As the oldest members of Gen Alpha prepare to turn 16 next year, they have more purchasing power than ever before. For retailers, that means the race is on to understand how to connect with a generation that is not only digitally native but has grown up with an expectation for an active, back-and-forth relationship with brands.
Klarna rolled out Klarna balance and Klarna Card in the UK. Credit cards aren’t as big a market in the UK as they are in the US, but issuers should be concerned by what Klarna calls its “balances.” Klarna is a real bank in the EU and recently was granted an Electronic Money Institution license in the UK. That means even without getting a bank charter in the UK—or the US for that matter—it can use its existing bank infrastructure to offer a robust suite of bank-like services in the style of Cash App or even Apple Wallet.
Retailers expect 15.8% of annual sales, or about $849.9 billion, to be returned this year, a slight drop from 16.9% in 2024, according to a new report from the National Retail Federation and Happy Returns. The shift suggests stricter return policies, such as charging fees, are discouraging some returns but also risking customer loyalty. With most shoppers prioritizing free and flexible return options, retailers are expanding in-store, QR-based, and “no box, no label” methods to boost convenience. Balancing return costs with shopper expectations remains key to maintaining satisfaction and long-term loyalty.
While many Amazon Big Deal Days shoppers sought savings on essentials, nearly one in three participated “just for fun,” per a new CivicScience survey. About 41% planned purchases in advance, while 38% made impulse buys, showing a mix of deliberate and spontaneous shopping. Despite signs the event may have underperformed, it still offered strategic value by driving engagement, boosting retail media investment, and generating incremental sales. Retailers can build on this momentum by personalizing offers, sustaining engagement post-event, and using campaign data to refine future promotions and deepen shopper loyalty.
Twitch introduced livestream shopping ads powered by Amazon’s advertising platform. The ad launch reflects the burgeoning popularity of livestream commerce, which despite being slow to take off in the US is now gaining traction thanks to TikTok, a booming collectibles market, and the rise of “shoppertainment.” Amazon is betting that an easier path to purchase will encourage more viewers to pull the trigger on products they discover via livestreams. However, a successful live shopping strategy requires thinking about the channel less as an avenue for direct conversions and more as an opportunity to engage potential customers and build lasting relationships.
Citi’s Strata Elite rollout has been pockmarked by poor customer service, per a report by The Wall Street Journal. Amex’s Platinum and Chase’s Sapphire Reserve products look increasingly desirable as competitors fumble their entrance into the premium space. To win over former Strata Elite cardholders, Amex and Chase should advertise their card portfolios’ solid customer service performance records in combination with their impressive reward packages. In addition, both issuers should highlight their cards’ travel rewards compatible with flying American Airlines. Former Citi cardholders may have joined specifically for AA frequent flier benefits, making travel rewards preferences critical for those members who might switch to a new product.
American Express’ total revenues increased 11% in Q3 2025, per its earnings release. Increased card member spending, higher net interest income, revolving loan balances, and card fees supported growth, the company said. The uptick in dining indicates that even the wealthy are looking to pull back on bigger indulgences like vacation and looking for more local opportunities to splurge. To make up for lost travel volume, issuers should encourage spending on fine dining with exclusive dining pop-ups and experiences through their dining apps, focusing on local vendors—similar to Square’s Neighborhoods’ launch, but elevated.
Pinterest is giving users control over the flood of genAI content on the platform with a new tuner that allows users to control how much genAI content they see in specific categories, per a Thursday announcement. By giving users control over how much genAI content they see, Pinterest is creating a safer environment for advertisers, reducing the risk for brands by ensuring ads don’t appear alongside content that audiences dislike or want to avoid.
Small business optimism dipped in September due to growing concerns about inflation, tariffs, and weakening consumer demand, according to the NFIB. This holiday season could be a make-or-break moment for many small businesses. Nearly all—93%—think that their sales during the period will be essential to their survival this year, according to an Intuit QuickBooks survey. That’s up 52% from last year, underscoring how tariffs and economic uncertainty are threatening small businesses’ ability to survive.
Temu’s European expansion—and advertising blitz—is delivering substantial growth. Over 25% of the EU’s population—115.7 million people—made at least one purchase on Temu in the first six months of 2025, according to the company’s most recent transparency report. The challenging economic climate is a prime opportunity for Temu to extend its hold on European shoppers—but its ability to do so may soon be hampered by regulatory efforts to change its pricing and advertising tactics.
Bank of America’s revenues rose 11% YoY to $28.1 billion in its Q2 2025 earnings, outstripping analysts’ expectations at $27.5 billion, per CNBC. While consumers are demonstrating resilience, leaning into flexibility as the holiday season approaches could give issuers more loyalty from consumers who are skittish about holiday shopping. 0% interest holidays and card-linked buy now, pay later offers can help banks compete against fintechs offering similar promotions.
Synchrony reported $1.1 billion in net earnings during Q3 2025—a notable increase from Q4 2024’s $789 million, while net revenues were flat at $2.8 billion YoY, per a press release. Buy now, pay later platforms like Klarna, Affirm, and PayPal have an opportunity to pick off consumers from co-brand and private label issuers as the holiday season approaches. While these cards often boast high interest rates, PayPal’s in-store eligible Pay Monthly offers 5% cashback, and Affirm’s 0% interest days likely connect with Gen Zers trying to avoid revolving credit. As long as these fintechs can offer more competitive interest rates, installment plans, or rewards, co-brand cards are caught on the back foot for securing this consumer segments’ loyalty.
United Airlines is forecasting record-breaking Q4 profits as CEO Scott Kirby credits international travel and high-spending passengers for driving growth, with premium cabin and loyalty program revenues up 6% and 9% year over year. The optimism echoes Delta’s positive outlook, but the broader travel market shows strain: only 21% of US adults plan to travel this holiday season, according to Bankrate, down from 27% last year. As costs rise and options shrink, especially for younger travelers, the industry faces a widening divide—prospering at the top while losing price-sensitive consumers it can’t afford to ignore.
Foot traffic to indoor malls surged 6.3% YoY in May, outpacing outlet malls (3.5%) and open-air shopping centers (4.7%), according to a September report from Placer.ai.
On today’s podcast episode, we discuss how much of a splash ChatGPT’s new ‘Instant Checkout’ is likely to make, what kinds of things people are most likely to use it to buy, and if Amazon and Google can offer compelling alternatives. Join Senior Director of Podcasts and guest host, Marcus Johnson, and Senior Analysts, Carina Lamb (formerly Perkins) and Zak Stambor.
Klarna partnered with Qatar Airways, bringing installment plans to checkout for the gulf state airline in 17 European markets. The winning formula for BNPL platforms may be strategic partnerships with airlines without a branded credit card live in certain markets. Qatar holds a branded credit card offering in the US, where it likely encourages US consumers to spend on its card. European consumers, on the other hand, can’t access that credit product, giving Klarna an opportunity to fill that gap for fliers. With this vacuum, BNPL providers can reap the benefit of not having to directly compete against credit cards’ rewards packages.
Storm clouds are rolling in for several of the world’s largest economies. The US, China, and EU are all under pressure due to tariffs, depressed consumer confidence, and economic uncertainty. That is creating serious challenges for retailers, which are struggling to convince shoppers to open their wallets while facing diminishing margins.
Black Friday is set to dominate the 2025 holiday shopping season once again, with Bain forecasting that 55% of US consumers plan to shop the day after Thanksgiving, driving online sales up 5.2% to $12.04 billion. Despite economic uncertainty and waning consumer confidence, value-driven shoppers are expected to flock to early promotions extending into a “Cyber Dozen” period. Retailers like Amazon and Best Buy are likely to continue early deals, while strategic discounting around the Cyber Five will be critical as consumers tighten spending. Retailers' focus should be timing promotions for maximum impact amid cautious holiday sentiment.
Dollar Tree projected earnings per share to grow up to 15% annually over the next three years, boosted by operational efficiencies and the absence of recent one-off costs. The retailer reaffirmed Q3 guidance for 3.8% comparable-store sales growth and expects a high-teens EPS increase in fiscal 2026. With more affluent shoppers trading down amid inflation, Dollar Tree’s recent Family Dollar divestiture sharpens its focus on the core brand. Its growth strategy emphasizes value, convenience, and an expanded price mix—but long-term success will hinge on elevating the in-store experience for higher-income customers.
Gen X and millennial women are a key force in the personal care and beauty market. They’re outpacing overall market averages across several core product categories, underscoring their importance for brand growth and retailer strategy.