Join us on this week's episode of the Slice of Retail podcast, hosted by Jared S. Taylor! Our Guest: Doug Stephens, Founder & CEO at Retail Prophet.


What you’ll get out of this episode:

• Doug Stephens discusses the disappearance of mid-tier retail and the rise of retail extremes—luxury vs. budget.

• Reveals how resale, duplicates, and aspirational strategies are reshaping consumer markets.

• Breaks down AI’s dual role in retail innovation and workforce disruption.

• Emphasizes the growing importance of creativity as a key differentiator in an AI-driven landscape.

• Shares insights from his upcoming book, The Future of Competition, launching Spring 2026.

Watch

Listen

Read More

Retail's New Reality: A Vanishing Middle

Doug Stephens, founder of Retail Prophet, joins the podcast to shed light on the evolving landscape of retail. With over 36 years of experience in the industry and consultancy work with brands like L’Oréal, Walmart, and Louis Vuitton, Doug observes a stark shift: the disappearance of the middle class is reshaping how we shop.

Retail is no longer anchored in mid-tier department stores. Instead, we see a stark polarity—low-cost outlets like Walmart and Shein on one end, and luxury houses like Louis Vuitton and Hermès on the other. “There’s not a hell of a lot anymore between those two,” Doug notes, predicting a continued erosion of the mid-market and mass consolidation in retail.

Technology as a Bridge—and a Divider

New technologies and business models are emerging to fill this void. Platforms like Croissant and dupe.com are redefining value by enabling shoppers to buy luxury items with buyback guarantees or find near-identical replicas at lower prices. Resale now rivals fast fashion in size. Still, these tools aren’t just innovations—they’re lifelines for consumers priced out of traditional markets.

Retailers must ask themselves tough questions: Do they shift to low-cost strategies or push toward luxury branding? As Doug points out, without authenticity or heritage, merely raising prices won’t elevate a brand. Many will fail trying.

AI: More Than a Buzzword

Artificial intelligence, while omnipresent in conversations, still has underexplored implications. Doug believes AI will soon become “table stakes,” offering no competitive edge once it’s universally adopted. The real differentiator? Human creativity.

Yet creativity is increasingly rare—only 2% of the population is considered divergently creative today. Doug urges companies to foster this scarce talent, integrating it across every business function to truly harness AI’s potential.

The conversation also takes a sobering turn, addressing AI’s role in job loss. Doug challenges the common narrative that AI will create jobs to offset those lost. Instead, he sees a future where entire professions may vanish, raising urgent questions about universal basic income and economic restructuring.

A Call for Creativity and Strategic Clarity

Doug’s insights are a preview of his upcoming book, The Future of Competition, expected in Spring 2026. It will dissect what made brands of the 1950s-70s dominant—and what companies today must do to reclaim such influence in a fragmented, tech-fueled world.

Whether you're a startup founder, retail executive, or curious consumer, Doug's message is clear: The path forward isn’t about more technology. It’s about using that technology creatively and responsibly, while redefining what success looks like in a rapidly evolving retail environment.

Learn More About Retail Prophet:

Follow Us 😁