No images? Click here July 2024 | Newsletter No. 13Baker Retail RundownStay in the know with monthly retail challenges and our rundown of top retail industry news, curated by the Baker team. In 25 words or less, how would you enhance customer engagement through a brand loyalty program? Prize for top solution. Submissions can be text, graphic, selfie video... 🤳 BE CREATIVE! Entries due by EOD 7/8 The State of AI in Fashion: How AI is transforming design, marketing and the next generation of CXAs AI becomes integral, brands are using it to streamline operations, innovate designs, enhance marketing strategies, and improve customer experiences. Despite initial challenges, such as convincing stakeholders of AI's reliability, the report highlights that significant investments are being made, with many brands allocating substantial portions of their budgets to AI projects. Surveying 114 fashion brands, the report predicts AI will drive revenue growth and operational efficiency, positioning it as a crucial tool for future success in the fashion industry. Fashion’s Most (and Least) In-Demand SkillsEmployers like LVMH and Meta are prioritizing qualities that enable employees to navigate a rapidly changing retail landscape. Graduates with a diverse skill set and interests, exemplifies a trend in the fashion industry where soft skills like teamwork, critical thinking, and adaptability are increasingly valued over technical proficiencies. Fashion companies are focusing on durable skills and cultural awareness, learning from past tech investments that didn’t pay off. This shift reflects a broader industry movement towards emphasizing interpersonal skills, creativity and the importance of finding roles and managers that align with personal and professional values. From Dying Mall Brand to Wall Street Winner: How Abercrombie & Fitch pulled off retail’s biggest comebackAbercrombie & Fitch has transformed from a struggling mall brand to a Wall Street favorite under CEO Fran Horowitz. Over the past seven years, Horowitz revamped the product lineup, overhauled the supply chain, and rebranded the company to be more inclusive. This included closing hundreds of stores and redesigning others to attract a diverse customer base. The result has been consistent sales growth and profits that exceed expectations, making Abercrombie one of retail's biggest success stories. More Brands Turning to Pinterest for its Gen-Z Audience + Organic Growth PotentialLate last year, luxury brands noted Pinterest's emerging importance as a marketing channel, particularly for reaching Gen Z. Pinterest revealed that Gen Z saves more pins, especially in collage format, than any other group. With 500 million monthly active users, Pinterest is attracting brands due to its organic growth potential and new features like collages and shoppable carousels. Brands like Béis have seen significant revenue growth from Pinterest without heavy investment. Gen Z's preference for creating mood boards and the platform's commerce-friendly upgrades make Pinterest an increasingly attractive option for reaching engaged, younger audiences. What Retail Apocalypse? Shopping Centers Are Making a ComebackDespite challenges like inflation and rising costs, shopping centers are more vibrant than ever as thriving centers are able to attract high-traffic tenants and diversify offerings. Shopping center landlords are seeing a surge in demand for retail space for the first time in 20 years, driven by years of minimal construction and the elimination of underperforming properties. Developers are repurposing distressed properties to meet demand, with projects like Partners Capital's conversion of an office complex into a mixed-use development. Challenge Winner: The Future of Retail Tech Shweta Mokashi, WEMBA48 SF AI-driven hyper-personalization, blockchain transparency for efficient and secure supply chains, and immersive AR/VR experiences for tailored shopping experiences will shape the future of retail technology. Follow Baker |