The news: President Donald Trump expanded his steel and aluminum tariffs to cover 407 consumer goods that either contain, or are packaged in, aluminum or steel. The scope is wide-ranging, hitting everything from baby booster seats to microwave ovens to personal care products that come in metal containers or packaging.The news: President Donald Trump expanded his steel and aluminum tariffs to cover 407 consumer goods that either contain, or are packaged in, aluminum or steel. The scope is wide-ranging, hitting everything from baby booster seats to microwave ovens to personal care products that come in metal containers or packaging. The takeaway: The sweeping scope and sudden rollout underscore that tariff uncertainty isn’t going away—and could easily intensify. With US consumers now facing the highest average effective tariff rate since 1933, the ripple effects are clear: Higher costs will flow downstream, squeezing retailers and dampening consumer spending.

The report: Amazon is reportedly keeping its Prime Big Deal Days event to two days, per Modern Retail. If true, that’s a bit of a surprise—and runs counter to our prediction of a longer sale on a recent episode of Reimagining Retail—after Amazon touted that doubling Prime Day to four days in July produced its “biggest Prime Day event ever,” with record sales and more items sold than any previous four-day Prime Day stretch. Amazon could not be reached for comment. Our take: If Amazon limits Big Deal Days to two days, it underscores the pressures retailers face in the back half of the year as tariffs squeeze consumers and sellers. We expect Amazon’s sales to rise 8.8% during the event, a considerable slowdown from last year’s 32.0% surge. But with holiday sales forecast to grow just 1.2%, that performance may be a relative win. The bigger challenge will be sustaining momentum into Q4, as Amazon and its rivals juggle sharp discounts with the need to preserve profitability amid restrained consumer spending.

The news: Cava invested $10 million in Hyphen, the robotics startup behind Chipotle’s automated kitchen line prototype, which Chipotle has backed. Our take: QSRs’ automation bets signal a broader shift toward augmented labor rather than outright replacement. For Cava, the upside lies in freeing employees for higher-value tasks like hospitality while improving speed and accuracy for digital-first customers. But if automation expands from back-of-house prep into other areas such as beverage dispensing and loyalty-driven upselling, chains will need to walk a fine line. Too much efficiency at the expense of the human touch risks alienating customers who still value personal connection. In the long term, the winners will be those that strike the right balance between efficiency and experience.

The trend: Brands are ramping up legal action over perceived infringements of their intellectual property. Our take: With brand loyalty ebbing as price concerns take priority, more companies are leaning on the law to keep rivals from undercutting their business. But there are limits: Ecommerce marketplaces like Amazon, Walmart, Temu, and Shein are crammed to the gills with dupes that are incredibly difficult to crack down on. While companies should protect their IP wherever possible, they also need to make clear to shoppers why their products are better than knockoff versions—and why they’re worth full price.

The trend: Paper coupons are making a comeback as brands zig while their competitors zag. Direct-to-consumer upstarts like Viv For Your V, Culture Pop, and Blume are experimenting with print coupons to drive awareness and trial, per Modern Retail. The move runs counter to an industry leaning heavily digital, where advertising costs are climbing and consumer attention is fragmented. And it’s not just startups. Kroger recently introduced paper versions of its weekly digital deals after hearing from shoppers who struggle with online access, aiming to bridge the so-called “digital divide.” Our take: Brands’ use of paper coupons mirrors retailers like Dollar General, Neiman Marcus, and Amazon, which have experimented with print catalogs to grab attention in a digital-first world. With shoppers increasingly price-sensitive, less brand loyal, and actively seeking deals, a tangible coupon in hand may be just the nudge that turns browsing into buying in today’s cautious consumer climate.

Execution missteps remain a stubborn issue in grocery retail. Nearly half (48%) of shoppers have encountered pricing mismatches or promotional errors at checkout—a frequent frustration that quietly undermines trust, per a consumer survey commissioned by store intelligence provider Simbe. At a time when brand loyalty is waning, strong execution and a seamless in-store experience can be a powerful competitive advantage.

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.

As tariffs raise costs for brands and retailers, many are embracing SKU rationalization—cutting underperforming items to rein in expenses and protect margins.Retailers face a delicate balancing act: trimming costs without alienating customers. SKU rationalization may be a short-term necessity, but its long-term impact hinges on how well brands can preserve shopper loyalty while streamlining the aisle.

Quick-service chains like Starbucks, Taco Bell, and Potbelly are leaning into secret menus as a low-risk, high-reward strategy to spark buzz, drive app engagement, and crowdsource product innovation. “Secret” is one of the most powerful words in the marketing playbook—it signals exclusivity, discovery, and insider access. For QSRs, secret menus turn that intrigue into action, gamifying loyalty, testing new flavors, and tapping into cultural trends—all without disrupting operations. By inviting fans to co-create, brands get viral traction and fresh product ideas, often using ingredients already in stock. It’s a low-lift, scalable strategy to boost visits and stay relevant in a crowded, fast-moving category.

Three in four US online shoppers consider fast delivery to be important, per a YouGov survey. Just 8% believe it to be unimportant. Thanks to Amazon Prime and similar offerings, consumers have come to expect free and fast shipping. But if forced to pick between the two, shoppers will accept slower delivery speeds if it means no extra cost. That’s good news for brands that can’t afford to compete with the likes of Amazon and Walmart on speed.

More than a dozen food manufacturers have pledged to remove artificial dyes from their products in response to pressure from US Health Secretary Robert F. Kennedy Jr. and the Make America Healthy Again (MAHA) movement. The shift from artificial dyes underscores the increased sway of public health advocates and consumer demand for cleaner labels—even in the absence of conclusive science. It puts food manufacturers in a tough spot: They are under pressure to reformulate without compromising appearance or taste, all while facing steep costs and limited upside for benefits that may be more symbolic than nutritional.

The Ulta Beauty at Target partnership, which put more than 600 Ulta mini-stores inside Target locations, will end in August 2026 when the current agreement expires. The companies said they mutually agreed not to renew the deal, which launched in 2021. With this business venture set to end, Ulta will focus on new growth opportunities, while Target will gain space to focus on operational improvements and refine its retail strategy.

Roughly two-thirds (64%) of Gen Z consumers have cut spending in the past year due to higher living costs, according to an April Ipsos survey for Bank of America.Uncertainty is beginning to shape Gen Z’s purchasing decisions. Brands will need to work harder to earn their dollars—possibly by appealing to the generation’s tendency to shop for emotional relief.

More Amazon Prime shoppers purchase groceries from Walmart than from the ecommerce retailer, according to Coresight Research data reported by Grocery Dive. While grocery is a hugely important category for Amazon to conquer, its efforts so far have been hampered by a complex ecosystem. The retailer’s attempts to unify that system could result in a more seamless experience for shoppers, while its fast delivery capabilities could make it a more appealing place to shop for perishables.

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.

A key inflation gauge that excludes food and energy prices picked up in July, suggesting tariff-related cost increases are being passed along to consumers. Core CPI, which strips out energy and food, rose 3.1% YoY, up from 2.9% in June. On a monthly basis, that closely watched measure rose 0.3%, the highest increase since January and up from June’s 0.2% advance. Retailers and producers are exhausting their early strategies to shield consumers and will need to plan for sustained cost pressures. Some strategies retailers can take on include negotiating with suppliers on cost-cutting measures or the use of lower-cost materials, exploring investments in onshoring production to avoid tariffs, and increasing D2C sales in a bid to improve profit margins.

Swiss footwear company On posted raised its full-year sales and gross margin outlook, citing broad-based geographical strength as Gen Z consumers scoop up its premium-priced athletic shoes.

Companies are beginning to feel the sting of anti-US boycotts. Anti-US sentiment is especially visible in Canada, where consumers are directing more spending to local retailers and brands—and making fewer visits south of the border. Still, while Canadians are using boycotts to push back against US trade policy, there are few signs elsewhere that anti-American sentiment is driving shoppers away from US brands.

Cutting back is easier said than done. 72% of consumers made an unplanned discretionary purchase in the past month—even as 69% say they intend to cut back or maintain current levels of nonessential spending, per an Optimum Retailing consumer survey. Tried-and-true strategies like spotlighting limited-time deals, using eye-catching displays, and cross-merchandising essentials with related products continue to drive results—even when shoppers say they’re cutting back.

Saks Global has yet to make good on its pledge to resume payments to vendors, per Retail Dive, despite CEO Marc Metrick’s promise to tackle overdue balances starting in July. Saks’ acquisition of Neiman Marcus is looking increasingly like a costly misstep. The current environment is unfavorable to both luxury and department stores, as shoppers prioritize retailers and goods that deliver value. With numerous headwinds working against it, Saks will need to find a way to woo big spenders and reassure vendors—and investors—that it has the funds to cover its obligations.