Retail closed out Holiday 2025 with record-breaking sales driven by booming e-commerce and lower return rates. From the rising dominance of Costco, Walmart, and Amazon to fresh turnaround efforts and bold tech moves, January delivered key insights fueling the shift toward omnichannel growth, operational efficiency, and innovative brand strategies.
Retailers closed out 2025 with stronger-than-expected holiday sales, driven in large part by e-commerce momentum. Meanwhile, return rates continued to trend downward—a promising sign for profitability. In 2024, total returns reached $685 billion, accounting for 13.2% of retail sales, down from 14.5% in 2023.
The dominance of retail’s “Big Three“—Costco, Walmart, and Amazon—remains firmly intact. Since 2014, their collective market share has expanded from 10% to 17% of total retail sales. Not only are these industry giants growing faster than their peers, but they are also reinvesting at a higher rate, fueling further expansion.
A new entity, Catalyst Brands, has emerged in an effort to revitalize struggling retailers, including JCPenney. The specifics of its strategy remain unclear, but the move signals a renewed push to turn around legacy brands that have struggled in the modern retail landscape.
Elsewhere, Walmart continues to prioritize its store leadership, increasing total compensation potential for Market Managers to as much as $600,000 annually—a move that underscores its commitment to talent retention and operational excellence.
Meanwhile, Kohls announced plans to close 27 stores and a distribution center in 2025, as part of its ongoing turnaround efforts. The retailer has also trimmed 10% of its corporate workforce, though many of those positions were unfilled. The company’s new CEO faces the challenge of regaining traction with Kohl’s core customers.
Also, Nordstrom reported stronger-than-expected holiday sales but chose not to raise its profit outlook, signaling caution amid shifting consumer behaviors
At the NRF Big Show, Macy’s, under pressure from shareholders, pushed back against calls to split its three core brands, arguing that their combined strength is greater than the sum of their parts.
Artificial intelligence was a major theme at this year’s conference, as retailers explore how AI-driven insights, automation, and personalization can reshape the shopping experience.
In a significant trade policy shift, Mexico has revoked duty-free imports on finished apparel under the IMMEX program. This change could have substantial ramifications for apparel brands relying on Mexico’s manufacturing ecosystem, including 30 of the top 100 U.S. brands selling on Shopify.
Vuori founder Joe Kudla continues to build a fiercely loyal customer base through a combination of product confidence, fiscal discipline, and targeted brand outreach. The activewear brand’s trajectory remains one to watch as it scales further.
Meanwhile, PVH—the parent company of brands like Calvin Klein and Tommy Hilfiger—faces allegations of improper practices by the Chinese government. While the impact remains uncertain, scrutiny from international regulators could pose challenges for the company.
And finally, a nod to the unsung hero of data-driven decision-making: Excel. The iconic spreadsheet software took center stage in Las Vegas, with top talent competing for recognition. Congratulations to the winner—and to all who participated!