This Week in Retail #116

Platforms Rise, Tariffs Fall, and Stores Evolve

Hey Friends,

Happy Monday and welcome to another edition of TWIR. I hope this email finds you well on the other side of what I am hoping is the last of the wintery weather.

Today we’re covering a major shift at the top as Amazon surpasses Walmart in annual revenue for the first time in over a decade, signaling the power of diversified digital platforms; a significant tariff ruling where the Supreme Court blocked President Donald Trump from using emergency powers to impose broad global tariffs, a decision welcomed by the National Retail Federation; Aritzia acquiring Fred Segal and reviving its iconic Los Angeles flagship as a bet on heritage and experiential retail; eBay buying Depop from Etsy to double down on younger resale shoppers; Costco testing a seasonal mint sundae in a rare food court change alongside St. Patrick’s promotions from McDonald's; restructuring at Walgreens following its acquisition by Sycamore Partners; a meaningful revenue rebound at Wayfair; expansion plans from IKEA across the U.S.; and continued turnaround efforts at Kohl's as it leans further into value messaging.

Let’s get into it……..

Let’s start by checking in on the tariff situation……The U.S. Supreme Court ruled 6 to 3 against President Donald Trump, finding that he did not have the authority under the International Emergency Economic Powers Act of 1977 to impose broad, open ended global tariffs. In an opinion written by Chief Justice John Roberts, the Court held that the Constitution gives Congress alone the power to lay and collect tariffs, and that such taxing authority cannot be delegated through vague statutory language. The ruling rejected the administration’s argument that declaring a national emergency unlocked sweeping tariff powers absent explicit congressional approval.

The decision marks a significant setback for Trump’s trade policy, particularly tariffs justified on trade deficits and fentanyl trafficking. Business groups including the National Retail Federation welcomed the ruling, saying it provides clarity for supply chains and urging lower courts to facilitate refunds to importers. While the decision curtails the use of emergency powers for broad tariffs, the administration retains authority to impose more targeted duties under other statutes, such as Section 232 of the Trade Expansion Act of 1962.

A battle for the ages…..Amazon has overtaken Walmart to become the world’s largest company by annual revenue for the first time in over a decade. For its 2025 fiscal year, Amazon reported approximately $716.9 billion in revenue, narrowly ahead of Walmart’s $713.2 billion, ending Walmart’s 13-year run at the top of the global sales rankings. Amazon’s sales edge reflects its diversified business model, which combines e-commerce with strong contributions from cloud computing (AWS), advertising, and third-party services, while Walmart’s revenue remains rooted more heavily in traditional retail and grocery sales. The shift underscores how digital platforms and tech-enabled services are reshaping the scale and influence of global corporations.