'Returnuary'
Hello, 2025. Also, welcome to “Returnuary.” As retailers deal with a mountain of holiday shopping returns — expected to be up 17% over last year’s $743B — they also need to be looking ahead to make the rest of the new year profitable. That can be challenging if the category you sell, like luxury goods, is in a cyclical downturn. This week we interviewed Nevena Borissova, founder of influential luxury fashion boutique Curve, about how retailers and consumers are redefining luxury and how she’s evolved and stayed in business for 27 years.
How one luxury retailer stays ahead of the curve
Luxury isn’t dead, it’s evolving. That’s according to Curve boutique founder Nevena Borissova, who has kept her directional Los Angeles store in business for 27 years, while also creating retail strategies for international destination properties and consulting for fashion megabrands. We asked her how she’s adapted to the fashion industry's many changes and which luxury and fashion trends to look for in 2025. - Marcy Medina
What do you predict for luxury in 2025?
I truly believe people are starting to redefine and question luxury. High price no longer means it’s luxury. Shoppers are very smart and educated now. Fine jewelry grows in value for example, while clothing and fashion in general are the opposite. No definitive drivers in trend have slowed down shopping in general. Good quality, craftsmanship, limited stock/access and upcycling/vintage are still big selling points.
With some luxury brands experiencing a slowdown right now, how do you market and sell your version of luxury to your customers?
I went back to my roots as an incubator for young designers that you can’t find anywhere else. It’s about redefining luxury and to me that means anything that is authentic, limited edition or hard to find. I try to get a little more value in what I’m buying, and after working in retail since age 15 I trust my eye and my curation. The rest is service. We have always employed stylists and created packages for customers to try on at home. It started out for celebrities who were on set but now it could be for someone who lives a block away.
Which technology can you not live without?
Instagram has been good because we can comment and have a community. But even those who don’t like or comment, when they come into the store they mention seeing something on Instagram, so people are living digitally these days. Operations wise, there used to be much better systems. Shopify could be light years ahead. It should be telling me more than it’s telling me now. In the U.S., AI in fashion seems to be used more for commercial purposes, but in Europe, it’s super advanced creatively — it scares me a little. We also do Zoom meetings with customers so they can go through store, look at things and have someone explain things to them. And as much as technology can be helpful with some tasks, a lot of people call the store and want to talk to a real person.
What fashion trends are you forecasting in 2025?
• See-through is the new cut-out
• Skirts are trending over pants
• Romantic dresses (think Chloe)
• Monochromatic dressing
• Oxblood and chocolate
• The oversized moto leather jacket
• Silk vs polyester for all of the basics will sell better if you can get your hands on it
• Art Deco is having a moment
• For denim, pedal pushers or vintage Levi’s
• For high summer, oversized crochet and raffia (think Loewe)
And people will forever buy really good cashmere (comfy clothes) and event dresses. If you’re a retailer, you should have Himalayan cashmere and a column gown.
Physical retail: 5 actions to elevate customer experience
While a lot of experts are heralding the return to physical retail, the fact is that a lot of stores have also closed or experienced lackluster sales last year. So there’s much that can be improved when it comes to the in-store customer experience, and this story zeroes in on five actions (key principles of retail, really) with an eye towards Generation Z. Optimizing your merchandising, leveraging AI and other emerging technologies, reducing wait time in lines, making return policies less restrictive and offering a store that engages all five senses will improve customers’ experience and lead to more sales.
Why this matters: The majority of Gen Z-ers shop at brick-and-mortar stores and their spending power can’t be denied. Making these straightforward changes if you haven’t already can help your business stay relevant now and as the cohort matures and gains more wealth. (MIT Sloan School of Management)
Wirkin vs. Birkin: Mass market and luxury face off
One of the most notable retail storylines on social media has been the rise of Walmart’s Wirkin bag, so named for its resemblance to Hermès’ famed ultra-expensive Birkin bag. Are luxury houses missing out on dollars by not appealing to more people with more affordable items? Or does that dilute the very definition of luxury? It depends on who you ask, but few businesses ever say no to more sales. At the same time, social media has helped give rise to “dupe” culture, or the popularity of items that appear to duplicate more expensive ones, thereby also duping some into thinking it’s a real luxury item.
Why this matters: Not only has luxury taken a hit, but consumers shopping in this price range are also shifting toward less flashy brands and logos and/or seeking more deals. The two trends aren’t mutually exclusive, and for every true luxury customer, there are far more non-luxury customers and dollars to be made. Knock-offs can be profitable for the short term, but the market is always champing at the bit for the newest item to copy, so tread lightly if you decide to go there. (CNN)
Good news: U.S. retail sales rose 3.8%
How retailers & manufacturers navigate Trump tariffs
Price and convenience win over tech in 2025
How some SMBs optimize leased spaces
TikTok’s Valentine’s Day Planning Guide
Dick's Sporting Goods Leader's 8 Most Valuable Lessons
“The North Star I put out there was that we need to build the concept that would kill Dick’s [before its rivals did]. If somebody else opened this store across the street from the store we're in today, we're out of business, we could not compete.” - Ed Stack, Executive Chairman, Dick's Sporting Goods
Dick’s Sporting Goods executive chairman Ed Stack became a billionaire after he turned his father’s small business into an $18B retail empire. After nearly four decades of running the business, Stack has honed in on eight lessons that can help businesses of any size succeed: Keep score, literally and figuratively; study great leaders; do something you love; stay hungry; admit what you don’t know; put customers first; stay true to yourself; and don’t be afraid to fail. The sporting goods giant has seen its share of ups and downs and evolved with the times to stay profitable, and is currently pacing itself by investing in redesigning its existing stores to create the best stores versus the most stores.
Why this matters: The best lessons come from those with years of experience. These principles should always be on retailers’ minds, but associating them with personal anecdotes from a retail legend can help make them more “sticky” and remind us to stay focused. Try looking at each lesson through a new lens for 2025 and ask yourself how (and if) your business has changed from last year.
Read the full story in Forbes
Back to basics: best small business software of 2025
This may seem obvious, but many SMB retailers have their go-to software, whether it be for communications, project management, office tasks, sales and marketing, accounting or internet security. If you’re just beginning to explore software options in one or all of these categories, or if you’re considering a change, a roundup from a retail technology focused outlet is a good place to start.
Why this matters: Technology is essential for growth in 2025, full stop. Even if you’ve made it this far as a Luddite, there’s always an opportunity to expand your business with even the most basic software. It helps to start with providers that have been vetted and are proven over time to work for small business (and those that offer different pricing tiers for different size businesses). (TechRadar)
What we’re watching: Something about books, it so happens. The PBS News Hour segment about Barnes & Noble’s comeback was one of the most interesting turnaround stories of 2024.
What we’re following: Digital ads maven Savannah Sanchez just shared a helpful infographic on ad creation. Get out your notebooks ASAP.
What's happening: eTail West in Palm Springs, CA Feb. 24-27, where retailers go to hear from the biggest players in retail, brand and technology about what’s next in e-commerce.
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The SKUpe is curated and written by Marcy Medina and edited by Bianca Prieto