Whole Foods’ Main Supplier Targeted in Cyber Breach 💻

Amazon has reorganized its health-care business into six divisions in a bid to streamline operations and clarify strategy after a series of executive exits. The move comes as the company continues to pursue growth in the fragmented U.S. health market, which it has been trying to crack for years through acquisitions like PillPack and One Medical.

United Natural Foods (UNF), the primary distributor for Amazon-owned Whole Foods, reported a cyber attack that forced parts of its IT systems offline and disrupted operations. The company disclosed the breach in a filing with the U.S. Securities and Exchange Commission on June 10, warning of ongoing issues with order fulfillment.

The attack was detected on June 5 and has since impacted UNF’s ability to process and distribute goods to over 30,000 locations across North America. Whole Foods accounts for nearly 23% of UNF’s $31 billion in annual net sales, making the retailer its largest customer. The two companies signed a renewed distribution agreement in 2024, extending their partnership through May 2032.

UNF did not confirm whether a ransom demand was made. It has implemented temporary workarounds to minimize disruption and is working to bring its systems back online safely. Law enforcement has been notified, and an internal investigation is underway.

Rebag, a resale platform for high-end accessories, has partnered with Amazon’s Luxury Stores to offer a selection of over 30,000 pre-owned items. The collection includes handbags, watches, and jewelry from brands like Hermès, Rolex, Louis Vuitton, and Cartier.

Rebag will fulfil orders placed on Amazon, while Amazon will provide free shipping and returns. All items will go through Rebag’s standard inspection and authentication process. Prices will match those listed on Rebag’s website, and sellers must still consign their items directly through Rebag.

This marks one of Rebag’s largest collaborations to date, following past partnerships with Bloomingdale’s and the launch of its own membership program. For Amazon, the move is part of a broader push into luxury e-commerce, which has included tie-ups with Saks Fifth Avenue, Rent the Runway, and several luxury resale companies.

Marks & Spencer has resumed taking online orders, six weeks after a major cyberattack forced the British retailer to pause e-commerce operations across its clothing and home categories.

Shoppers in England, Scotland, and Wales can now access a limited selection of fashion items for home delivery, the company announced. Additional products, including beauty and homeware, as well as delivery services to Northern Ireland, are expected to be rolled out in the coming weeks.

The incident, which occurred over Easter weekend, severely disrupted M&S’s website, click-and-collect services, and some payment systems. The retailer estimates the breach could cost up to £300 million in lost profits this year.

U.S. consumer sentiment jumped in early June, as concerns over inflation and economic instability began to ease, according to the University of Michigan’s latest survey.

The headline index rose to 60.5, up nearly 16% from May and beating expectations of 54. The index measuring expectations for the future surged 21.9%, while current economic conditions improved by 8.1%.

Inflation expectations also declined sharply. The one-year inflation forecast dropped to 5.1% from 6.6% — the biggest one-month decline since 1981. The five-year inflation outlook fell slightly to 4.1%. However, sentiment remains lower than year-ago levels, and survey director Joanne Hsu noted that consumers still see “wide-ranging downside risks.”

Walmart has rolled out a new generative AI assistant named Sparky, designed to help customers shop smarter by summarizing reviews, offering product suggestions, and assisting with purchase planning.

Sparky, now live on the Walmart app, follows the March debut of Wally, the company’s AI tool for merchants. Built using Walmart’s in-house data and retail-focused language models, Sparky will soon support functions like reordering and service booking. It’s trained to understand text, images, audio, and video inputs.

Walmart’s research shows that while nearly 27% of consumers prefer AI-driven recommendations, nearly half are still reluctant to hand over full control of their shopping trips to AI.

Consumer prices in the U.S. rose 0.1% in May and 2.4% from a year ago, according to new data from the Bureau of Labor Statistics. Core inflation, which excludes food and energy, also increased 0.1%, down slightly from April’s 0.2%.

Food prices rose 0.3%, led by increases in cereals, bakery products, and produce. Egg prices fell 2.7%, and meat, dairy, and beverage prices also declined.

In other categories, prices rose for major appliances and toys, but fell for apparel, housekeeping supplies, and personal care products. Several retailers and brands have announced plans to raise prices in the coming months. E.l.f. will increase product prices by $1 starting in August. Nike, Lululemon, Walmart, and Target are also preparing price hikes, citing higher costs and new tariffs.

Victoria’s Secret expects a $10 million hit to second-quarter operating income due to a cybersecurity breach that disrupted its Memorial Day sale. The company, which reported flat Q1 sales at $1.4 billion and a 1% drop in comparable sales, has also seen its market share slip, according to GlobalData.

Gross margins fell 170 basis points to 35.2%, but the company swung to a $2.8 million profit from a $2.5 million loss a year ago.

Newly appointed CMO Elizabeth Preis is now focused on customer acquisition, especially for the Pink brand, which CEO Hillary Super called the company’s “No. 1 volume opportunity.” The retailer is also rolling out “stores of the future,” with plans to update around 25% of its North American and 40% of its international fleet by year-end.

The French Senate has passed a revised bill aimed at regulating ultra-fast fashion platforms, such as Shein and Temu. The legislation includes a ban on advertising by such platforms and introduces environmental penalties of up to €10 per item by 2030, capped at 50% of the product’s price.

The law distinguishes between “ultra” and “classic” fast fashion, sparing European brands like Zara and Kiabi from the stricter rules. Lawmakers argue that the bill targets companies that disregard environmental and social standards, while critics contend that it prioritizes domestic players over environmental protection.

The legislation must now go through a reconciliation process with the lower house and be reviewed by the European Commission before implementation.

TikTok reports that its U.S. in-app shopping sales have increased 120% year-over-year, driven by livestreams, the adoption of small businesses, and creator-led promotions.

The company reports that 76% of consumers who engaged with TikTok Shop made a purchase via livestream in the past year. More than 8 million hours of livestream shopping content have been hosted in the U.S., and over 171,000 local and small businesses are now selling through the platform. TikTok also claims that 70% of users have discovered a new brand through TikTok Shop.

Despite the momentum, TikTok still trails far behind its Chinese counterpart, Douyin, which generated $490 billion in e-commerce gross merchandise value in 2024. In contrast, TikTok generated $6 billion globally last year, representing a 15% year-over-year increase.

A U.S. federal judge has ruled that Amazon must face a lawsuit brought by independent authors who allege the company’s audiobook platform, Audible, engages in anti-competitive practices. The case, filed by author Christine DeMaio (writing as CD Reiss), claims that Amazon monopolized audiobook distribution by penalizing writers who do not agree to 90-day exclusivity terms.

Under the program, authors who make Amazon the exclusive distributor of their work receive 40% royalties, while others receive 25%. The lawsuit argues that this effectively forces authors into exclusivity to avoid financial disadvantage. Amazon had sought to dismiss the case, but the judge ruled there was enough evidence for it to proceed.

Audible controls over 60% of U.S. audiobook sales, compared to Apple’s 20%, according to the lawsuit. The class action seeks over $5 million in damages on behalf of thousands of independent authors.

Inditex reported weaker-than-expected Q1 results, with revenue at €8.27 billion ($9.44 billion), just below analyst estimates. Net income totaled €1.3 billion. Shares fell 4.4% following the release.

The company said summer sales growth slowed to 6% (May 1–June 9), compared to 12% in the same period last year. Executives cited continued uncertainty over U.S. tariffs and their impact on demand. The U.S. is Inditex's second-largest market.

While Inditex maintains flexible sourcing across Asia, Europe, and South America, it remains cautious about global consumer sentiment. The company is also facing growing competition from ultra-low-cost rivals like Shein and Temu, which could see new headwinds from U.S. tariff enforcement.

This newsletter was curated by Shyam Gowtham

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