Modern Retail

On the latest Modern Retail Rundown podcast, MR reporters?break?down the latest business news:?CVS has a new store concept, beauty's growth is slowing, and?apparel sales are on the decline.

American Eagle Outfitters Inc. is “getting out and about” this year as it looks to connect with its core demographic of Gen-Z shoppers in person and on platforms where they spend time, CMO Craig Brommers told Modern Retail. Pop-ups, for instance, will be a key component of the brand’s marketing mix in 2025, Brommers revealed. On March 21 and 22, American Eagle is hosting a Denim Deli in Nashville, Tennessee, complete with free sandwiches, customizable denim totes, an appearance from “Outer Banks” actor Chase Stokes and musical performances. American Eagle is also stepping up its presence and ad spending on apps popular with young people, such as TikTok, Snap Inc., Bluesky Social and?Pinterest. “Gen Z moves with speed, and we’ve tried to be in front of our competitors in testing and trying new places [to connect with them],” Brommers said. Brommers, who joined American Eagle in 2020 after stints at Gap, Abercrombie & Fitch Co. and Calvin Klein, spoke with Modern Retail about how the brand is updating its marketing playbook to better woo Gen Z at a tricky time for the retail industry. Story by Julia Waldow

Trump's tariff war has spiraled into a cycle of escalating countermeasures.?The costs are mounting for businesses caught in the middle as some are losing wholesale partners or being forced to turn off international shipping. In this piece by Allison Smith, we speak to Dawn Hilarczyk of Borghese, Inc., and Julie Longyear of Blissoma - Botanical Beauty.

Welcome to Modern Retail’s “The New Supply Chain,” a week-long series of daily stories on how retail executives are revamping their supply chains to succeed in 2025. For the past couple of months, many e-commerce brands have been in limbo as they consider whether to move fulfillment operations out of Mexico. No one wants to make too rash of a decision at a time when policies are changing left and right. ?? Read the full story here: https://lnkd.in/eUwdB5Gu In this piece by Anna Hensel, we speak to Matthew Hertz, Chad Carleton, Aman Advani of Ministry of Supply, Sean Henry of Stord, and Ben Yahalom of True Classic.

Data and intelligence provider SPINS has been tracking how AI tools are already changing the way people search for solutions and products.?This month, Spins?released?its 2025 Industry Trends and Predictions Report, which highlights a shift toward people searching for products through TikTok and AI assistants like ChatGPT. While advertising tools are?still being developed?for these engines, brands that have built out a deep database of content appear set up to benefit from the rise of generative AI search.

If you’re reading this newsletter, chances are you’re already keyed into the challenges brands and retailers are facing thanks to tariffs. You also might be thinking about the broader macroeconomic uncertainties amid dropping consumer confidence and the possibilities of customer-led boycotts. At Modern Retail, we’re consistently exploring these big-picture topics and what they mean for the retail industry. But we’re also zooming in a little farther and examining ways brands are trying new strategies to win with today’s consumer. Here’s a look at a few stories we’ve covered in that vein this week.?

Outdoor retailers are closing stores and pursuing layoffs as they adjust to changing consumer trends around recreational activities. In January,?REI closed its Experiences business, which included adventure travel, day trips, classes and other events, due to high costs and unprofitability. The retailer laid off more than 400 employees because of this, after laying off?more than 350 people a year before?while citing declines in outdoor specialty retail and facing a net loss of $311 million in 2023. DICK'S Sporting Goods also appears to be scaling back outdoor subsidiaries that had been a growth effort for the company; its subsidiary Public Lands recently reduced its store count from eight to three, and the company also shuttered three Moosejaw Mountaineering stores it acquired in 2023 from Walmart,?Retail Dive reported. Meanwhile, Patagonia laid off?90 customer service workers?in June and?41 people in October.

Walmart is adding tens of thousands of pre-owned luxury handbags, jewelry and watches to its marketplace through a partnership with resale platform Rebag, which allows users to buy, sell and trade such items.

Best Buy plans to launch a new third-party marketplace in the U.S. in mid-2025, and the opportunity to sell on the platform is gaining attention from brands, even those outside of consumer electronics. CEO Corie Barry told investors about the new marketplace on an earnings call in November, saying it would give its customers access to a larger assortment and new categories. It will also give sellers and advertisers a new avenue on which to increase their reach and build their brands, she said. In December, Best Buy’s chief marketplace and e-commerce officer, Frank Bedo, posted on LinkedIn that the marketplace began accepting applications.

Amazon has been ramping?up its focus on AI-powered shopping.?Now, sellers on the company’s sprawling marketplace are exploring how best to optimize their content while navigating the uncertainties that come with emerging technology. In this piece by Allison Smith, we speak to Max Sinclair of Ecomtent, Jacob Miller, and Will Haire of BellaVix.