The Baker Buzz

As we prepare for a new academic year, we remain energized by our global experiences, thoughtful dialogues, and pivotal moments that have brought our community together in meaningful ways. Whether exploring the retail of Paris or Tokyo or engaging in lively conversations about the future of consumer behavior, the Baker Retailing Center continues to lead the way in advancing retail insight and engagement.

In this issue, we introduce you to our new strategic plan, developed in collaboration with Boston Consulting Group. You will also find a snapshot of our lively multigenerational panel, where students from the Gen Alpha, Gen Z, and Millennial generations shared their evolving perspectives on shopping habits and brand expectations.

Meanwhile, Penn is accelerating its investment in artificial intelligence with new initiatives that span research, education, and interdisciplinary collaboration. At Wharton, that progress includes the introduction of a new undergraduate concentration and MBA major in Artificial Intelligence for Business—launching this fall to prepare students to apply AI responsibly and effectively in real-world business scenarios.

Looking ahead, we’re especially excited for our upcoming Ideathon—Baker’s signature, high-energy, 24-hour case competition that unites students from across Penn’s campus to address retail challenges with bold, creative solutions.

We are pleased to share these accomplishments with you. We hope you enjoy this look back, and we look forward to what’s next in the upcoming academic year.

Wishing you a restful end to summer.

Warmly,

Thomas S. Robertson
Academic Director
Jay H. Baker Retailing Center
Joshua J. Harris Professor, Professor of Marketing

BAKER RETAILING CENTER STRATEGIC PLAN PRESENTED BY BCG

During the Spring Board Meeting, the Baker Retailing Center unveiled its new strategic plan, developed in partnership with Boston Consulting Group (BCG) and shaped by input from staff, students, board members, alumni, and industry leaders. BCG presented insights and recommendations aimed at strengthening the Center’s long-term impact, with a bold, future-focused vision that prioritizes innovation, thought leadership, and deeper engagement across the retail ecosystem.

All groups emphasized the importance of a center like Baker in advancing both the industry and the University, and as the retail landscape evolves, the Center is committed to staying ahead of change. A key differentiator is our position within a leading Ivy League institution where our faculty and students drive cutting-edge research and we remain focused on sharing that knowledge with the broader retail community.

Thank you to everyone who contributed to the survey and exploration process; your feedback continues to guide the refinement of this important strategy.

MULTIGENERATIONAL PANEL

Students from Gen Alpha, Gen Z, and the Millennial generation joined us for a dynamic Multigenerational Panel, offering insight into how their shopping habits and brand expectations are shifting. Panelists Zora Reed and Louis Sincavage (Gen Alpha), Jack Wagoner and Tina Zhang (Gen Z), and Brendan Webb and Alexandra Heckel (Millennial) shared personal experiences that revealed key differences in how each generation shops.

Recent purchases ranged from Nike sneakers to vintage mall finds and local boutique pieces, highlighting how impulse, individuality, and discovery influence consumer behavior. When asked if they identify more as shoppers or buyers, answers varied—Tina called herself a “slow buyer” who waits to see if trends last, while Brendan shared he buys familiar staples quickly but shops more thoughtfully online. Zora, who shops with her parents’ support in mind, looks for affordability and wardrobe compatibility before committing to a purchase. Favorite stores included Hollister, Anthropologie, and Miu Miu, with secondhand choices like Goodwill, Plato’s Closet, and clothing swaps also popular. While online shopping was most common, many still prefer in-store visits for clothing to assess fit, fabric, and color in person. Alexandra noted that physical stores help her feel more confident in her purchases, while Zora mentioned she’s fine buying products like makeup online.

The panel also emphasized the importance of curation, authenticity, and brand values in shaping their loyalty. Their honest perspectives offered a valuable look into what today’s emerging consumers are really looking for and underscored what retailers should pay attention to as the next generation of consumers comes into focus.

IDEATHON 2025

CLICK HERE to register!

Ideathon 2024 Recap Video

LUXURY BRANDING AND RETAILING IN FRANCE

Wharton MBAs immersed themselves in the heart of Parisian retail during this year’s Global Modular Course. The trip featured exclusive visits to Saint Laurent, Kering, L'Oréal, Le Bon Marché and other renowned brands and retailers.

Throughout the course, students engaged directly with brand leaders to discuss retail strategy, innovation, and omnichannel transformation then saw those ideas brought to life through curated in-store experiences across some of Paris’s most iconic retail destinations.

WHARTON INTERNATIONAL PROGRAM: JAPAN

Students traveled to Tokyo for a retail-focused experience organized by the Center—an intensive week of company visits and executive conversations designed to give them a deeper understanding of Japan’s evolving retail and consumer landscape.

At Shiseido, students were immersed in the company’s deep sense of brand heritage—surrounded by historical imagery, products, and museum-like installations that reflect its legacy of blending art and science. The experience offered a unique lens into how Shiseido reinforces its identity internally, using history not as nostalgia but as a foundation for future-facing creativity

Conversation at Onitsuka Tiger revealed a brand that is growing intentionally—highly selective with partnerships and deeply focused on maintaining cultural authenticity. The cool factor was undeniable, especially given that you can’t even buy Onitsuka sneakers in a physical retail store in the U.S. By the end of the trip, it seemed nearly everyone had picked up a pair to bring home

Engagements with Nissan, MIZEN, Isetan, Joypolis, Itochu, and FamilyMart provided further insight into Japanese retail strategy, consumer trends, and the evolving intersection of heritage and technology.

The group also heard from Christopher LaFleur, Chairman of the American Chamber of Commerce in Japan, whose insights on regulatory challenges and Japan’s shifting economy made for one of the program’s most engaging sessions.

MARKETING 1010

As part of Professor Zhang’s Marketing 1010, the introductory marketing course, students participated in a competitive retail simulation that challenged them to make real-time decisions on pricing, product selection, inventory, and promotions.

The top-performing team earned an immersive day in New York City, where they met with Pierre-Yves Roussel (WG93), CEO of Tory Burch LLC, and also gained perspective on the role of real estate in retail during a session with Matt Seigel (C02), Co-founder of Lantern Real Estate.

ALUMNI SUMMER SOCIAL

The Baker Summer Social brought together a full house of alumni from across the retail and consumer space for an evening of meaningful connection in New York City. From conversations about new ventures and career updates to reflections on the evolving industry, the room was full of energy, fresh perspectives, and great conversation. Thank you to everyone who joined us and made it such a memorable night.

COER CONFERENCE 2025

This June, the Wharton School proudly hosted the annual Consortium for Operational Excellence in Retailing (COER) Conference, a premier gathering of leading academics and industry professionals focused on the future of retail operations. Co-founded by Wharton’s Marshall Fisher and Harvard’s Ananth Raman, COER continues to bridge research and practice, fostering global collaboration and innovation.

This year’s conference was co-chaired by Research Director Santiago Gallino, who succeeds Professor Marshall Fisher in a COER leadership role. Professor Fisher was recognized at the event for his lasting contributions.

Attendees engaged with cutting-edge research, dynamic conversations around today’s most pressing operational challenges, and insights from thought leaders across the retail industry. COER continues to serve as a vital platform for advancing retail through data-driven strategy, academic excellence, and cross-industry collaboration.

FACULTY INSIGHTS

The Penn Wharton Budget Model's interactive tariff simulator allows users to explore a wide range of trade policy scenarios across countries, regions, and product categories. Users can build custom scenarios or examine precomputed models based on currently enacted long-term tariff policies. For example, PWBM estimates that the Combined Trump Tariffs would generate $3.2 trillion over 10 years, while reducing imports by over 32%. The tool includes detailed projections down to over 10,900 specific items.

Click HERE to explore the simulator.

Retailers are scaling back self-checkout use due to rising theft and shopper complaints. In the USA Today article, What's in store for the future of self checkouts? How retailers are pulling back, Santiago Gallino (Associate Professor of Marketing, The Wharton School) notes self-checkout is evolving, not disappearing. Experts like David Johnston (VP, Asset Protection & Retail Operations, NRF) and Neil Saunders (Managing Director & Retail Analyst, GlobalData) note a shift toward tighter controls or assisted models. Companies like Target and Dollar General, for example, are limiting or removing self-checkouts in high-theft locations, opting for a more strategic approach.

Stocks are approaching record highs amid easing inflation, geopolitical stability, and AI optimism, according to CNBC’s article 4 Things Wharton's Jeremy Siegel Sees Propelling the Stock Market Past Record Highs. The piece highlights Jeremy Siegel’s (Professor of Finance, The Wharton School) bullish outlook, citing key market drivers including the Israel-Iran ceasefire, declining oil and home prices, and growing momentum around artificial intelligence. Siegel notes that AI could help offset inflationary pressures from Trump-era tariffs, while a cooler inflation outlook is increasing the likelihood of interest rate cuts. Fed officials, including Gov. Christopher Waller and Chicago Fed President Austan Goolsbee, have hinted at possible rate cuts in the coming months, though Chair Jerome Powell remains cautious. Markets are pricing in multiple rate cuts by year-end.

INDUSTRY REPORTS

State of the Consumer 2025: When Disruption Becomes Permanent

At the start of the decade, the COVID-19 pandemic triggered lasting shifts in consumer behavior—accelerating digital adoption, increasing solo and online activities, and redefining value and convenience. In a June 2025 report by McKinsey partners Becca Coggins, Christina Adams, and Kari Alldredge, with Alyssa Hopcus, Justin Shamoun, and Laura Bucklin, the authors note that even amid economic uncertainty and inflation concerns, consumers continue to spend in unpredictable ways—splurging in some areas while cutting back in others. Gen Z is emerging as a powerful force, blending financial caution with a willingness to invest in trends and convenience. Meanwhile, trust in institutions has declined, and consumers are favoring local brands and personalized experiences. To stay competitive, the report stresses that companies must invest in consumer insights, optimize pricing strategies, tailor offerings for growth, and upgrade tech capabilities to meet rising expectations and evolving behaviors.

AI at Work: Momentum Builds, but Gaps Remain

In a June 2025 report, BCG’s Vinciane Beauchene, Sylvain Duranton, Nipun Kalra, and David Martin reveal a growing gap in generative AI adoption: over 75% of leaders use it regularly, but only 51% of frontline employees do. They emphasize that real value comes from redesigning workflows, not just adding AI tools. About half of companies, especially in tech and finance, are reshaping work, leading to better decisions and time savings. Key to closing the frontline gap are strong leadership support, proper tools, and at least five hours of training. Companies investing here see higher AI use and employee confidence, though job security concerns remain, particularly among leaders. The report also notes AI agents are still emerging, with only 13% deeply integrated, but understanding them shifts fear to enthusiasm. Ultimately, the authors stress that success depends on reshaping collaboration between people and AI, supported by upskilling and value tracking.