Target Tweaks In-Store Fulfillment Model 🎯

Target is scaling back its reliance on in-store fulfillment for online orders, signaling a major operational shift as the retailer seeks to enhance the customer experience and reduce pressure on store staff.

The company has begun asking select locations, starting with some in Chicago, to halt digital order packing and instead redirect fulfillment to larger-format stores. COO and incoming CEO Michael Fiddelke says the strategy is about creating consistency in stores while preserving efficiency in delivery.

🔁 New Fulfillment Models: Target plans to expand its test to 30–40 markets by year-end, shifting online order fulfillment to larger stores with better capacity. While 96% of sales are still fulfilled in-store, select locations will now focus solely on front-end service and drive-up.

🛒 Employee-Friendly: The move follows rising internal discontent, with 40% of Target employees expressing doubt about the company’s direction in a June survey. Critics say digital fulfillment has strained store operations, and scaling it back may ease pressure.

📋 Lessons Learned: Target has been overhauling its operating model to fix supply chain issues, especially after a 2022 inventory glut hurt performance. It’s also building 10 new supply chain hubs to strengthen its omnichannel strategy and boost efficiency.

Starting September 1, Costco will enforce a new policy giving its $130-a-year Executive Members exclusive access to stores from 9 to 10 a.m. on weekdays and from 9 to 9:30 a.m. on Saturdays.

Other members, including Gold Star and Business tier shoppers, will be barred from entry during these times. According to reports, the rule, initially introduced in June with a grace period, is now being strictly implemented.

💰Loyalty Perks: Costco says the early shopping window is meant to reward Executive Members for their loyalty. These members also receive a $10 monthly credit and other perks.

✅ Priority Customers: Though under 50% of Costco shoppers hold Executive Memberships, they contribute a hefty 73% of total sales, making them the company’s most valuable customer segment and a key reason behind the exclusive perks.

🚀 Year of Changes: The new access rule comes amid other major shifts at the wholesale giant. Earlier this year, Costco ended its decade-long deal with Pepsi and returned to Coca-Cola products nationwide.

Uber Eats has partnered with Dollar Tree to offer delivery from 9,000 of its stores across the U.S., marking the retailer’s largest delivery initiative since its 2021 tie-up with Instacart. The move follows similar partnerships Uber has struck with Dollar General and Family Dollar, expanding its reach in suburban and rural markets.

The partnership offers customers discounts and aims to boost accessibility to low-cost essentials via on-demand delivery. Dollar Tree’s announcement comes amid ongoing margin pressure and tariff concerns that have weighed on its earnings outlook.

For Uber, the deal strengthens its non-restaurant retail play, as it competes with Instacart, DoorDash, and Amazon in last-mile logistics. The company’s stock has gained momentum in recent quarters on the back of such diversification efforts.

PepsiCo has expanded its investment in Celsius Holdings with a $585 million deal that raises its stake to around 11%, up from the 8.5% acquired in 2022. The move signals a stronger push into the fast-growing energy drink category as consumer demand shifts toward health-conscious, low-sugar alternatives. Celsius has gained popularity with its vitamin-infused beverages and recently acquired Alani Nutrition for $1.8 billion.

Under the new arrangement, PepsiCo will lead U.S. and Canadian distribution for Celsius, Alani Nu, and Rockstar Energy. The company is also broadening its “better-for-you” portfolio, having earlier purchased prebiotic soda brand Poppi for nearly $2 billion.

Rival beverage firms like Keurig Dr Pepper are making similar plays, with a recent $990 million stake in Ghost Energy. The intensified focus reflects a wider industry shift toward fitness, wellness, and lifestyle drinks.

Taco Bell is reassessing its AI-powered drive-thru ordering system after a series of viral videos highlighted major glitches. In one widely shared clip, a customer deliberately ordered 18,000 water cups, apparently overwhelming the system. The technology, introduced at over 500 U.S. locations since 2023, was designed to speed up service and reduce errors; however, it has instead drawn criticism for causing confusion and poor performance.

The company’s Chief Digital and Technology Officer acknowledged the challenges, noting that human staff may still be better suited for handling busy service windows.

Taco Bell now plans to guide teams on when to use AI and when to intervene manually. While not abandoning the tech, the chain says it is “learning a lot” and will be more selective about future deployment. McDonald’s also recently pulled its AI drive-thru after similar failures,

Consumer sentiment in the U.S. fell to a three-month low in August, with Americans expressing greater anxiety over inflation, tariffs, and employment prospects.

According to the University of Michigan's latest survey, the sentiment index dropped to 58.2 from 61.7 in July, as more consumers expected rising prices and higher unemployment. Short-term inflation expectations climbed to 4.8%, while long-term expectations eased slightly to 3.5%.

The dip in sentiment comes despite a rebound in consumer spending, which rose in July at the fastest pace in four months. Still, uncertainty around buying conditions, especially for vehicles and durable goods, has grown—largely due to high prices and ongoing tariff concerns. Meanwhile, Federal Reserve Governor Christopher Waller has indicated support for interest-rate cuts as early as September to help boost job growth.

Best Buy posted better-than-expected revenue and earnings for its fiscal second quarter, but maintained a cautious full-year forecast due to ongoing tariff uncertainties and selective consumer spending.

The electronics retailer reported adjusted earnings of $1.28 per share on $9.44 billion in revenue, beating analyst estimates, but CEO Corie Barry warned of potential tariff-related headwinds in the months ahead.

Comparable U.S. sales rose 1.1%, driven by strong demand for laptops and gaming consoles like the Nintendo Switch 2. However, appliance and home theater sales remained sluggish, and shoppers continued to hold off on big-ticket purchases. Best Buy is leaning on promotions, expanded brand partnerships, and new in-store experiences to reignite growth in key categories.

Fast-fashion retailer Forever 21 is making a fourth attempt to crack the Chinese market, relaunching with a new partner, Chengdi, which is partly owned by Chinese e-commerce firm Vipshop. The brand has begun marketing aggressively across major Chinese cities and plans to open physical stores again in 2026, after winding down its previous China operations in late 2024.

In North America, Forever 21 is also seeking new partnerships following its second U.S. bankruptcy filing in March 2025. Authentic Brands Group, which owns the label, said the U.S. and China are the company’s near-term focus. Despite past setbacks, the brand is betting on localized strategies and youth-focused campaigns to revive its presence in key global markets.

Nike is laying off less than 1% of its corporate workforce in a new round of cuts aimed at repositioning the company for growth. The move is part of CEO Elliott Hill’s broader turnaround strategy to shift focus back to core athletic segments and product innovation.

The layoffs are limited to corporate staff and exclude Nike’s EMEA and Converse units. U.S. and Canadian office-based employees will work remotely next week as restructuring discussions begin. Most changes will be finalized by late September.

The move follows Nike’s earlier 2% workforce reduction in 2024 and comes as the company seeks to strengthen wholesale relationships and revive flagging sales.

Asian beauty retailer Sukoshi is set to open its largest North American store next month in New York City’s Upper East Side. The store, located on Third Avenue and styled in a signature matcha green theme, will showcase products from Red Chamber and Girlcult—two standout Asian beauty brands.

This move marks a major milestone in Sukoshi’s U.S. expansion, with the Canadian-based company planning over 20 store openings across the country this year. New locations are scheduled in high-traffic shopping destinations like Lenox Square, Aventura Mall, King of Prussia, and Bellevue Square.

Founded in 2018, Sukoshi already operates 15 stores across North America and emphasizes discovery-driven retail experiences. CEO Linda Dang said the brand is focused on “creating spaces where discovery and education make beauty more meaningful.”

Canadian fashion retailer SSENSE has filed for bankruptcy protection under Canada's CCAA, citing liquidity pressures from U.S. trade policy changes. CEO Rami Atallah said the surprise elimination of the de minimis exemption—which previously allowed duty-free U.S. imports under $800—alongside a lender-initiated sale process triggered a financial crisis that could not be resolved through short-term measures.

The company will continue operations and pay employees during the restructuring. SSENSE says it will file its own CCAA application to retain control and safeguard its assets. The Montreal-based retailer employs 1,200 people and was valued at $4 billion in 2021 by Sequoia Capital.

The move follows a broader shakeup in luxury retail and mounting concerns over President Trump's new tariffs. Canada now faces a 35% U.S. import tariff, and several North American brands have paused U.S. shipments.

Kohl’s reported stronger-than-expected second-quarter results, posting adjusted earnings per share of 56 cents against Wall Street’s forecast of 29 cents. Revenue came in at $3.35 billion, narrowly beating estimates, though net sales still fell from $3.53 billion a year ago.

Net income more than doubled to $153 million, aided in part by cost-cutting measures and legal settlement gains. Comparable sales dropped 4.2%, but trends improved through the quarter, with July performing the strongest. The retailer also trimmed inventory by 5% and maintained tight expense controls.

The company updated its full-year outlook, narrowing sales decline expectations to 5–6% and raising the earnings per share range to $0.50–$0.80. Interim CEO Michael Bender credited some progress to a renewed focus on lower-priced, exclusive brands, the reintroduction of categories like petites and jewelry, and stronger digital sales.