NEVER ASK FOR PERMISSION

I was out on a walk and I spotted this bit of graffiti below painted on the wall of a building

It got me thinking about how many times in my life I’ve waited for permission before doing the thing that I knew needed to be done

Things like business proposals

Product and marketing sign-offs

Markdowns and price changes

Hiring, firing

Expenditures large and small

Planning vacations

In the spirit of “alignment” and “teamwork” our corporate structures are quite hierchical

And very rigid

No one likes surprises

But they do like positive results

When I reflect on the times when I’ve made the most advancement in my work, career, and wealth

I just did it

I didn’t ask, I did the thing and then told whoever needed to know what the results were

When we ask for permission, two things happen

1️⃣. We subvert ourselves. We give someone else power over us

2️⃣. We reinforce the perception in others that we need permission

I think we’re taught at a young age that we should trust authority and listen to what teachers and adults tell us

We’re taught that bosses are always right

I know that both of these things are incorrect

Adults, teachers, and bosses are all people and people are fallible

The truth is this

Whatever it is you are contemplating, trust your instincts

I don’t need permission

You don’t need permission

Just do the thing

RETAIL LANDSCAPE

It’s mid-May. The holiday season is six months away

There are a combination of green shoots and warning signs in the consumer space

➕ On the plus side, retail pricing has stabilized, especially in apparel, which is good for consumers

Retailers like Costco, Walmart, TJX, Abercrombie, Inditex, and Fast Retailing have maintained momentum with positive comps, consistent traffic, and conversion

U.S. job growth remains above equilibrium levels and unemployment is still at a decades-low

Household non-mortgage debt year over year is up at the same rate as inflation

All of these indicators point towards relative health in the economy

➖ On the negative side, consumer sentiment is at its lowest point in 3 years. This measures how people feel about their finances and the general economy. This is often a leading indicator

Retailers like Target, VF, Nike, and American Eagle are having a tough time, however these are all self-inflicted damage

The tariff situation has been volatile, to put it mildly. What is certain is that supply costs have already increased for every major brand to the tune of 20% to 30%. This drives pricing pressure and margin pressure, meaning inflation could tick up again. I think we’re all a bit tired of inflation, ya know?

And the U.S. dollar is down 8% this year, on average to global currencies. This increases the cost of everything we import, even before tariffs.

What’s all of this add up to?

It’s probably not the year to swing for the fences

It is an important time to take smart business risks

Tightening up assortments and distorting investments are good profitability strategies

Getting conservative on expenses while ensuring you’re well-positioned with best-selling products for the holiday season is a smart risk

Marketing is as important as ever. Don’t scrimp on marketing- it’s usually the first thing businesses cut

How are you thinking about your retail strategies this year?

CHAD’S ROUND-UP

📚 What I read: Levi Strauss by Lynn Downey- On today’s date in 1873, a patent was granted for riveted-fastened apparel, leading to all of us wearing denim on the regular. The Levi’s story is well-known, but what’s less well-known is that Levi Strauss was one of the greatest merchants of the 19th century, well before co-inventing jeans. In this biography, former Levi’s historian Downey goes deep on the denim king’s origin story. It’s a true American success story.

🎞️ What I watched: CNBC’s How Malls Are Evolving- Surprisingly, US mall traffic has returned to 2019 levels. Gen Z’s desire for IRL discovery paired with the evolution of malls towards food and entertainment are covered in-depth in this mini-documentary. The key to success seems to be recreating malls into what cities give us- housing, shops, services, and food all in one place.

🕵🏻‍♂️ An interesting discovery: Open AI Operator- AI is cool but it can’t order my dinner or schedule a dentist appointment. Scratch that- this update to Chat GPT Pro can perform tasks that, honestly, I hated doing myself. With the Operator prompt, your new digital bff explores the web and will do things for you, so long as you’ve connected all of your apps. Appointments? Food delivery? Call my mother? This AI update is the timesaver that I’ve been waiting for.

That’s all for today

I’m rooting for you!

Chad