It’s a K-Shaped Summer
Open with Joy ☼ August 2026
The economy cracked into two this summer. For modern consumer brands, we learned that straddling the chasm is not a option.
The top 10% now drives nearly half of all US spending. What does this mean for your brand? Buys? Discounts? Operations?
Transpacific freight is up 120% since May. How will your Q4 shipments fare?
Shopify built store credit in so you can retire the gift card workaround.
And the number under all of it, your landed cost, is probably a little off.
This is Open With Joy, a monthly resource for leaders of premium, customer-centric, modern consumer brands. The latest on consumer behavior, DTC operations, supply chain, and tech from your fractional COO and hype girl.
Let’s go.
What’s Cracking for August
The top 10% now drives nearly half of all spending
What happened: The top 10% of US households, earning roughly $251,000 and up, now drive close to half of all consumer spending, the highest share on record.
Why it matters: That half is your customer, and they're still spending, so discounting to chase the shopper who already left just trains your real buyer to wait for a sale. The brands holding this summer keep goods moving at full price instead of parking them on the sales rack.
Alexia's take: Margin is won in the buy and the back end, long before price is ever the lever.
Your takeaway: When did you last check full-price sell-through by SKU?
Transpacific freight is up 120% since May
What happened: Ocean rates from Asia are up about 120% since May, just as Q4 inventory buys come due.
Why it matters: This peak is carrier-made, built on canceled sailings rather than real demand, so it's likely to ease on its own. The trap is overcommitting at the top: a heavy Q4 buy or a long contract signed now bakes an inflated rate into your landed cost all season.
Alexia's take: A carrier-made peak is not the time to negotiate or enter into carrier contracts.
Your takeaway: How much of your Q4 buy actually has to ship this month? Get strategic. Obtain at least 5 quotes. Combine what you can.
Shopify built store credit in, so you can stop faking it with gift cards
What happened: In its latest feature release, Shopify added built-in store credit. You can now issue a refund as store credit right from the order screen.
Why it matters: Giving store credit used to mean jerry-rigging it with a gift card, then fielding the inbox pileup every time a customer lost the code or the balance. Now the credit sits on the customer's account, nothing to look up, nothing to lose. And each refund you turn into credit is revenue you keep instead of cash handed back, which counts for more every month that winning a new customer gets pricier.
Alexia's take: It’s about time.
Your takeaway: Run through your return portal settings regarding store credit refunds, ensure they are going in as store credit and not giftcards. Likewise, train up your customer support team members on the new feature and when to leverage it.
From the Blog
Every price, promo, and wholesale deal you set rests on one number: your landed cost. Get it wrong and the jean you booked at 76% margin is really clearing 54%, and every decision after that inherits the error. In a K-shaped summer, that hidden gap is the exact margin you're trying to hold. Four common mistakes are probably widening yours, and all four are fixable.
In other news
With love, Best Buds
Open With Joy is brought to you by Best Buds CX, a fractional COO partnering with bold brands built on core values. We implement customer-retaining operations across the business that empower teams to operate at their highest potential so you can reclaim your time, energy, and ambition. Learn more.
