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Sluggish spending in February signals a challenging year: Consumers are curbing discretionary spending as sentiment plunges to the lowest level in over two years.

The CPG company is offering discounts of as much as 30% off to livestream shoppers. Our take: Brands embracing platforms like Douyin illustrates the competitive pressures facing Chinese ecommerce incumbents Alibaba and JD.com鈥攁s well as retailers like Pinduoduo.

Inflation causes Gen Z shoppers to rethink when and where they shop: Growing financial strain is forcing shoppers to adjust their spending habits.

A lot happens in a week, so every Friday we're going to analyze all the new data and provide you with some of the key takeaways. Welcome to the Friday 5. This week, teens want ads with products in action, consumers aren鈥檛 giving brands negative feedback, and St. Patrick鈥檚 Day doesn鈥檛 interest consumers as much as other holidays.

Much is in flux when it comes to tariffs: That uncertainty is putting stress on companies and consumers as they weigh whether to spend or save.

Deepening the challenge: RMNs that depend on investment from CPG advertisers will face headwinds in 2025, as the industry鈥檚 digital advertising spend is set to grow just 6.1%, a stark slowdown from the double-digit growth that defined 2023 and 2024, per our forecast. In 2025, RMNs that make up the long tail of ad spending will face harsh realities.

Companies waste no time hiking prices: The cost of everything from coffee to video game consoles to sexual wellness products is going up, which will prompt shifts in consumer spending habits.

Our forecast was up, and Magna鈥檚 was even more bullish鈥攊ncluding consumer goods, driven by a D2C shift. With all of that spending, waste was a major topic, and avoiding overspending on channels like CTV and MFA sites was consistently in focus. To facilitate more dollars moving to digital channels, players like Google began launching features like AI chatbots to create ads more effortlessly.

Walmart ended 2024 on a high note: But 2025 could tell a different story, with tariff uncertainty and economic volatility on the horizon.

Costco鈥檚 sales spiked in February: The company鈥檚 ability to offer value鈥攁nd possibly its commitment to DEI鈥攂oosted sales during a difficult month for retailers.

What I'm curious about here is if they're going to be using influencers mainly for cosmetics, beauty, health products or if they're also going to be using them to market things like food and other sort of grocery CPG? Sky Canaves:. I think they need them for everything.

Large retailers operating in commodity categories such as consumer packaged goods (CPG) are often competing for advertising budgets from the same pool of endemic advertisers, while smaller specialty retailers have fewer endemic advertisers to choose from in the first place. Extending ad inventory to non-endemic advertisers is one way to broaden the pool of potential revenues.

Dollar General鈥檚 core customer is under considerable financial strain: Many shoppers can only afford basic essentials as inflation and economic uncertainty take their toll.

Instacart projects healthy order growth thanks to Uber partnership, affordability initiatives: But profitability is under pressure as ad growth slows and basket sizes shrink.

Trader Joe鈥檚 opened 34 new stores last year: The grocer is rapidly expanding to capitalize on consumers' appetite for private labels and value.

The future of Super Bowl advertising is multi-platform: Brands are investing in second-screen engagement and digital-first campaigns to maximize impact beyond the game.

Physical retail remains crucial, said Flores-Marquez, but there are key differences when it comes to connecting with these consumers:. Product samples and store demos are more likely to influence them. Store visits often initiate research rather than immediate purchase. Quality verification takes precedence over immediate deals. Don鈥檛 think that high-income consumers spend with abandon.

Walmart enhanced its online marketplace with new capabilities and seller solutions, the retailer announced at its annual Walmart Marketplace Seller Summit this week. Updates include the addition of premium beauty products, expanded fulfillment services, and revamped seller solutions.

Social commerce is gaining momentum in the UK鈥攚ith sales set to double by 2028鈥攁s major brands join TikTok and as more people shop on social platforms.

ShopMy gains traction in making creator marketing measurable: The platform, which is used by more than 550 brands, raised $77.5 million at a $410 million valuation.

It鈥檚 about to get a lot harder to get cheap GLP-1s: Rising costs may force consumers to cut back on discretionary spending, creating headwinds for retailers already fearing tariff-driven cost increases.

This week, consumers are concerned about tariffs but continue shopping via mobile and on low-price retailers associated with China. Consumers are also less focused on fast delivery and flocking to Google for reviews.

Nearly three-quarters of Gen Alphas (ages 1 to 12) are online. This means they will likely be more adept than their predecessors at navigating digital spaces and using tech.