While commerce media networks expand, retailers can take advantage of the efficiencies and measurement capabilities that they can provide.Retail media networks alone are expected to claim one-fifth of US digital ad spending by 2029, according to EMARKETER’s September forecast.
The commerce media landscape is bracing for a defining year. Pressure is building across retailers and platforms to rethink how shoppers discover, evaluate, and buy products.
e news: Multicultural consumers—a segment whose buying power has grown 345% over the last 20 years—now expect brands to prioritize representation in ads, per a Snapchat study. Brands must tailor ad strategies to appeal to multicultural consumers, but should understand that simple, one-off campaign inclusion won’t be enough to drive action.
Retailers experimenting with agentic AI are doing so with commercial urgency, not curiosity. In an EMARKETER interview, Criteo’s Michael Greene said retailers now see onsite AI as “mission critical” for owning the shopping journey—especially as consumers increasingly use chat-based tools for early discovery. Generic LLMs lack real retail signals like inventory, regional availability, and nuanced category expertise, making proprietary data the retailer’s strongest edge. With Gen Z already leaning heavily on AI for purchase research, retailers must build systems that deliver more relevant, trustworthy guidance than general chat interfaces. The mandate is clear: build AI that improves baskets, conversion, and shopper retention.
Instacart has become the first grocery partner to launch a dedicated app within ChatGPT, enabling users to shop by prompting the assistant and then building a cart powered by Instacart’s catalog and OpenAI models. After signing in, customers can review selections and pay securely via Instant Checkout, with orders fulfilled through Instacart’s network. The move reinforces Instacart’s leadership in US grocery delivery and gives it an early chance to shape AI-enabled shopping behavior. If consumers embrace the feature, its ability to learn preferences and streamline reorders could meaningfully reduce friction and nudge more shoppers toward online grocery buying.
Grocery prices continue to climb amid low crop yields, geopolitical shocks, supply-chain issues, and new tariffs, leaving middle- and low-income consumers struggling as wages lag inflation. Student loan borrowers are feeling particular strain, with many reporting difficulty affording basic necessities. President Trump has responded with executive orders exempting some foods from tariffs and directing investigations into potential foreign price-fixing, though these steps are unlikely to offer quick relief. With nearly half of Americans saying the cost of living is the worst they can remember and holiday spending plans dropping sharply, consumers remain cautious heading into next year.
Listening patterns from 2025 show how audio fits into everyday moments differently across markets, from commutes to cooking to winding down at night. Spotify’s Wrapped for Advertisers pulls those signals into a clearer picture for 2026 advertising decisions.
A spike in consumer interest, changing social expectations, and perception has brands and retailers leaning into men's fragrances. "The days of guys only wanting a classic, masculine scent are gone," said Sarah Armstrong, associate content manager at Axe US."Guys are looking for excitement in the fragrance category, wanting to explore new scent cues," she said. "For example, we've seen more gourmand, sweet fragrances come to market over the last few years."
Amazon, Target, and Walmart are stepping up their holiday fulfillment efforts to reassure late shoppers that gifts will arrive before Christmas. Amazon is adding clear “Arrives before Christmas” messaging and enabling delivery or pickup on many items through Christmas Eve, while Target is extending store hours and leaning on rapid curbside, in-store pickup, and same-day delivery. Walmart is expected to match or exceed last year’s Christmas Eve express cutoffs. These moves highlight how crucial last-minute reliability has become, as faster delivery speeds increasingly shape where shoppers spend and give retailers with strong fulfillment networks a powerful competitive edge.
Gap’s new AI chatbot was quickly coaxed into discussing intimacy products and other off-limits topics after launch, revealing a misconfiguration in the guardrails set by its AI partner Sierra, according to The Information. Sierra said a bad actor attempted to jailbreak more than a dozen client agents, and Gap’s was the only one that slipped past detection due to the setup error, which has since been fixed. The incident underscores how easily brand safety can be compromised when safeguards aren’t airtight, highlighting the need for companies to rigorously vet vendors and ensure robust protections before deploying AI tools.
Cash App and Binance are targeting teen and pre-teen engagement with payments and crypto, per press releases. Emphasizing safety and financial education will be critical for any youth financial product to get off the ground. Streamlining parental controls through easy-to-monitor features like push notifications can win over parents of Gen Alpha, who are more likely to be millennials who favor mobile- and app-first financial experiences.
Bank of America debuted an exclusive FIFA World Cup 2026 custom card design and ticket opportunity for applicants, per a press release. Cardholders can choose between two FIFA-themed card designs. New applicants for BofA’s Customized Cash Rewards or Unlimited Cash Rewards Visa credit cards can also buy two tickets to select FIFA World Cup matches starting February 10, 2026. Leaning into sporting events for marketing and rewards can connect issuers with young consumers who are passionate about exclusive, memory-building experiences. Hosting on-site events and spaces during the matches could draw in even more potential cardholders.
Revolut launched “street mode,” a security feature designed to thwart transfer mugging, per a press release. Revolut users can set up “trusted locations” within their banking apps where they can transfer funds without additional security measures. Protecting users’ money should be top-of-mind for payment providers and banks. But there are key security features that banks still fail to offer—despite strong consumer demand. Twenty-eight percent of consumers in our benchmark said that blocking contactless payments was “extremely valuable,” but just one bank—Truist—delivered. Similarly, alerts for SSN breaches were the most-demanded feature (53%), but only Chase and Capital One offer it.
A growing number of high-end and mass-market brands are thriving even as they reduce promotions to protect margins and strengthen brand equity. Victoria’s Secret delivered its strongest sales growth in four years through more targeted discounting, while On Holding and Ralph Lauren posted standout revenue and EPS gains by preserving premium pricing and elevating brand perception. The trend extends beyond retail: although Cava recently cut its sales outlook, it is still avoiding discounts to protect a value proposition rooted in quality and experience. Together, these strategies reflect a shift away from competing primarily on price.
61% of Gen Z shoppers used AI tools to help with a purchase in the last year, according to a September 2025 survey from PayPal.
This year’s Cyber Five brought in record sales, but it’s still unclear how consumer spending will unfold through the rest of the holiday season and into the new year. Shoppers are moving in different directions based on their financial stability, and many are starting their holiday buying weeks earlier. Coming out of the gate with strong value and consistent messaging is paying off early, but brands must keep that energy going as the season stretches and shifts.
Amazon remains in negotiations to extend its USPS partnership but is reassessing its delivery strategy after learning the Postal Service may hold a reverse auction that would require major shippers to bid for facility access. The unexpected shift injects uncertainty into Amazon’s network at a time when it is rapidly expanding Amazon Logistics and investing heavily in rural delivery. Because Amazon accounts for a sizable share of USPS revenue, a split would significantly strain the agency and could accelerate Amazon’s rise as a competing carrier, reshaping how retailers meet growing consumer expectations for fast, reliable delivery.
Dollar and discount retailers are gaining share as low prices draw more middle- and high-income shoppers. Dollar Tree added 3 million households to its customer count in Q3, most earning over $100,000, while Dollar General saw higher-income customer growth and broader market-share gains. Five Below’s strong Q3 comps reflected new shoppers and bigger baskets. All three raised full-year outlooks. But much of their growth stems from higher prices, not traffic, and core low-income shoppers remain strained. To sustain momentum, retailers must improve store experience and appearance, ensure pricing accuracy, and invest in convenience through delivery partnerships.
Klarna launched its premium membership model in the US, per press release. Klarna has been trying to compete with premium credit card rewards as a buy now, pay later (BNPL) provider, but the cash-back rates for both tiers are paltry compared with credit cards, which often offer 2% cash back for all purchases with no annual fee. BNPL rivals should make using installment loans for big-ticket items—a key growth area for providers—as easy as possible, like by offering 0% interest holidays, instead of promoting toothless rewards structures.
Bilt partnered with United Airlines, offering 2X miles to customers who use their United co-brand card to pay their rent through Bilt’s platform. Bilt is trying to extend travel offers to members, but clumsy economics may get things off to a slow start. While Bilt stands to earn valuable margins through third-party card payments, the cost-ineffective nature of using this promotion will likely yield low returns. Competitors like the Made Card could trial a more straightforward travel rewards program centered on their own card.