As the holiday season kicks into gear, major retailers are racing to get on shoppers’ “nice lists” by perfecting merchandise, tightening inventory, and offering value-driven deals amid ongoing economic pressure. From Saks Global battling vendor tensions and cash flow woes to Lululemon reworking its product strategy to win back lost athleisure market share, Nike balancing its DTC comeback with wholesale relationships, and Mattel gearing up for a crucial toy season, each brand faces unique challenges — and big opportunities. Experts say the key to success this season lies in retail fundamentals: fast shipping, easy returns, and reliable pricing that earn consumer trust during a make-or-break quarter.

Carter’s Inc. is taking bold steps to streamline operations and strengthen profitability amid rising tariffs and cost pressures. The children’s apparel giant plans to close 150 stores across North America by 2027 — up from 100 previously planned — and cut 15% of office-based staff by the end of 2025. These moves are expected to generate over $45 million in annual savings beginning in 2026. Despite challenges, Carter’s saw retail and international sales growth in Q3 2025, signaling steady consumer demand, even as profits slipped sharply due to higher costs. CEO Douglas Palladini said the company remains focused on improving pricing, productivity, and long-term resilience in a shifting retail landscape.

As AI reshapes how consumers discover and buy products, retailers are racing to adapt — even using AI to understand AI itself. According to experts from Wharton and Columbia, generative AI has transformed traditional shopping behavior, replacing keyword searches with personalized, conversation-driven recommendations. Retailers like Target are revamping their e-commerce strategies to ensure products surface in AI chatbot queries, while others experiment with “GEO” (Generative Engine Optimization) to boost visibility in tools like ChatGPT and Gemini. The shift is also fueling innovation in digital consumer personas and AI-driven content creation, though challenges around bias and transparency persist. As one expert put it, the retail playbook isn’t just being rewritten — it’s being reprogrammed.

Despite the rise of e-commerce, in-store shopping remains a cherished holiday tradition for most consumers. According to Quad’s 2025 holiday survey, 74% of shoppers say browsing in stores helps them get into the holiday spirit, and 76% call it a holiday ritual. Shoppers — especially Gen Z — value the joy of discovery, with two-thirds saying their favorite gifts came from in-store finds. The survey also revealed waning enthusiasm for Black Friday, with 84% of respondents preferring meaningful deals spread throughout the season instead of one-day events. For brands, it’s a clear message: the magic of retail still lives in the aisles.

Despite a wave of retail closures and bankruptcies, U.S. retail fundamentals remain strong, according to Colliers’ Q3 2025 Retail Market Statistics report. The national vacancy rate held steady at 4.3%, supported by robust absorption, limited new supply, and solid rent growth. Southern and Western metros like Miami, Dallas, and Phoenix continue to lead the market, driven by income and population growth. With rent averages rising to $25.53 per sq. ft. and construction activity focused on smaller build-to-suit projects, the retail sector is showing remarkable resilience heading into the holiday season.

This holiday season, millennials and Gen Z are leading the charge in using AI and chatbots for shopping, with 44% of millennials and 42% of Gen Z planning to rely on these tools for gift ideas, price comparisons, and product recommendations, according to an Epsilon Pulse report. ChatGPT is the preferred AI tool for 93% of Gen Z shoppers. Social media also plays a major role, with TikTok, Instagram, and Facebook serving as key sources of holiday inspiration. While Amazon remains the top shopping destination, discount and department stores are seeing strong seasonal interest as consumers balance convenience, inspiration, and deals.

Southeastern Grocers is reintroducing itself as The Winn-Dixie Company in early 2026, positioning as a “brand-new 100-year-old company” rooted in Florida and southern Georgia. The grocer is refocusing on its home market while transitioning ownership of stores in Alabama, Louisiana, and Mississippi. As part of its Florida expansion, Winn-Dixie will acquire and convert three Hitchcock’s Markets and launch new store formats, remodels, and expanded liquor stores. The company also plans to revive fan-favorite products like Lip Lickin’ Chicken and expand online grocery delivery partnerships with DoorDash and Amazon. With around 270 total stores planned under the unified brand, Winn-Dixie aims to celebrate its legacy while modernizing for the next century.

Miami’s office leasing market is heating up, with over 500K SF of leases signed in Q3, marking a 200K SF jump from the previous quarter and putting the city on track to surpass 2024’s total leasing volume. Despite early-year uncertainty tied to new global tariff policies, companies regained confidence, closing major deals in the second half of 2025. Top leases included Stearns Weaver Miller’s 97K SF at Museum Tower and ADP’s 78K SF at Miami Waterford Business District. With vacancies tightening in submarkets like Brickell (13.4%) and Coconut Grove (just 3.1%), and rents holding near record highs—up nearly 7% year-over-year—brokers expect Miami’s momentum to carry into Q4 and beyond.