This Week in Retail #125

AI, Value Wars, and Supply Chain Reinvention

Hey Friends,

Here’s what we are talking about today: we look at a broad set of retail and consumer shifts across technology, value competition, and supply chain strategy. We analyze GameStop’s exploration of a potential bid for eBay and what that could signal for its push into digital marketplaces and resale at scale, alongside Kohl’s rollout of AI tools aimed at both improving the shopping experience and strengthening in-store associate performance. In food service, Culver’s expansion of computer vision technology highlights how quick service restaurants are increasingly using real-time operational data to improve drive-thru speed and consistency, while Subway’s new sub-$5 value menu underscores the intensifying focus on affordability and traffic-driving promotions across fast food.

We also track major structural moves in retail and beauty, including Saks Global’s workforce reductions amid financial pressure, Estée Lauder’s deeper restructuring tied to shifting store-based roles, and Walmart’s expansion of specialized beauty associates to boost conversion in high-margin categories. Rounding out the story is Target’s new Houston Receive Center, which signals a more flexible, buffer-based supply chain model designed to better manage inventory timing and demand volatility across its network.

Let’s get into it…….

Spirit Airlines has shut down completely and is no longer operating flights after years of financial trouble and multiple bankruptcy attempts.

The airline officially ceased operations late last week after failing to secure a bailout or a viable restructuring plan. Rising fuel costs, weak post-pandemic demand, and a flawed low-cost strategy all contributed to its collapse. Spirit had already gone through two bankruptcies before finally moving into liquidation. All flights were canceled, employees were laid off, and the company began an orderly wind-down process. Travelers impacted by cancellations are being issued refunds, but rebooking has been left to other airlines.

The shutdown marks the end of Spirit’s 34-year run as one of the largest ultra low-cost carriers in the United States, and its exit is expected to shift market share toward competitors like Frontier and JetBlue.

Amazon is opening its logistics network to outside companies through a new service called Amazon Supply Chain Services, effectively turning its internal fulfillment and transportation system into a third-party logistics platform.

The service lets businesses use Amazon’s existing infrastructure for freight, warehousing, and delivery, rather than relying entirely on providers like UPS or FedEx. This includes everything from moving raw materials and storing inventory to managing final delivery to customers.

Amazon says the goal is to extend the same supply chain capabilities it built for its own retail business and third-party sellers to any company, across industries like retail, healthcare, and manufacturing. Early adopters include major brands such as Procter & Gamble, 3M, Lands’ End, and American Eagle.

Strategically, the move positions Amazon more directly as a competitor in the global 3PL market, a space traditionally dominated by logistics firms. It also mirrors the AWS model, where Amazon first built infrastructure for internal use and later sold it as a standalone service.

Gamestop is exploring a potential bid for eBay…..The idea is unconventional but not entirely irrational when you look at CEO Ryan Cohen’s playbook. Cohen has been trying to reposition GameStop from a declining physical retailer into a digitally driven marketplace, and eBay would instantly give it scale, third-party sellers, and a global commerce engine.

The financial angle matters just as much as the strategy. Cohen is heavily equity-incentivized, so a transformative deal that re-rates GameStop’s valuation could unlock a massive personal upside. That said, the gap between ambition and feasibility is huge. eBay is still a ~$30B+ company, and GameStop would need financing, partners, or a creative structure to even get close.

From a retail lens, this would be less about games and more about owning recommerce and resale at scale. That’s where the logic starts to click. Secondary markets are growing fast across categories like electronics, collectibles, and apparel, and GameStop already plays in trade-ins and refurbished goods.