Fashion, luxury and lifestyle news aggregator - November 2025

Posted: 03/12/2025

Fashion and luxury brands hit record valuations

Skims, the shapewear brand co-founded by Kim Kardashian, has achieved an eye watering $5 billion valuation after raising $225 million in new venture capital funding. Like many celebrity-driven brands, Skims has captured the attention of younger consumers and benefited from Kardashian's large social media following. The brand intends to use this funding to expand its retail presence and international growth, with a 12,000 square foot flagship store set to open on Regent Street, London in summer 2026.

Meanwhile, Vinted, Europe’s leading marketplace for pre-owned fashion, is eyeing up an impressive €8 billion valuation through a secondary share sale anticipated in early 2026. The Lithuania-based company is planning to expand its market by testing transatlantic trading between London and New York to enter the US market.

In the luxury sector, Chanel has surpassed Louis Vuitton to claim the title of France’s most valuable luxury brand, with an estimated valuation of $38 billion. This remarkable rise is attributed to three key initiatives: the celebration of the 100th anniversary of its Chanel No.5 fragrance, the opening of a flagship jewellery boutique in New York, and the appointment of new creative director, Matthieu Blazy (formerly at Bottega Veneta).

From New York to London: Kith’s global expansion hits Soho

Kith, the New York-born streetwear and lifestyle retailer founded by Ronnie Fieg in 2011, has officially made its mark in London on 28 November. Known for its high-profile collaborations, with brands such as Nike, Adidas and New Balance, Kith has made a name for itself in streetwear. This news sees the brand pushing forward its international expansion strategy, following a recent opening in Japan.

The flagship store on Regent Street develops the brand's scope by integrating Ronnie Fieg's full lifestyle vision, incorporating his first independent restaurant 'Ronnie's', alongside the retail offerings, which includes menswear, womenswear, children's clothing, and a selection of multi-brand footwear and accessories. The space also hosts the brand's soft-serve bar, Kith Treats. In an era of online shopping, fashion brands are looking towards unique experiences through experiential shopping, combining retail, dining and entertainment under one roof.

Kith is not the only US brand to target expansion in London in recent months. It was announced that Janie and Jack, the children's fashion house, and HATCH, the maternity fashion and beauty brand, will open a new dual-concept retail store in Chelsea in February 2026. Mo Beig, president and chief financial officer of Matri Group, which is the parent company to both brands, says that the London opening is a symbol of their evolving vision.

Retailer reactions as Budget news shakes up consumer mood

With the nervously awaited Autumn Budget presented later than usual on 26 November, UK retailers entered the peak trading season facing a mix of falling consumer confidence, weakening sales, and rising operating costs.

Following the announcement, responses from the sector have been mixed, reflecting both cautious optimism and concern. Andrew Goodacre, chief executive of the British Independent Retailers Association, expressed concern about the timing of this year's Budget, and criticised the delay for 'disrupting the most important trading period of the year for retailers'. In fact, fashion retailers were already experiencing slow sales in 2025. Consumer sentiment slid in early November, hitting its lowest point since April, according to the British Retail Consortium (BRC). Earlier in the year, non-food sales grew only around 1%, with consumers holding back on fashion purchases as other essential costs rose. It was reported that higher household bills and continued economic uncertainty led shoppers to prioritise basics.

On the positive side, some industry leaders have welcomed certain measures. For example, CBRE head of ratings Tim Attridge praised the decision to permanently reduce business rates for 750,000 retail, hospitality and leisure businesses, calling it 'welcome relief' for small businesses in these sectors. 

However, for larger businesses, the Budget brings new concerns. The planned increase in business rates for properties valued over £500,000 was seen as a 'retrograde step' that could discourage investment and hiring, undermining long-term growth.

What the Budget could mean for retail: 

• More selective spending and a focus on essentials or value: Shoppers are expected to focus on essentials and value ranges rather than full price seasonal fashion. PwC’s survey finds that many households are increasingly focused on the 'cost of everyday essentials' and 35% of respondents said they plan to 'choose cheaper items at the same stores'.
• Heavier reliance on discounts: KPMG’s Retail Think Tank report predicts 'continued promotional behaviour… to trigger spending' as retailers cope with rising costs and squeezed consumer budgets, which could see sales extend beyond Black Friday.
  
• Stronger performance for value retailers: Brands positioned in budget or value segments may fare better than premium ones under tight consumer budgets. EY’s 2025 Future Consumer Index found that 45% of UK consumers are opting for discount retailers, with value now 'twice as important as brand' in purchasing decisions.

The Budget has left retailers navigating a fragile landscape, where cautious consumer sentiment and rising costs collide with the crucial Christmas trading period. While rate relief offers some reassurance for smaller businesses, the broader sector faces rising pressure from tax hikes, wage increases, and inflation. As households tighten their spending, the coming months will be a challenge for some luxury retailers as consumers look towards promotions, discounts and a focus on value.

Closing 2025, opening 2026: key trends

A slow start to the golden quarter
Traditionally, the period between Black Friday and Christmas - the 'golden quarter' - is the most lucrative time of year for fashion retailers. However, 2025 is proving to be different. According to the ONS, retail sales volumes fell by 1.1% in October, with clothing, footwear, and textile stores posting a 3.3% month-on-month decline. BDO reports that the golden quarter started slowly, with fashion outperforming some categories but still facing headwinds as consumers delayed discretionary purchases ahead of the Budget announcement and Black Friday promotions. Prolonged discounting is expected as retailers seek to stimulate demand and clear inventory.

Black Friday strategies
Retailers are leaning heavily on Black Friday to offset sluggish October sales. Extended promotional periods, rather than single-day discounts, are being deployed to capture cautious shoppers over several weeks. AI-driven tools are being deployed to personalise offers and secure transactions during peak traffic, reflecting the broader trend of technology integration in retail operations.

Consumer confidence and the Autumn Budget
Despite these efforts, uncertainty surrounding the Autumn Budget continues to weigh on consumer sentiment. Rising prices and economic caution are prompting households to prioritise essentials over discretionary fashion purchases. Whilst some supermarkets such as Sainsbury’s and Marks & Spencer remain optimistic about Christmas trading, the overall outlook for fashion remains muted. The industry is bracing for a challenging end to 2025.

2026 outlook
Despite a somewhat stagnant end to 2025, some forecasts predict a rebound for the luxury market in 2026 with growth expected in all major regions and industry EBITDA projected to rise around 5%. This is, in part, due to improvements at some of the largest luxury groups as well as increased growth in China.

The Business of Fashion's recent report highlights major consumer and industry shifts; in particular, the increasing use of tech including AI-powered shopping experiences and technologically integrated accessories such as smart frames. The convergence of fashion and technology is becoming increasingly evident. Swarovski has recently partnered with Loop to launch a limited-edition set of crystal-studded earplugs, commemorating Swarovski’s 130th anniversary, reflecting how luxury brands are embedding tech-driven lifestyle products into their offerings.

Overall, while there are some positive signs for the luxury market, challenges remain for both brands and investors navigating the current slowdown, as economic headwinds and cautious consumer sentiment mean brands must balance innovation with resilience in the new year.

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