Edition #37: What EXACTLY Is “Enshittification” — Plus The Top Retail Stories This Week

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This week in retail was defined by consolidation and correction.

From store closures and workforce reductions to private labels gaining ground and capital reallocating toward scale and control, brands are tightening operations while preparing for a more disciplined growth cycle.

🌍 World Retail Headlines

Allbirds to Close Brick-and-Mortar Stores, Shifts to Online Focus
Allbirds will shut most physical stores as it pivots to a digital-first model, citing high operating costs and the need to simplify distribution. The move underscores how DTC brands are reassessing physical retail economics post-expansion.
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Amazon to Shut Go and Fresh Stores, Eyes ‘Supercenter’ Concept
Amazon is exiting its Go and Fresh formats, signalling a retreat from experimental grocery retail toward fewer, larger-format concepts. The shift suggests scale and operational leverage now matter more than tech novelty.
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China’s Anta Buys $1.8B Stake in Puma, Rules Out Full Takeover
China’s Anta Sports is acquiring a 29% stake in Puma from the Pinault family, positioning itself as a strategic shareholder rather than a consolidator. The deal highlights Asia’s growing influence in global sportswear ownership.
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Sydney Sweeney Launches Lingerie Brand ‘Syrn’
Actor Sydney Sweeney has entered the intimates market with Syrn, joining a wave of celebrity-backed apparel launches. The challenge ahead will be differentiation and sustained demand beyond initial fan-led traction.
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LVMH Raises Stake in Loro Piana to 94%
LVMH increased its holding in Loro Piana at a cost of €1 billion, reinforcing its strategy of deepening control over high-margin, heritage luxury assets. The move reflects confidence in ultra-premium positioning despite broader luxury softness.
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Apple Forecasts Strong Sales as iPhone Demand Rebounds in Asia
Apple reported stronger-than-expected growth, driven by renewed iPhone demand across Asian markets. Regional momentum is offsetting softer trends elsewhere, highlighting Asia’s importance to global consumer tech growth.
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Prada Cuts Ties With 200+ Suppliers After Labour Abuse Audit
Prada has severed relationships with over 200 suppliers following a labour compliance review. The action reflects rising scrutiny on luxury supply chains as ESG expectations harden globally.
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Private Label Sales Hit Another Record in 2025
Private label brands continued their upward trajectory, capturing higher share as consumers prioritised value and retailers expanded in-house assortments. The shift is increasingly structural rather than cyclical.
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Home Depot Lays Off 800, Mandates Five-Day Office Return
Home Depot announced layoffs alongside a full return-to-office mandate, reflecting a broader reset of pandemic-era workforce policies. Retailers are increasingly prioritising efficiency and managerial oversight.
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Nike to Lay Off 775 as It Consolidates US Distribution Centres
Nike is reducing headcount as it streamlines logistics and distribution operations. The move signals a sharper focus on cost control and network efficiency amid slowing demand.
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Saudi Arabia Plans New Fashion District in Riyadh
Saudi Arabia’s Fashion Commission has announced plans for a new fashion district as part of Vision 2030. The initiative aims to position the country as a regional hub for fashion, retail, and creative industries.
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Amazon, Chanel Appointed to Represent Saks Creditors in Bankruptcy
Amazon and Chanel have been named to represent creditor interests in Saks Global’s bankruptcy proceedings. The development highlights the complex entanglement of platforms, brands, and wholesale partners in modern retail finance.
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Amazon Confirms 16,000 Job Cuts After Internal Email Leak
Amazon confirmed significant workforce reductions following an accidental internal email. The scale of cuts underscores continued pressure on big tech to recalibrate post-pandemic hiring.
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US Companies Continue Job Cuts to Reverse Pandemic Hiring Boom
U.S. employers are still trimming headcount as they unwind aggressive pandemic-era expansion. The labour reset is becoming a multi-year correction rather than a short-term adjustment.
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Tesla Plans $20B Capex Push Beyond Human-Driven Cars
Tesla announced a major capital spending plan focused on automation, AI, and next-generation mobility. The investment reflects a long-term bet on autonomous and non-traditional vehicle platforms.
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📰 India Retail News

FMCG Majors Turn to Bulk Buying to Manage Commodity Volatility
Large FMCG players are increasing bulk procurement during harvest season to reduce input cost volatility. Procurement strategy is emerging as a key margin lever amid inflationary pressures.
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Gold and Silver Hit New Highs as Dollar Weakens
Precious metals surged as the dollar softened, reinforcing gold’s appeal as a hedge amid currency and macro uncertainty. Jewellery and investment demand are expected to remain firm.
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India’s Gig Economy Expands, But Income Volatility Persists
Despite rapid growth, nearly 40% of gig workers earn below ₹15,000 per month. The data raises questions around sustainability of consumption-led growth in platform-driven employment models.
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Big FMCG Flags Shifts as New-Age Channels Gain Share
Traditional FMCG companies are recalibrating market measurement as quick commerce and digital-first channels disrupt legacy data systems. Channel fragmentation is reshaping go-to-market strategy.
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Rupee Falls to Record Low of 92 Against the Dollar
The rupee hit a historic low, raising concerns around import costs and inflation. Retailers with global sourcing exposure may face renewed margin pressure.
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HUL Brings Back the CMO Role Amid Competitive Pressure
HUL has reinstated a dedicated CMO position as competition intensifies across categories. The move signals renewed focus on brand-building in a fragmented, value-conscious market.
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💻 Retail Tech Headlines

PVH Partners With OpenAI
PVH has entered an AI partnership with OpenAI to drive efficiencies across design, merchandising, and operations. Fashion majors are increasingly treating AI as core infrastructure rather than experimentation.
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Meta to Test Paid Subscriptions Across Instagram, Facebook, and WhatsApp
Meta is exploring premium subscription tiers as it diversifies revenue beyond advertising. The move could reshape how creators and brands engage on social platforms.
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Big Tech in Talks to Invest Up to $60B in OpenAI
Nvidia, Microsoft, and Amazon are reportedly in discussions to fund OpenAI at unprecedented scale. Capital intensity around AI is accelerating rapidly across the tech ecosystem.
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Alibaba to Merge With Zelos on $2B Robovan Business
Alibaba is moving deeper into autonomous logistics through a planned merger with Zelos. Automation is becoming central to future-proofing large-scale commerce operations.
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🔥 Top Funding, IPO & Earnings

• Cava Athleisure raises ₹40 crore in Series A

• Starbucks stock jumps as traffic grows for first time in two years

• LVMH shares slide after results raise doubts on luxury recovery

• VF Corp posts Q3 growth after portfolio reset

• Turtlemint files updated DRHP for ₹660+ crore IPO

• Arvind Fashions Q3 revenue up 14.5%, EBITDA rises 18%

• Raymond Lifestyle posts 5% rise in Q3 income

• Bikaji Foods reports strong Q3 growth

• Marico Q3 profit up 13.3%, revenue rises 26.6%

👔 Key Retail Appointments & Exits

• PVR INOX sells 4700BC business to Marico in ₹226.8 crore deal

• Lobby PR joins CultureComm Group amid London consolidation wave

• Dabur may appoint Hershey’s executive Herjit Bhalla as India chief

🤖 Deep Dive: What EXACTLY Is “Enshittification”?

What’s Happening

“Enshittification” describes the systematic degradation of products and services once companies achieve market dominance. Coined by technology critic Cory Doctorow in 2022, the term has since entered mainstream economic and cultural discourse, recognised by major linguistic institutions as a defining concept of the decade.

Originally used to explain digital platforms, the pattern is now visible across physical retail, luxury, hospitality, and consumer goods.

Key Highlights

• The Three-Stage Lifecycle of Enshittification

  1. Good to Users: Platforms subsidise convenience and quality to attract scale (early Facebook, early Amazon).

  2. Good to Business Customers: Once users are locked in, platforms shift value to advertisers, brands, and sellers.

  3. Pure Extraction: Value is withdrawn from both users and partners to maximise shareholder returns—feeds flood with ads, AI content, and pay-to-play results.

• Luxury and Hospitality Are Not Immune
  Five-star hotel rates have risen 70–100% since 2019, while service quality, staffing autonomy, and material finishes have visibly declined. Guests report rigid protocols, reduced human warmth, and cost-cutting disguised as “efficiency.”

• Four Guardrails Have Eroded Simultaneously

  • Competition: Consolidation has weakened consumer choice across sectors—from eyewear to shipping to fashion.

  • Regulation: Regulatory capture and jurisdictional loopholes have diluted enforcement, particularly in tech and data privacy.

  • User Self-Help: IP law and platform restrictions limit repair, modification, and ad-blocking—locking users into degraded systems.

  • Labour Power: Mass layoffs and surplus talent have reduced internal resistance to quality erosion.

• Predatory Tactics Accelerate the Cycle
  Dominant players use below-cost pricing to eliminate challengers, then raise prices or reduce quality once competition disappears.

What It Means for Retail & Consumer Brands

Enshittification creates short-term margin gains—but long-term fragility. Consumers are increasingly sensitive to shrinkflation, material downgrades, and service dilution, even if they can’t immediately exit a platform or brand.

Where this shows up most clearly:

• Digital Platforms: Search and feeds lose credibility as ads and low-quality AI content dominate.

• Luxury & Hospitality: Premium pricing without premium experience breaks trust faster than mass-market trade-down.

• Retail Apparel: Quiet material downgrades (cotton to polyester, lighter weights, weaker construction) are now noticed.

• E-commerce: Pay-to-play discovery undermines buyer confidence and conversion quality.

For brands, the opportunity lies in resisting over-extraction. In a market saturated with degraded experiences, clarity, craftsmanship, and human service become competitive advantages—not costs.

The BIG Takeaway

Enshittification is not accidental—it is a strategic choice enabled by weakened competition, regulation, and labour power. Brands that push extraction too far risk crossing a point where consumer lock-in collapses and trust cannot be rebuilt.

Sources:

Bloomberg Pursuits | The New Yorker | Reddit – Cory Doctorow Lecture (r/Futurology)

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