British consumers reined in spending on clothing in June during a cold spell, another indication that poor weather has contributed to lacklustre economic growth.

Barclays Plc said that weaker retail sales drove a 0.6 percent year-on-year drop in card spending last month, the first decline since the depths of the Covid-19 lockdown in early 2021. Separate figures from the British Retail Consortium and and KPMG showed total retail sales fell 0.2 percent in June — a reversal of fortunes from an annual gain of 4.9 percent a year ago.

The figures point to another weak month for retail sales in official data that’s due out next week after the cold period in the first half of June. Retailers have sapped the economy’s momentum in the second quarter with the sector also holding back growth during a wetter-than-usual April.

More extreme weather due to climate change is creating larger swings in shopping figures, as Britons go from splurging to restraint in colder months.

“Despite pressure on household finances easing, with petrol and energy costs and shop price inflation all continuing to fall, consumers remain incredibly reluctant to take the brakes off of their spending,” said Linda Ellett, KPMG’s UK head of consumer, retail and leisure. “The stimulus of good weather, Wimbledon and Euro 24, which was hoped would drive consumer spending, has so far failed to materialise and financial concerns remain with many households.”

Data from Barclays showed that retail spending fell by 2.6 percent, driven by a near 8 percent plunge in clothing sales. The bank said colder weather in early June had weighed on the figures.

Non-food sales slumping 2.9 percent in the three months to June versus a year ago, according to the BRC. High street sales were particularly badly hit by consumers staying away, with most of the fall coming from a 3.7 percent decline in in-store non-food sales on a strong comparable the year before.

“The sluggish demand at the start of June even caused some fashion brands to adjust their sales schedules, although I was pleased to see that the situation has since improved with the arrival of sunnier days,” said Karen Johnson, head of retail at Barclays.

She said that sunnier weather and the Euro football tournament are a potential boost to spending in July with England making it to the semi-finals.

“Retailers remain hopeful that as the summer social season gets into full swing and the weather improves, sales will follow suit,” said Helen Dickinson, chief executive of the BRC.

By Jennifer Creery, Irina Anghel and Tom Rees

Learn more:

What the UK Election Means for Fashion

The opposition Labour party’s landslide victory is most remarkable for the lack of drama it is expected to bring in an increasingly politically tumultuous world.

A sequel to hit 2006 comedy “The Devil Wears Prada” is under way at Disney, with key cast and crew widely expected to return, including director David Frankel.

Aline Brosh McKenna, who adapted the original film from the novel by Lauren Weisberger is in talks to write the follow-up, whose storyline reportedly follows Miranda Priestly, the withering fashion mag editor played by Meryl Streep, as she navigates the decline of traditional print publication in the digital space.

Her new key adversary is sometime assistant Emily Charlton (played by Emily Blunt in the original), who is now a high-powered executive for a luxury consortium, and who makes the decisions over where to place lucrative advertising contracts.

Weisberger worked as an assistant to US Vogue editor Anna Wintour before turning to fiction; Priestly is assumed to have been inspired by her former boss – still in position at Vogue. The film won Streep a Golden Globe and an Oscar nomination, as well as making $327 million worldwide from a $41 million budget.

The nominal leading character in the first film, Andy Sachs (played by Anne Hathaway) is so far absent from the new film’s logline. All three leads have frequently reunited, most recently at the SAG awards in February. Earlier this year, Blunt and Hathaway revisited their experiences making the film as part of Variety’s Actors on Actors series.

“We just had a joy bomb of a time on that movie,” Blunt told Hathaway during the conversation. “I don’t know if any of us knew it was going to become what it did. It’s quoted to me every week. It will be the movie that changed my life.”

Other cast members, most notably Stanley Tucci, who played Priestly’s long-suffering deputy, have also helped keep conversation about the film alive. Significant reassessment of the film’s romantic subplot has also taken place, with many viewers believing that Andy’s boyfriend, Nate, was the “real villain” of the story for his efforts to get his girlfriend to take her career less seriously.

Blunt will next be seen in “Jungle Cruise 2,” following her leading role in “The Fall Guy” and Oscar nomination for “Oppenheimer.” Age-gap romance “The Idea of You” reinvigorated Hathaway’s career last month; Streep is winning further acclaim for her role in comedy series “Only Murders in the Building.”

A musical version of the original film, with an original score by Elton John, opens in the West End in October, with Vanessa Williams as Priestly.

By Catherine Shoard

Learn more:

Magazines Bet on Memberships

Elle UK launched its first reader membership programme on Thursday, part of a broader initiative at Hearst UK to monetise its brands.

Over the last few years, companies from Pandora to Prada have pledged to only use recycled gold in their jewellery, pitching the decision as a way to reduce environmental impact and ensure ethical production. But as interest in the material has increased, so has criticism from a chorus of industry insiders and sustainability advocates who argue that, under current standards, recycled gold doesn’t mean much at all in terms of sustainability and that stricter definitions are needed to avoid greenwashing.

Melting down and re-using metal that’s already in circulation has a lower environmental footprint than mining new ore, a carbon and water-intensive process that has also been linked to mercury pollution, labour exploitation and dangerous working conditions. But critics argue that gold is so valuable that it’s always been reprocessed and growing demand for certified recycled sources of the metal has so far done nothing to reduce mined volumes.

The debate burst into the open this week when the Precious Metals Impact Forum, a multi-stakeholder initiative that has been lobbying to toughen up how recycled gold is classified, published an open letter lambasting strong opposition from actors within the industry it claims are pushing to water down proposed new standards.

The bust-up has become so hostile, that PMIF founder Sabrina Karib says she’s had to leave a working group on the issue at the International Organisation for Standardisation, a usually staid NGO focused on developing codes of industrial and corporate best practice. The chair of ISO’s committee for jewellery and precious metals, Jonathan Jodry, acknowledged there have been tensions. The organisation’s role is to produce clear, workable standards that balance the interests of all parties, he said.

What Should Count as Recycled Gold?

Critics argue the definition of recycled gold is so loose that any gold that’s been reprocessed — even if it was mined just a few days earlier and has never come into contact with a consumer — can be sold under the label, giving recycled gold a “green halo” it doesn’t deserve.

There are supply chain issues, too. The origins of recycled gold are tricky to trace beyond refineries, amplifying the risk that gold with dubious provenance could make it into the supply chain. And there’s concern that promoting recycled gold draws attention away from opportunities to address social and economic issues affecting vulnerable small-scale miners and their communities.

The PMIF launched in 2022 aiming to address these issues. Last year, it chaired a multi-stakeholder working group that included trade organisation Responsible Jewellery Council in an effort to produce a new definition of recycled gold. The group concluded that gold should only be classed as recycled if it had been “recovered from any product containing less than two percent of gold in weight” and if it was “destined to be discarded.” This would apply to material found in e-waste, smartphones for example. Otherwise, said the PMIF, it should be “reprocessed.”

The definition was initially endorsed by the RJC as an update to its own standards, which are currently being revised. But it’s now been dropped from the proposal, according to Karib. The RJC has yet to publish its latest revision. At the same time, a working group at the ISO is consulting on a new definition that would allow for “pre-consumer recycled gold” and “post-consumer recycled gold.” This could be standardised by the end of this year, although no brand or refiner would be legally obliged to adopt it.

Karib said the RJC changed its mind about endorsing PMIF’s definition under pressure from its members, some of whom stood to gain from a less strict definition. “Refiners [of recycled gold] want to ensure they have volumes to provide to their clients, but there is this belief that if we call it something other than recycled, brands won’t want it,” Karib told The Business of Fashion.

One RJC member that opposed the PMIF’s definition is C. Hafner, a German refiner that produces unfinished recycled gold components for luxury brands and that is also represented on the ISO’s working group. Dr Philipp Reisert, the company’s chief executive, said the definition was arbitrary and also acknowledged that as brands move to recycled gold in a bid to meet ambitious carbon emissions reduction targets, his business could benefit. “We are becoming more important to our clients than we were,” he said. Reisert said the carbon footprint of recycled gold is around a thousand times lower than mined gold.

For its part, the RJC told The Business of Fashion it had to listen to its 1,600 members. “We work across the whole supply chain,” said Melanie Grant, the organisation’s executive director. “Everyone has a different opinion and a different approach.”

However, Grant agreed a new definition was needed. “We want to avoid bad actors using the term recycled to greenwash illegitimate gold,” she said. “We’re all trying to align as closely as possible without making the definition so tight that it can’t be practised, but not so loose that people have too much wiggle room.”

The ISO said it was obliged to produce a standard that could be applied across sectors. “All the experts have to keep in mind that they can’t write something that fits their needs or their own industry needs,” said Jodry, who serves as group business development director at Swiss precious metals refiner Metalor in addition to chairing the ISO working group for the sector. “We don’t [just] consider waste something that is being thrown away, we consider waste something that has no value for the user,” he added.

But the ISO’s definitions have caused a backlash, too. Damian Oettli, head of markets at WWF Switzerland and author of a report published last year that praised the PMIF’s definition, dismissed them. “They’re a wolf in sheep’s skin, a highly sophisticated word turning exercise,” he said. “If we reduce the possibility to claim recycled gold, then we can improve the accountability in the supply chains and reduce the impact of gold mining.”

Aurelia Figueroa, Breitling’s chief sustainability officer, who was part of the PMIF’s working group, agreed. “The ISO’s terms require footnotes,” she said. “Anyone making claims in the sustainability space owes it to the consumer to make them accessible and not to speak in jargon.”

What’s in a Name?

The impasse leaves many brands with a headache. “It’s become a war of recycled versus non-recycled, a semantic issue,” said jewellery designer Monica Vinader, who has spent years overhauling her supply chain to source only certified recycled gold. “We should not care about what we’re calling it, but where it’s come from. For me, that should be the focus.”

Vinader said she’s now rethinking her approach, as the loopholes and limitations in the sustainability claims linked to recycled gold become clearer. A perfect solution doesn’t exist, but it’s likely in the future the company will take a more blended approach to sourcing, she said.

For Pandora, the world’s biggest jewellery buyer, the switch to recycled gold is one plank in its ambitions to reduce carbon emissions. The company said it adheres to the “strictest standard in the industry” for recycled metals, the RJC’s chain of custody, and will always use the best standards available. Prada declined to comment.

Luxury giant LVMH is also keen to see more granularity around the origins of recycled gold, primarily because it will help support stronger processes and controls over a complex supply chain. “We believe gold is not responsible because it is recycled, we believe gold is responsible because it has been responsibly sourced,” the company said. “Of course it’s a bit more complex to explain to clients and stakeholders but that’s the reality of the gold supply chain.”

The dispute continues. For Karib, the outcomes of the RJC and ISO’s ongoing consultations will set the process of making responsible recycled gold back years. “Instead of addressing it, we’re hiding the problem under the carpet, and it’s going to become bigger,” she said.

Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.

Over the past two weeks, Amazon has sought to make inroads in the selling of both bling and bargains. Only one move is wise. It has a better chance of competing with Tiffany & Co. than Temu.

Amazon will help facilitate a deal by Saks Fifth Avenue owner Hudson’s Bay Co. to acquire rival Neiman Marcus Group for $2.65 billion. The tech giant will take a minority stake in the resulting company, Saks Global, giving it access to the luxury sector.

The move comes just days after it emerged that Amazon plans to take on PDD Holdings Inc.’s Temu and Chinese fast-fashion rival SheIn Group Ltd. with a new storefront selling ultra-cheap goods.

Neither market will be easy to conquer. But even a behemoth like Amazon will struggle to beat Temu and Shein at their own game, and in the process, it risks devaluing what has become its core proposition: convenience.

And while it’s also unlikely that Amazon can outperform LVMH Moet Hennessy Louis Vuitton SE, owner of Tiffany and Dior, there may be potential to make inroads with other high-end players, given recent turmoil in online luxury fashion.

Let’s start with the discount endeavour. It’s certainly a reversal of the status quo. For the past 30 years, Amazon has been the challenger. Now the cheap Chinese shoe is on the other foot.

Consequently, Amazon is looking to ape the business models of Temu and Shein. That means shipping goods directly from China, rather than holding them in warehouses in the US, close to where its shoppers live and where it can offer its signature lightening-fast delivery. Shipping from China would be much slower — nine to 11 days — but would allow for lower prices. This is because Amazon would be able to take advantage of the same de minimis rule utilised by the Chinese retailers, which allows citizens in many countries to receive international parcels under a certain value without paying import tariffs. In the US, the threshold is $800 a parcel.

This would preserve Amazon’s everything-store status and keep cost-conscious shoppers within its ecosystem. But it also presents significant questions and challenges.

One is whether it would use the Chinese companies that already sell through its marketplace to fulfil these orders — or turn to new ones. Enlisting new Chinese factories is risky. Shein in particular has seen its supply base come under scrutiny. In widening its supplier net, Amazon could face similar questions.

Another drawback: It devalues Amazon’s Prime proposition. For the past 20 years, the company has sought to persuade shoppers to pay a fee — currently $139 a year — for access to its super-fast shipping. Introducing a slower option is effectively saying that convenience isn’t so valuable after all.

Meanwhile, selling $15 dresses on one part of Amazon looks at odds with selling $1,500 ones on another. And the Saks deal is the clearest indication yet that the company has not give up on the latter market.

Although Amazon, including its marketplace sales, is the US’s biggest clothing and footwear retailer according to research group GlobalData, it has long tried — and failed — to crack the top end.

The company launched Luxury Stores in the US in 2020, featuring designers including Oscar de la Renta and Altuzarra; it added pre-owned luxury and expanded to Europe two years later. Initially limited to Prime members, Luxury Stores is now open to all. Even with control over products and pricing, only a limited number of brands have signed up.

Big names such as Louis Vuitton, Kering SA’s Gucci and Prada SpA likely won’t ever sell on Amazon. Around the time Amazon was working on Luxury Stores, Benard Arnault, chief executive officer of LVMH, told analysts his brands would not be joining the platform.

The bling behemoths are increasingly reaching customers through their own boutiques and websites, one of the reasons why department stores, such as Saks and Neiman Marcus, as well as Macy’s Inc., which is facing an increased offer from an investor group, are trying to remain relevant.

But the deal with Saks provides Amazon with an alternative way into the roughly $400 billion global luxury market.

Marc Metrick, CEO of Saks Fifth Avenue’s online operations, told Bloomberg News that the tech company, as well as Salesforce Inc., which will also take a minority stake, would help “future-proof” the combined company.

Amazon will provide technology and logistics expertise, potentially making deliveries and returns slicker for Saks Global’s VIP customers. But closer cooperation with Luxury Stores can’t be ruled out. Either way, the move could lend more credibility to Amazon’s chichi efforts.

Timing is on its side. The US luxury market has been hit by comfortable — rather than super wealthy — consumers cutting back. This has particularly hurt e-commerce, as these shoppers tend to buy online. That shift helped bring about the sale of Farfetch Ltd. to South Korean e-commerce company Coupang Ltd. in December, and the collapse of Britain’s Matches Fashion in March. Cie Financiere Richemont SA’s Yoox Net-a-Porter is also up for sale. The implosion of the online market might make Amazon more appealing to smaller fashion houses that had previously sold through these channels.

Even with the drawbacks, going upmarket is a better option than a race to the bottom against Temu and Shein — particularly as Prime members, Amazon’s core market, tend to be more affluent.

And it’s not clear how long Shein and Temu will continue to gain market share. The latter’s explosive growth is already moderating. Any curbing of the de minimis rule may hasten the slowdown. On the other hand, the US luxury market has been transformed over the past five years, and won’t remain in the doldrums forever.

Demand for pricey purses is poised to endure. The same can’t necessarily be said for budget bags from China.

By Andrea Felsted

Troye Sivan is now a beauty ambassador.

The Australian singer-songwriter and actor is the first global makeup brand ambassador of Puig-owned Rabanne, previously known as Paco Rabanne.

A post shared on Rabanne’s Instagram today includes a video of Sivan talking about their previous fashion collaborations and his excitement for this “new chapter” together.

Sivan also has a line of fragrances of decorative objects, Tsu Lange Yor, that launched in August 2023.

Rabanne launched makeup in June 2023 into Sephora, Ulta Beauty and Selfridges with space-age themed packaging and the legendary makeup artist Diane Kendal as its creative director.

Sign up to The Business of Beauty newsletter, your complimentary, must-read source for the day’s most important beauty and wellness news and analysis.

Learn more:

Dua Lipa, Again? Why Beauty Lines Need to Find New Brand Ambassadors

A familiar cast of celebrities became beauty spokespeople this week, but how many brands are too many for a gorgeous woman to promote?