Hey Friends,
Retail is rewriting the rules again this week—from billion-dollar influencer-led beauty deals to century-old brands shutting their doors for good. E.l.f. Beauty’s headline-making $1 billion acquisition of Hailey Bieber’s Rhode isn’t just a win for skincare—it’s a watershed moment for how influence, brand equity, and retail value converge. Meanwhile, economic headwinds continue to batter legacy retailers on both sides of the Atlantic, with closures, bankruptcies, and strategic pivots dominating the news. Amid all this, a few bold players are leaning into growth and innovation, proving that even in a tough climate, there’s room to scale if you play it right. Let’s dig in.
By far the biggest news of the week….E.l.f. Beauty announced it will acquire Rhode, the skincare brand founded by Hailey Bieber, in a $1 billion deal—its second major skincare acquisition after Naturium. The purchase includes $800 million at closing and a potential $200 million performance-based payout over three years. The deal is expected to close in Q2 of fiscal 2026 and will be financed through $600 million in debt and $200 million in new shares.
The acquisition comes as E.l.f. reported strong FY25 results, with $1.3 billion in annual sales (up 28%) and its 25th consecutive quarter of growth.
Rhode, launched in 2022, has already hit $212 million in DTC sales with only 10 products. The brand will launch in all Sephora U.S. and Canada stores this fall, and in the U.K. by year’s end. Bieber will stay on as chief creative officer, while the current executive team continues to run operations from Los Angeles.
CEO Tarang Amin emphasized Rhode’s potential to expand E.l.f.'s reach into prestige beauty, citing the brand’s success across skincare, cosmetics, and accessories. The company plans to scale Rhode through increased marketing, broader distribution, and product expansion.
E.l.f. Beauty’s $1 billion acquisition of Hailey Bieber’s Rhode marks a major shift in influencer marketing—from paid endorsements to full-scale brand building. It proves that influencer-founded brands can generate real enterprise value, with Rhode achieving $212 million in sales in just two years. Bieber’s continued role as chief creative officer signals a move toward deeper, long-term integration of influencer voices in brand strategy. This deal sets a new standard for how influencers can evolve into powerful business partners, not just marketing tools.
📉 Big Closures Hit Historic Retailers This week saw a wave of major store closures, many involving iconic retail brands. In the UK, WHSmith closed its Doncaster location, ending a 232-year presence on the high street. The company sold 500 branches to Modella Capital, which plans to rebrand them as TGJones. Separately, Beales shut down its final location in Poole after 140 years of operation, citing an inability to maintain profitability due to rising tax and wage pressures.
In the U.S., Macy’s announced plans to shutter 86 more stores as part of its ongoing strategy to reduce its physical footprint by 150 locations by 2027. Rite Aid filed for Chapter 11 bankruptcy protection for the second time in two years, and now plans to close or sell its remaining 1,200 stores. In Canada, Hudson’s Bay is liquidating most of its retail locations, with Canadian Tire acquiring the brand and intellectual property for $30 million. These moves underscore the intensifying pressure on legacy retailers to streamline operations and reimagine their business models in the face of economic headwinds.
⚠️ Financial Pressure Mounts Major U.S. retailers are reporting increasing strain as tariffs and inflation impact consumer spending and operational costs. Target posted a sharp drop in Q1 sales and warned of continued challenges ahead due to economic uncertainty and import duties. Best Buy cut its guidance for the year following a weak Q1 and said it is adjusting prices to offset the impact of tariffs on electronics and appliances.
Gap Inc. is bracing for as much as $300 million in tariff-related expenses this year and is exploring mitigation strategies such as reshoring and supply chain restructuring. These developments reflect how macroeconomic volatility—including rising interest rates, trade disputes, and shifting consumer demand—continues to reshape the financial outlook for many in the retail sector.
🚀 Growth Amid Headwinds Despite widespread challenges, some retailers are pursuing aggressive growth strategies. Apple is continuing its expansion into India with the opening of its first retail store in Bengaluru, bringing its total in the country to three. India represents a key growth market for the tech giant as it seeks to diversify beyond China.
Beauty retailer Nykaa reported a 24% increase in revenue for fiscal year 2025, reaching Rs 7,950 crore. The company also added 50 new stores as it ramps up its offline presence to complement its digital dominance. In the U.S., Big Lots reopened 132 stores across 14 states as part of a major turnaround effort aimed at reviving its value-driven appeal and capturing cost-conscious consumers.
Off-price strategies are gaining ground. A new study from NC State University found that retailers opening off-price stores experienced increased online shopping activity, even if it led to reduced spending at full-line stores. This suggests that shoppers are becoming more flexible in how and where they spend, valuing a mix of discount and digital access.
Sephora has debuted its "We Belong to Something Beautiful" campaign in partnership with Haus Labs by Lady Gaga and the Born This Way Foundation. The campaign highlights Lady Gaga’s inclusive vision of beauty as a safe, joyful, and expressive community—aligning with Sephora’s brand values.
As part of the initiative, Sephora is also reviving its Brave Spaces in 74 cities, where LGBTQIA+ customers and allies can receive support from Beauty Advisors in creating their Pride looks.
Nike's Chief Innovation Officer, John Hoke, is retiring after more than three decades with the company, according to an internal memo. Hoke will remain at Nike through October 31 to wrap up projects and support the transition.
His successor, who will retain the chief innovation officer title, will be announced soon by Phil McCartney, Nike’s new Chief Innovation, Design, and Product Officer.
Hoke joined Nike in 1995 as global creative director and later became the company’s first chief design officer, a role he held for about 15 years before transitioning to lead innovation.
The clock may be striking midnight for Target as it grapples with sliding sales, shifting consumer behavior, and questions about its long-standing brand identity. Once a standout for its design-forward private labels and inclusive messaging, Target is now facing headwinds from a consumer base that’s more focused on essentials and value—and more divided over social issues. The company’s product mix, heavily weighted toward discretionary items like apparel and home goods, has left it vulnerable as shoppers pull back.
Leadership has acknowledged missteps, including poor internal communication and delayed strategic pivots. Recent efforts include executive changes, new brand launches, and a merchandising overhaul, but analysts remain skeptical about how quickly these moves will drive recovery. Meanwhile, trade tariffs and broader macroeconomic uncertainty continue to weigh on performance.
While profitability has stabilized, the retailer has posted declining sales for two consecutive years. Target’s once-celebrated differentiators are now being tested, and its future may depend on whether it can modernize without losing the essence that built its brand.
Spirit Halloween has canceled its annual season-opening event at its flagship store in Egg Harbor Township, New Jersey, citing "supply chain challenges" and “international disruptions.” While the company did not directly mention tariffs, the decision comes amid ongoing volatility in U.S. trade policy that has impacted retail costs. The public event, launched in 2021 to highlight the season’s top costumes and décor, is expected to return in 2026.
Despite the cancellation, Spirit plans to open more than 1,500 temporary stores nationwide starting in mid-August. The retailer, known as the largest Halloween chain in the U.S., also began testing a new “Spirit Christmas” concept in the Northeast last year, aiming to extend its seasonal retail success into the winter holidays.
Saks Global has raised $350 million in new financing, providing a critical cash infusion ahead of the 2025 holiday season. The move comes as the luxury retailer faces mounting pressure in a turbulent economic and retail climate. The funding is expected to help Saks shore up its inventory, maintain operations, and support its digital and physical retail efforts during its most important sales period of the year. The deal signals investor confidence despite broader concerns in the luxury market and challenges tied to high interest rates and shifting consumer demand.
Travel brand Away has appointed Jessica Schinazi as its new CEO in a planned leadership transition aimed at fueling the company’s next phase of growth. Schinazi, who joined Away as president in late 2024 and previously held leadership roles at Dyson, Amazon, LVMH, and Richemont, steps into the role as the company accelerates expansion beyond its direct-to-consumer foundation.
Co-founder Jen Rubio, who served as CEO since 2021 following a period of executive turnover, will remain involved as executive chair of the board. Rubio described Schinazi as the “right leader for this moment,” highlighting her bold vision and operational strength.
Under Schinazi, the company plans to deepen customer engagement and scale its product lines and retail presence. In 2024, Away launched a soft-sided luggage collection and began selling on Amazon and through Nordstrom—its first major retail partnership since limited pop-ups in 2019. The brand reported a 16% year-over-year increase in bag sales last year and confirmed in April that it would hold prices steady amid tariff-related uncertainty.
Schinazi is tasked with leading Away’s growth while building on its brand identity and expanding reach through new channels, innovation, and strategic retail partnerships.
📈 Trends to Watch Tariffs are a top concern for retailers, with many choosing to remain quiet on price increases even as they quietly raise them. Some are shifting their supply chains or accelerating automation to maintain margins. It’s reporting season so expect to see a flurry of tariff related responsibility shift.
🔮 Looking Ahead This week’s developments highlight the evolving nature of retail. As legacy players face existential challenges and new models gain traction, adaptability is key. Expect continued closures among underperforming chains, more investments in automation, and greater experimentation with store formats and global growth strategies. For now, retailers must navigate the dual challenges of economic pressure and changing consumer preferences while staying agile and innovative.