Welcome back to this week’s essential AI reads for retailers and happy Tuesday! Thanks for your continued readership 🙂 

Inside This Week’s Issue

• NYFW is going to be a little less glam this season

• Are you sick of hearing about AI?

• Free BFCM Workshop with Hawke Media

Why SS25 NYFW Might Fall Short of Expectations

As we approach the Spring/Summer 2025 New York Fashion Week (NYFW), the mood in the fashion industry is cautious, if not outright conservative. Recent trends and economic signals suggest this season’s showcase might lack the usual buzz and extravagance. Here’s why we think NYFW SS25 might leave fashion enthusiasts wanting more.

Let’s start with consumer spending trends that are making waves. The National Retail Federation (NRF) recently released projections for US Mother’s Day spending, estimating a total of $33.5 billion for May 12. At first glance, this seems impressive, ranking as the second-highest spending level on record. However, a closer examination reveals that this number is actually a step down from 2023’s $35.7 billion. When adjusted for inflation, it becomes clear that consumers are tightening their belts. Participation in Mother’s Day spending remains high, but the average amount spent per person is set to decline from $274.02 in 2023 to $254 in 2024.

These spending patterns reflect a broader economic slowdown. The latest GDP figures paint a picture of an economy that’s losing momentum. The US GDP grew by only 1.6% in Q1 2024, a sharp decline from the 3.4% growth seen in Q4 2023. While there were gains in consumer spending and housing investments, they were offset by a significant drop in inventory investment. This suggests a cautious approach from businesses, signaling uncertainty about future consumer demand.

All of this is playing out against a backdrop of tightened purse strings in the fashion industry. Anecdotal reports suggest that budgets for Fashion Week have been slashed by as much as 80%. Brands are hesitant to make big bets ahead of the upcoming election, anticipating potential consumer turbulence. Instead, the savviest players are holding back, awaiting a clearer picture of the consumer landscape post-election.

So, what does this mean for NYFW SS25? Expect a more restrained showcase. It’s not just about reading the room—it’s about understanding the complex interplay of economic forces and consumer sentiment. As brands navigate this period of uncertainty, we will likely see a more cautious, calculated approach to Fashion Week, reflecting a broader trend of prudent spending and strategic positioning.

Sources: FeedMe, Chainstorage, Bea.gov

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This Week’s Retail AI News

• If you are sick of hearing about AI, it means you haven’t figured out how to use it to your advantage yet. 

• Ikea exec says AI is ‘enhancing, not replacing’ creativity in its retail operations.

• Do you like fragrances? But can you never choose which one to buy? Well, Bath & Body Works figured out a way to get AI to do that work for you.

• Fossil increased their site visit revenue by 14% !!!!! 

Just for fun:

Nike hasn’t been doing great. Listen to a deeper dive on why.

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