You're Invited: The State of Fashion Retail in NYC 💌
"There are a lot of stunning stores in NYC but because they reflect such a singular vision, they tend to attract the same kind of people with the same kind of style." - Valentina Pozo
When I visited TUMBAO last fall, I was struck by the bold curation and even bolder merchandising style. Unlike most retail stores, which make a habit of optimizing every last square footage, the space was configured like an art gallery with room to move around in aimless wonder. I saw a soft blue crinkled dress hanging from the ceiling, a red textured bucket hat lying flat on a table, and a button-down with gathered details at the chest resting nonchalantly on a hanger, all begging to be picked up and felt.
“Valentina Pozo [the founder] understands how people want to interact with clothes today,” I wrote then. “Up close and personal.” As a retail concept, TUMBAO welcomes those who think about the emotions sewn into their clothes. And it has the “je ne sais quoi” that is missing in fashion retail today.
Are we asking too much of stores? Not really, because what it comes down to is cultivating humanity. But as I also wrote in my post, there are many entrepreneurs at work to bring back the oohs and aahs of retail discovery today. Some, like Valentina, run shops; others like Karina Trofimova (founder of HAUS iNCUBATOR) directly nurture the designers and create the physical infrastructure for their labels to thrive. “Retail is becoming more local and intimate,” she told me over email. “Brands that cultivate a strong, niche community—whether through in-store gatherings, private shopping experiences, or hyper-localized collaborations—are the ones standing out.”
On Tuesday, March 18, I will have the pleasure of interviewing these smart entrepreneurs about the current state of fashion retail and their hopes for the future. We’ll discuss the decline of department stores, ask burning price questions, explore new retail models and so much more.
If you would like to join, be sure to RSVP here. Until then (or if you are unable to make it), please enjoy our Q&A below. I asked Valentina and Karina how they got their start in the industry, the retail trends they’re excited about and their current brand crushes.
As a reminder, paid subscribers get access to all panel recordings following each talk. On that note, stay tuned for the recap of my conversation with professors Elizabeth Way and Jonathan Michael Square last month.
Valentina Pozo
Tell us about your background and why you decided to go into retail.
I’m an entrepreneur from Quito, Ecuador. I moved to the United States to earn a Bachelor of Fine Arts in Chicago, and later moved to New York where I started working in retail as a sales associate and project manager. That experience taught me about customer service, wholesale, and textiles. I never planned to have a store; the space found me and I figured it out as I went.
TUMBAO opened to the public in April 2021 and little by little, I started hosting experimental pop-ups all over NYC and CDMX. In December 2022, I found a space in the Lower East Side for a holiday pop-up and it’s now TUMBAO’s permanent home.
Tumbao showed me that anything is possible. To me, the fact that it’s here and flourishing is a testament that, even in the current landscape, we can still build independent businesses that value friendship, humanity, and craftsmanship.
From your perspective, what is the current state of fashion retail in NYC right now?
I think it’s a really exciting time for fashion retail! New York went through a lull before and during the pandemic—we saw stores like Opening Ceremony and Totokaelo close—but after that, I noticed a shift. Young creatives recognized the gaps in the system and took matters into their own hands, becoming entrepreneurs almost by accident. Now, I see projects built with real intention, focusing on community, craftsmanship, and new ways of engaging with fashion.
That said, there are two things I’d love to see more of. First, better customer service. I often walk into beautifully curated stores with incredible selections but the sales associates seem indifferent or dismissive. That attitude always trickles down from the top. Founders and managers should be setting the tone for warm, welcoming customer experiences because at the end of the day, that’s what makes people fall in love with a store.
The second is more diverse curation and more concept stores. There are a lot of stunning brand stores in NYC but because they reflect such a singular vision, they tend to attract the same kind of people with the same kind of style. That can start to feel cliquey. True personal style comes from mixing unexpected pieces, and that’s what I love about concept stores like TUMBAO. We carry over 50 brands, and that brings together people with completely different aesthetics. They get exposed to pieces they might not have picked up initially but now they see how they can make them their own. And most importantly, it creates an environment where people from different style backgrounds cross paths, inspiring each other in ways that wouldn’t happen in a more homogenous retail space.
"The fact that TUMBAO is flourishing is a testament that, even in the current landscape, we can still build independent businesses that value friendship, humanity, and craftsmanship."
What retail trends are you excited about?
Community. I know it’s becoming a bit of a buzzword but I still think that’s a good thing—it means people genuinely want to share space with each other. I love seeing brands foster community through events and storytelling. That said, I think it’s important not to lose sight of the product itself. A great sense of community paired with strong craftsmanship is what makes fashion special.
T-shirts, for example, are amazing for building a sense of belonging—wearing one can feel like being part of a club. But if a brand stops there, we risk losing the artistry that makes fashion so powerful. The real magic happens when brands strike a balance between community and craft.
Shoutout 2-3 designers or brands you're obsessed with right now.
A Mexican-American brand known for its incredible fabric textures. Adri, the designer, handcrafts every piece and has this signature ruching technique that’s instantly recognizable. To me, a great designer has a clear through line in their work—a signature they keep reinventing in new and exciting ways. Fonseca does that beautifully.
Cruda
They push the boundaries of traditional footwear, working with materials like recycled tires, wood, and manipulated leather. Their shoes feel avant-garde but are still wearable, which I love.
Ruiz
A brand rooted in storytelling. They focus on fragrances, candles, incense, and mists, with each scent named after someone the founder loves. The branding guides you through the notes in such a poetic way—it evokes nostalgia, memory, and deep connection. Every scent feels like a heartfelt tribute.
Karina Trofimova
Tell us about your background and why you decided to go into retail
My entry into the fashion industry started with long-form blogging, which allowed me to explore and structure my thoughts on fashion, personal style, and all of my other philosophical ideas. Over the past 11 years, I’ve built a career in wholesale, brand development, and strategy, working closely with independent designers to help them grow their businesses.
I launched HAUS iNCUBATOR as a response to a gap in the industry—independent brands often struggle to gain visibility and access to the right retail opportunities. Traditional trade shows and showrooms can feel impersonal, and many emerging designers need more than just a physical space—they need strategic guidance, introductions to the right buyers, and a platform that understands their unique DNA. HAUS iNCUBATOR blends showroom, trade show, and immersive brand activations, creating a dynamic environment that supports both emerging designers and forward-thinking retailers.
From your perspective, what is the current state of fashion retail in NYC right now? (i.e. challenges, market opportunities, etc.)
Fashion retail in NYC is in a transitional phase. The traditional wholesale model has been challenged, with retailers buying more cautiously and prioritizing sell-through over sheer volume. Consumers have become smarter, seeking brands that align with their values—whether it’s sustainability, craftsmanship, or a distinct point of view.
However, this shift presents opportunities. There’s room for advanced contemporary brands that are more agile, authentic, and adaptable. Stores are increasingly looking for exclusive, special products rather than overexposed brands that are everywhere. Retailers that curate a strong brand identity and create experiential moments—whether through collaborations, pop-ups, or unique in-store experiences—are seeing more engagement.
At the same time, the cost of operating a physical retail space in NYC remains a challenge. This is why multi-brand spaces, short-term activations, and direct-to-consumer hybrid models are becoming more relevant. Brands that understand storytelling and community-building are thriving, while those solely dependent on traditional wholesale are struggling.
What retail trends are you excited about?
Experiential retail & immersive activations – The most exciting retail spaces today are those that go beyond transactions. Pop-ups that integrate events, workshops or cultural moments are creating real engagement. Consumers want to connect with brands in a way that feels meaningful.
Community-driven retail spaces – Retail is becoming more local and intimate. Brands that cultivate a strong, niche community—whether through in-store gatherings, private shopping experiences, or hyper-localized collaborations—are the ones standing out.
Wholesale redefined – Traditional wholesale is evolving. Retailers are shifting towards pre-order models, capsule exclusives, and strategic partnerships with brands rather than just filling racks seasonally. The brands that own their distribution strategy and work with retailers as true partners (instead of just relying on wholesale to survive) will be the ones that win.
Shoutout to 2-3 designers or brands you're obsessed with right now
This is really hard because I love all of our clients. They all have unique perspectives, and for me personally, it's also about the people behind the brand. I have been working with Naya Rea, Dubié, and Résumé for years now, and they all bring something special to the table. For the sake of the conversation, I will expand on the following clients of mine:
OpéraSPORT
I love how they seamlessly blend elevated everyday essentials with a sustainable approach. Their pieces feel effortless yet directional, and their ability to balance accessibility with strong design identity is rare.
LAAGAM
I appreciate brands that understand how to create a world beyond the clothes. Those that tap into unique retail collaborations, or unexpected brand partnerships intrigue me the most.
Customer service in NYC is a unique blend of “do I know you?” and “do I know you!” This interview captures both sides of a valuable coin. So now I add another ‘must stop here’ on Orchard.