This Week in Retail #113

Holiday momentum holds, Amazon and Walmart place big bets, and luxury retail faces a long-overdue reset.

Hey Friends,

It feels good to be back. The NRF whirlwind and social hangover have finally surpassed and it’s time to get focused on the year ahead. Today we are talking about how holiday spending data proved consumers are still willing to show up, while Amazon, Walmart, and Google signaled where the next phase of commerce is heading through bold physical and AI-driven bets. We will also discuss leadership shakeups, bankruptcies, and digital-native resets across luxury and department stores underscored just how uneven the landscape remains.

Let’s get into it…

U.S. retail sales delivered a strong finish in December 2025, with holiday spending landing near the top of the National Retail Federation’s forecast and reinforcing consumer resilience. NRF data shows holiday sales from November 1 through December 31 rose 4.1 percent year over year, squarely within the projected 3.7 to 4.2 percent range and pointing to total holiday spending surpassing $1 trillion for the first time.

December momentum was notably stronger than November, helped in part by a calendar shift that pushed Cyber Monday into December. Total retail sales excluding autos and gas increased 1.26 percent month over month and 3.54 percent year over year, while core retail sales excluding autos, gas, and restaurants climbed 1.6 percent month over month and 3.58 percent year over year. For the full year, total retail sales grew 4.93 percent, with core sales up 5.08 percent.

Category performance was mixed but broadly positive, with six of nine sectors posting year over year gains. Clothing and accessories led growth, followed by sporting goods, general merchandise, digital products, grocery, and health and personal care. Electronics, furniture, and building and garden supplies declined year over year but still showed month over month improvement, suggesting stabilization heading into 2026.