This Week in Retail #82
Hey Friends,
The White House has granted TikTok another 90-day extension to continue operating in the U.S., pushing back the original June 19 deadline. President Donald Trump plans to sign an executive order this week, marking the third extension since the enactment of a "sale-or-ban" law requiring China-based ByteDance to divest TikTok’s U.S. business. The administration emphasized that Trump "does not want TikTok to go dark."
According the Retail Dive, retail sales rose 5.2% year over year in May across key sectors, with e-commerce up 6.3%, according to the U.S. Commerce Department. Despite declines in electronics (-1.2%) and department stores (-2.8%), other categories saw gains:
Apparel: +5.8%
Home furnishings: +8.8%
Sporting goods: +2.8%
General merchandise: +3.5%
The National Retail Federation (NRF) reported a slightly lower growth rate of 4.2%, noting shifts in spending behavior due to economic uncertainty.
Analysts say May’s slower growth reflects a “reset” following a March–April spike, when consumers accelerated purchases in anticipation of tariffs. With many tariffs delayed or rolled back, and a 90-day pause on reciprocal tariffs set to expire in July, uncertainty still looms.
The U.S. Census Bureau announced the following advance estimates of U.S. retail and food services sales for May 2025:
U.S. retail sales fell sharply by 0.9% in May, worse than the expected 0.6% drop, as consumers pulled back spending amid tariff concerns, falling gas prices, and economic uncertainty. April sales were revised to a 0.1% decline. Excluding autos, sales dipped 0.3%, but the control group (used to calculate GDP) rose 0.4%, signaling underlying strength in certain categories.
Biggest drops came from autos (-3.5%), gas stations (-2%), and building materials (-2.7%), while online sales (+0.9%), furniture (+1.2%), and miscellaneous stores (+2.9%) posted gains.
Despite improved consumer sentiment in May, many shoppers are cautious, favoring deals and holding off major purchases. First-quarter GDP shrank 0.2%, but second-quarter growth was forecast at 3.8% before the retail sales report.
Amazon has officially announced that Prime Day 2025 will run from Tuesday, July 8 through Friday, July 11, marking the longest event in its 10-year history. While specific deals haven’t been revealed yet, Amazon promises millions of markdowns.
Shoppers don’t have to wait—early Prime Day deals are already live, with major discounts (up to 80% off) on popular items like Apple AirPods, Coach bags, and Dyson vacuums.
Dick’s Sporting Goods and Golf Galaxy are now available on Uber Eats across 800+ U.S. locations. Customers can order and receive athletic gear, literally anything from cleats to yoga mats, on-demand or via scheduled delivery. Introductory offers include up to 30% off select gear and free delivery for Uber One members through June 30.
Strategic significance
Omnichannel acceleration: Dick’s embraces speed and convenience to meet demand for last-minute gear marking a competitive edge versus traditional e-commerce carts.
Uber Eats as super-app: Uber is expanding beyond food and groceries into on-demand retail. This partnership further solidifies its position as a multi-category delivery platform.
Growth blueprint: Uber has already added partners like Five Below, Family Dollar, and 1‑800‑Flowers—positioning itself as a go-to app for instant shopping.
To me this is a fantastic idea for a couple of other key reasons……Have you ever seen a travel sports team take over a Dick’s Sporting Goods when they arrive into town or in-between games? Undoubtedly, anytime there is travel involved, something is forgotten and this gives a level of flexibility to parents that doesn’t involve using their few minutes of off-time going to and from Dick’s Sporting Goods. Also, with the latest news around the Footlocker acquisition, what does this mean for footwear? I would love to see Uber Eats drivers picking up Jordans at the latest drop. That’s a little farfetched, but all around….Great move DSG in this partnership.
Amazon just unveiled three new AI systems that are quietly transforming its logistics engine:
Wellspring: A mapping AI that uses satellite images, road data, customer tips, and millions of delivery photos to pinpoint exact apartment units and optimal parking. It's already improved delivery precision at over 6 million U.S. addresses, reducing lost packages and speeding up drop-offs.
Next-gen Forecasting: A predictive inventory model that factors in weather, regional events, and pop culture (e.g., Barbie-themed spikes) to better forecast demand. It's helping Amazon move items closer to customers, reducing delivery times and emissions across the U.S., Canada, Mexico, and Brazil.
Agentic AI for Robots: Warehouse robots can now understand plain English and make real-time decisions. Think: “Move the yellow totes to outbound door three.” This upgrade boosts efficiency and frees human staff for higher-value tasks.
For shoppers, this means faster deliveries (sometimes within hours), better product availability, and fewer “out of stock” moments during regional surges.
Amazon is pushing further into predictive commerce, building on its vast data and robotics infrastructure. While rivals like Walmart and Target are innovating too, Amazon’s scale and AI lead remain hard to match. Still, privacy concerns loom over how deeply the company maps homes and stores delivery data.
Cantaloupe, Inc.—a leader in self-service commerce and payment technologies—has agreed to be acquired by 365 Retail Markets, a fellow unattended retail tech innovator, in an all-cash transaction valued at $848 million. The deal will take Cantaloupe private and is expected to close in the second half of 2025.
The merger brings together two complementary powerhouses in unattended retail. Cantaloupe’s strength in payment solutions and software services pairs with 365’s self-checkout and foodservice-focused technologies, creating a more diversified and global platform. Together, the companies aim to serve a broader customer base across convenience services, hospitality, entertainment, and traditional retail—with a growing footprint in North America, Latin America, and Europe.
What does it mean for Retail:
Streamlined tech stack: A unified platform for payments, kiosks, telemetry, and smart retail.
Accelerated R&D: The combined entity plans to double down on innovation, rolling out new products and capabilities faster.
Expanded reach: From vending and micro markets to large enterprise solutions, this acquisition strengthens support across both FSO (foodservice operators) and non-FSO environments.
The $11.20 per share purchase price represents a 34% premium over Cantaloupe’s pre-rumor share price, signaling confidence in the future value of unattended retail. Backed by private equity firm Providence, 365 gains both financial firepower and expanded capabilities at a time when demand for frictionless, tech-enabled experiences is rapidly growing.
This deal underscores the rising importance of automated retail and contactless commerce. As convenience continues to dominate consumer expectations, platforms that unify hardware, software, and payments are increasingly attractive—not just to operators, but to investors betting on the future of retail infrastructure.
Peloton has appointed Megan Imbres—formerly of Apple Marcom LA, Amazon Ads, Netflix, and Quibi—as its new Chief Marketing Officer, effective July 7. She succeeds Lauren Weinberg, who stepped down after 16 months, marking the fourth person in this role since 2020.
Some Things to Consider:
Executive turnover turbulence: The CMO role has seen high turnover: Treseder (2020–22) → Weinberg (16 months) → now Imbres—indicative of instability or strategic shifts.
Marketing budget pressure: Peloton slashed marketing and advertising spending by ~46%, from $113M to $61M in Q3, aiming to reduce customer acquisition costs after pandemic-fueled demand normalized.
Turnaround push: Imbres brings a strong direct-to-consumer and brand-marketing background—focused on cultural impact and data-driven performance marketing. She’ll lead global brand, growth, creative, consumer insights, and member engagement.
Parallel CTO shift: Peloton also created a CTO role, appointing Francis Shanahan to drive tech and AI initiatives—a nod to enhancing digital capabilities.
Peloton is playing catch-up post-pandemic: subscription growth has slowed, churn remains a concern, and the company needs fresh leadership to reverse course efficiently. Imbres, with a TV and brand background, suggests a pivot toward storytelling and lifestyle positioning beyond hardware sales.
Craft retailer Michaels is launching its largest Halloween collection ever—starting in June. With themed rollouts stretching through August, the brand is leaning into early holiday enthusiasm. The Halloween creep is real. “Summerween” is more than a novelty—it’s a growing revenue driver. Michaels is smart to lean in early and own the crafty corner of spooky season.
Global superstar Shakira is entering the beauty business with Isima, a line of textured-hair products designed for Latin shoppers. The brand launches online Monday and hits Ulta stores July 6, including locations in Mexico in August.
Celebrity brands still have juice—especially when they speak authentically to underrepresented audiences. Isima targets a gap in textured-hair care and rides the momentum of Ulta’s diversity-focused Conscious Beauty lineup.
That’s all folks……Have a great week.