Baker Retail Rundown

Consumer confidence slumps to 12-year low as Americans fret over their financial prospects

Americans are increasingly anxious about their financial future, with consumer confidence falling to a 12-year low, driven by concerns over inflation and tariffs. The Conference Board’s index dropped to 92.9 in March, marking the fourth consecutive monthly decline, and Americans' short-term expectations for income, business, and jobs reached their lowest point in over a decade. Despite the declining confidence, some officials downplay the connection between consumer sentiment and actual spending, suggesting the economy continues to move forward. However, major retailers like Walmart and Target are cutting profit forecasts due to economic uncertainty and the impact of tariffs. The overall consumer mood reflects fears of a potential recession, leading to a decrease in demand for homes and cars, while big-ticket items like appliances are being bought in anticipation of price hikes from tariffs.

Miu Miu: The Prada Powerhouse Winning Over Gen Z

While much of the luxury industry faces a slowdown, Prada Group is shining brightly thanks to Miu Miu’s explosive popularity among young, affluent shoppers. With shares up 14% this year—double the gains of LVMH and other competitors—Prada is proving its resilience in an uncertain market. The real star? Miu Miu, which delivered an astonishing 84% surge in Q4 retail sales, driven by Gen Z’s love of its Arcadie handbags and cashmere cardigans. In China, where other luxury brands are faltering, Prada saw retail sales climb 13%, while Japan surged 46%, boosted in part by tourist spending. With this momentum, Prada is setting its sights beyond Miu Miu, reportedly nearing a €1.5 billion acquisition of Versace, a move that would bring the legendary brand back under Italian ownership. Prada’s success makes one thing clear—youth-driven luxury may just be the future of the industry.

Canada’s oldest retailer Hudson’s Bay forced to Liquidate

After decades of up and down business trends, restructuring, and shifts in management, the oldest company in North America has no choice but to liquidate its entire business. The company claimed that it made “exhaustive efforts to secure sufficient financing” but it filed with the Ontario Superior Court of Justice claiming that the only financing secured was limited debtor-in-possession financing. The department store chain is facing a closure of the entire business, which would unemploy 9,364 Canadian workers across all Hudson’s Bay stores and some Saks Fifth Avenue locations. Although many local consumers voiced their dissatisfaction with losing an iconic Canadian brand, many said that they noticed the lack of investment by The Bay into physical stores. Although there is little hope for salvation, the company remains optimistic that it can pull in capital to find a solution to avoid full shutdown.

Will AI Replace Fashion Marketing and Content Creation?

AI-generated fashion campaigns are becoming eerily realistic, raising questions about the future of traditional photography, modeling, and creative direction. Independent creative director Sybille de Saint Louvent has gained attention for producing entirely AI-generated luxury campaigns—featuring lifelike models and intricate styling—all without a physical photoshoot. The most shocking development? Gucci just commissioned her for an official campaign. Fashion marketing is one of the industries most impacted by AI’s rapid evolution, making human-run photoshoots and large production teams increasingly vulnerable to replacement. While de Saint Louvent maintains that human creativity is still essential for concept direction, storytelling, and emotion, one must wonder if traditional fashion shoots will become obsolete, and how much of what we will see in future luxury campaigns will be shot, styled, and modeled by human hands.