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While that rate was later eased to a still-sizable 54% earlier this month, it triggered price hikes from Shein and Temu in the US that then resulted in sales falling at both platforms. With demand cooling stateside, both ecommerce giants ramped up digital ad spend in Europe as they sought to drive growth.

This evolving mindset is particularly pronounced among younger drinkers: According to a July 2024 Gallup survey, only 50% of US adults ages 18 to 35 consume alcohol, compared with 70% of those ages 35 to 54. In response to this generational shift, nearly every major beer brand has jumped into the nonalcoholic space. Budweiser, Guinness, and Heineken have launched alcohol-free offerings.

The trend: Walmart and Amazon are determined to take drone delivery mainstream. Our take: It鈥檚 easy to understand the sci-fi appeal of drone delivery鈥攂ut whether it鈥檚 feasible remains a question that retailers are still struggling to answer.

Kimberly-Clark, for example, expects tariffs to cost it an additional $300 million this year, despite the fact that the majority of its US products are sourced and manufactured domestically. That鈥檚 forcing them to walk a fine line: absorb those costs or pass them along to shoppers without losing volume.

Its supply chain diversification plan鈥攚hich limits exposure to any single non-US country鈥攑ositions it well for whatever comes next.

The insight: Discounters are experiencing a resurgence as concerns about rising prices and economic stability spur shoppers of all income levels to seek out bargain retailers. Our take: The uncertain environment in many ways benefits Dollar General, Dollar Tree, and Five Below, whose value initiatives are enabling them to win spending from cautious consumers. But鈥攁s with the broader retail industry鈥攖ariffs are a costly challenge for all three, particularly as they try to minimize price hikes and maintain their value advantage.

The news: Lululemon beat earnings expectations and met revenue forecasts in Q1, but softening demand in its core Americas market cast a shadow over the results. Our take: Even premium brands aren鈥檛 immune to macro pressures. As consumers grow increasingly cost-conscious, discretionary purchases鈥攅specially those with big price tags鈥攁re easy for consumers to postpone. Lululemon鈥檚 challenge now is not just product innovation, but convincing shoppers its value proposition is worth the premium.

Despite political pressure, McDonald鈥檚 is standing by its commitment to inclusion. While it recently replaced 鈥淒EI鈥� language with 鈥渋nclusion,鈥� its initiatives remain intact, per Bloomberg. That contrasts with brands like Target, Nike, and JPMorgan Chase, which have scaled back DEI and climate efforts amid conservative backlash. McDonald鈥檚 cosmetic rebranding reflects a strategic calculation: investing in programs it views as beneficial for business and essential to long-term brand equity, especially with key demographics. If it avoids major backlash, McDonald鈥檚 could offer a model for other brands weighing how to uphold values while managing political and reputational risk.

The news: A wave of cyberattacks is sweeping through the retail industry, with Cartier and North Face the latest to report breaches. Both companies recently notified customers that their names and email addresses had been stolen, although financial information remained secure. Our take: The surge in cyber incidents is coming at the worst possible time for retailers, who are already dealing with extreme upheaval in their supply chains and looking for any opportunity to cut costs. But M&S鈥� cautionary tale should be a wake-up call for companies to invest in cybersecurity.

Go further: Read our FAQ: How the US-China Trade War is Affecting TikTok Shop, Temu, and Shein.

In 2025, US digital gamers will spend nearly as much time playing as social network users spend on social platforms each day (1 hour, 48 minutes versus 1 hour, 51 minutes, respectively). But at $8.76 billion, US gaming ad revenues will account for just a fraction of the $102.66 billion that social networks garner in ad spending.

鈥淏ut I guarantee you something is going to hit us that we鈥檙e like, 鈥榃ow, I didn鈥檛 really expect that.鈥欌��. For brands considering a foray into Substack or any new channel, it鈥檚 important to keep in mind that not everything will go smoothly right away. 鈥淵ou have to go in humble. You do have to expect that you鈥檙e going to bump into some walls along the way,鈥� said Brommers.

Dollar General benefits from 鈥渢rade-in鈥� behavior among wealthier shoppers: The retailer boosted its outlook as discretionary spending from higher-income consumers offset lower-income caution.

If you want to do that in retail, it of course takes a lot longer.鈥�. While the retail space lacks that level of nimbleness, Bodewes is focused on bringing this experimental approach to the space鈥攚hich includes paying close attention to in-store product placement and messaging.

Wellness is becoming more digital, personalized, and consumer driven, with technology playing a central role in health management, fitness, and self-care.

While manufacturers are finding short-term opportunities by shipping more goods to countries other than the US, that strategy may not last for long amid growing worries that cheap Chinese imports could undercut local businesses.

Consumers鈥� belt tightening was good news for Campbell鈥檚 in FYQ3: The consumer packaged goods company benefited from a surge in home cooking, now at its highest rate since the pandemic.

鈥淧odcasts are incredibly cheap to produce from a creative perspective and give us national reach and a trusted person,鈥� said Wolf. 鈥淚t鈥檚 about constantly figuring out where the consumer is, where you want to reach them, and the different touchpoints that are relevant.鈥�.

Retail media鈥檚 rapid growth has spurred nonretail verticals to harness their first-party data to fuel their own commerce media networks. Retail media spending still dominates the commerce media landscape, but distinct challenger cohorts are finding their footing.

Go further: Read our FAQ on the US-EU Trade War.

We now expect US retail sales to grow at about half the 2.9% rate we forecast at the start of the year.

US Hispanics now control over $4 trillion in annual spending power鈥攅quivalent to the world鈥檚 5th largest GDP, according to UCLA and Latino GDP Project data. There are 65 million Latinos in the US market today, per the US treasury department. Projections showing Hispanics will account for 70% of homeownership growth through 2040, according to the Urban Institute.