Saks Global will close nine Saks Off 5th stores next year, a move that will help it cut costs as it navigates increasing headwinds. While Saks is positioning the closures as an opportunity to optimize its off-price footprint and elevate the customer experience, it’s likely that the company’s cash-flow challenges and vendor troubles played a major role in its downsizing. Off-price could have been a real opportunity for Saks to win over price-conscious shoppers. Instead, the retailer has become a cautionary tale about the importance of staying in vendors’ good graces and what can happen when those relationships falter.

Amid a challenging economic climate, luxury brands seek new ways to prove value to and win over young shoppers. By serving food and drink alongside products, retailers are turning stores into places where consumers can linger, connect, and spend. Coach’s coffee strategy is a prime example.

Macy’s better-than-expected Q2 marks “the beginning of a momentum change,” CEO Tony Spring told Bloomberg, as the struggling department store finds its footing ahead of the holiday season. Macy’s is in a better position than most of its department store peers, thanks to its investments in the customer experience and its luxury banners. However, recovery could prove fleeting should consumer sentiment worsen and shoppers balk at higher prices. To keep its momentum going, Macy’s will need to continue investing in the customer experience and look for ways to differentiate its luxury banners.

Tariffs overshadow Macy’s turnaround progress: Sales fell less than expected on strength at Bloomingdale’s and Bluemercury, but pressures on discretionary spending could add to department store headwinds.

Macy’s struggles attract another activist investor: Barington Capital is pushing the retailer to boost its stock price by reducing capex, rethinking its real estate strategy, and potentially offloading Bloomingdale’s.

“We've seen tremendous resilience from the consumer and that's driving a lot of success for retailers in the brick and mortar space,” said Ethan Chernofsky, senior vice president of marketing at Placer.ai, during our virtual summit. Despite rising inflation and pullbacks on discretionary spending, consumers are still eager to treat themselves and participate in unique retail experiences. We break down three trends influencing shopping behavior for the rest of the year, each paired with a retail opportunity.

Macy's and Best Buy are seeing a drop in sales of nonessential goods: Economic uncertainty, inflation force consumers to focusing on necessities like groceries.

Beware of the ‘retailpocalypse’ narrative: While retailers such as Gap and Macy’s shutter stores, there’s no sign that a broader bust is imminent.

Macy’s strong quarter underscores the difficulties facing Kohl’s: While the former is making a name for itself as a one-stop shop ahead of the holidays, Kohl’s lack of brand identity is hurting its chances of recovery.

Consumers plan to get an early start on holiday shopping: That’s good news for retailers as it should help smooth out the traditional late-season shipping bump.

Malls need to change: As department stores right-size and shift to smaller formats, mall operators need new types of businesses to drive people to their shopping centers.

Despite falling sales, Dick’s Sporting Goods is bullish: But Macy’s is taking a conservative view as inventory and demand challenges continue to hurt profits.

We recently spoke with Leila Kashani Manshoory, founder and CEO of Alleyoop, about the challenges of remote photoshoots, the company’s recent pop-up partnerships with Bloomingdale’s and Verishop, and its foray into augmented reality (AR).