Despite the headwinds facing retailers (inflation, recession, supply-chain crisis—you’ve heard it all before), luxury brands have remained somewhat resilient.

• LVMH, for instance, notched 21% in organic revenue growth reaching $37.8 billion in the first half of 2022 compared to the year before.
• Likewise, Capri Holdings, parent company of Michael Kors and Jimmy Choo, reported overall revenue growth of 15% to $1.36 billion during that period, per CNBC.

Still, as we head into the new year, experts Retail Brew spoke to say even luxury brands need to prepare for an uncertain global environment fueled by dampening consumer sentiment and rising product prices that may alienate “young earners,” Swarooprani Muralidhar, senior analyst at Coresight Research, told us via email.

It’s why it’s more important than ever for brands to stay on top of trends and happenings that will impact the luxury industry in 2023.

Party in the USA: While markets like China remain bound by recurring zero-Covid policies, the US, armed with its growing population of affluent consumers and brand awareness, is likely to drive global luxury sales into the future, Muralidhar said.

All that glitters: While both footwear and clothing will likely bounce back as travel and social engagements pick up, jewelry and watches will be the real winners.

Resale is king: 2022 was undoubtedly the year of resale, as several high-end as well as affordable brands ventured into the territory either by partnering up or launching their own secondhand platforms.

High-tech: And while brands strategize for success in the new year, relying on technology may be more important than ever.

Nothing like a good experience: But regardless of how closely businesses abide by these rules, some things will not change, like providing a good customer experience and understanding your consumer.

Read the whole story here.—JS

If you read about fashion brand Reformation in the headlines last year, it was probably because J. Lo sported not one, but two of their dresses while honeymooning with Ben Affleck in Paris.

Kathleen Talbot, the company’s chief sustainability officer and VP of operations, would probably prefer Reformation’s year was defined by its climate efforts rather than by a Page Six story (Reformation reports being carbon-neutral since 2015, has pledged to become “Climate Positive” by 2025, and releases quarterly reports outlining its progress toward that goal.)

We couldn’t land an interview with J. Lo about her outfit choices, but we sat down with Talbot in November to chat about the brand’s climate vision, and what’s coming down the pipeline for fashion in 2023.

Milestones and momentum

Low-footprint fibers play an important role in Reformation’s plans for sustainability, Talbot explained. The company has committed to using 100% recycled, regenerative, or renewable fabrics, and to using only dyers and suppliers with a clean chemical certification by 2025. And its targets have been approved by third-party reviewer Science Based Targets Initiative, a partnership between nonprofit CDP, the UN Global Compact, the World Resources Institute, and the World Wide Fund for Nature.

Talbot said 2022 saw some major movement on Reformation’s goals:

• The company has pledged to eventually phase out virgin cashmere and, in 2022, introduced a 90% recycled version.
• In Q3 2022, 73% of Reformation’s fabrics were from recycled, regenerative, or renewable materials. That’s up from 71% in Q2, according to the brand’s reports.

On the horizon: Talbot said she and her team have a few big items on their plates for 2023, including addressing their transportation emissions, which Talbot said is an area they haven’t focused as much on, and which currently accounts for about 20% of the company’s total emissions.

Keep reading here.—MA

Today’s top retail reads.

Livin’ that Cali lifestyle: Retail rents in Los Angeles are slowly creeping back to pre-Covid levels as more storefronts return to popular luxury shopping corridors. (WWD)

We have food at home: From increased personalization to e-commerce returning to growth mode, here are some broader trends to expect from the grocery industry in 2023. (Grocery Dive)

Kick it up a notch: The once-flourishing sneaker market is starting to cool off, particularly for titans like Nike and Adidas, but that opens new opportunities for niche brands to offer an alternative to basketball sneakers. (Business of Fashion)

The numbers you need to know.

In the year 2023, there’s an increasing number of people who prioritize sustainability in their purchasing decisions. But new data suggests sustainability matters only to a point.

Amid record-breaking inflation, 31% of consumers say the high cost of sustainable products are the largest barrier to making sustainable behavior changes, according to a survey of 1,200 consumers from Sphera, a provider of ESG software.

• Plus, only 20% of consumers would definitely pay a premium for sustainable products and only 30% now avoid unsustainable brands.

These findings, per Sphera, demonstrate that sustainability is not consistently incorporated into consumer buying habits, even though 44% said they would “probably” pay a premium for green products.

“This report confirms the perceived unaffordability of green products, and the often inaccessible or unreliable nature of sustainability data, is breeding sustainability skepticism and apathy among consumers,” Paul Marushka, Sphera’s CEO and president, said in a statement.

Just under a quarter (23%) said they are “highly committed to sustainable behavior change”—a figure that drops to 18% among 18- to 24-year-olds. It’s that cohort that is also more likely to say they can make a difference through sustainable behavior changes if “business plays its part, too,” the report says.

Catch up on the Retail Brew stories you may have missed.

• The trends brands will pursue in Web3 and the metaverse this year
• Retail predictions roundup for 2023
• Instacart, Klarna lead thin IPO market heading into the New Year