November brought strong earnings, leadership shakeups, and a clearer view of how major U.S. retailers are positioning for 2025. With Walmart and Kohl’s raising outlooks, Target doubling down on modernization, and AI transforming operations across the sector, the industry appears split between traditional discipline and digital reinvention.
In a month marked by earnings surprises and executive reshuffling, several major U.S. retailers delivered a mixed but telling snapshot of the industry’s trajectory heading into 2025.
Kohl’s kicked things off with a rare bright spot: the company raised its full-year outlook after posting third-quarter results that topped expectations. The retailer also named its fourth CEO in as many years, permanently elevating its interim chief executive in a bid to steady the ship after a turbulent leadership cycle. Investors responded positively, sensing both operational traction and long-awaited stability.
Walmart also delivered good news for shareholders. The retail giant reported strong Q3 results and raised its own outlook, underscoring continued momentum across grocery, e-commerce, and its expanding services ecosystem. In a notable leadership shift, Walmart announced that its current CEO will step down, with the head of Walmart U.S. stepping into the top job—an evolution that reflects the company’s growing emphasis on domestic operations and last-mile capability.
Target, by contrast, continues to wrestle with declining quarterly sales. The company laid out plans for another $1 billion in store and technology upgrades, a bet that refreshed physical environments and stronger digital infrastructure can help reverse the slide. The investment signals a recognition that Target must modernize quickly to keep pace with faster-moving competitors.
Elsewhere in the sector, AI continues to push deeper into retail operations. Levi’s said it is leaning more heavily on artificial intelligence to streamline internal processes, from inventory planning to product development—part of a broader efficiency play across the apparel industry. Walmart, meanwhile, announced a slate of new in-store AI tools aimed at making holiday shopping more efficient and, in its words, “more fun.” These upgrades range from enhanced navigation to real-time promotions, illustrating the retailer’s ambition to redefine the store experience.
Traditional fundamentals also had their moment. Dillard’s posted standout Q3 results, driven by what management described as “basic merchandising 101”—the core disciplines of product, presentation, and service. At a time when much of the industry is chasing technological transformation, Dillard’s results served as a reminder that strong execution still matters.
Consumers, for their part, are encountering rising prices across numerous categories, with Amazon leading much of the recent upward movement. Yet early holiday sentiment remains surprisingly upbeat. A new survey shows that most consumers actually welcome retailers’ early shift to Christmas themes, suggesting that seasonal merchandising still has the power to lift spirits—and perhaps sales—even in a higher-priced environment.
Taken together, the quarter reflects an industry straddling two worlds: traditional retail blocking-and-tackling on one side, innovative AI-driven reinvention on the other. As 2025 approaches, the winners will likely be those who manage to balance both.