Baker Retail Rundown

The Rise of Agentic Commerce Could Shift Retailers’ Focus to Products

As agentic commerce enables consumers to discover and buy products through AI assistants and recommendations, retailers are increasingly leaning on exclusive merchandise to stand out— with brands like Ulta, Sephora, and Revolve at the forefront. When AI dictates which products surface, loyalty is increasingly up for grabs, as shoppers are more likely to prioritize price and availability over retailer allegiance. Ulta Beauty CEO Kecia Steelman said at NRF that exclusive brand partnerships and “Only at Ulta” launches are becoming central to the retailer’s AI-era strategy, since unique products give both shoppers and AI agents a reason to choose Ulta over competitors. Ulta has doubled down on exclusives like Beyoncé’s Cécred and Shakira’s Isima, while Sephora has long been practicing this strategy (Its website has an “Only at Sephora” tag, including partnerships with Rhode, Saie, Tower 28, Tatcha, Haus Labs, and One/Size). Selena Gomez’s Rare Beauty, too, was a Sephora exclusive, though it’s set to launch at Ulta next month. And in fashion, retailers like Revolve have been curating exclusive offerings. It seems that brands can no longer rely on marketing spend alone — making exclusive partnerships critical to remaining visible in the world of AI. 

Gifts to Friends, Co-Workers, and Pets Help Drive Valentine’s Day Spending: NRF Survey

Valentine’s Day spending is set to hit a record $29.1 billion this year, up from $27.5 billion in 2025. This is driven largely by middle- and high-income shoppers expanding their gift lists beyond romantic partners to include friends, co-workers, teachers and even pets, according to NRF and Prosper Insights & Analytics. Consumers plan to spend an average of $199.78 per person, also a record, with $2.4 billion estimated for friends, $2.2 billion for children’s teachers and classmates, $1.7 billion for co-workers and $2.1 billion for pets, while partners still account for the largest share at $14.5 billion. Anticipating strong demand, brands are ramping up inventory and marketing: Victoria’s Secret, for example, is stocking more products and dialing back on promotions after selling out early last year. As gifting circles expand, Valentine’s Day is transforming beyond romance into a retail-driven celebration of every special someone.

What the Saks Bankruptcy Means for Its Shoppers and Stores

Saks Global's Chapter 11 bankruptcy filing has sparked questions about the luxury retailer's future as it operates 148 stores across Saks Fifth Avenue, Neiman Marcus, Bergdorf Goodman and Saks OFF 5th. The company says all stores remain open and has requested court approval to honor $320 million in outstanding gift cards and continue loyalty programs, though it's evaluating locations and may use bankruptcy tools to exit underperforming stores or sell real estate — meaning mid-size cities could lose their Saks or Neiman Marcus while major metros likely retain theirs. The bankruptcy stems from Saks' troubled $2.7 billion acquisition of Neiman Marcus in late 2024, which required raising $2.2 billion in bonds but failed to generate expected synergies quickly enough. A liquidity crunch forced the company to delay vendor payments, prompting brands to pull back shipments, which further depleted inventory and drove shoppers to rivals like Bloomingdale's. Former Neiman Marcus CEO Geoffroy van Raemdonck will lead the restructuring with access to a $1.75 billion bankruptcy loan, aiming to exit Chapter 11 later this year. Vendors like Chanel are owed over $100 million in unsecured debt and typically recover only pennies on the dollar in bankruptcy, though some creditors hope improved post-bankruptcy profitability could increase payouts. Bergdorf Goodman is expected to attract significant buyer interest as "the luxe of luxe."

How Watchmakers Are Dealing With Soaring Gold Prices 

Soaring gold prices — now topping $4,600 per ounce — are squeezing Swiss watchmakers already grappling with tariffs and soft demand as consumers increasingly hold back on major luxury purchases. Brands are left with two options: raise prices and pass on costs, or absorb the impact through thinner margins. Breitling is choosing the latter, according to CEO Georges Kern. “You just have to deal with it — it’s like with the tariffs: you cannot transfer the price onto the consumer,” he said, echoing Richemont chairman Johann Rupert’s long-standing caution against excessive price hikes. Still, heavyweights including Rolex, Patek Philippe and Omega have pushed through increases, while independents like H. Moser & Cie. are delaying gold purchases and drawing on inventory bought more than two years ago. Some retailers remain unfazed: “If people really want a gold watch, they know this is the price,” said Brian Duffy, CEO of Watches of Switzerland, adding that “the threat from tariffs was greater — gold is easier to explain because people see it as further evidence of value appreciation.” But Kern warns that only a handful of brands have the pricing power to sustain higher prices, noting that “you need brand image to support that price.” As a result, techniques like “l’or allégé,” or lightened gold, and alternative materials inspired by Richard Mille’s ultra-light watches in titanium, ceramic and carbon-gold blends are gaining attention — though for most brands, such a move may risk clashing with traditional luxury values.