Hey Friends,
Welcome to this week’s edition of This Week in Retail! From new brand expansions to major industry shifts, here’s what’s making headlines in retail and business this week.
Americans are growing more and more cautious as consumer confidence falls…….In March 2025, The Conference Board's Consumer Confidence Index® fell by 7.2 points to 92.9 (1985=100), marking the fourth consecutive monthly decline. The Present Situation Index, reflecting consumers' assessment of current business and labor market conditions, decreased to 134.5. The Expectations Index, indicating short-term outlooks for income, business, and labor market conditions, dropped to 65.2—the lowest level in 12 years and below the threshold typically signaling a forthcoming recession. This decline is attributed to rising concerns over tariffs and inflation.
The Consumer Price Index (CPI) for all items rose by 2.8% over the 12 months ending in February 2025, a slight decrease from the 3.0% increase observed in January. The core CPI, which excludes volatile food and energy prices, increased by 3.1% over the same period. The energy index experienced a 0.2% decrease over the past year, while the food index saw a 2.6% increase. Forecasting models estimates that, for March 2025, the CPI will rise by 0.01% month-over-month, with a year-over-year increase of 2.47%. The core CPI is projected to increase by 0.26% month-over-month and 2.99% year-over-year.
💼 Recent data from ActivTrak, a workforce analytics company, indicates that the average American workday now ends at 4:39 p.m., approximately 42 minutes earlier than two years ago when it concluded around 5:21 p.m. This shift is based on an analysis of over 200,000 employees across 777 companies. Despite the shorter hours, overall productivity has seen a modest increase of about 2%, with employees engaging in focused, 24-minute bursts of work.
The report also highlights seasonal variations, noting that employees tend to work longer hours in August and December, possibly due to post-vacation catch-up and end-of-year deadlines. Additionally, while weekday hours have decreased, there has been a rise in weekend work, suggesting a growing comfort with flexible schedules. This trend underscores the need for organizations to monitor work-life boundaries to prevent burnout.
This Week in Retail Therapy
Find it near me is tiresome……You find the perfect item online, add it to your cart, and check store availability—only to see that it’s not in stock anywhere within 100 miles. It’s a common frustration for shoppers who rely on online inventory visibility to plan their drop-ins.
Despite advancements in retail technology, store inventory systems don’t always update in real time, leading to mismatches between what's listed online and what's actually available. Some retailers limit store-to-store transfers or shipping options, making it even harder to get the item without a long drive.
While retailers are working to improve inventory accuracy, shoppers are often left refreshing pages or calling stores in search of what they need. I don’t think the phone a retailer is the preferred method, but I do think there is still some curiosity as to what is accurately depicted online. Until these systems become more reliable, finding the right item close to home might still require a bit of patience—and maybe a little luck.
There is a huge opportunity here…..I would love to see some sort of blend of an e-commerce storefront and a view that shows brick-and-mortar seasonality.
I think we have lost sight of try or try-on before you buy.
I wanted to start this week with some cultural items. It’s not always just retail over here, and overall, culture drastically defines trends in the retail market. While Jeff Bezos may not be making headlines for Amazon this week, his airspace venture, Blue Origin, is bringing a star studded cast on it’s next voyage. Katy Perry is set to embark on a suborbital spaceflight this spring as part of Blue Origin's New Shepard NS-31 mission, which will feature the first all-female crew. The team includes journalist Lauren Sánchez, former NASA rocket scientist Aisha Bowe, bioastronautics research scientist Amanda Nguyen, film producer Kerianne Flynn, and CBS Mornings co-host Gayle King. Sánchez, who is leading the mission, expressed hope that it will "inspire the next generation of explorers."
Anime is all over my timeline…….Recently, there has been a surge in interest surrounding Studio Ghibli, particularly in the realm of artificial intelligence (AI) art generation. AI tools, such as those developed by OpenAI, have enabled users to create "Ghibli-style" portraits and images, mimicking the studio's unique aesthetic.
This trend gained momentum when Grant Slatton, a software engineer from Seattle, shared AI-generated images of his family rendered in the Ghibli style on social media, leading to widespread sharing and replication. The popularity of these AI-generated images has been so significant that OpenAI's CEO, Sam Altman, announced temporary rate limits due to the high volume of requests. However, this phenomenon has sparked a debate about the ethics and implications of using AI to replicate the styles of living artists and studios. Critics argue that AI-generated art in the style of Studio Ghibli devalues the original works and undermines the creativity and effort of human artists.
In a historic shift, the Sundance Film Festival is leaving its long-time home in Park City, Utah, and heading to Boulder, Colorado, starting in 2027.
Sundance organizers cited Boulder’s vibrant arts scene, accessibility, and infrastructure as key reasons for the move. Additionally, Colorado successfully lured the festival with a $34 million tax incentive, significantly outbidding Utah’s $3.5 million offer to keep the festival.
Despite this change, the festival promises to maintain its independent spirit and focus on emerging filmmakers. Boulder’s proximity to Denver and its growing film community could help expand Sundance’s influence while still offering the scenic backdrop that made Park City a festival hotspot.
Why it matters: This is a major shift for the film and entertainment industries. Sundance has been a pillar of Park City’s economy for decades, and the move raises questions about how smaller cities can retain major cultural events amid competitive bidding wars.
The historic Neiman Marcus in downtown Dallas will remain open through the 2025 holiday season, Saks Global announced. The company, working with the city, is exploring new uses for the space, which could include luxury retail, an art exhibition, a fashion and event center, or manufacturing. Saks Global CEO Marc Metrick emphasized the company’s commitment to redefining luxury shopping.
Lets look at some bad bets…..Dollar Tree Inc. has announced the sale of its Family Dollar business to private equity firms Brigade Capital Management and Macellum Capital Management for approximately $1 billion. This decision follows Dollar Tree's 2015 acquisition of Family Dollar for over $8 billion, an endeavor that faced challenges integrating the two brands.
The merger was plagued with obstacles, including supply chain issues, competition from retailers like Dollar General and Walmart, and difficulties in improving store operations and profitability.
Family Dollar struggled with sales of higher-margin discretionary items, as consumers reduced spending due to inflation. Additionally, efforts to remodel and enhance Family Dollar stores did not sufficiently boost sales or profit margins. Family Dollar will remain headquartered in Chesapeake, Virginia, and the transaction is expected to close by June 2025.
📦FedEx is simplifying the dreaded returns process with a new box-free, label-free service. Partnering with Blue Yonder, a leader in supply chain management, FedEx is launching FedEx Easy Returns this summer across 3,000 U.S. locations.
Here’s how it works:
Customers drop off return items at a FedEx location.
No box or printed label needed—just a QR code.
FedEx takes care of the rest, streamlining the return process for both retailers and shoppers.
This move is expected to reduce packaging waste and improve efficiency, addressing one of the biggest pain points in e-commerce. It also follows a growing trend of retailers offering more sustainable and convenient return options, similar to Amazon’s drop-off partnerships with Kohl’s and Whole Foods.
🚲 SoulCycle, known for its high-energy indoor cycling classes and devoted following, is taking a bold step into the apparel industry. The brand has launched a retail collection featuring high-performance activewear, cycling gear, and fitness accessories.
The collection, Soul by SoulCycle, includes partnerships with major athletic brands like Lululemon, Nike, and Beyond Yoga. Signature items such as the Renee Tank and Podium Bra are designed to cater to both casual fitness enthusiasts and dedicated riders.
This move aligns with a broader trend of fitness brands expanding into fashion, as consumers increasingly seek stylish yet functional workout wear. With competitors like Peloton and Alo Yoga already capitalizing on this market, SoulCycle’s expansion could be a strategic play to strengthen its brand presence beyond the studio. The fitness and athleisure markets continue to blur, with more brands diversifying their offerings. As consumer demand for stylish, high-performance activewear grows, SoulCycle is betting that its cult-like following will translate into strong apparel sales, although historical data would suggest this is a difficult feat.
💄 Ulta Beauty to Launch Online Marketplace for Emerging Brands
Ulta Beauty is stepping up its game with the launch of Ulta Beauty Marketplace, a curated online platform set to debut this fall. The marketplace will provide a space for emerging and established beauty brands to sell directly to Ulta’s massive customer base, significantly expanding its product offerings in skincare, makeup, haircare, fragrance, and wellness.
With over 44 million Ulta Beauty loyalty members, brands featured in the marketplace will gain access to a highly engaged customer base. Unlike traditional retail partnerships, the marketplace will allow brands to manage their own inventory and pricing, giving them more control over their sales.
This move follows in the footsteps of other major retailers, like Amazon and Walmart, which have expanded their marketplaces to give third-party brands more exposure.
Ulta’s marketplace model could be a game-changer for indie beauty brands looking for a broader reach. With the clean beauty and wellness categories booming, this platform could introduce fresh, innovative products to Ulta shoppers while offering brands a major growth opportunity.
🏋️ British fitness apparel brand Gymshark is officially setting up shop in the U.S. with its first permanent flagship store at 11 Bond Street in New York City.
The 13,000-square-foot store will feature more than just clothing—it will include an interactive retail space, fitness events, and community meet-ups, offering a blend of shopping and training experiences.
Gymshark has built a strong online presence, particularly among Gen Z and millennial fitness enthusiasts, thanks to its influencer-driven marketing strategy. This physical store represents a significant shift for the brand as it looks to establish a deeper connection with U.S. consumers.
Why it matters: As digital-native brands expand into physical retail, Gymshark’s move highlights the growing importance of experiential retail. In a competitive market that includes giants like Nike, Lululemon, and Adidas, Gymshark is betting on an immersive, community-focused store to differentiate itself.
📢 Retail Trend to Watch: The Rise of Hybrid Retail Spaces
From Gymshark’s experiential store to SoulCycle’s fitness-fashion crossover, the retail landscape is evolving. More brands are blending physical, digital, and community experiences to drive engagement and brand loyalty.
Key takeaways:
Experiential retail is becoming essential for online brands looking to establish a physical presence.
Marketplaces, like Ulta’s new initiative, are creating new opportunities for emerging brands.
Convenience-focused innovations, such as box-free returns, are redefining customer expectations.
As the retail world continues to shift, brands that embrace innovation and customer-centric experiences will come out on top.
That’s a wrap for this week! Stay tuned for more retail insights next week.