In the face of relentless inflation, sky-high interest rates, and ever-gloomy consumer sentiment, a clear picture of what’s working in retail — and what isn’t — emerged in 2023.
The winners? Active and outdoor brands such as Alo Yoga and Salomon-owner Amer Sports, benefitting from millions who adopted a more health-conscious lifestyle after the pandemic; e-commerce players agile enough to pivot to wholesale and retail as shoppers returned to stores; and the savvy retailers who have successfully conveyed a sense of value to the cash-strapped consumer. All the while, luxury has stalled immensely as the so-called aspirational shoppers ran out of disposable savings. Well-capitalised direct-to-consumer companies reckoned with a broken business model that favoured growth over profit — the consequences of which have finally caught up.
Unfortunately, dismal market conditions are here…
