The Goods (U.S. Edition) – Rent the Wrong Way
Welcome back to The Goods! This week we spill the tea about challenges in the matcha market, what pawn shop owners are saying about consumer spending habits, and the business of clothing rentals.
Adding to her list of feats, could Taylor Swift also revive the cassette tape? Not only can you purchase Swift’s upcoming album “The Life of a Showgirl” on streaming and vinyl, it will also be available on cassette. Only 436,600 cassettes were sold in the U.S. in 2023 compared to a cool 440 million in the 1980s. However, super fans – who spend 105% more than average fans on music purchases and interact with their favorite artists in at least five different ways – may wind up sales for these retro reels.
What’s In: This Week’s Trends
- Matcha Do About Nothing: Matcha has risen as a wellness and lifestyle symbol, fueled by social media buzz and influencer culture driving the #MatchaTok trend. As more coffee shop menus feature matcha – which is made from finely-ground green tea leaves known as tencha – Japan saw a 25% surge to $245 million in green tea export value last year. However, climate challenges and a shrinking farming base have more than doubled tencha prices in the Kyoto region where a quarter of Japan’s supply is grown. With the global market projected to hit $7.86 billion by 2033, the matcha trend could keep raking in the green – unless rising costs and supply issues push trendsetters to cheaper alternatives, such as more readily-available hojicha.
- Are You Pulling My Leggings? Leggings may be losing their stretch as the go-to workout garment. Once the undisputed article of athleisure and featured in The Museum of Modern Art’s exhibition of most influential fashion pieces, leggings now account for 38.7% of athleisure bottoms in 2025, down from 46.9% in 2022, according to a retail analyst group at AI company Edited. Gen Z shoppers are trading form-fitting, matching sets for looser, dance-inspired parachute pants – now referred to as the Big Workout Pant era. The shift reflects this generation’s broader move toward comfort, mobility, and a less body-conscious silhouette.
- A New Lease on Life: As consumers seek meaningful offline experiences and landlords opt for low-maintenance tenants, the number of experiential art studios in New York City is increasing, transforming vacant retail spaces into thriving places of creativity and community. These businesses draw and target everyday hobbyists as well as major corporate clients by offering everything from immersive pottery to furniture building and blindfolded sculpting workshops. These experiential studios boast low overhead and high profitability, and are challenging and reshaping New York’s retail landscape by prioritizing experiences over consumption.
Cash or Card: Consumer Behavior
What’s going on with the consumer these days? This week we talk about pawn shops emerging as back-to-school shopping destinations and Americans debating what “Made in USA” labels actually mean.
- Get Off My Pawn! With tariff uncertainty sparking early back-to-school shopping and spending cutbacks, some Americans have turned to pawn shops to snag savings. Pawn shops sell everything from sneakers to musical instruments and mini-refrigerators for college dorms – all in one place and at a fraction of the cost of the major retailers. Pawn shop chain EZPawn saw its merchandise sales surge 4% in the last quarter, particularly in back-to-school essentials like shoes, laptops, and other electronics. Pawn shop owners have noticed more Americans pawning gold and jewelry over the past few weeks, which could be an economic red flag on the state of the consumer.
- Sticker Shock: Made in USA product labels are creating confusion among American consumers, according to a new study from Michigan State University. Products qualify for Made In USA labels if nearly all product elements are manufactured and sourced in America – this includes products made with materials from other countries undergoing final assembly in America. However, the study found that many believe a Made in USA label should indicate a product is manufactured in the U.S. with only American materials. Researchers also discovered mixed reactions to Made In USA labels – while some consumers felt it symbolized pride and patriotism, others felt it represented racism and false patriotism.
Making Moves: Industry Transformations & Innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some new brand moves that you should know about:
- Rent the Wrong Way: It was Rent the Runway who first introduced shoppers to online clothing rental, but it’s Nuuly – a rental platform launched by Urban Outfitters in 2019 – that’s turning a profit. Nuuly is on track to become a billion-dollar business through its $98 monthly subscription for six items, leveraging Urban Outfitters’ scale and supply chain expertise. Meanwhile, Rent the Runway has struggled to maintain momentum, grappling with declining revenue, mounting debt, and a stock price that’s fallen nearly 50% this year. The rental industry entails everything from trend forecasting to streamlining shipping logistics and industrial-scale dry cleaning – meaning size and infrastructure matter just as much as style.
- The Young and the Rested: Once reserved for adults seeking serenity, luxury hotel spas are now embracing a multigenerational approach, welcoming kids of all ages – from toddlers to teens – into the wellness experience. High-end resorts like Le Barthélemy in St. Barts and South Bank in Turks and Caicos offer kid-specific treatments like mini massages, baby yoga, and post-facial mango sorbet, designed to make even the youngest guests feel pampered. For tweens and teens, it’s less about indulgence and more about shared self-care, giving the notoriously hard-to-please age group a meaningful way to connect with family.
- Charmed, I’m Sure: As consumers pull back on big ticket spending, designer handbag makers are turning to bag charms as a way to keep customers engaged by offering add-ons that cost a few hundred dollars instead of a few thousand. Fashion-forward consumers can dress up their bags with a $825 Prada robot charm or a $1,010 Louis Vuitton crab charm that also serves as a small pouch – a strategy luxury brands hope will offset declining sales and boost store traffic. Enthusiasts say that the charms let them to mix and match across different bags, giving them more flexibility without committing to a new purchase.
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