Finance
CEOs see younger consumers driving growth amid tariffs, AI changes
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 4, 2025
2 min readLast updated: January 20, 2026
Younger consumers are driving growth in retail despite tariffs, with AI enhancing efficiencies. CEOs discuss strategies at Reuters NEXT conference.
By Susan Heavey and Jessica DiNapoli
NEW YORK, Dec 4 (Reuters) - Younger shoppers are helping to drive growth in some consumer products like Honest Co diapers and Kate Spade handbags despite higher prices from tariffs and other economic pressures, while artificial intelligence boosts efficiencies and margins, several CEOs said on Thursday.
Speaking at the Reuters NEXT conference in New York, Warby Parker Co-CEO Neil Blumenthal said he expected the eyewear company to end 2025 more profitable than expected, while Tapestry CEO Joanne Crevoiserat said the Coach handbag maker was seeing growth across all income segments and in China's middle class.
“Young consumers may be putting off life moments like getting married or buying a home, which they see as unachievable, but they are still participating,” Crevoiserat said, adding that one of the company’s Kate Spade bags is gaining traction with younger consumers.
The Honest Company CEO Carla Vernón said in light of the Trump administration's tariff policies, it has a "tariff tacklers" team in place aimed at delivering growth without an extreme pricing strategy to help mitigate cost issues.
Shoppers buying Honest’s premium-priced diapers, wipes and hair products have been swapping out to smaller sizes but not buying fewer units, Vernon said.
“It's been a little bit of a moderated growth rate,” Vernon said.
Consumer products companies have seen demand weaken as shoppers, particularly in the U.S., fear a downward turn in the economy.
Blumenthal said Warby Parker has been aggressively hiring for its U.S. stores, particularly eye doctors. The company’s investment in artificial intelligence is allowing the doctors to spend more time with patients, rather than on administrative tasks, he said.
Coach is also preparing to hire employees native in artificial intelligence – what is known as Generation Alpha – as they enter the workforce, Crevoiserat said.
View the live broadcast of the World Stage here and read full coverage here.
(Reporting by Vannessa O'Conell, Jessica DiNapoli, Susan Heavey and Savyata Mishra, Editing by Franklin Paul, Rod Nickel)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines that are programmed to think and learn like humans, enabling them to perform tasks such as problem-solving and decision-making.
Economic growth is the increase in the production of goods and services in an economy over a period of time, often measured by the rise in gross domestic product (GDP).
A consumer product is any tangible good that is sold to consumers for personal use, such as clothing, electronics, and household items.
Retail trade involves the sale of goods and services to consumers for personal use, typically through various channels such as stores, online platforms, and markets.
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