Estée Lauder topped analysts’ profit and revenue expectations, aided by sales and market share gains in China and customer growth in the US. The parent of brands such as Clinique, Tom Ford, and Aveda said its results marked the start of its return to growth under a turnaround plan. Estée Lauder’s stronger-than-expected quarter shows that accessible pricing and product innovation is essential to growth in beauty, especially as competition continues to intensify. Gap Inc., for instance, is launching Old Navy Beauty, a youth-focused line of body mists and scents. Its move shows that even apparel retailers are muscling into beauty to lure Gen Z consumers, providing new pressure on established beauty brands.

Sprouts Farmers Market projects flat to 2% same-store sales growth in Q4, signaling a sharp slowdown after strong midyear gains as consumer spending cools. Q3 results missed expectations, with 5.9% growth versus forecasts of 7.4%. In response, Sprouts is emphasizing value through expanded private labels, unique product innovation, and affordable prepared foods, while leveraging its new loyalty program to drive repeat visits. Despite broader retail pressure and cautious shoppers, Sprouts remains optimistic—opening more stores than planned and leaning on its differentiated, health-focused positioning to sustain long-term momentum amid an industry-wide pullback.

Target’s plan to win holiday sales relies heavily on in-store activations and a steady stream of deals throughout the last two months of the year. All of Target’s nearly 2,000 stores will be transformed into “nostalgic Alpine villages,” complete with festive décor and weekend events throughout the season. The retailer will also offer weeklong deals and host an earlier Black Friday sale to accommodate consumers' price sensitivities. Target is hoping that an emphasis on joy and whimsy—and discounts—will help it recapture some much-needed spending.

Etsy is betting on a new CEO to help revitalize its business after years of sluggish growth. Kruti Patel Goyal, the company’s chief growth officer, will take over the job from Josh Silverman next year. Etsy is in a tough position. The combination of economic uncertainty and a cost-of-living crisis are dampening demand for the discretionary items that it sells, while tariffs and the end of de minimis make it harder for sellers to operate. While Depop’s success is a bright spot, the platform is not large enough to offset Etsy’s broader GMS declines.

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.

Major casual dining chains are bracing for weaker Q4 sales as the government shutdown and broader economic headwinds weigh on consumer spending. Brinker International maintained its outlook despite Chili’s gains, while Cheesecake Factory reported slowing momentum and Chipotle cut its sales forecast for the third straight quarter. With real income growth stagnating and menu prices continuing to rise, many consumers are cutting back on dining out. To stay competitive, restaurants need to focus on value-driven promotions and loyalty programs designed to attract price-sensitive diners and encourage repeat visits.

Starbucks’ premium positioning is hampering its recovery as price-sensitive consumers seek cheaper ways to fuel their caffeine habits. US same-store sales were flat in the quarter ended September 28, with a 1% decline in comparable transactions offset by a 1% increase in average ticket. Starbucks’ ongoing weakness can be attributed at least in part to the challenging economic environment, which is driving consumers to cut back on consuming food and drinks outside the home. But its competitors’ ability to drive sales even with the same headwinds suggest that Starbucks’ hold on customer loyalty is slipping.

Amazon is cutting 14,000 roles from its corporate workforce as it reshapes its organization to prepare for an agentic AI future. The layoffs are unusual for a company still posting strong growth, but Amazon framed them as part of a broader move to gain efficiencies from genAI. While most retailers have thus far refrained from citing AI as a reason for mass layoffs, that could change as tariff pressures and other headwinds force companies to cut costs—and headcount—where possible.

Grubhub is partnering with Instacart to power its grocery ordering as the Wonder Group-owned platform works to better compete with DoorDash and Uber. Instacart will manage fulfillment and delivery through its 1,000-plus retail network, marking the first time its grocery experience is embedded in another app. The deal expands Instacart’s reach to Grubhub’s urban, suburban, and college users while helping Grubhub diversify into grocery and pharmacy delivery. As rivals deepen partnerships and retail media strategies, both companies aim to boost order volume and ad revenues, leveraging collaboration to counter intensifying competition in the delivery market.

Wayfair extended its 2025 winning streak with Q3 earnings that far outpaced expectations, posting 70 cents per share and $3.12 billion in revenues, driven by rising orders and strong US demand. The retailer’s strategic pillars—Wayfair Rewards, Wayfair Verified, and new physical stores—continue to enhance customer loyalty and omnichannel strength. AI innovation, including its Muse engine and Discover tab, is boosting engagement and conversion. Despite housing headwinds and tariff pressures, Wayfair’s results underscore resilience, though sustaining momentum amid tightening consumer budgets remains a challenge.

Live shopping platform Whatnot raised $225 million in its most recent funding round, valuing the company at $11.5 billion, double its worth at the beginning of 2025. Platforms like Whatnot are introducing live shopping to a new generation of consumers who are more dialed into social video than channels like HSN and QVC. The company has generated $6 billion in gross merchandise value this year, more than twice last year’s amount. However, livestream commerce remains a tiny drop in the vast ocean of ecommerce, making it more useful as an engagement and community-building opportunity than as a sales driver.

Recent announcements from Amazon signal its intention to lean on international markets to power growth. The retailer expects to quadruple ecommerce exports from India by 2030 to $80 billion. It is also investing $2.8 billion in Belgium and the Netherlands, and recently launched ultra-fast delivery in the UAE. To achieve international success, Amazon must continue strengthening its local logistics network. Expanding fulfillment capabilities allows it to offer its trademark delivery speed, enabling it to appeal to more shoppers. That makes it a more valuable channel for external vendors, helping to increase product selection (and revenues from third-party seller services) and keep the company’s flywheel turning.

Thanksgiving dinner costs are set to surge this year as turkey prices climb sharply amid renewed bird flu outbreaks that cut US turkey production nearly 10% YoY, according to the USDA. With demand peaking and supply at a four-decade low, wholesale turkey prices have soared, but some retailers see an opening to highlight value. Aldi, Walmart, and Dollar General are promoting low-cost holiday meal bundles to appeal to price-conscious shoppers. Still, rising grocery costs and broader economic pressures could dampen consumer spending this holiday season.

Retailers are accelerating “Holiday Cyber Creep,” launching deep discounts earlier than ever as competition for consumers’ limited holiday budgets intensifies. Ulta, Lowe’s, Best Buy, and Walmart have all unveiled October and early November promotions, extending the traditional Cyber Five into a months-long event. While early deals aim to capture cautious Gen Z and value-conscious shoppers, a new AlixPartners report warns that constant promotions are dulling their impact. That's forcing retailers to shift focus from nonstop discounts to standout experiences and personalized service to sustain engagement through the holiday season.

Lululemon announced a deal with the NFL to sell fan apparel for all 32 teams. The collection will include men’s and women’s clothing, along with accessories. Lululemon, like Abercrombie & Fitch and Best Buy before it, sees the NFL partnership as an opportunity to appeal to the league’s massive and engaged fanbase. In lululemon’s case, it has a strong chance of winning over the growing numbers of women who, thanks to Taylor Swift, are tuning in more often to games, and looking for stylish ways to rep their favorite teams.

ChatGPT is less effective at converting shoppers than nearly all traditional channels except paid social, according to a working paper by researchers from the University of Hamburg and the Frankfurt School of Finance and Management. That finding is consistent with EMARKETER’s latest report on AI search, which shows that traditional search engines continue to dominate discovery. Retailers should certainly be thinking about how to optimize their websites and listings for discovery on generative AI engines—but those efforts shouldn’t come at the expense of SEO, since the vast majority of shoppers continue to surface products via Google and other traditional channels.

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.

Procter & Gamble’s strategy of delivering innovation over discounts is helping it navigate economic uncertainty better than many of its peers. While other companies lose sales to private labels, P&G’s US market share is rising as shoppers opt to pay more for products they perceive to be higher quality. Rather than follow competitors by discounting heavily, P&G is focused on delivering superior products—in addition to messaging that emphasizes the potential cost-savings of using them. That strategy allows it to offer more value to customers (and raise prices) without losing loyalty.

Rising restaurant prices are reshaping how Americans dine out. As 82% of consumers notice higher prices, many are cutting back, especially lower-income households. This shift has boosted value-focused chains like Chili’s and Texas Roadhouse, which have gained market share through affordable bundles and barbell pricing strategies that balance cost-conscious and premium offerings. In contrast, chains that serve less affluent consumers, such as McDonald’s, have seen visits fall despite renewed value promotions. With profitability concerns mounting, operators face pressure to raise prices carefully while using targeted deals and loyalty programs to sustain demand and protect margins.

The fourth quarter is shaping up to be a strong season for travel companies catering to affluent consumers—but an uncertain one for everyone else. From the perspective of the Big Four airlines—American, Southwest, Delta, and United—holiday demand looks strong. But hotel operators are warning of weakness as interest in US travel declines. And while affluent consumers are driving travel spending, much of that money is being spent on international trips. That’s small consolation for the many retailers and restaurants that are counting on domestic demand to make up for declining inbound tourism.