Executive Memo | How to Cut Costs While Investing for the Future

THE DAILY DIGEST

WHAT YOU NEED TO KNOW TODAY: MONDAY, DECEMBER 15, 2025

Dear BoF Community,

This has been a challenging year for the fashion business. Next year will require some hard choices. Consumer confidence has slipped to historic lows in the US and remains subdued across Europe and China. Tariffs will make their true financial impact felt in 2026 once early inventory buffers run out. Shoppers haven't stopped spending, but they're making every purchase earn its place — even at the high end.

This creates a narrow path for brands and retailers, who must protect cash, brace for higher costs yet still keep shoppers happy while investing in the capabilities to emerge stronger in the long run.

In this new memo created for Executive Members, retail editor Cathaleen Chen answers the questions that matter most right now:

When to prioritise growth over margin
Where cost cuts can be made without eroding customer trust
The ways AI and operational innovation can improve efficiency and productivity
How businesses can build long-term flexibility into their models to withstand the pressures ahead

Download the Executive Memo: How to Cut Costs While Investing for the Future.

Executive Memos examine pivotal industry issues to support strategy and decision-making. Become an Executive Member now.

Imran Amed, Founder and Editor in Chief

Also in today's Daily Digest:

Twin exhibitions drawing on Azzedine Alaïa's archive challenge clichés about Dior, writes Laurence Benaïm.
This week, Nike must avoid backsliding with its latest earnings, as it lays the groundwork for a comeback narrative next year.