Paper Clips

The USPS has proposed another postage increase set to take effect in July 2026, and for many marketers, the first reaction is predictable: “Should we mail less?” That’s the wrong question. The better question is: “How do we make our mail work harder?” Because despite rising postage costs, direct mail continues to outperform many digital channels in response, recall, engagement, and trust. The marketers seeing the best results today are not abandoning mail. They are becoming more strategic with it. Poor strategy costs more than postage ever will. I’ve seen campaigns with mediocre targeting, weak creative, and generic offers waste thousands of dollars while highly targeted, well designed mailings generate exceptional ROI, even at higher postage rates. When direct mail is done correctly, it still commands attention in ways digital advertising often cannot. Consumers are overwhelmed online. Physical mail still has the ability to slow people down, create interaction, and build trust. That matters.

Ulta, a perennial sparkler in the often-flat retail world, reports earnings next week. With a 36.4% market share and 46 million loyalty members, trends in its quarterly financials tend to say as much about the national spending mood as they do about the latest lip gloss. The backdrop looks reasonably healthy. Circana finds the beauty sector growing steadily, with prestige sales rising 6% to $8.1 billion in the first quarter, and mass retail climbing 7% to $18.1 billion. Notably, it's the first time in five years both segments have grown at nearly the same rate. And in both cases, growth was largely value-driven, reflecting a mix of premiumization and careful spending. Fragrance was among the strongest performers, with double-digit gains in women's fragrances at mass and continued momentum in prestige minis — a format that captures both the trade-up and trial-driven shopper. Skincare remained a steady engine, with clinical brands capturing over a third of prestige dollar sales. Makeup was the softest spot.