Amazon used its annual seller conference, Amazon Accelerate, to unveil new tools and fulfillment capabilities that underscore its ambition to serve as the infrastructure of retail. The retailer is weaving together AI-driven tools, externalized logistics, and its vast seller network to extend its influence beyond its own marketplace. As Amazon extends its reach through MCF and Buy with Prime, it increasingly sees merchants and marketplaces not as rivals but as collaborators.

Olive Garden is testing lower-priced entrées with smaller portion sizes, parent Darden said, to woo consumers who are price-conscious as well as those on weight-loss drugs like Ozempic. Darden’s investments in pricing are helping it win spending from value-conscious consumers, who are looking to get more bang for their buck—and a clear idea of what a night out will cost them. While keeping prices low may hurt short-term profits, the company is confident that its value focus will position it to boost sales and take share.

Gap, Reformation, Balenciaga, and Alo Yoga are expanding into new categories to futureproof their businesses amid uncertainty. As spending trends shift, fashion companies are trying to shift with them. Pushing into resilient categories like beauty and jewelry may look promising on paper, but success is not assured. Brands face considerable competition from companies with more experience, and convincing customers that new offerings deliver quality and value can be a challenge.

Halloween spending will hit a record $13.1 billion this year, per the National Retail Federation (NRF). That’s up nearly 12% YoY, and well above the previous record of $12.2 billion in 2023. The healthy increase in Halloween spending reflects consumers’ growing excitement around the holiday, and retailers’ concerted efforts to cater to it. At a difficult time for retail spending, companies should take note of shoppers’ willingness to spend big on items that get them into the holiday spirit, and carry that enthusiasm forward in their assortments and messaging for the rest of the year.

Amazon has unveiled an upgraded AI-powered Seller Assistant designed to streamline operations for third-party sellers by automating product listings, ad creation, inventory management, and strategic planning. The tool, showcased at the Amazon Accelerate conference, shifts sellers from handling every task themselves to collaborating with an intelligent assistant that acts like an expert team. Already embraced by over 1.3 million sellers, it has boosted ad performance and improved listing quality, leading to higher conversions. Our view is that by lowering barriers and equipping even small businesses with sophisticated tools, Amazon strengthens its marketplace efficiency while enhancing customer choice and shopping experiences.

Beauty companies are rapidly diversifying beyond traditional sales channels to adapt to changing consumer behaviors and seize opportunities made possible by ecommerce, social platforms, and digital tools. This push is designed to forge closer, more direct connections with shoppers. Selling through multiple channels is no longer a choice in beauty. Consumers now shop across apps, websites, social media and stores, and brands that don’t meet them where they are will lose out. Still, distribution alone won’t set brands apart. Beauty companies that win will offer technology like AR try-ons, use their physical stores as hubs where people can gather for makeup classes and to sample products, and sell through external retailers while also beefing up their own direct channels.

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.

Target is expanding next-day delivery service to 35 US markets by the end of next month as it prepares for the holidays and looks to better compete with Amazon and Walmart. Markets that will gain next-day delivery include San Diego; Orlando and Tampa, Florida; Charlotte, North Carolina; and Cleveland. In stepping up its next-day delivery, Target recognizes that the competitive stakes in retail are escalating. Its recent sales softness suggests it may be at risk of falling off shoppers’ radar as speed, selection, and convenience become critical retail differentiators.

Amazon is keeping Prime Big Deal Days to two days—October 7 and 8—a shift from July's four-day Prime Day sale. The retailer said the two-day window aligns with its broader holiday strategy. With just 28 days between Thanksgiving and Christmas, the season will be a sprint. Amazon is pacing itself—and other retailers should, too. That approach lets Amazon and its third-party sellers conserve budget and promotions for Cyber Five, when competition peaks.

Best Buy is relying on its store footprint, rich first-party data on tech shoppers, and in-house creative capabilities to win more spending from endemic and nonendemic advertisers. Best Buy is smart to lean into its physical footprint to differentiate itself in retail media. While some advertisers remain reluctant to lean into in-store due to measurement concerns, Best Buy’s ability to tie purchases back to consumers and to literally turn its stores into billboards should help ease those worries. If it can succeed, Best Buy can move beyond its tech niche to become a more serious player in retail media.

AI and agents will drive 21% of holiday orders globally, an estimated $263 billion in sales, per Salesforce’s holiday forecast. GenAI is both a disrupter and a gamechanger for retailers. To avoid being left behind, retailers need their own AI tools—either built in-house or with partners like Microsoft, Google, and OpenAI—to ensure they can deliver personalized, relevant recommendations and shopping experiences. At the same time, companies need to optimize every piece of content on their sites—from product listings to reviews to FAQs—for discoverability on AI search engines to avoid falling into oblivion.

US shoppers spent steadily throughout the summer, a welcome sign of resilience as retailers brace for a tougher holiday season. While August’s retail sales report is fueling optimism around holiday spending, the strong topline growth obscures growing cracks—mainly among lower- and middle-income consumers, who are stressed about their financial situations and worried about the softening labor market. Those concerns, along with broader economic uncertainty, are keeping shoppers squarely focused on maximizing value.

Aldi plans to invest £1.6 billion ($2 billion) in the UK over the next two years as it looks to take advantage of shoppers’ “demand for discount” and cement its position as one of the country’s largest grocers. Aldi and other discount grocers are shaking up the supermarket landscape, both in the UK and US, through their rapid expansion and array of affordable—and more exciting—products. Their success gives competitors a blueprint to keep shoppers from trading down. That includes investing in a tiered selection of private-label products, lowering prices where possible, and satisfying consumers’ desire for at-home indulgences.

China’s economy slowed broadly in August, raising the stakes for the current round of trade negotiations with the US. Consumption, investment, and industrial output all slipped last month, a troubling sign for both China’s economy and global growth. These factors increase pressure on Beijing to roll out more stimulus support. Whether the government will do so is another question: It has so far resisted introducing broad-based initiatives to shore up the struggling property market and reduce unemployment, both of which continue to be a major drag on sentiment.

Value menus are the rare bright spot in an otherwise sluggish year for the restaurant industry. Traffic related to value menus rose 1% YoY in Q2, per Circana. Overall restaurant traffic fell by 1% YoY in the same period, indicating that meal deals are getting diners to open their wallets. But as restaurants have also discovered, meal deals alone aren’t enough to get customers through the door. Instead, operators need to excite would-be diners about what they’re offering—whether by emphasizing the scale of their discounts, product or service quality, or the temporary nature of offers.

Retailers are expanding their footprint on college campuses. PacSun and Bath & Body Works are among the brands looking to boost recognition and build long-term loyalty. With Gen Z's spending power projected to reach $12 trillion by 2030, brands are smart to meet these consumers where they are. By making their products convenient to college students, retailers increase the odds that those shoppers will give them a try—and potentially form lifelong brand connections.

Robotaxi deployments are moving from pilots to broader rollouts as companies try to cash in on advancements in autonomous driving. Lyft recently began robotaxi tests in Atlanta, and Amazon's Zoox launched in Las Vegas. For companies investing in robotaxis, the opportunity extends beyond passenger rides. These fleets could eventually serve as a backbone for cost-saving delivery services, expanding the commercial applications of the technology. With Uber and DoorDash testing delivery robots, robotaxis could be the next move in on-demand logistics, moving beyond transporting passengers to carrying packages, meals, and groceries.

Cracker Barrel and Jaguar faced fierce backlash over recent rebrands, including criticism from Donald Trump, but their responses diverged sharply. Cracker Barrel scrapped its new logo, ended DEI initiatives, and restored traditional elements after customers accused it of abandoning its heritage. Jaguar, however, doubled down, unveiling a bold redesign and luxury EV despite Trump’s attacks, signaling a pivot toward younger, wealthier buyers. The contrast underscores how brand reinventions can either alienate loyalists or attract new audiences, with success hinging on timing, cultural awareness, and a clear long-term strategy.

Elevated interest rates, high prices, and weak consumer confidence are straining the housing market and, by extension, furniture sales. RH CEO Gary Friedman called the current climate the third worst he’s seen in nearly four decades, with industrywide discounting becoming a survival tactic. Tariff uncertainty is adding pressure after Donald Trump threatened new levies on imported furniture, a move Friedman warned could be devastating. RH is mitigating risks by diversifying sourcing and boosting US output, but tariffs are still set to cut $30 million from forecasts and delay Sourcebook shipments, shifting revenues into future quarters.

Amazon’s push into fresh grocery delivery is more of an opportunity than a threat for Instacart, according to CEO Chris Roger. But while Instacart is right to see enterprise opportunities from chains worried about Amazon’s grocery expansion, it is also vulnerable to the retailer’s encroachment on its turf and similar efforts from Uber, DoorDash, and Walmart.