Latin America’s digital ad market is transforming as new formats, channels, and players emerge. Understanding the market forces, challenges, and opportunities driving these shifts is key to staying competitive in this fast-evolving landscape.

Grocery retail sales are robust, and ecommerce is gaining share as more people buy groceries online—making retail media a growing opportunity.​

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.

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.

Rising costs and softening consumer demand led Kraft Heinz, Hormel, and Mondelez to cut their full-year outlooks, reflecting mounting pressure across the food industry. Hormel cited higher commodity costs and production setbacks, while Kraft Heinz and Mondelez reported slowing sales as inflation-weary shoppers traded down to cheaper or private-label options. Consumer confidence has fallen to its lowest level in months, and the looming SNAP benefit cutoff could further dampen spending. With costs climbing and value-conscious behavior spreading, food companies are being pushed to focus on efficiency and share preservation over aggressive growth.

A new wave of layoffs is hitting corporate America, with major firms like Target, Nestlé, Starbucks, Amazon, Rivian, and GM announcing significant job cuts amid slowing consumer demand and rising costs. More than 946,000 job cuts have been announced this year, the highest since 2020, deepening economic uncertainty. With consumer sentiment at a five-month low and a government shutdown straining millions of workers, inflation and surging insurance premiums are adding pressure. Our take: cautious companies may inadvertently fuel the downturn they fear, amplifying anxiety across the broader economy.

Our exclusive research reveals what factors are influencing the path to purchase for personal care and beauty products.

Tariffs, inflation, and cost pressures are forcing CPG advertisers to tighten budgets and focus on ROI. As traditional media fades, digital—especially social—continues to capture more share despite slower overall growth.

Retail ecommerce sales in Latin America will sustain double-digit growth this year, but momentum will remain uneven across major markets amid mounting geopolitical tensions.

AI is rapidly becoming central to retail operations, with 45% of organizations using AI tools daily and nearly all planning to sustain or increase investments next year, according to an Amperity survey. While fears of mass job losses have yet to materialize, ongoing economic pressures—including weak consumer sentiment, rising inflation, and a softening labor market—are driving a surge in layoffs. As companies turn to AI to boost efficiency and manage costs, the challenge lies in balancing automation with the human expertise needed to navigate uncertain times.

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.

With most official data still paused, private sources like ADP, Carlyle, and the NRF are shaping the economic picture ahead of the holidays—and it’s showing signs of strain. Retail sales rose 5.4% YoY in September but slipped month to month, while high earners kept spending as middle- and low-income households pulled back. Hiring has weakened, confidence remains muted, and Moody’s Analytics warns that nearly half of US states face recession risk. The evidence points to a slowing consumer sector and a holiday season defined by cautious spending and heightened competition.

Prescription drug prices along with other healthcare costs like hospital services and nursing homes, are growing faster than overall inflation, but slower than consumer costs like housing, food, and coffee, per GoodRx Research’s latest data. Pharma marketers need to use empathy to connect with the growing group of underinsured consumers. They should be transparent about prices and acknowledge the frustration consumers feel around the complexity of the US healthcare and insurance system. Proactively highlight help offered for consumers like financial assistance, savings tools, and patient support programs.

Consumers are approaching the holiday season with restraint: 27% of US adults expect to spend less from October to December, while 22% spend more, per a July survey from Experian and ad platform GroundTruth. Discounters and value-oriented retailers should be well-positioned to draw holiday sales from consumers. Still, retailers chasing growth during the make-or-break holiday season will need to drive and reward value-seeking behavior. That means their marketing must be aligned with shopping behaviors. Messaging should spotlight value and affordability. Marketing campaigns should be stretched across the extended shopping season, not just concentrated on big events like Black Friday. Promotions and loyalty perks should be used to reward value seekers.

Budget hotel chains are facing the same turbulence as discount airlines, per Yahoo Finance. Lower-income travelers are pulling back while wealthier consumers trade up to more comfortable stays, pressuring budget hotels. Usually resilient in downturns, these companies face what Bank of America calls “structural” headwinds: lower-income travelers contending with slow income growth, weakening sentiment, and persistent inflation.Companies like Hyatt and Marriott have the cushion of diversified portfolios—and may even pick up business as wealthier travelers trade up. But others, such as Choice Hotels and Wyndham, don’t have that safety net. Their focus on the budget segment makes them more vulnerable, which is why Bank of America downgraded Choice shares to “underperform” from “buy” this week.

Whole Foods has cut prices on more than a quarter of its products in the past year, including over 1,000 private-label items, its chief merchandising and marketing officer said at Groceryshop, per Modern Retail. Weekly promotions and deals tied to specific days reinforce the value push. The retailer needs to prove that “premium” and “value” aren’t mutually exclusive. By doubling down on price investments, amplifying Prime-member discounts, and leaning into convenient, high-quality prepared foods, the grocer can reframe itself as both aspirational and accessible.

Nearly 9 in 10 US adults (88%) are stressed about grocery prices—including 53% who say food costs are a major source of stress—according to a July AP-NORC Center for Public Affairs Research survey. This news comes as food prices continue to go up. The US Consumer Price Index for food increased 0.5% in August MoM. Grocery prices, as measured by the food-at-home index, rose 0.6% from July and were up 2.7% YoY. Grocery stores may be the most visible flashpoint for consumers’ financial stress, but the ripple effects extend far beyond food. The financial strain is prompting fundamental shifts in how people shop, which all retailers will need to watch closely in the back half of the year.

Consumer prices in August rose at a faster pace than in July, while a weak jobs report showed rising unemployment, per the Bureau of Labor Statistics. This unsavory combination points to the Federal Reserve cutting interest rates at its September meeting next week. For customers, this is a double-edged sword. On one hand, a rate cut could make borrowing more affordable, potentially lowering the cost of mortgages, auto loans, and credit card debt. This could be a much-needed reprieve for households facing rising prices for everyday goods. On the other hand, savers would lower the interest they earn on savings accounts and certificates of deposit, and banks trying to offer the most competitive rates will be risking higher deposit costs. While lower rates might spur some demand for new loans, the primary impact will be a squeeze on banks’ profitability.

US retail sales advanced in July as consumers took advantage of major sales events. However, signs are emerging that consumers are becoming more pessimistic as inflation expectations rise. With pressure from rising food prices, higher housing costs, and uncertainty about higher tariffs, consumers remain cost-conscious—and are wary about what’s ahead. Still, it’s clear that they’re willing to spend when they see clear value, providing a roadmap for retailers to capture sales.

Quick-service restaurants (QSRs) are no longer seen primarily as budget-friendly dining. Just 14% of consumers view them as a good value, while nearly a quarter (23%) now consider them a treat or reward, per consumer insights platform Zappi. That’s a notable shift for a category long associated with affordability. That helps explain why nearly a third (31%) of US adults have cut back spending on fast food. As inflation erodes fast food’s traditional value proposition, QSRs must sharpen their brand strategy or risk alienating diners. Brands that lean into indulgence and novelty can help position meals as a “treat,” while doubling down on affordability with compelling promotions and budget-friendly meal deals can reengage price-sensitive consumers.