Walmart has unveiled an aggressive expansion and modernization plan for its 2026 fiscal year, focusing on enhancing its physical footprint to meet evolving consumer habits. The retail giant plans to remodel more than 650 stores (including Supercenters and Neighborhood Markets) and open approximately 20 new locations across North America through early 2027.

The commercial real estate industry is facing a significant "trust gap" when it comes to delegating high-stakes financial decisions to AI. While AI can process data at lightning speeds, industry leaders remain hesitant to let algorithms lead the underwriting process for multi-million dollar deals.

7-Eleven is set to close 645 stores across North America (the U.S., Canada, and Mexico) during its 2026 fiscal year, which runs through February 2027. This move is part of a massive strategic "optimization" by its Japan-based parent company, Seven & i Holdings, to boost profitability and modernize its retail footprint.

The adoption of AI-driven shopping tools is currently hindered by a significant gap in consumer trust and privacy concerns. While interest in AI is high, only 39% of Americans trust AI agents to handle everyday purchases, and even fewer (34%) are comfortable using them for larger items.

The report highlights a "privacy paradox": consumers want the convenience and personalization AI offers, but are deeply skeptical of how their data is used. Key barriers include:

• Transparency: A lack of clarity on how AI models process personal data.

• Accuracy: Fears that AI might make incorrect purchasing decisions or provide poor recommendations.

• Security: Concerns regarding data breaches and the potential for financial fraud.

For retailers to bridge this gap, the study suggests focusing on "Responsible AI"—demonstrating ethical data usage, providing clear opt-out options, and ensuring that the AI provides a tangible benefit that outweighs the perceived privacy risk.

The National Retail Federation forecast that retail sales in 2026 will grow 4.4% over 2025 to reach $5.6 trillion, exceeding the 3.6% average annual sales growth over the past 10 years excluding the pandemic period. The forecast, developed in partnership with Oxford Economics, notes that higher-income households will drive the majority of spending growth across retail categories, with consumer activity receiving a modest boost from tax refunds associated with the Working Families Tax Cut Act.  Although consumer sentiment is not expected to improve significantly and remains historically low, NRF emphasizes that sentiment has remained disconnected from actual spending patterns, with solid fundamentals including income growth, household balance sheets, and labor market stability expected to support consumer activity. While the forecast presents a stronger outlook than most recent projections, renewed tensions in the Middle East and trade policy challenges add uncertainty, though these geopolitical events were not factored into the current forecast and could trigger a revision if circumstances dictate. 

Multiple major retailers report that shrink levels have declined significantly and are returning to pre-pandemic levels, with industry experts calling it "a nonevent" compared to recent years. Target's shrink returned to pre-pandemic levels in early 2026, down from expectations that shrink would reduce 2022 profits by $600 million, with executives attributing improvements to team efforts and industry collaboration against retail theft. Loss prevention experts suggest the improvement stems primarily from inventory predictability and supply chain stability rather than dramatic drops in shoplifting, as the pandemic-era supply chain disruptions that caused excess inventory in 2022 have now stabilized. Industry consultant Brand Elverston estimates that shrink losses are likely split evenly between theft and operational breakdowns such as inventory management errors, challenging the long-held narrative that theft accounts for nearly 70% of losses. 

Plus-size apparel retailer Torrid plans to close up to 30 additional stores by the end of the first half of fiscal 2026, completing a store optimization program that saw 151 locations close in fiscal 2025. The company achieved $18.5 million in operating expense reductions from the 2025 closures and minimized exit costs by structuring closures around natural lease expirations, with customer retention rates from closed locations performing consistently with historical levels. Torrid delivered $1 billion in fiscal 2025 net sales and $63.6 million in adjusted EBITDA, exceeding expectations, while launching five sub-brands that generated approximately $70 million in sales. For fiscal 2026, the company projects net sales of $940 million to $960 million and adjusted EBITDA of $65 million to $75 million, representing up to 140 basis points of margin expansion as it focuses on customer acquisition and digital growth. 

Arts and crafts retailer Michaels announced it is cutting prices on more than 3,000 items as consumers remain price-conscious and economically uncertain. The price reductions average 10% lower than original prices and span categories including arts and crafts, party goods, sewing supplies, home décor, and DIY materials, representing the final phase of a value-driven initiative rolled out over recent months. In October, Michaels also reduced the price of in-store birthday parties by 50% and lowered prices on over 200 party products by between 25-70%. The company is attempting to attract budget-conscious shoppers and capture customers from former competitors like Party City and Joann while economic pressures including rising gas prices and global uncertainty raise concerns about weakening consumer spending.