A slate of retailers boosted their outlooks following strong Q3 performances, a positive sign as the industry heads into the most important shopping period of the year. Best Buy, Dick's Sporting Goods, Abercrombie & Fitch, and Kohl's all updated their FY sales guidance, pointing to ongoing consumer resilience despite growing pessimism about the state of the economy and personal finances. The outlook for holiday spending is notably stronger than it appeared earlier this year: We expect sales in November and December to rise 3.6% YoY, slower than last year’s 4.4% growth but a significant upgrade from our May forecast.

OpenAI introduced a shopping research feature for ChatGPT that builds personalized buying guides based on user queries and past conversations. The feature is available to all ChatGPT users, including those on free plans; OpenAI is offering “nearly unlimited usage” throughout the holiday season. Making the feature widely available at no cost suggests that OpenAI is looking to get users to rely on ChatGPT for purchase decisions, which could eventually result in greater buy-in for its agentic checkout features. However, it faces stiff competition: Perplexity, Google, and Amazon have all rolled out advanced AI functions to help holiday shoppers.

Kohl’s topped Q3 expectations and raised its outlook, crediting stronger product assortments, better value through promotions, and improved in-store and digital experiences for helping it win back customers. The company also named interim CEO Michael Bender to the job permanently. Bender, the third person to hold that role in roughly three years, plans to sharpen Kohl's product assortment, offer more proprietary clothing and home goods, and make stores easier to shop to appeal to customers who are “increasingly savvy and are seeking more value.” Kohl’s was upbeat that its recovery is gaining momentum, but it has more work to do to turn sales declines into gains.

France’s government is pushing for a three-month suspension of Shein’s entire site after authorities discovered illegal firearms and sex toys for sale on its marketplace, per Reuters. It is also being sued for up to €3 billion ($3.25 billion) in damages by a consortium of French retailers and retail associations for allegedly using fake promotions to attract shoppers and failing to comply with regulatory standards. Political considerations are contributing to the crackdown on Shein as governments seek ways to protect local retailers from ultra low-cost rivals, but the company hasn’t helped its case.

Q3 was another strong quarter for Walmart and Amazon, and another weak one for Target. Shoppers are showing a clear preference for the convenience, product selection, and overall value that Amazon and Walmart offer, while being less impressed by Target’s assortment and shopping experience. Economic uncertainty is heightening the gap, as more shoppers turn to Amazon and Walmart for necessities like groceries while pulling back on the discretionary spending that fuels Target. Walmart's and Amazon's ability to combine low prices with an extensive product selection and fast and convenient delivery will serve them well this holiday season, while Target has the harder task of convincing price-conscious shoppers to spend on nonessential items.

Amazon blocked several OpenAI-affiliated crawlers from accessing its site, a move first reported by ecommerce analyst Juozas Kaziukėnas. That marks the retailer’s latest attempt to keep third-party agents from encroaching on its turf and endangering ad revenues. Amazon’s insistence on keeping AI agents at bay is the right move for the company for the time being. Adoption is minimal for now, hampered by trust issues, clunky UX, and minimal merchant participation. However, the gates will have to open at some point—and the longer Amazon waits, the more ground it cedes to rivals like Walmart.

Convenience stores are playing catch-up as they jump into retail media, exploiting their local reach to offer advertisers new ways to connect with shoppers. The brick-and-mortar landscape is highly fragmented—unlike ecommerce, where just a few players dominate. That provides an opening for convenience stores to become valued retail media partners. Their dense footprints, frequent visits, and strong ability to influence impulse buys can give brands targeted and measurable insights. C-store RMNs that can tie ad exposure to sales, use loyalty data, and offer multiple ways to surface ads are best positioned to deliver reliable performance to advertisers.

More shoppers are looking to make secondhand purchases this holiday season, according to two new reports. Nearly 40% of consumers’ holiday budgets will be spent on secondhand items, per ThredUp. The vast majority of US shoppers—81%—expect to shop secondhand for holiday gifts, according to OfferUp. Resale holds clear appeal to shoppers grappling with economic uncertainty and limited budgets. While saving money is a primary concern, shoppers are also drawn to the possibility of unearthing unique or one-of-a-kind items, as well as the environmental benefits of shopping secondhand.

US shoppers will spend $78 billion this Cyber Week, up 3% YoY and an all-time high, according to Salesforce. A record number of shoppers is also expected—186.9 million, per the NRF and Prosper Analytics. Cyber Five will be a barometer for the rest of the holiday season. While we expect healthy topline growth, driven by the resilience of higher-income consumers, shoppers on the whole are being much pickier about how and where they spend. Despite longer promo periods, most shoppers will wait for Black Friday to pull the trigger, possibly in the hopes of securing the deepest deals. AI will play a larger role this season, as more consumers turn to the technology to find gifts and secure discounts.

Gen X is projected to lead all generations in total annual spending this year, per NielsenIQ. Brands often focus on younger consumers to build long-term loyalty, but in doing so, they’re missing immediate sales potential from Gen Xers, who account for 33.2% of retail spending despite making up just 19.4% of the population. Retailers and brands should seize the opportunity to build stronger connections with Gen Xers by sharpening their marketing focus and improving in-store experiences. The brands that blend authenticity in their marketing with well-executed in-store experiences will win Gen Xers’ hearts and wallets.

Walmart, TJX, and other US retailers are deploying body cameras to combat shoplifting, harassment, and violence against staff. While the full scope of retail theft is debatable, every stolen item chips away at revenues. With tariffs and rising costs squeezing margins, retailers are testing every lever to protect the bottom line. Body cams may help—but only if they reduce loss without eroding customer trust. Retailers should exercise care in walking a fine line between safety and scrutiny.

Gap’s viral campaign featuring Katseye helped the retailer regain its fashion credibility and drive shoppers to stores. The campaign delivered “significant traffic and double-digit growth in denim,” Gap CEO Richard Dickson said on the company’s Q3 earnings call. In total, the ad generated 8 billion media impressions and 500 million views, making it one of the brand’s most successful campaigns of all time. The ad’s success is a clear indication that Gap Inc.’s playbook is working. By delivering both on-trend products and culturally relevant marketing, Gap is attracting more Gen Z shoppers while keeping its existing customer base engaged.

Bath & Body Works’ new CEO is overhauling the company’s strategy as it struggles to revive sales and win over younger consumers despite being a major player in the fast-growing fragrance space. CEO Daniel Heaf aims to fix a “slow and inefficient” organization with a four-part plan: refocusing on core categories, expanding ecommerce (including launching on Amazon in 2026), reclaiming cultural relevance through targeted promotions and influencer partnerships, and streamlining operations to unlock $250 million in savings.

Convenience stores are transforming into fast-casual dining destinations, increasingly competing with quick-service restaurants for shoppers seeking affordable, healthy meals. And while consumer perceptions of these stores continue to improve, concerns around food safety and hygiene remain potential barriers. To succeed, convenience chains can adopt strategies such as adding prep-time labels to grab-and-go items to underscore freshness and maintaining clearly visible cleanliness standards throughout the store.

Walmart raised its full-year outlook again as its strong value proposition and fast-growing ad business drive broader consumer spending. It now expects net sales growth of between 4.8% and 5.1% this year, and EPS between $2.58 and $2.63. Q3 comps rose 4.5% YoY, with higher traffic and ticket size, and gains were strongest among higher-income shoppers. US ecommerce sales jumped 28%, supported by faster delivery, rising Walmart+ signups, and 33% growth in US ad sales (excluding Vizio). Walmart is also expanding to emerging channels, including ChatGPT. Its focus on value, convenience, and tech has strengthened its position, helping it compete with Amazon and capture more holiday and online spending.

Global personal luxury goods spending is expected to return to growth in 2026, rising 3% to 5% after two difficult years, according to a report by Bain and Altagamma. Recovery is being driven by affluent shoppers, who will account for nearly half of global luxury spending this year; a wave of new creative directors reviving brands like Gucci and Chanel; and Gen Z’s demand for accessible luxury. After a tepid year, 2026 should bring a rebound, but brands will need creative, compelling designs to justify premium prices.

Perplexity is relaunching its agentic shopping product for all users next week, just in time for Black Friday, with PayPal as its key partner. The upgraded tool improves shopping intent detection and personalization using users’ past search data, while PayPal merchants will handle transactions and customer service directly. The move intensifies competition with OpenAI, Amazon, and Google, all racing to dominate AI-powered shopping ahead of the holidays. While sales from these tools are expected to remain modest, they offer brands a valuable testing ground for future ecommerce growth driven by generative AI.

TJX is confident its value proposition will resonate with shoppers this holiday season. Q4 is already “off to a strong start,” CEO Ernie Herrman said, following a better-than-expected Q3. As TJX and other retailers have repeatedly pointed out this year, off-price is one of the few retail sectors that thrives in times of uncertainty. Few retailers can compete with TJX’s value proposition—particularly its range of good-better-best merchandise, which appeals to shoppers of all budgets—and its treasure hunt experience. TJX’s continued momentum shows that retailers that can offer a compelling combination of value and fun stand to outperform this holiday season.

Target will spend $5 billion next year to upgrade stores, merchandise, and digital capabilities as it works to return to growth. Net sales fell 1.5% YoY in Q3, and traffic declined 2.7%, underscoring its exposure to weakening discretionary spending. With shoppers prioritizing value, Target has struggled to deliver enough newness. To get back on track, CEO Michael Fiddelke is focusing on restoring merchandising authority, enhancing the omnichannel experience, and investing in technology. The retailer is using AI to surface trends faster and integrating with ChatGPT to enable conversational shopping. Target’s ability to dig itself out of its current hole will largely depend on how quickly it can fix its merchandising problem and improve the in-store experience.

The US housing market remains frozen as affordability challenges, elevated rates, and tariffs choke activity, leaving prices nearly flat YoY and 75% of top markets overvalued. The slowdown has hurt major home-improvement chains—Home Depot and Lowe’s both trimmed guidance as big-ticket projects and financed spending weaken. Yet higher-end and digitally savvy retailers like Wayfair and Williams-Sonoma have held up better, with AI-driven personalization and affluent customer bases helping offset broader softness. The split underscores a K-shaped retail economy unlikely to rebalance until affordability and buyer confidence improve.