Consumers again demonstrated resilience in the New York Federal Reserve’s most recent Quarterly Report on Household Debt and Credit. For three years lenders have largely stayed on the sidelines when it came to extending credit to average consumers—the average Bank of America credit cardholder’s FICO score was 777 as of Q1 2025. Banks have already started to shift their lending behavior, but it may be too late.
Global scrutiny of Chinese-linked ecommerce platforms like Shein and Temu is intensifying as governments tighten oversight. France has threatened to suspend Shein’s marketplace over illegal listings, prompting investigations and a temporary sales halt, while Japan and the EU plan to scrap tax exemptions that have long benefited such importers. Similar moves in Brazil and South Africa highlight a growing global push to level the playing field for local retailers. Though consumers flock to Shein and Temu for low prices, regulators and competitors warn that the platforms’ dominance threatens fair competition and domestic industry resilience.
Several conservative Supreme Court justices voiced skepticism over President Donald Trump’s claim that emergency powers allow him to impose sweeping tariffs on countries like Canada, Mexico, and China. A ruling against Trump could reshape the already disrupted US retail sector, with nearly half of imports now under duties. Analysts warn that consumers are beginning to feel the strain, with inflation rising and spending slowing. While a legal setback may limit Trump’s options, his administration still has other trade tools available—ensuring that economic and policy uncertainty will continue well into next year.
Amazon has launched a new Whole Foods concept store in Plymouth Meeting, Pennsylvania, featuring a 10,000-square-foot micro-fulfillment center that stocks over 12,000 items from both Whole Foods and Amazon. Shoppers can order online for pickup or scan QR codes in-store to access Amazon’s broader catalog, blending organic groceries with mainstream brands. However, the two-checkout setup adds friction and limits scalability. Despite the new format, Amazon’s long-term focus seems to be on strengthening online grocery sales and expanding same-day delivery to 2,300 locations—positioning the doorstep, not the store, as the future of grocery shopping.
McDonald’s CEO Chris Kempczinski expects pressures on US consumers to remain “well into 2026,” he said on the company’s Q3 earnings call. The deepening cost of living crisis is especially painful for lower-income households, who are struggling to manage higher rents and childcare costs alongside a renewed spike in food prices. McDonald’s playbook for navigating those pressures is relevant to both fellow QSRs and the retail industry. By successfully combining value initiatives with marketing and product innovation, the company is gaining share with higher-income consumers and staying relevant with less affluent households.
"[The oldest members of Gen Alpha are] turning 16 next year, so we are on the eve of them becoming pretty powerful consumers," said Dani Mariano, CEO at Razorfish. "[GWI found that] 30% of 12- to 15-year-olds said that they had used AI in the last seven days. I think it could be even higher."
Holiday shoppers are stressed and overwhelmed, per Accenture’s 19th Annual Holiday Shopping Survey. And this is leading to lower conversion rates: 85% of consumers are likely to abandon their carts due to frustration or indecision, according to the survey. To best meet customer needs quickly, retailers can partner with providers like Checkout.com on its one-click checkout solution Flow Remember Me or PayPal-owned Honey as it integrates AI-powered product recommendations based on users’ conversations with chatbots.
United Airlines rolled out the MileagePlus Debit Rewards Card in partnership with Sofi-owned Galileo, per a press release. The debit card is issued by Sunrise Banks and runs on the Visa network. United’s debit card may appeal to younger United customers who are early in their financial lives and are skeptical of credit cards. But for others, it may be a tough sell as loyal travelers could instead get the United Gateway credit card, which has no annual fee and stronger rewards.
ThredUp posted its strongest revenue growth in nearly four years in Q3 as rising price sensitivity fuels interest in online resale. Active buyers surged 26% YoY as ThredUp touted its “best quarter for new buyer acquisition” in company history. Resale is having a moment. The end of de minimis import exemptions and new tariffs on apparel are making buying secondhand more appealing to price-sensitive consumers, while younger generations are embracing resale for its affordability and creative possibilities. We expect fashion online resale platform sales to expand 10.4% this year, nearly double the rate of online apparel, footwear, and accessories sales.
Uber is pursuing aggressive cross-platform integration to boost revenue, noting that customers who use both its mobility and delivery services spend three times more and stay longer. With only 20% of users currently overlapping, the company is pushing its Uber One membership and personalized offers to bridge the gap. Delivery growth remains strong, with bookings up 24% YoY, and Uber is expanding into grocery and retail through partnerships with major brands and new promotions like “Fresh Days.” Overall, Uber’s record trip volumes and strong earnings outlook highlight sustained demand for convenience and position the company for continued growth.
Eli Lilly and Novo Nordisk are closing in on deals with the Trump administration that would exchange deep discounts on their weight loss drugs for coverage under Medicare, per Endpoints News. Millions of Medicare recipients could become new weight-loss drug customers with the federal program on the hook for the cost.
Capital One will issue T-Mobile’s first credit card, according to Bloomberg—but it won’t run on Capital One’s recently acquired Discover network. Whether T-Mobile snubbed Discover or Capital One wasn’t ready to integrate its credit card products with the newly acquired network, the optics of running a new card on Visa aren’t great. But Visa and Mastercard shouldn’t exactly call this a win. While Discover's total volume is still an order of magnitude lower than that of Mastercard or Visa, incremental gains will lead to real lost volume opportunities for the duopoly.
The Trump administration agreed to use emergency funds to partly fund SNAP benefits. But it could take “a few weeks to up to several months” before consumers begin seeing that money due to “procedural difficulties, a USDA official said in a court filing. The loss of SNAP funding will be painful not only for households that rely on that money for essential supplies, but also for the many retailers that depend on that spending.
Amazon appears to be rethinking its mass-market grocery ambitions as it closes Amazon Fresh stores and doubles down on Whole Foods and same-day delivery. CEO Andy Jassy hinted that the company is shifting toward a more efficient model centered on expanding grocery delivery to 2,300 locations by late 2025. While this may concede physical dominance to Walmart, Amazon aims to capture grocery share by integrating perishables into its vast online network. The strategy could transform consumer habits, reducing in-store trips and strengthening Amazon’s position as a leading online grocer while keeping its costs in check.
Gen Z’s financial strain is deepening as unemployment rises and wage growth slows, leaving many unable to cover basic needs. With joblessness among 20- to 24-year-olds hitting 9.2% and student loan relief tightening, younger consumers are cutting back—especially on dining out. Chipotle and Shake Shack both report declining sales from this demographic, though each is fighting back with loyalty perks and in-app promotions. Retailers like Urban Outfitters are also adapting through lower-cost private labels and localized assortments. Overall, younger shoppers’ pullback may pressure retail and restaurant sales through the holiday season.
One-third of US adults say prices are noticeably higher on certain products due to tariffs or shipping/import changes, according to a July survey from Omnisend and Cint.
Reddit’s Q3 earnings confirmed what advertisers have suspected: the platform’s community-driven ad model can scale profitably. Revenue jumped 68% to $585 million, crushing Wall Street estimates, while EPS of $0.80 easily beat forecasts. Global daily actives climbed 19% to 116 million, though US user growth slowed to 7%, down from 12% last quarter. Data licensing revenue rose 7% as Reddit continues to defend its content from unauthorized AI scraping—a fight central to its long-term strategy. For advertisers, Reddit’s results underscore its strength as a high-intent, performance-focused channel—even as slower domestic user growth raises questions about future expansion.
Retail is on the brink of a digital sea change as agentic commerce slowly makes its way onto consumer-facing platforms.
We expect US holiday sales to rise 3.6% in the final two months of the year, a slowdown from last year’s 4.4% gain, but much stronger than our May outlook, when we anticipated just 1.2% growth. The shift stems from consumers’ surprising resilience despite tariffs, inflation, and a softening labor market. Major retailers like Walmart and Amazon have reported steady demand, with tariffs adding only modest price pressures. However, spending remains uneven across income groups as higher earners benefit from wage and wealth gains. Retailers will need to emphasize affordability and value to attract cautious middle- and lower-income shoppers this season.
Walmart unveiled a series of AI-powered tools for its app to help customers with their holiday shopping. The new features, which include an in-store savings function and AI-generated audio summaries, are meant to make Walmart’s app more useful for in-store shoppers and to simplify discovery and purchasing for customers who prefer to transact online. Retailers should follow Walmart’s lead and use AI to make it easier for customers to surface deals and quickly find what they’re looking for, whether in-store or online.