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September 2025 | Newsletter No. 26
Baker Retail Rundown
Stay in the know with monthly retail challenges and our rundown of top retail industry news, curated by our talented Penn student analysts.
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Louis Vuitton has officially entered the beauty space with the launch of its debut makeup line, La Beauté Louis Vuitton, developed in collaboration with renowned makeup artist Pat McGrath. The collection includes 55 lipsticks and 10 tinted lip balms priced at $160 each, along with eight eyeshadow palettes costing $250. The products feature refillable packaging designed by industrial designer Konstantin Grcic and incorporate the brand’s iconic Monogram and Damier motifs. Refill options are priced at $69 for lips and $92 for eyes. The line will debut in China on August 20, followed by a global pre-launch online on August 25 and full availability in select stores on August 29. While the collection is positioned as a pinnacle of luxury – complete with complementary leather goods like lipstick pouches and blotting paper wallets – its high price points are likely to appeal to a limited audience of high-net-worth individuals. Industry experts note that to succeed long-term, Louis Vuitton must compete with artistry-led beauty brands and carefully manage its retail strategy, especially as broader beauty markets face pressure from more accessible celebrity-driven competitors.
Following Taylor Swift and Travis Kelce’s engagement announcement on Instagram, which quickly drew over 30 million likes, brands across industries jumped at the chance to join the celebration with themed marketing and humorous social posts. Olipop offered a 13 percent discount with a pun on one of Swift’s lyrics, while Starbucks paused its pumpkin spice promotions to welcome the couple to its list of lovers. Panera leaned into bread-themed wordplay, and Auntie Anne’s asked to be the flower girl. Companies like Wendy’s and The Sims posted pop culture references tied to the engagement, and Pixar and Netflix shared creative nods using their own characters. Food chains including Krispy Kreme, Portillo’s, Buffalo Wild Wings, and Grubhub offered special deals or joked about catering the wedding. Even grocery stores like Publix and brands like Crumbl and Poppi joined the frenzy, with cookies, cans, and captions designed to echo fan excitement. The collective response reflects how deeply Swift and Kelce’s relationship has embedded itself into pop culture, giving brands a unique opportunity to connect with a broad and highly engaged audience.
Alo Yoga is making a bold move into high-end fashion with the launch of a new line of Italian-made leather handbags priced from $1,200 to $3,600. CEO Danny Harris is framing the debut under the campaign “Luxury is Wellness,” emphasizing that modern luxury is shifting away from traditional markers like nightlife and cocktails toward health, mindfulness, and personal well-being. Each bag comes with interchangeable crystal charms meant to symbolize personal intentions, tying directly to Alo’s wellness-focused ethos. The collection will be released through an exclusive concierge-style pre-order system on September 9, with pickup beginning September 22 at Alo’s 23 flagship stores in locations such as Beverly Hills, SoHo, Aspen, and London’s Regent Street. Harris views this as part of a larger strategy to position Alo as a “next-gen luxury” brand that appeals strongly to Gen Z—already 41 percent of its customer base—while competing with traditional luxury houses. Alo’s prior success with its premium Alo Atelier line, which grew revenues 600 percent year over year in 2025, signals demand for elevated offerings. The handbags will be produced in limited colorways with annual price increases to cultivate exclusivity, and Harris expects both praise and criticism, noting that any strong reaction builds brand buzz. Beyond handbags, Alo has plans to expand further into luxury categories like eyewear and fragrance, with flagship retail growth in Paris and other global fashion capitals on the horizon.
Jewelry brands are increasingly tapping into sports, partnering with athletes and creating sports-themed collections, as seen with Gorjana, Ring Concierge, and Mejuri’s new “Mejuri Play” vertical. Tennis and baseball have proven especially compatible for jewelry, allowing players to wear pieces during play, while other sports offer opportunities through sponsorships and off-court moments, as with WNBA players and soccer stars. Brands like Mejuri have seen major success with activations at events like Wimbledon, driving revenue, foot traffic, and new customer conversions, while emphasizing authenticity and storytelling in their sports partnerships. This crossover also extends to WAGs and cultural influencers, creating high-visibility moments that boost brand recognition and sales, exemplified by Wove’s TNT Bracelet worn by Taylor Swift. Overall, jewelry and sports are merging as brands leverage athletes’ influence, cultural relevance, and authentic engagement to reach broader audiences.
Wealthy Americans are increasingly traveling to Europe to purchase luxury goods as a way to avoid rising U.S. tariffs, especially on Swiss-made items like watches and jewelry. Motivated by potential savings through VAT refunds, favorable exchange rates, and generally lower prices abroad, affluent shoppers are combining vacations with strategic retail spending. Travel advisors report a significant uptick in trips centered on luxury shopping, with cities like Milan, Paris, and Geneva becoming popular destinations. While customs rules require declarations and duties on expensive imports, many travelers either accept the added cost or find ways to circumvent the system. This trend reflects how tariffs are reshaping consumer habits and reinforcing the appeal of luxury travel combined with high-end shopping.
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