BoF is away for its annual break until 2nd January. In the meantime, we invite you to explore highlights of our news and analysis from the year.
WHAT YOU NEED TO KNOW TODAY: MONDAY, DECEMBER 23, 2024 | | | Dear BoF Community,
For retail operators, it's been a tough 12 months. Years of sticker shock have pushed shoppers to be discerning — some would say fickle. Freight costs that leveled in 2023 significantly rose once more due to disruptions in the Red Sea, placing pressure on margins. High interest rates meant that there was less available capital to invest in growth and dealmaking.
But the strongest players have prevailed against these odds, proving that a focus on profitability and a disciplined approach to driving sales are key to sustaining a healthy business. For instance, retailers such as Aritzia and Uniqlo have demonstrated that stores aren't just billboards for brands; they can generate lucrative sales through compelling merchandising and decent customer service. Struggling retailers like H&M, Gap Inc. and Macy's have all anchored their turnarounds on similar strategies.
One thing is for sure: Fashion is resilient. Physical retail is thriving again, with a new generation of independent stores at its forefront. And even without a physical footprint, the smallest labels are finding creative ways to reach their customers in real life, from collaborations with unlikely partners to doubling down on niche curation.
Cathaleen Chen, Retail Editor |
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| The State of Fashion 2025 by McKinsey & Company and BoF Insights | Fashion executives are feeling pessimistic about 2025. A long-expected post-Covid spending slowdown has arrived, while geopolitical tensions remain high. But there are still pockets of opportunity in promising new markets, in underserved customer groups and at new frontiers in customer experience, powered by artificial intelligence. Download The State of Fashion 2025 now to explore the 10 themes that will define the industry in the year ahead. | | |
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