"Silent Killers": How AI Is Revolutionizing Retail's Returns Crisis The retail industry is grappling with a persistent challenge that has long plagued its profitability: the staggering cost of product returns. Online returns, which have surged in recent years, are now a multibillion-dollar problem that eats directly into company margins. However, advancements in artificial intelligence are offering a promising solution, with startups leveraging virtual try-on technology to help customers visualize fit and style before purchasing. This innovation is reshaping the landscape of e-commerce, aiming to reduce returns while enhancing the shopping experience. The issue of returns has become a critical concern for retailers, particularly as online sales continue to grow. According to the U.S. National Retail Federation, 15.8% of annual retail sales were returned in 2025, totaling $849.9 billion. For online transactions, the rate jumped to 19.3%, driven largely by Gen Z shoppers, who averaged nearly eight online returns per person in 2024. These returns not only strain operational costs but also diminish profit margins, as many returned items are discarded or sold at a loss. Ed Voyce, founder and CEO of AI startup Catches, emphasized that the problem is now solvable thanks to generative AI. “The reason it’s solvable now in terms of timing is that you have to be able to run visuals for end users on bare metal in the cloud, cheaply enough to make a return on investment for brands,” he told CNBC. Catches has developed a platform that allows users to create a “digital twin” to try on clothes virtually, offering “mirror-like realism” by simulating how fabrics drape and interact with the human body.#antoine_arnault #lvmh #us_national_retail_federation #ed_voyce #catches
Arnault family increases control over LVMH Bernard Arnault, chairman of Moët Hennessy Louis Vuitton (LVMH), has seen his family consolidate its ownership of the company, enhancing their influence over the global luxury conglomerate. Recent reports indicate the Arnault family now holds 50.01 percent of LVMH’s shares, up from 49.77 percent previously. This increase underscores the family’s growing dominance within the firm, which operates as the world’s largest luxury goods group. Arnault, who is 77 years old, has not expressed intentions to retire and has stated that succession planning is not his immediate priority. His five children are currently involved in various roles within LVMH, with his eldest son, Antoine, playing a key part in the family’s expansion strategy. Earlier this month, Antoine was appointed to LVMH’s executive board, following his role as chairman and CEO of Christian Dior. This move is seen as a strategic step to ensure continuity and strengthen the family’s grip on the company’s leadership. The family’s increased stake comes alongside a broader shift in LVMH’s governance structure. Shareholders recently approved raising the maximum age limit for the chairman and CEO position to 85. This decision has been interpreted as a way to prolong Arnault’s influence over the company, as he is currently 77. Scott Kerr, host of The Luxury Item podcast, noted on social media that the change “solidifies Arnault’s control and limits external influence.” The adjustment in the age limit, combined with the family’s expanded shareholding, has raised questions about the long-term direction of LVMH. While the company has historically emphasized merit-based leadership, the recent changes suggest a stronger emphasis on familial oversight.#bernard_arnault #lvmh #antoine_arnault #christian_dior #moet_hennessy_louis_vuitton
Sergey Brin, co-founder of Google, has acquired a high-profile waterfront home in South Florida, marking another significant purchase by tech billionaires in the region. The 1-acre Allison Island property, previously owned by LVMH CEO Michael Burke and his wife, Brigitte Burke, was sold for $51 million to Brin through a Nevada-based entity, Lagoon LLC. Property records indicate the Burkes purchased the land in 2014 for $11.7 million and constructed a 9,700-square-foot mansion in 2019, featuring seven bedrooms, eight bathrooms, a pool, and a dock. The transaction, confirmed by Coldwell Banker Realty’s Jills Zeder Group, followed a series of luxury real estate deals involving other tech moguls. The deal aligns with a recent surge in ultraluxury home purchases by high-profile tech billionaires. Larry Page, another Google co-founder, recently spent $173 million on two Coconut Grove properties, while Facebook founder Mark Zuckerberg and his wife, Priscilla Chan, finalized a $170 million purchase of an under-construction waterfront estate in Indian Creek, setting a new record for Miami-Dade County. Market analysts attribute this trend to California’s proposed 5 percent wealth tax, which has prompted wealthy individuals to seek tax-friendly locations. Danny Hertzberg, a broker associated with the Jills Zeder Group, noted that the influx of buyers has created unprecedented demand, with multiple offers being submitted for properties in the region. South Florida’s appeal to tech billionaires has grown steadily over the past several years. Oracle’s Larry Ellison acquired a 16-acre oceanfront compound in 2022 for $173 million, which he recently designated as his primary residence. Amazon founder Jeff Bezos also invested heavily in Indian Creek, purchasing three estates for $234 million between 2023 and 2024.#google #south_florida #lvmh #sergey_brin #coldwell_banker_realty
