The US-China trade war drives Shein to diversify its sourcing: Shein and Reliance Retail plan to start international sales of India-made Shein-branded clothes within six to 12 months.
The news: Walmart rolled out Sparky, its generative AI (genAI) assistant, to all Walmart app users this week—a preliminary step that puts it closer to achieving its agentic ambitions. Our take: By broadening Sparky’s capabilities, Walmart is trying to position itself not only as a shopping destination, but also as a place where consumers can go when they need everyday life advice or information—such as how to fix a leaky faucet or help with event planning. Whether the retailer succeeds will depend on how well Sparky works, and whether it can convince shoppers to overcome their current skepticism of AI tools.
The news: Starbucks is lowering prices in China for some drinks as the country’s relentless price wars force the struggling coffee chain to shift gears. Our take: Starbucks’ pricing actions are necessary to keep it competitive in a challenging market. But it is increasingly struggling to keep up with the likes of Luckin Coffee and Cotti, which are not only considerably cheaper but also better able to meet Chinese consumers’ rapidly shifting tastes. With conditions in the world’s second-largest economy unlikely to improve this year, Starbucks will have to find a way to become nimbler—and more affordable—to keep within striking distance of its rivals.
Retail and commerce media were huge topics at last year’s Cannes Lions festival, and this year, the festival is doubling down on the channel by introducing a new retail media sub-category in the Media Lions and Creative Commerce Lions awards. However, “the tone is definitely shifting” as the industry matures—and faces the threat of tariff-related impacts, according to our analyst, Sarah Marzano.
The trend: Walmart and Amazon are determined to take drone delivery mainstream. Our take: It’s easy to understand the sci-fi appeal of drone delivery—but whether it’s feasible remains a question that retailers are still struggling to answer.
Advertisers’ push for a unified strategy across retail media, loyalty programs, and merchandising is raising the bar on data and transparency. Paul Lentz, executive director and head of strategic development at CVS Media Exchange, shares how new collaborations—from The Trade Desk to social platforms—can help brands see every ad dollar’s impact.
The news: Fiserv will acquire the remaining 49.9% stake in AIB Merchant Services, one of Ireland’s largest payment solutions providers and Europe’s largest ecommerce acquirers. Our take: Fiserv has to find innovative ways to grow among a competitive POS landscape, rising softPOS adoption, and pervasive economic uncertainty.
Amazon Prime is deeply entrenched in the US, with 75% of households as members. Despite this saturation, Amazon sees growth opportunities in international markets and among underpenetrated US demographics: rural, younger, and lower-income consumers. These groups show untapped potential, said Jamil Ghani, Amazon Prime’s worldwide VP. Prime fuels Amazon’s ecosystem—members spend more by using benefits like streaming, pharmacy, Grubhub+, and free shipping. In contrast, nonmembers often spend less over time. By expanding perks and appealing to new segments, Amazon uses Prime to drive loyalty, customer lifetime value, and resilience against macroeconomic shifts.
The news: Paze notched a major partnership with Worldpay to expand its merchant network, per a press release. Our take: Groundwork has been set for Paze to take off. We predicted that Paze would make significant gains in 2025, and this partnership will help Paze establish its online presence and customer familiarity for strong back-to-school and holiday shopping spend.
The news: The USDC stablecoin issuer Circle’s IPO exceeded investor expectations—its stock price ended the day up 168%. Our take: Circle’s IPO signals increasing investor optimism in crypto, particularly stablecoins. As stablecoins become a more accepted element of our financial infrastructure, financial providers should prepare for how to incorporate or interact with this element of the payments space.
The news: In-car voice commerce has the potential to unlock a $35 billion annual opportunity for automakers, according to new research by in-car voice technology provider SoundHound AI. The hands-free tech integrates voice ordering, payments, and navigation directly into vehicles—transforming them into mobile commerce hubs that users are already familiar with. Key takeaway: Marketers and advertisers should prepare for a shift in automotive user interface by integrating voice-first campaigns into connected car ecosystems. Opportunities include forging partnerships with automakers and service providers for branded voice experiences, sponsored suggestions, and frictionless ordering while prioritizing transparency to satisfy safety regulators.
The trend: The Centers for Disease Control and Prevention (CDC) has lagged on delivering clear and coordinated messaging in recent weeks, creating confusion among consumers, physicians, and drugmakers. Our take: Inconsistency in messaging could result in patients, doctors, and healthcare entities not knowing where to turn for guidance and recommendations. Pharma companies should consider boosting consumer health messaging and offer healthcare providers’ science-based materials.
Despite political pressure, McDonald’s is standing by its commitment to inclusion. While it recently replaced “DEI” language with “inclusion,” its initiatives remain intact, per Bloomberg. That contrasts with brands like Target, Nike, and JPMorgan Chase, which have scaled back DEI and climate efforts amid conservative backlash. McDonald’s cosmetic rebranding reflects a strategic calculation: investing in programs it views as beneficial for business and essential to long-term brand equity, especially with key demographics. If it avoids major backlash, McDonald’s could offer a model for other brands weighing how to uphold values while managing political and reputational risk.
The insight: Clothing rental services are in the midst of a resurgence. Rent the Runway ended Q1 with a record number of subscribers, while Urban Outfitters-owned Nuuly added 40,000 members in the quarter alone. Our take: It’s taken time for companies to prove that the clothing subscription model can be sustainable. While Nuuly was the first to reach profitability, Rent the Runway’s rebound shows that there is an appetite for rental services that can deliver high-quality products at an affordable price point, as well as capitalize on consumers’ desire for newness.
Over 4 in 10 (44.4%) of US Adults are somewhat or very likely to use an AI tool like ChatGPT or Copilot to research potential purchases, according to April data from Attest.
The news: Amazon is testing humanoid delivery robots, per The Information, which could work in tandem with human drivers or as part of an autonomous fleet of delivery vehicles. The humanoid robotics team is working on incorporating large language models (LLMs) from Chinese companies DeepSeek and Alibaba so the bots can contextualize real-world surroundings. Our take: Delivery bots could help with heavy loads and ease the burden on human drivers, but Amazon might be better served with a less human form factor, such as a platform with walking legs to carry packages. The focus on humanoids could limit functionality, and bringing the uncanny valley to consumers’ front door could be off-putting.
Centralized payment options and automating spend threshold One Credential can help to keep PayPal products top-of-wallet for Gen Z.
With account integration ending for Android wallets, PayPal sets its sights on keeping more users within its own ecosystem.