By: YAY Designs
In today’s rapidly evolving retail landscape, many brands may appear to be flourishing with growing product ranges, successful launches, and increasing revenues. However, beneath this growth lies a less visible issue: declining margins, broken workflows, and operational inefficiencies. For Yevgeniya A. Yushkova (YAY), founder of Yushkova Design Inc (operating as YAY Designs), these hidden inefficiencies weren’t just obstacles—they inspired the creation of a consulting firm designed to transform the way fashion and retail businesses scale.
The Hidden Expense of Growth: Why Retail’s Revenue Surges are Eroding Margins
“Revenue growth doesn’t matter if your margins are quietly diminishing,” Yushkova points out. This insight stems from her extensive experience overseeing both manufacturing and retail operations. After building several multi-million-dollar private label brands and launching her own fashion line, she identified a common trend: companies rapidly expanding without the systems and structure required to sustain profitable growth.
The average after-tax operating margin for U.S. apparel companies is only 8.02%, highlighting the slim margins under which many retailers operate.
Revamping Private Labels: Strategy Over Expansion
Yushkova’s firm is sharply focused on assisting mid to large retailers and consumer brands to unlock the full potential of their private labels. Rather than viewing private labels as a mere afterthought or a price-cutting strategy, Yushkova sees them as a critical tool for enhancing profitability and fostering customer loyalty. Industry research backs this perspective, as McKinsey & Company notes that private-label products in many sectors can carry double the gross margin of national brands.
“Private label isn’t just about lowering prices—it’s the key driver of profits and customer retention,” she explains. However, without a strategic framework—careful assortment planning, supplier coordination, and data-driven pricing—many private-label initiatives fail to create lasting results. Yushkova Design applies both creative and operational expertise to refine these programs, transforming them from disjointed trials into scalable, margin-enhancing revenue drivers.
A Hybrid Approach: Lean, Data-Driven, and Creative
What sets Yushkova Design apart is its unique blend of Lean Six Sigma methodology with creative design excellence. “Successful brands are not built on creativity alone—they are founded on flawless execution,” asserts Yushkova. With a team that collectively holds over 79 years of experience, they don’t merely consult; they embed themselves within the business, assessing everything from design to supply chain operations. Their goal is to create systems that minimize waste, accelerate time-to-market, and boost profitability.
The approach is gradual and tailored: starting with diagnostic assessments to uncover root issues, followed by customized implementation plans. This method doesn’t require hiring additional staff or investing in expensive systems—it’s about maximizing existing resources.
The Supply Chain Dilemma: Moving from Rigidity to Flexibility
A major threat to retail profitability is a rigid, single-source supply chain. “Excessive dependence on a few suppliers, lengthy lead times, and lack of flexibility introduce significant risks,” Yushkova warns. This risk is becoming even more critical as tariff pressures rise in 2025.
Yushkova Design aids brands in mitigating these risks by building more resilient supply chains, not by seeking the cheapest suppliers, but by diversifying sources, restructuring lead times, and infusing flexibility into the entire design-to-delivery process.
For one client, this strategy resulted in a significant reduction in lead time and a remarkable boost in margins—achieved through better alignment between design, merchandising, and sourcing, without overhauling the team or incurring additional costs.
From Crisis Mode to Strategic Growth
Many of Yushkova’s clients approach her in a reactive state—constantly chasing trends, patching up problems, and battling disjointed teams. “Retailers don’t typically struggle with growth—they struggle with inefficient processes,” she explains. The solution isn’t another strategic plan—it’s hands-on, executable change. Her team works alongside clients to realign teams, redesign workflows, and implement lean merchandising strategies that lead to real, measurable improvements.
In one recent success story, a retailer with several private-label brands faced stagnant growth and poor sell-through due to siloed operations. After conducting a thorough diagnostic, Yushkova Design revamped the entire operational process, resulting in improved alignment, more effective chase strategies, and a substantial profitability increase.
“Inventory is not an asset if it isn’t moving—it’s a liability that drains your resources,” Yushkova stresses. “Too often, retailers hold onto excess product because their internal processes aren’t aligned. The solution isn’t more product—it’s smarter coordination between merchandising, design, and sourcing.”
The Future: Leading the Charge for Smarter Retail
Looking ahead, Yushkova plans to extend beyond direct consulting. “We’re not just building a consulting business—we’re fostering a movement toward smarter fashion and retail operations that can succeed under any market conditions,” she says. This vision includes hosting executive roundtables, offering strategic toolkits, and launching leadership training programs to equip not just senior executives, but the teams that execute these changes.
With a background in private label development for leading retailers in fashion and licensed sports apparel, creative direction for manufacturing brands, and merchandising for a major national licensed sports retailer, YAY offers a rare and comprehensive perspective on transforming fashion businesses.
Her aim is to assist retail companies in growing more efficiently by reducing operational inefficiencies, improving private label strategies, and embedding systems that provide long-term value.
Your Next Step: Join the Movement
If this resonates with you, you’re not alone. Yushkova Design is organizing an exclusive Executive Roundtable for retail leaders to dive into these challenges, offering case studies, actionable strategies, and frameworks to unlock margins and streamline operations.
Limited seats are available and by invitation only. Accepted participants will also receive a complimentary business assessment.
Final Words of Wisdom from Yevgeniya Yushkova
- “You don’t need more product—you need smarter, data-informed assortments.”
- “Profitability starts with what you plan for—not what you mark down later.”
- “Most leaders aren’t struggling to grow—they’re failing to scale effectively.”
If your retail business is expanding but feels like it’s barely holding together, it’s time to pause, reassess, and chart a smarter course. Yushkova Design isn’t here to patch things up—they’re here to help you build the foundation your brand deserves.
Published by Jeremy S.
