Who doesn’t love a good discount? Imagine the latest Gucci loafers for half-off or the perfect winter coat from Yves Saint Laurent for 70% off.

Sadly, luxury retailers have traditionally shied away from deep discounts. Despite inflation and inventory troubles pushing the retail industry toward getting goods out the door, even if it is for a discount, luxury tends to be recession-proof.

“In fact, luxury tends to perform better than other markets during periods of economic hardship, as its primary customer base is high-income earners that can weather the economic storm,” Melanie Larsen, strategist at WGSN Insight, told Retail Brew.

So while some luxury brands have turned to price increases to make up for losses resulting from supply-chain issues, others are feeling the pressure from the looming recession and finally giving discounting a real shot, but doing so in a way that doesn’t hamper their aspirational brand image.

Brand new lens: “When you think about how these luxury brands manage discounts, you’re not going to see them discount in the mainstay store; you’re not going to walk by and see a 25% off sale,” Timothy Derr, partner in Kearney’s consumer practice, told Retail Brew, adding that retailers will start thinking of other innovative ways to mark down their products.

Regardless of the approach, the ultimate goal is protecting the brand’s image.

Most loyal luxury shoppers fall in the high-income bracket (duh!) and tend to shop luxury items for their “perceived value,” Swarooprani Muralidhar, senior analyst at Coresight Research, told Retail Brew.

Preserve and protect: “Deep discounts in luxury would therefore be detrimental to the consumer perception of the brand and erode the value of the brand that the company has spent years building,” Muralidhar said.

Keep reading here.—JS

As retailers, malls, and shopping centers are increasingly open to short-term leases, and small retail brands are eager to fill them, one startup called Popable is playing matchmaker.

Popable, founded in 2017, currently has ~10,000 brands on its pop-up marketplace, from food stands to bridal boutiques, which it’s connecting with the 1,500–2,000 vacancies it has nationwide through retail real-estate partners like Simon, Kimco, and Brookfield Property Partners.

“That’s a good way for them to keep the lights on in the shopping center, generate a little extra revenue, and provides an opportunity for brands that are looking for ways to grow their pop-up,” Scott Blair, Popable’s co-founder and CEO, told us.

Its latest partnership is Walmart, which joined the platform last week to allow small brands to rent out short-term, front-of-store space in time for the holiday shopping season.

Meet your match: While similar platforms follow a broker model, representing either the retailer or brand in the lease, Blair told us Popable is a “peer-to-peer platform,” essentially a Match.com for brands and retailers.

Rent out of shape: While demand booms during the holidays, Blair said interest in short-term leases is growing year round. One of the main reasons? Paying rent on time and in full has been a continuing problem for small retail brands.

A survey published late last month from Alignable found that US small retail businesses’ rent delinquency rose to 43% in October, up from 31% in September, the sharpest increase of the year for the sector. More brands have been turning to short-term leases to “mitigate some of that risk,” Blair said.

Keep reading here.—EC

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Olivia Steele has spent a decade in the fashion retail industry, and she’s now using that experience to help luxury retailers train associations on driving virtual sales as co-founder and CEO of Conversation Couture.

How would you describe your job to someone who doesn’t work in retail? I always start by asking a couple of questions: “Do you ever go online shopping? Have you ever had a conversation with a chat bot?” (The response is usually delivered in a tone of exasperation.) At Conversation Couture, we help retailers improve that experience for customers through chat and other virtual communications. We all shop online, so we all understand the conveniences and challenges e-commerce brings.

One thing we can’t guess about your job from your LinkedIn profile? Everyone assumes a CEO does a little bit of everything, but I loathe financials and financial planning.

What’s your favorite project you’ve worked on? I am motivated by seeing this idea I had, the company I founded, really help brands succeed. We worked with a company that had one location in Australia when we started, and after working with us for three months, they now have locations in Singapore, New Zealand, and are getting ready to open here in the US. Helping a smaller brand scale and provide a great experience for customers is exciting, and by focusing on that experience this brand has quickly grown and expanded. These types of results are what drives our team to keep going.

Which emerging retail trend are you most excited about this year, and why? I love the fact that retail is starting to really listen to its customers. I love how Web3 is shifting the experience to more of an individual focus rather than the brand/larger corporations. Individuals are pushing the boundaries and demanding more, and I love that shift. I think it’s powerful.

What’s your go-to coffee order? Extra shot, oat milk latte.

Worst piece of advice you’ve received? “You can’t do it. Don’t do it.”

What was your favorite retail product when you were 15, and what’s your favorite retail product now? When I was 15, I’m pretty sure my favorite retail product was fur boots that I had in high school. I think I wore them every single day to school. Now, my favorite retail product is anything for my skin. I love skin care products.

Today’s top retail reads.

Wish fulfillment: After hitting $1 billion in revenue in 2020, e-commerce novelty retailer Wish’s low product quality and inconsistent shipping pushed customers away. Now, it’s working on ways to bring them back. (Adweek)

Kicking the can: How Anheuser-Busch is working to sell Budweiser in Qatar, where it’s sponsoring the FIFA World Cup, even though alcohol advertising is illegal in the country. (Bloomberg)

Bird’s-eye view: What grocers are saying about turkey availability ahead of Thanksgiving. (Progressive Grocer)

Learn: A recent survey found that during a recession, the first step people take is cutting back on spending—and recent signs show a recession is right where we’re headed. Unprepared? Join the Brew’s Business Analytics Accelerator and learn everything you need to know about crunching the numbers in hard times.

Ruff year? At Retail Brew’s The SKU, Bolt’s vice president of Customer Experience sat down with PuppySpot’s chief information officer to discuss e-commerce elevation—and what retailers need on their radar for 2023. Read all about it here.*

^{*This is sponsored advertising content.}

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