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Executive Memo | How to Cut Costs While Investing for the Future

Fashion is facing a crunch as consumers grow more cautious and the full impact of tariffs comes into view. Brands and retailers need to cut their expenses, but they can’t stop investing towards the future if they want to win in the long-term.
Exec Memo
(BoF Studio)
By
BoF PROFESSIONAL
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Fashion is facing a convergence of threats. In November 2025, US consumer sentiment fell to nearly the lowest on record, and remained well below pre-pandemic rates in the UK, Europe and China. Barring a reprieve from the US Supreme Court, tariffs will hit profit and loss statements hardest in 2026, after the inventory retailers pulled forward when the duties were announced has been exhausted, forcing them to either raise prices or sacrifice margin.

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About the author
Cathaleen Chen
Cathaleen Chen

Cathaleen Chen is Retail Editor at The Business of Fashion. She is based in New York and drives BoF’s coverage of the retail and direct-to-consumer sectors.

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