premium products while using them during their facials. That’s the difference between a customer making a transaction and a customer becoming a proponent of a brand.

“A lot of what we saw post-Covid is that people are craving interactions,” said Andrea DiNunzio, general manager of luxury skincare, US, at Coty. “When you think about skincare, it’s a very intimate thing that requires a more intimate conversation that you have with a customer.”

Free Real Estate

For a profitable and self-funded brand like Petite Plume, opening a store is only justifiable when the financial risk can be mitigated, said Quehe. It often takes months, if not years, for permanent storefronts to break even, and even pop-ups are rarely profitable.

Partnering with another brand with an existing footprint or other consumer-facing businesses eliminates virtually all the costs associated with retail, save for product and marketing. And these costs can be split between the two parties.

“If you find a partner, it’s mutually beneficial. You just divide and conquer the expenses and there’s no fee to set up shop,” said Piper Parsley, vice president of brand marketing and e-commerce at Draper James. “Having two established brands come together allows you to cross promote on each other’s channels and … double your exposure.”

It’s even more effective when a brand hones in on a location where existing customers already shop. Loops chooses the colleges it works with based on whether there is a Target or CVS store near campus — retailers that stock its products.

“We first and foremost try to look at areas where we either know we have engagement from because people are shopping at the retailers around them,” said Bedford. From there, the brand finds content creators and micro-influencers in those communities to promote its products, combined with events such as spa nights at sororities with free Loops samples.

Breaking Through the Noise

Physical touchpoints that aren’t pegged to stores can also be a great way to form a closer, more lasting connection with customers or potential tastemakers.

Philosophy, another skincare brand under the Coty umbrella, transformed an old conference room in its headquarters in the Empire State Building in April into a clinic where influencers, key customers and beauty press are invited to meet with the brand’s scientific advisors and try out new products. The company also films its livestream shopping videos there. The primary goal is generating brand awareness, said DiNunzio.

Just like how many luxury brands woo their top-spending customers, HigherDose invites its most loyal shoppers and brand ambassadors to free wellness events. Whereas its wellness lounges at major events such serve as a top-of-funnel marketing channel to acquire new customers, the activations and experiences offered to top clients are a means of generating loyalty.

A 360-Retail Approach

In-store pop-ups, trunk shows and other events are not just an effective means of creating brand affinity but also serve as a proof of concept for future stores or major wholesale partnerships.

For instance, Draper James hosted a pop-up inside Sewing Down South, a pillow store in Charleston, S.C., which exceeded its sales expectations. The company had been considering opening its own store there, and the pop-up solidified its plan to start scouting locations.

Before it was able to land major wholesale accounts, womenswear brand Amir Taghi hosted trunk shows inside the homes of its top clients as a way to build a following. The travelling trunk shows began in Aspen and have gone around the country from Palm Beach to Los Angeles. Building on the success of this format — the label will generate more than $1 million in sales from trunk shows in 2024 — Taghi has signed on Moda Operandi and Elyse Walker as retail partners in recent months.

A full retail distribution strategy is ultimately necessary for sales expansion. One-off pop-ups and partnerships may be easy to facilitate but difficult to replicate at scale, according to BRF’s Gokki.

“When you host more events, it’s more inventory and more complexity, but not necessarily revenue add because you’re only there for a limited amount of time,” he said. “You need a permanent position with retail shelf space to really grow the business.”

Denim company Citizens of Humanity Group, which also owns Agolde, has one store of its own, in Aspen, Colorado. It approaches events and physical activations as part of its overall retail strategy. “We think of it as a triangle or a stool,” said chief executive Amy Williams. “One leg is the special events or partnerships that can’t be orchestrated in a store. And then we think about our retail partners such as Net-a-Porter.”

“The last piece of the puzzle is stores, which we hope to open a handful globally,” Williams added.

The death of New York Fashion Week has long been lamented, but the events of last week appear to be proof of life.

Sure, there are still problems. Homegrown talents like Peter Do, The Row and, most recently, Gabriela Hearst have decamped to Paris. Former mainstays like Oscar de la Renta and Marc Jacobs now show off-calendar. Shows in hard-to-access locations on the far west side of Manhattan and in the Brooklyn Navy Yard have made programming into something of a week-long schlep.

These challenges were crystalised in a joint report by McKinsey and the nonprofit Partnership for New York City, published on the first day of fashion week this season. It points to a “deflation of NYFW on the world stage” due to the decentralisation of venues, the prohibitive costs of putting on a runway show and an overall lack of engagement with the city itself.

Over the past week, however, New York Fashion Week has proven its critics wrong. The big moments this season felt more grand than before — just look at Ralph Lauren’s equestrian showcase in Bridgehampton, which included a one-night-only recreation of his famed Polo Bar restaurant, or the surprise performance by Wu-Tang Clan, brought together by Tommy Hilfiger on a decommissioned Staten Island ferry.

Marquee shows from Alaïa and Off-White, both of which typically show in Paris, as well as the arrival of Swedish minimalist favourite Toteme, signalled the strength and desirability of the American market. Domestic talent, in the form of a small but influential cohort of indie brands, exhibited their aesthetic worlds in their own idiosyncratic ways, whether that’s through Eckhaus Latta’s rambunctious dinner party or Willy Chavarria’s runway ode to democracy. New York mainstays put their commercial success on display — Coach sent a wide range of bags down the runway, from oversized backpacks to top-handle satchels covered in doodles, and Tory Burch brought back its Reva flat, a style that catapulted the brand to success in the late aughts.

Beyond the runway, the energy percolated across the city in the form of events and activations, engaging other segments of the fashion industry. Florentine retailer LuisaViaRoma opened its first international outpost with a splashy party on Sept. 4. The next day, J.Crew recreated the iconic New York restaurant La Côte Basque in the basement of the New York Public Library. Thom Browne, Kering and Loewe with Saks also hosted dinners throughout the week, each just as star-studded as the last. Rival influencer monetisation companies ShopMy and LTK both hosted events, the latter for the first time since before the pandemic.

If anything, this New York Fashion Week flaunted its hometown and brought back an excitement that hadn’t been felt in years. The perfect early autumn weather didn’t hurt either.

“People were just really excited and having fun last week,” said fashion writer Rachel Tashjian. “It felt convivial, rather than like a grind.”

Behind-the-scenes, there were critical logistical improvements. In response to growing complaints about the difficulty of getting between shows, the Council of Fashion Designers of America teamed up with Google this season to charter a bus that took attendees from show to show. It was overall a big hit, even with the traffic. And more so than in past seasons, shows tended to run on time (or at least, within 30 minutes of their supposed start time), with few exceptions.

To be sure, it wasn’t a perfect week. The sheer star-power — Alaïa was one of the few shows to start late because it was holding the runway for Rihanna to arrive — or production value of the events often overshadowed the clothes themselves.

And in this iteration of NYFW, it seemed that a big name or a big budget was the surest ticket to success, which posed challenges for small brands trying to break through the noise.

“New York Fashion Week has been known as a place to discover new brands, and some of that discovery aspect is now gone,” said Gary Wassner, founder of financing firm Hilldun Corp.

And though many attendees were grateful not to have to make the trek to the Starrett-Lehigh building, or brave Spring Studio’s elevator lines, some emerging designers missed those hubs, which were operated by IMG. Knitwear designer Nia Thomas said showing as part of Black in Fashion Council’s showroom last season at Starrett-Lehigh changed the trajectory of her business.

“Editors who didn’t know us came and discovered. They started pulling samples immediately, my DMs were blowing up in the weeks after from stylists,” said Thomas. “That type of exposure is massive and you can’t put a price on it.” This season, Thomas was not invited back by the Black in Fashion Council. After having trouble securing a workable location and sponsors, she opted to bow out presenting entirely.

As it gets more expensive and logistically difficult to stage shows, brands must think harder about whether they really need one. A runway show isn’t always the best format every season for small brands and sometimes even larger ones. A number of brands favoured small gatherings rather than traditional shows this season, for instance. Todd Snyder invited about 50 people to his runway inside Le Rock restaurant; Eckhaus Latta coordinated with its guests to walk the “runway” at a dinner event in a loft in Tribeca.

The intimacy of these events also underscored the closeness of the fashion community in New York City — another reason why this season felt reinvigorated, insiders said.

Eckhaus Latta’s dinner was a great example of a brand demonstrating its cultural prowess, said Tashjian. “They’re saying, ‘We’ve really built something that’s not just an aesthetic but a sensibility and a group of very dedicated customers,’” she added.

During its rapid ascent to the top of the global fast-fashion food chain, Temu looked like the perfect hedge for its Chinese owner, PDD Holdings, against a weak domestic economy.

But trouble is following it abroad.

PDD Holdings’ stock lost more than one third of its value last week after it warned that growth will likely decelerate, both for its Pinduoduo marketplace in China and Temu in Europe and North America.

That China’s economy is struggling isn’t new. More surprising was the idea that Temu may be approaching a ceiling six months after storming into the mainstream with its “shop like a billionaire” Super Bowl ads. The marketplace, which offers Western consumers ultra-low prices on a range of products including fashion and home goods, occupies 0.73 percent of total US online market share as of August, according to insights firm Consumer Edge. That’s just barely above its market share as of November 2023, at 0.71 percent. For reference, Amazon accounts for 17.9 percent of US online sales in August and Shein accounts for 0.54 percent.

It’s not that consumers have suddenly raised their standards. If anything, they’re more eager for deals than ever; Walmart, T.J. Maxx and other low-price retailers are thriving. When Temu launched in September 2022, its main competition was Shein, the ultra-cheap fast fashion behemoth that also leverages a speedy supply chain in China. But bargain hunters today have more e-commerce options by the day.

Amazon announced in June it would be launching a new storefront offering low-cost goods made by Chinese manufacturers. That will be in addition to Amazon reducing its vendor fees for apparel products under $20, from 17 percent to 10 percent, a change made late last year.

Last fall, TikTok under parent company ByteDance Ltd launched its own e-commerce platform, which has been steadily growing its market share as Temu seesaws in its position in the market. TikTok Shop’s online share has consistently risen from 0.06 percent last August to 0.43 percent today — a seven-fold increase — according to Consumer Edge.

Temu is also increasingly beset by lawsuits — including a class action lawsuit alleging that it’s sending customers unsolicited text messages and various claims of trade theft and copyright infringement by Shein — and the threat of regulatory action in its biggest markets. Lawmakers in both the US and the European Union are considering eliminating the “de minimis loophole,” which allows companies to ship goods directly to American consumers without paying tariffs as long as their value is under $800. This has helped Temu, as well as Shein, to keep prices below Western competitors such as Amazon, which typically ship goods in bulk to their domestic warehouses, and therefore must pay import duties.

Meanwhile, Temu finds itself confronting internal turmoil as merchants that sell on its platform allege the company of unfair fines and withheld payments. Last month, hundreds of vendors rallied outside a Temu office located in Guangzhou demanding money.

Temu’s swelling list of problems is the retail industry’s “Spanish soap opera to watch right now,” said Jessica Ramirez, senior research analyst at Jane Hali and Associates. Ramirez added that Shein has encountered a similar set of headwinds, including slowing growth. The company is pressing ahead with plans for an initial public offering in London, however.

For Temu’s competitors, it’s too soon for schadenfreude. Even as it issued its bleak outlook, PDD Holdings posted a whopping 86 percent year-over-year surge in revenue. For Western retailers, “now is not the time to take their foot off the gas,” said Sonia Lapinsky, managing director in the retail practice at AlixPartners.

Temu’s Dilemma

In many ways, Temu’s arc resembles that of direct-to-consumer brands that stormed markets ranging from fashion basics to mattresses and luggage in the 2010s with memorable advertising and the promise of lower prices. Temu’s entry into the market was on another level: the $21 million Super Bowl ad package was just one facet in an extraordinary advertising blitz.

The Super Bowl ads, coupled with millions of dollars worth of coupons and giveaways, explains the company’s initial “hockey stick growth,” said Juan Pellerano-Rendón, chief marketing officer at e-commerce logistics platform Swap.

But, like those DTC brands, Temu was also dependent on its ubiquitous marketing to keep customers hooked. As soon as consumers stopped seeing the ads — or started ignoring them — growing sales got significantly harder.

“These are really unsustainable marketing and pricing tactics,” Pellerano-Rendón said. “They got the app downloads but ultimately it’s hard to change learned behaviour.”

Pellerano-Rendón pointed to Amazon and TikTok as examples of experiences that are already embedded in the lives of American consumers. Even though TikTok Shop is about as novel as Temu, it lives on the primary TikTok app, which is an immensely popular social media platform and a powerful driver of trends.

“The more competition there is, the more they have to pay to keep their customers,” said Lapinsky.

In addition to stalled market share gain, Temu is also seeing a plateau in new customers and lower retention rates for new customers, according to Consumer Edge insights.

“[In] response to the complex environment, we will focus on our core strength, and continuously improve our capabilities in supply chain, customer services and compliance to better meet the expectations of consumers around the world and also achieve high quality development in our global business,” PDD Chairman and co-CEO Chen Lei told investors in the earnings call Monday.

A Play for Value

Despite its issues, Temu offers a unique value proposition to consumers: a huge assortment of super low-price goods, from inflatable pools to dupes of Bottega Veneta earrings. For most retailers, trying to compete on price and range of product is a mistake, according to Lapinsky.

“When retailers try to offer this huge breadth of assortment online and give deals away that aren’t in stores in order to compete on price and assortment, customers say it’s confusing,” she said.

In other words, if shoppers want what Temu does best, they’re going to Temu (or Shein, or Amazon). To lure customers away from Temu, brands and retailers must compete on different terms, such as speed (Temu’s items often arrive two weeks after purchase), curation or service.

Ultimately, Temu is still a disruptor in the market, said Ramirez. “It hasn’t been in the market long enough for the majority of the consumers to have tried it … This is still growth territory.”

PVH Corp. reported a 6 percent dip in revenue, year-over-year, in its quarter ending Aug. 4, to $2.1 billion — in line with Wall Street estimates.

Its two marquee brands, Tommy Hilfiger and Calvin Klein, reported sales declines, “primarily due to the challenging consumer environment in Asia Pacific, particularly in China and Australia,” the company said Tuesday afternoon.

In North America, however, both brands saw a 1 percent uplift. PVH reaffirmed its previous guidance of a 6 percent to 7 percent drop in 2024 revenue. Inventory decreased 12 percent compared to the year prior.”

For both Calvin Klein and Tommy Hilfiger, we drove strong consumer engagement and continued to increase product strength and improve newness in our assortment, leading to more full-priced selling and less end-of-season clearance sales, which fuelled significant gross margin expansion,” PVH chief executive Stefan Larsson said in a statement.

Learn more:

PVH Corp: The Power of Trust in Transforming Supply Chains

From zeroing in on traceability to sharpening inventory management, PVH’s chief supply chain officer, David Savman, unpacks in this interview for The State of Fashion 2024 what it takes for retailers, brands and their suppliers to thrive together.

It was the week’s other surprise CEO switch.

On Wednesday, Victoria’s Secret announced it would replace chief executive Martin Waters with retail veteran HiIlary Super. The news was overshadowed by Starbucks’ shocking dismissal of CEO Laxman Narasimhan the day before. But the lingerie brand’s long-suffering investors certainly took note: shares of the company have surged more than 25 percent.

Super isn’t a household name, even in retail circles. But her experience is cause for optimism at a brand that could certainly use some right now. Crucially, Super has for the last year served as CEO of Savage X Fenty, where she took the reins from Rihanna herself at the singer’s underwear start-up. (Super also ran Anthropologie for four years and has held senior roles at Guess, American Eagle and other brands.)

With decades of merchant experience at mall retailers, Super has the right resume to increase product innovation, build customer loyalty and improve marketing efforts, TD Cowen analyst Jonna Kim wrote in a research note Wednesday. All that will be necessary to help the brand find its voice in a category that’s become crowded with upstarts — Savage X Fenty among them — offering a fresher take on the Victoria’s Secret formula.

“We believe the new CEO at the helm could start a new chapter for the company,” Kim wrote.

We’ve been down this road before, of course. Victoria’s Secret promised a fresh start when it was spun off from L Brands – and controversial owner Les Wexner – in 2021. The brand quickly shed the hyper-sexualised aesthetic that defined it for decades under Wexner, adopting an inclusive image that mimicked its fast-growing challengers.

That gambit didn’t work. Sales continued to decline, and the disruptors kept growing. Last autumn, the company said it would reverse course. Recent campaigns are reminiscent of the high-gloss vampiness of its heyday, albeit with a more diverse range of body types. The annual fashion show that Victoria’s Secret had done away with in 2019, amid scandal, is coming back later this year, it announced in May.

Super’s most important job is to clearly define what the brand stands for to consumers puzzled by the recent flip-flops. Jettisoning the Y2K-era marketing formula didn’t work, but neither has grafting body positivity onto it. Figuring out what identity Victoria’s Secret will convey to shoppers — and then selling that vision with strong merchandise and well-designed stores — is the task at hand.

It can be done. Abercrombie & Fitch is reaping the rewards of a rebrand that began a decade ago, when the retailer was also mired in scandal and widely regarded as out-of-touch. Gap is also seeing promising early returns from a similar top-to-bottom revamp under CEO Richard Dickson.

Victoria’s Secret still has a commanding lead in its lane of the underwear market. And brand president Greg Unis wasn’t wrong when he told investors last October that “sexiness can be inclusive.” The company hasn’t figured out how to turn that slogan into reality. Now it’s time for Super and her team to have a try.

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

US retail sales rose more than expected in July. Retail sales increased 1.0 percent last month after a downwardly revised 0.2 percent drop in June, the US Census Bureau said. Signs that demand is not collapsing could prompt financial markets to dial back expectations for a 50 basis points interest rate cut next month.

Tapestry gains as quarterly profit beats Wall Street’s view. The company posted a revenue of $1.59 billion, narrowly beating projections. Tapestry’s strategy of increasing the average price of its handbags in recent quarters has improved profitability.

On records another bumper quarter. The Swiss sneaker giant reported net sales of CHF 567.7 million ($654.4 million) in its most recent quarter, up 28 percent from the same period last year. On received a boost from its recent expansion into apparel and accessories.

Branded resale provider Trove acquires Recurate, a competitor in the space. The addition of Recurate’s 29 brand clients means Trove will now generate 75 percent of total online branded resale traffic, the company said.

Walmart lifts full-year outlook on strong apparel sales. Walmart said comparable sales in the US rose 4.2 percent last quarter driven by higher units and transactions. Walmart’s bullishness points to an increasingly selective US consumer facing economic uncertainty and high interest rates.

Anna Wintour and Tory Burch to attend Hamptons fundraiser for Harris. Vice President Kamala Harris will host a high-profile Southampton fundraiser on August 31, with tickets ranging from $2,500 to $50,000.

Pandora raises full-year growth outlook as broader product range pays off. The company said its operating profit rose to 1.34 billion Danish crowns ($196.25 million) in the second quarter from 1.19 billion a year earlier. Its full-year organic growth guidance is now between 9 percent and 12 percent.

JD.com beats quarterly profit estimates. The company’s second-quarter profit rose 73.7 percent. The company’s total revenue rose 1.2 percent to 291.40 billion yuan ($40.71 billion) in the second quarter, compared with estimates of 292.89 billion yuan.

Goldman agrees to sell Ireland’s largest shopping mall to SVP. Strategic Value Partners is set to buy Blanchardstown Centre, Ireland’s largest mall as investor interest in malls rises due to lower rents and increased consumer spending.

Alibaba misses quarterly revenue estimates. The company’s domestic e-commerce sales came under pressure from cautious spending by Chinese consumers in a faltering economy. Alibaba reported revenue of 243.24 billion yuan ($33.98 billion) for the quarter ended June 30.

THE BUSINESS OF BEAUTY

Avon Products files for bankruptcy to wrangle talc lawsuits. The firm has already incurred $225 million of costs defending personal injury lawsuits and settlement payments, according to court filings. As part of the filing, Avon Products’s assets will be marketed, with Natura offering to buy it for $125 million in the absence of higher offers.

Crown Laboratories and Revance will merge in a $934 million deal. Under the agreement, Crown would acquire all of Revance’s outstanding common stock shares at an 111 percent premium. Revance will be delisted from the Nasdaq and the new company will be a private entity.

Equinox-owned Blink Fitness files for Chapter 11 bankruptcy. The company, the latest chain to succumb to stiff competition and higher costs. Blink plans to keep operating while it tries to sell itself out of bankruptcy

Berkshire Hathaway takes a stake in Ulta Beauty. Warren Buffett’s Berkshire added 690,106 shares of Ulta Beauty, according to a regulatory filing. Its stake in Ulta was worth about $227 million, based on Wednesday’s closing price.

Roz hair raises growth equity from Silas Capital and G9 Ventures. The prestige hair care line launched in 2021 and coins Credo and Neiman Marcus as stockists. The funding will be used to accelerate retail expansion, introduce new products and increase headcount.

PEOPLE

Shein hires ex-EU official to bolster lobbying as IPO nears. The online fashion retailer hired former EU budget commissioner Günther Oettinger as a consultant to help it navigate the bloc’s policy environment. Shein faces a raft of issues including a debate whether to impose customs duties on cheap parcels.

Victoria’s Secret taps Savage X Fenty CEO to lead turnaround. Hillary Super will be Victoria’s Secret third leader in four years and brings nearly three decades of experience in retail. Super replaces Martin Waters, who was terminated as CEO, as chief executive officer and a member of the board.

MEDIA AND TECHNOLOGY

US FTC finalises ban on fake online reviews. The ban on companies knowingly buying or selling fake online reviews, including those written by AI, gives the agency the power to levy fines against the shadowy practice. The FTC can seek a maximum penalty of up to around $51,744 per violation.

Compiled by Yola Mzizi.

This week, global stock markets reeled following news of a slowdown in the US job market in July.

On Monday, the Dow Jones Industrial Index as well as the S&P 500, two blue-chip indices, posted their worst daily loss in nearly two years; Japan’s Nikkei 225 tumbled 12 percent — its largest drop since the 1987 Black Monday crash.

By Friday, the fear had more or less subsided and the equity losses had largely recovered, but that didn’t stop economists from once again contemplating the likelihood of a recession this year. On Thursday, J.P.Morgan put the probability of a recession at 35 percent, up from a previous assessment of 25 percent, citing the slowdown in American job growth and the global stock sell-off.

The move followed a cue from Goldman Sachs, which on Sunday also raised its probability of a recession by 10 percentage points.

Indeed, there are some concerning signs for the economy, beyond the rising unemployment rate. More American shoppers have fallen behind on their credit card payments, resulting in a record high in collective debt: $1.14 trillion, according to a Tuesday report from the Federal Reserve Bank of New York.

The one bright spot, however, has been resilient consumer spending. US retail sales remained stable from May to June, Census data showed last month, and reflected a 2 percent increase from June 2023. A number of fashion companies, in fact, are holding strong or even posting growth in the face of external volatility.

Ralph Lauren, Revolve Group and VF Corp. all beat Wall Street estimates in their latest earnings results this week, though the latter saw sales drop by 8.6 percent as it continues to struggle with one of its key brands, Vans. Michael Kors-owner Capri Holdings posted less rosy results, missing on analyst projections with a 12 percent drop in revenue.

The uneven performance shows that while consumers are still buying fashion, they are judicious in how they are parting ways with their money. “The consumer has accrued debt, so we’re on shaky ground when it comes to consumer spending,” said Jessica Ramirez, retail analyst at Hali & Associates.

Right now, shoppers are vulnerable to the wider economic conditions. Inflation has tempered since hitting a peak in 2022, but in recent months, prices have levelled. Even so, analysts are counting on the Federal Reserve to cut interest rates in September — by either a quarter percentage point or half — which will alleviate pressure on the consumer economy.

“The US economy is in an indecisive mood. Some indicators are pointing negative, but others remain robust,” Neil Saunders, managing director at GlobalData, told BoF in an email statement. “Consumers see this too, which is why sentiment has been very changeable.”

Recession or not, the strongest retailers in any challenged environment are able to convey a sense of value to shoppers — and that doesn’t just mean an off-price positioning.

“Some retailers, like Abercrombie & Fitch, are powering through all the economic noise because they have very good products that consumers want,” Saunders added. “Others, like Under Armour, are struggling because they have brand issues and consumers are happy to cut back. What is certain is that a more constrained economy will sharpen the contrast between the winners and losers.”

THE NEWS IN BRIEF

FASHION, BUSINESS AND THE ECONOMY

Bangladesh garment factories reopen. Textile factories that supply retailers including H&M and Zara resumed full operations after violent protests that resulted in the ousting of Prime Minister Sheikh Hasina this week.

Ralph Lauren beats estimates driven by stable demand in Europe and China. Its net revenue rose 1 percent to $1.51 billion in the first quarter, above Wall Street projections of a slight decline. North America sales fell by 4 percent. For the current quarter, the retailer expects revenues to grow in the range of 3 percent to 4 percent.

VF Corp posts 8.6 percent drop in sales. Its first-quarter results were better than analyst estimates, in part driven by promising demand in China. VF’s marquee Vans brand continues to struggle; sales fell 21 percent in the same period.

Under Armour’s raises guidance as restructuring shows progress. The company raised its annual forecast for earnings per share to as much as 22 cents. Analysts expected 20 cents. Under Armour’s shares rose 15 percent after trading began Thursday. The stock had been down 26 percent this year through Wednesday’s close.

Allbirds meets revenue expectations and narrows losses. Allbirds’ sales fell 27 percent year over year to $52 million in the second quarter. The company narrowed its net losses to $19 million, down from $29 million in the same period last year, in part by lowering operating costs and reducing digital advertising spend.

Warby Parker’s online business returned to growth in the second quarter. Overall revenue grew 13 percent year over year to $188 million in the second quarter of 2024. The eyewear maker grew its bottom line and improved two of its weaker spots: e-commerce sales and active customers.

Coupang posts first loss since 2022 as Farfetch deal saps profit. South Korea’s largest online retailer posted a net loss of $77 million in its latest earnings report, its first loss in two years after the acquisition of unprofitable Farfetch Holdings Plc and a government regulatory fine offset strong growth in its core e-commerce business.

Hugo Boss sells Russian business to wholesale partner Stockmann. The German fashion company suspended its retail business in Russia after Moscow invaded Ukraine in 2022.

Bloomingdale’s taps Rebag as its new resale partner. The Macy’s-owned department store will offer pre-owned luxury handbags online and in select stores via New York-based resale platform Rebag. Shoppers will also be able to sell their own pre-loved pieces.

The World’s fastest man wants his own signature Adidas shoe. After winning gold in the 100-metre sprint at the Paris 2024 Olympics, Noah Lyles called for his own signature sneaker with Adidas, highlighting the untapped market for sprinter-branded footwear.

THE BUSINESS OF BEAUTY

L’Oréal to acquire 10 percent stake in Cetaphil-owner Galderma. The deal will help L’Oréal with product development, analysts said. Galderma was originally set up as a joint venture between Nestle and L’Oreal before the latter sold its 50 percent stake in 2014.

Olaplex sales fall but company said recovery is on track. Sales dropped 4.8 percent to $103.9 million, the sixth consecutive quarter of declines. Specialty retail sales jumped 22.4 percent in the quarter, the company said Tuesday, but it was not enough to offself the DTC decline of 18.4 percent.

Nivea maker Beiersdorf’s sales grow despite China’s luxury slowdown. Group sales rose to €5.2 billion ($5.7 billion) in the first six months of 2024, from 4.9 billion in the same period last year. Sales at key businesses Nivea and Derma grew by 11.1 percent and 8.3 percent respectively, while luxury brand La Prairie saw its sales drop 7 percent.

Shiseido sales drop 4 percent as US business slumps. The company’s net sales decreased 4 percent to $1.7 billion in the second quarter. Operating profit for the first half declined 31 percent year-over-year. Bright spots in the first half included skincare line Drunk Elephant, whose sales grew 11 percent.

Dolce & Gabbana launches €99 perfume for dogs. The Italian house debuted this week Fefé, a luxury alcohol-free dog perfume with notes of ylang-ylang and musk, tapping into the booming pet luxury market. Animal advocates warned the strong smell could come across as unpleasant for dogs.

MEDIA AND TECHNOLOGY

CFDA and Vogue partner on a campaign to encourage voting. The Fashion For Our Future march will bring together more than 1,000 participants from across the fashion industry on Sept. 6, the first day of New York Fashion Week.

Compiled by Yola Mzizi.

In-person shopping has made the comeback of a lifetime in recent years. Even as high interest rates and inflation eat into consumer spending, retail sales are holding strong.

The one problem, as retailers are discovering, is finding available space for new stores. In the US, vacancy rates have slipped to a 10-year low. Rents continue to rise globally, with the exception of Asia, where tourism and post-pandemic recovery overall have been slower.

For those looking to expand their footprint, there’s little hope of relief anytime soon, real estate experts say. Fashion brands find themselves competing for prime locations with a new generation of tenants including medspas, healthcare clinics, restaurants and entertainment concepts. All the while, construction for new retail developments has dramatically diminished since the pandemic. High interest rates and rapidly escalating construction costs have further dampened incentives to build.

As a result, the mismatch between supply and demand for retail real estate has never been more pronounced, data shows, with leverage for negotiation fully on the side of landlords.

“Tenants are just a lot healthier today and a lot of retailers are in expansion mode coming out of the pandemic,” said James Bohnaker, senior economist at Cushman & Wakefield, a commercial real estate brokerage. “But from a development aspect, given interest rates and the lending environment, it’s just not a time when you’re going to see new developments come on line.”

Apocalypse in Reverse

For years, “oversupply” was the key word in assessing the state of American retail. Hundreds of retail chains shuttered in the past 15 years as e-commerce emerged as a threat. Rents came down and vacancies soared in most markets.

That trend, along with the financial crisis of 2008 and its aftermath, left lenders wary of backing retail developments, which were considered higher risk than other projects.

When retailers were still going bankrupt, the lack of new construction was not an issue. But suddenly after the pandemic, when store closures hit a peak, the trend dramatically reversed. Left and right, retailers buoyed by stimulus checks switched to expansion mode.

The industry wasn’t prepared for the sudden reversal.

“I sometimes make the joke that retail was oversupplied for so long, until it wasn’t,” said Brandon Svec, national director of retail analytics at CoStar Group. “And now we find ourselves in a place where everyone was so concerned about supply that we really clamped down on new construction.”

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Rent rates for open-air shopping centres in the US have risen persistently since the beginning of 2020, reaching an average of $24.37 per square foot in the second quarter of this year, according to data from Cushman & Wakefield.

The vacancy rate, a measure of how much space is available for rent, for all types of retail in the US is 4.2 percent, the lowest rate albeit by a small margin in 10 years, according to CoStar Group.

But despite burgeoning need for new spaces, retail construction is still very much stunted. Last year, about 9.8 million square feet of new retail construction were completed. That’s compared to nearly 19 million square feet in total absorption, or the amount of space newly occupied by tenants — a measure of demand.

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This is because high construction costs and reluctant lenders have made retail projects commercially unattractive to developers, according to Svec. Rents, even on an upward trajectory, are not making up for the price of land, labour and materials today.

“Right now we’re at an all-time low for space under construction,” he said. “The economics of a new development has changed … and that’s why we won’t see a groundswell shift in construction any time soon.”

The Most Coveted Properties

Not every piece of retail real estate has recovered at the same pace. Undesirable mall storefronts vacated long before the pandemic have largely remained empty. Mall spaces have a far higher vacancy rate than retail overall, CoStar data shows, though this wasn’t the case prior to 2018.

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The current vacancy rate for malls in America is more than double that of the category at large, at 8.9 percent. The undesirability of struggling malls is exacerbating the retail supply crisis, Svec said, because not only are there no new retail construction, traditional mall tenants like Foot Locker and Bath & Body Works are now seeking relocation to either more premium malls or open-air shopping centres, creating more competition for the same pool of coveted spaces.

At the same time, some markets are hotter than others. Following the pandemic, cities in the Sun Belt of America have become hotspots for migration. These cities include Tampa and Fort Lauderdale in Florida; Phoenix, Arizona; Nashville, Tennessee; and Las Vegas, Nevada — the top five cities in terms of rent growth between 2019 and 2024. In Tampa, for instance, retail rents grew 38 percent in a five-year period — that’s compared to 8.5 percent in New York and 0.9 percent in San Francisco.

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One of the driving factors for their popularity, said Svec, is that states like Texas, Florida and Arizona all have low taxes that incentivise business, on top of favourable mild weather in the wintertime.

J.Crew is tying its brand to Olympic swimming without coming close to a Parisian pool.

The American retailer isn’t an official sponsor of the games, and lacks the technical expertise to outfit the athletes. Ralph Lauren has had the opening and closing ceremony looks on lockdown since 2008.

Instead, J.Crew is a prime example of a category of marketing that might be described as Olympics adjacent. Through its partnership with USA Swimming, the governing body that selects which athletes will represent the country at the games, the company is releasing swimsuits and trunks, but also hoodies, T-shirts and shorts bearing the organisation’s logo. Ads feature past and current Olympic swimmers, including Dare Rose, who will participate in the men’s 4 x 200 metre freestyle relay tournament Tuesday.

Unlike official licensees of the Olympics name including Nike, Kith, Skims and dozens of other consumer brands this year, J.Crew did not register and pay to be officially affiliated with the sporting event. Its association with USA Swimming is an indirect reference to the games — but one that allows the brand to benefit from its cultural cachet. As part of the collaboration, J.Crew made a donation to the philanthropic arm of the swimming organisation, which provides financial support to the athletes on the US national team and helps broaden community access to the sport.

It was an instant success; 80 percent of products sold on the day they were released in June, according to J.Crew chief executive Libby Wadle. That week, J.Crew’s website traffic saw a double-digit bump and a 10 percent spike in new customers year-on-year. The customer reception was so positive that Wadle and her design team went back to the drawing board to come up with a second batch of products under the partnership, which dropped a week before the Opening Ceremony.

“We were not planning on the second drop,” said Wadle. “The engagement around this campaign, frankly, since I’ve had this role, was beyond anything we’ve seen.”

J.Crew’s activation with USA Swimming is one of many collaborations the brand pursues every year. In recent months, it has released products with the likes of Maryam Nassir Zadeh, Anna October, jewellery brand Catbird and hit TV show The Bear. The current collection with Maryam Nassir Zadeh is the first time the New York label by its eponymous designer, Maryam Nassirzadeh, has participated in a collaboration.

These tie-ups are a vital part of J.Crew’s DNA, according to Wadle, and come in the form of partnerships with both brands and cultural entities. Other recent tie-ups include New York City Ballet, Los Angeles streetwear brand Union and HommeGirls.

“The way we think about [collaborations] today is how to bring important categories to life, and how to connect with culture and have it feel really authentic to the brand,” said Wadle.

Sports aren’t a natural fit for J.Crew, which is better known for its everyday casual wear inspired by the preppy New England aesthetic. This campaign marks the first time the company has tried to market itself through the lens of the Olympics.

A tie-up with a sporting organisation with connections to the Olympics was the answer. It also allowed J.Crew to showcase its swim products, one of its most lucrative categories.

“While we’re not a sportswear brand, we are a swimwear brand,” said Wadle, under whom the brand has sustained a turnaround effort since its bankruptcy in 2020. “And how can you ignore the fact that the most important event of summer is the Olympic Games?”

Wadle was able to leverage her personal network and connect with friend-of-a-friend Chris Brearton, the chairman of USA Swimming, earlier this year. Together, the brand and the swim agency formulated a campaign that highlights the personal stories of past Olympic swimmers as well as athletes who at the time may qualify for the 2024 games, Wadle said.

The resulting campaign can be viewed on J.Crew’s website and social media, as well as as ads on streaming platforms and out-of-home marketing channels.

“We definitely wanted to use this moment to be a very important brand moment, beyond product, and talk about J.Crew as a great American brand,” said Wadle.

Unexpected Success

The unplanned second batch of products was created from inventory that J.Crew already owned: blank tops, tanks, bags and shorts — including a best-selling cropped cashmere polo — over which the company was able to embroider a USA Swimming insignia.

“We went back to our design team immediately and asked, ‘How can we activate a second version that doesn’t feel like a restock?’” Wadle said.

The campaign with USA Swimming may be the first of its kind for J.Crew, but it won’t be the last.

“Certainly when we think about the future, there are probably opportunities in the winter,” Wadle said. “We’re a sweaters brand too.”

Like any other group of chronically online young people, employees of Ssense have strong opinions about the proper length of socks.

According to the memes, Millennials cannot resist stubbornly defending their no-show socks against an onslaught of mockery from Gen-Z, who prefer longer socks. But at the fashion-forward retailer, employees of both generations agreed that socks that hit the ankle or higher are indeed superior.

Rather than come down publicly on the side of crew socks, however, Ssense saw an opportunity in the controversy itself, said Steff Yotka, head of digital content for the online retailer. On Instagram, the online retailer posed the question, “What is the correct sock length?” accompanied by different styles as seen on its website, from no-show socks paired with Bode shorts to high socks complementing Willy Chavarria khaki shorts.

The post garnered over 300 comments, more than the previous seven posts combined.

“We want to find opportunities to ask our audience what they’re interested in and showcase the breadth of Ssense rather than thinking of it as either-or marketing,” said Yotka.

As Gen-Zers hit their mid-20s, the style gap between that generation and their slightly older peers is rapidly widening. The battle over skinny jeans — a Millennial mainstay — is largely over, with baggy fits now the norm. But fighting still rages over high-waisted bottoms versus low waist, a Y2K trend embraced mostly by those too young to have watched Paris Hilton on TV. Plenty of Millennials are still holding onto floral prints, ankle boots and contouring makeup, eliciting gentle ridicule from their younger siblings and colleagues.

For brands and retailers hoping to serve customers both over and under the age of 25, the viral Gen-Z versus Millennial divide presents a conundrum: How to join the latest trends without alienating older, more conservative shoppers? While Gen-Z may be inventing new styles, it’s Millennials who still hold the spending power. The average American shopper between ages 35 and 44 spent $2,632 on apparel in 2022, according to the US Bureau of Labor Statistics, more than double the cohort under 25.

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Focusing too much on age can be a trap, marketers told BoF. The hyper-speed of the fashion cycle today means trends can come and go overnight, and that there is no longer a dominant definition of what “fashionable” looks like at any given moment. This means consumers of all ages can be exposed to any of the countless trends and fads on the internet.

Brands should not plan their assortment around how many of their customers are fashion-forward Zoomers and how many are risk-averse Millennials, trend analysts said. Instead, the key is to make products accessible to everyone through merchandising and a targeted marketing strategy.

“It’s restrictive to think of age demographics as defining [customer behaviour],” said Katy Lubin, vice president of brand and communications at Lyst, a fashion search platform. “Personal style is evolving so fast and how people choose to present themselves changes all the time.”

It’s a Gen-Z World

Given the undeniable spending prowess of Millennials today, Millennial preferences define the most popular styles on the market right now. But Gen-Z is well on its way to shaping the future.

For instance, while Millennial-approved high-waist jeans continue to be the most popular rise among retailers, accounting for 29 percent of all styles, the selection of low-rise jeans is increasing 30 percent year-on-year while the number of new high-rise options hitting the market has actually dipped 1 percent in the same period, according to market analysis data from EDITED, a retail intelligence firm.

Similarly, the Gen-Z fuelled resurgence of Y2K has brought capri pants and bubble skirts back into style, with an increase of 178 percent and 247 percent respectively in new styles year-over-year, EDITED found.

For Millennials, capri pants and bubble skirts are a blast from the past — and may bring back memories of their awkward adolescence. But this playful dynamic can become part of the conversation between a brand and its customers.

“Our brand voice is witty and funny, like we’ve communicated to customers in the past, ‘If you’re ready to say goodbye to your skinny jeans, here’s an assortment of baggy jeans,’” said Sky Pollard, head of product at Nuuly, a womenswear rental platform operated by Urban Outfitters, Inc. “We want people to rent whatever makes them comfortable.”

The majority of Nuuly subscribers are under 35, which spans older Gen-Z to younger Millennial. Like Ssense, Nuuly does not address the generational differences among its customers, instead highlighting their shared traits.

“In general, our customer is open to trying new things, and that’s part of their personality,” Pollard said.

Still, Nuuly is conscious that some trendy wares are more palatable than others. Its goal is to make new styles accessible to everyone, including less adventurous customers. Particularly edgy pieces, like a basketball jersey, for example, will often be featured in editorial campaigns that live on the website to serve inspiration.

When former wardrobe staples come back into play — Miu Miu’s Autumn/Winter 2024 collection features low-rise skinny jeans, for instance — Nuuly will reshoot product pages so these pieces can be shown in a more relevant context: skinny jeans styled with knee-high boots rather than ankle boots.

Showing Up for All Generations

The matter of age and correlating behaviour may be more relevant to how a consumer shops rather than what they buy.

For instance, beauty brand Glossier found its first set of customers a decade ago in coming-of-age Millennials who embraced the direct-to-consumer model that was disrupting the retail landscape at that time. Today, its younger Gen Z and Gen Alpha shoppers are discovering the brand through TikTok and Sephora, which began stocking Glossier last year.

“The biggest difference is how and where they encounter the brand,” Glossier CEO Kyle Leahy told BoF in an email. “When we launched into all North American Sephora doors last year, we opened the brand up to an entire new generation of shoppers and that has really helped catapult Glossier into the consciousness of younger generations.”

MeUndies too has found that a multifaceted approach to marketing is critical for reaching different segments of shoppers. For Gen-Z shoppers, the most effective channel is, unsurprisingly, TikTok, according to chief revenue officer Ariel Stoddard. For Millennials, meanwhile, the best channel is advertising in podcasts.

Ultimately, the savviest fashion companies recognise that the jabs between Millennials and Gen-Z over their respective fashion sensibilities are all in good fun.

“My Gen-Z intern cooks me daily,” said Ty Johnson, a 32-year-old DJ and marketing strategist based in Brooklyn. “What I find cool, she finds cringe and vice versa I guess. But I’m not going to start wearing Ed Hardy to try to give off a Gen-Z vibe.”

Universal Standard’s value proposition has not changed since the brand launched in 2015: high-quality fashion that fits every woman, from size 00 to 40.

The New York-based label has stuck to this mantra even as the number of brands championing body diversity has dwindled in recent years. But it’s never faced a challenge like Ozempic.

Usage of the weight loss drug, and others like it, is surging, leading some forecasters to question whether today’s size ranges might someday be rendered obsolete. AI-based forecasting company Impact Analytics found in a report published earlier this year that in New York’s affluent Upper East Side neighbourhood, sales of women’s shirts in small sizes increased in 2024 by 12 percent, while sales of larger sizes decreased by the same rate.

Polina Veksler, chief executive and co-founder of Universal Standard, is not fazed. The brand has not seen any changes in size demand and its most popular size remains medium, or sizes 18-20, Veksler told BoF. The brand recently launched a new retail strategy, in which teams of stylists fly to different cities every weekend for private shopping appointments. The strategy is one reason why sales are up 20 percent this year, even as weight loss drugs become cheaper and easier to acquire.

“We’re living in a time when cultural trends are reverting back to promoting antiquated and unrealistic standards,” Veksler said. “But despite this setback, I’m certain that the future of fashion is rooted in size inclusivity. Our customers are there, and will continue to be there.”

A New Retail Format

Universal Standard’s biggest strength — its assortment of sizes — has always been its biggest weakness, well before the introduction of Ozempic.

The wide range of options makes fashion accessible to women historically underserved by the industry. In practice, however, it’s every merchandiser’s nightmare to devote enough floor space to carry 22 different sizes for every style.

“When we first launched, we did try to explore wholesale with major retailers and we quickly learned that most retailers refused to carry our full size range,” said Veksler, who founded the brand with the late Alex Waldman.

Matching size demand with the right supply is a common challenge for brands looking to produce and stock a more inclusive size assortment. Old Navy overhauled its million-dollar size inclusive programme after missteps in matching supply with size demand.

At one point, Universal Standard operated five of its own stores across the US, but shuttered all but the New York location when the pandemic struck. What had initially posed a threat to the business turned out to be an opportunity. Without storefronts, Veksler sought out creative solutions, she said.

The answer was “Universal Standard on Tour,” a travelling trunk show concept that the brand rolled out in 2022. The company books private appointments with shoppers in advance, allowing them to try nearly every style from a full assortment of samples. Customers then place their orders online, which relieves Universal Standard from having to transport inventory.

Last year, the brand visited 54 cities. This year, it’s on track to hit 80, including multiple excursions to some large markets. US on Tour generates about 15 percent of revenue, Veksler said, and has enabled the company to cut back on marketing costs by at least 30 percent, not including savings from eliminating most of its retail footprint. Purchases from the trunk show are on average three times higher in value than online orders and return rates are lower because shoppers can try everything on.

“This is a way to have a retail presence but without the overhead of renting a store,” Veksler told BoF. “With a store, it could take up to two years for it to be profitable. This allows us to be profitable with retail from day one.”

The Plus-Size Market in Turmoil

Despite its sustained growth, Universal Standard is not immune to the inherent difficulties that come with producing and merchandising plus-size fashion.

The concept of body positivity made great strides in the past decade. In the 2010s, fashion shows were finally casting plus-size models and early adopters enjoyed a certain cachet. At the time, the market itself was dominated by a few major mass players, including Lane Bryant and Old Navy.

Universal Standard was one of a handful of plus-size start-ups such as Eloquii, Dia & Co and 11 Honoré that raised venture capital to carve out a new category for more premium plus-size options.

But even as interest in the plus-size category swelled, operational challenges persisted. Providing a more robust range of sizes posed not only a challenge in inventory planning but also in the production stage, as larger sizes require different patterns for cutting each garment.

Many brands that embraced inclusive-sizing did not sustain their efforts for more than a few collections. In 2022, 11 Honoré, a luxury plus-size platform, was sold to Dia & Co. In the past year, both Dia & Co as well as Eloquii, which had been owned by Walmart since 2018, were acquired by conglomerate FullBeauty Brands.

Ozempic poses an even larger threat to the already-fragile market. But Veksler said size fluctuation has always been normal for her customers. In April, the brand expanded its exchange programme, offering customers free size-based exchanges. Over 400 products are eligible, including best-sellers and core pieces.

To further scale, the company is seeking a major retail partner with a large footprint of stores that can host Universal Standard’s styling appointments on a permanent basis.

“With a partner like Nordstrom or Anthropologie, Veksler said, “We can not only tap into the $100 billion [plus-size] market but also help these large retailers embrace size inclusivity that’s proven to be tricky.”