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Walmart rolls out series of initiatives to attract customers to its stores and boost ecommerce business: The retailer is opening a cashierless Sam鈥檚 Club store, adding pet care centers, and automating more distribution centers.

Like Walmart, Amazon has technological savvy and deep payments expertise鈥攑lus deep pockets to finance the endeavor. It also already offers an ACH-based pay by bank option, making a real-time solution the next logical step. Walmart will pilot a pay by bank cash-back and discount rewards program for customers.

What鈥檚 next for retail media? The rapidly expanding ad channel is facing growing pains as the majority of RMNs struggle to keep pace with Amazon and Walmart.

On today鈥檚 podcast episode, we discuss what malls are doing well (and why), the reasons folks have been skipping the mall, and why IKEA and Walmart bought one each. Listen to the conversation with our Senior Analyst Sara Lebow as she hosts Analysts Emmy Liederman and Rachel Wolff.

Consumers focused on value in 2024: Retailers and brands like Aldi, e.l.f. Beauty, Temu, and Walmart benefited from consumers' growing cost consciousness.

Consumers plan to return to malls this holiday season, shop more in-person: Mall visits are expected to rise 18%, which is good news for department stores鈥攁lthough Amazon, Walmart, and Target remain top destinations.

At the same time, Walmart has gained traction with affluent shoppers鈥擳arget鈥檚 core audience鈥攖hanks to low-priced groceries, revamped stores, and improved private label offerings. Target also remains vulnerable due to its reliance on discretionary spending, which continues to soften as consumers tighten their wallets.

But on-site ad inventory is finite, and its worth to advertisers is inextricably tied to ecommerce traffic, which leaves most retailers at a disadvantage. Further adding to on-site woes, advertisers have begun to question the ROI of ads so close to the bottom of the purchase funnel. Retail media鈥檚 biggest players are maxing out their owned and operated surfaces.

Record holiday sales helped retailers, but purchasing patterns across income groups diverged starkly. Middle- and lower-income consumers grew more selective, carefully weighing where and when to spend amid economic uncertainty. Meanwhile, higher-income shoppers continued to spend freely.

Retail media is evolving beyond ecommerce, with Amazon and Walmart leading the charge. Amazon, the dominant force in the space, grew its advertising revenues 18% YoY to $17.28 billion, further solidifying its lead. But the company鈥檚 Q1 guidance fell short of expectations. Economic uncertainty could slow retail media growth as brands tighten budgets.

Go deeper: Want more consumer shopping traffic benchmarking data? PRO+ subscribers have access to Industry KPIs, our collection of more than 400 benchmarks in marketing and retail and ecommerce across a range of industries and countries. Click here for more information.

Fewer, smaller discounts could make Prime Day less enticing to shoppers鈥攐pening the door to competitors like Walmart that are able to offer better value.

Walmart reversed its DEI policies in November 2024, while Target announced it would scale back its DEI programs in January. These reversals sparked significant consumer backlash, including a 24-hour economic blackout on February 28, a 40-day Target boycott in March, and a weeklong Walmart boycott in April.

Walmart will invest $6 billion in Mexico this year: The move could protect it from growing anti-American sentiment.

Walmart is all in on metaverse commerce: The retailer partnered with Minecraft on an immersive gaming experience.

Efforts by key retail partners such as Walmart to curb retail theft by locking up products also affected sales, Hieronimus said. Looking ahead: For all the difficulties it faces in the US, the company is better positioned than most beauty brands to navigate tariffs.

Amazon鈥檚 earnings follow a familiar pattern: The retailer expects solid sales growth as investments in convenience resonate with shoppers, but profits will be pressured as tariffs take their toll.

Amazon and Walmart show ads to virtually every shopper on virtually every search result page. Collectively, the two powerhouses claim over 80% of retail media ad spending; Amazon comprises three-quarters, and Walmart comes in at a distant second.

Retailers turn to genAI to help with product listings: Puma, Walmart, and Amazon are among the companies that see the tech as an opportunity to deliver a more personalized, relevant experience to shoppers while improving productivity.

But Klarna鈥檚 recent moves like its Walmart and JPMorgan Payments tie-ups can help it maintain its growth as it figures out what鈥檚 next for its IPO.

ChatGPT's shopping tool threatens retail media revenues: Its product search could siphon ad dollars from retailers struggling with tariffs, higher prices, and weak demand.

TikTok is restructuring its governance and experience team: The move affects marketplace safety within TikTok Shop and may be a response to the platform鈥檚 underperformance last year.