It may be a new year, but we’re still catching up on what happened during the last week of 2025. Here’s everything you may have missed.

Holiday spending outpaced our expectations

Mastercard SpendingPulse found that retail sales excluding automotive rose 3.9% YoY from November 1 to December 21, while Visa Consulting and Analytics reported a 4.2% increase over the same period for retail excluding automotive, gasoline, and restaurants.

Even though spending beat expectations, there are signs of strain. As lower- and middle-income consumers feel more financial pressure, the year ahead may be a rocky one.

Dollar Shave Club’s first AI-generated ad makes tech the punchline

Brands like Coca-Cola and McDonald’s have recently stirred up controversy over their use of AI in their ads. But Dollar Shave Club is flipping the script, making the idea of an AI-generated ad the punchline, not the premise. The ad shows a fictional boardroom with employees suggesting cost-cutting measures that are dismissed until the CEO suggests replacing employees with AI.

AI is poised to play an even bigger role in marketing by 2026, but not every brand will embrace it in the same way. Some will draw clear lines around how, when, and why they use AI. And those choices could become a point of differentiation in an increasingly crowded landscape.

Walmart website and app outage impacts thousands of customers

The outage affected more than 6,500 shoppers on December 30, with the majority reporting problems with the mobile app, a major issue considering many consumers do a great deal of shopping between Christmas and New Years.

The outage underscores how essential underlying commerce technology is to retailers’ operations. For a retailer as large as Walmart, being down for even a handful of minutes can translate into a high volume of sales lost. And for smaller retailers, it could send customers flocking to competitors.

Why Sears’s last great hope was a promise that never materialized

Sears was once one of the largest retailers in the US, but now only five remain. And they don’t have much time left, as many industry experts expect them to close soon. This highlights the struggles that traditional department stores have faced in staying competitive.

And it’s not just Sears. Saks Global is reportedly considering bankruptcy to get out of debt and a deal to sell 120 JCPenney stores has also fallen through.

The takeaway is clear: Even the largest retailers can falter if they fail to adapt to a shifting landscape.

Lululemon founder Chip Wilson says board shakeup necessary to ‘regain commercial momentum’

Athleisure is more crowded, trend-driven, and competitive than ever, and Lululemon’s struggles highlight how hard it’s become to keep consumers excited. Founder Chip Wilson is trying to shake up Lululemon’s leadership and board in an effort to regain market share.

But when a brand with premium pricing, strong loyalty, and cultural cachet is facing slowing growth and leadership turnover, it’s a sign the category isn’t as bulletproof as it once was. Because shoppers are increasingly open to alternatives, assortment, innovation, and differentiation matter more than ever.

This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.