Top Retail News to Know This Week

This week’s retail news brings insights that matter for brands, sellers, and operators tracking consumer behavior and cost pressures.

• Producer prices show mixed cost pressures: Core wholesale prices rose less than expected in September, though fuel costs pushed the overall Producer Price Index (used to measure underlying price trends in the supply chain) higher. Retail sales increased 0.2%, revealing shifting consumer spend patterns across online.
• Walmart warns affordability gaps are widening: Walmart posted strong quarterly results but warned that more households are struggling with everyday essentials, with food prices still roughly 25% above pre-COVID levels. The retailer continues absorbing tariff-related costs to protect consumers while making selective pricing decisions, critical context for brands tracking cost-sensitive shopping behavior.
• Walmart accelerates digital growth and supply chain automation ahead of leadership change: Walmart achieved its seventh consecutive quarter of 20%+ ecommerce growth through marketplace expansion, while incoming CEO John Furner plans to amplify AI tools like Sparky. The retailer is also scaling supply chain automation, including autonomous forklifts and sensor-driven tracking, doubling productivity in newer fulfillment centers and increasing store-fulfilled delivery.

Below, we unpack the data, implications, and strategic moves that should be on your radar right now.

Wholesale Prices Ease While Walmart Warns on Affordability

A softer 0.1% rise in core wholesale prices offers hopeful insight, but the underlying data shows ongoing pressure for retailers. Goods prices climbed 0.9%, including an 11.8% jump in gasoline, costs that directly influence inbound freight and final pricing.

According to the Census Bureau, retail sales rose 0.2%, but online sales fell 0.7%, suggesting that consumers are pulling back on discretionary ecommerce spending even as they continue to spend in stores and restaurants.

Walmart’s latest earnings reinforce this development. With everyday essentials still about 25% higher than pre-COVID, CFO John David Rainey warned of a deepening affordability crunch. Walmart’s value positioning — reflected in a 4.5% same-store sales increase in the US, and aggressive pricing to drive in-store traffic like $128 50” TVs — shows how price-sensitive shoppers are becoming and how strongly they’re gravitating toward the lowest-cost options. That expectation bleeds into Amazon, where customers often cross-compare prices in real time.

At the same time, Amazon’s own pricing remains a competitive advantage. According to a recent Profitero study.

• Amazon is America’s lowest-priced online retailer, with prices on average 14% lower than 23 major US retailers.
• Across top-selling holiday categories such as appliances, electronics, toys, and fashion, Amazon’s prices are up to 5% lower than the nearest competitor.
• Everyday essentials like household goods, baby products, beauty items, and vitamins are up to 5% cheaper than other retailers, helping shoppers stretch their budgets where it matters most.
• In fashion, Amazon offers prices 16% lower on average, with top items 5% below the next lowest-priced retailer.

The combined picture is clear: even as wholesale cost pressures ease slightly, shoppers remain selective, and margins are tight. Sellers who combine competitive pricing, operational efficiency, and targeted deals will be best positioned to capture sales this holiday season.

Walmart’s Ecommerce, Automation, and AI Push

Walmart Q3 2025 earnings results reveal a company at the forefront of retail transformation, blending ecommerce growth, automation, and AI-driven innovations to compete with Amazon and redefine the shopping experience.

As outgoing CEO Doug McMillon prepares to pass the reins to John Furner in February, the company is showing the impact of a decade-long strategy focused on omnichannel expansion, digital investment, and supply chain modernization.

Ecommerce Growth Hits New Heights

Walmart’s Q3 global ecommerce sales jumped 27% year-over-year, with US ecommerce growing 28%, marking the seventh consecutive quarter of 20%+ growth. The company credits much of this to a combination of store-fulfilled pickup, delivery, and its third-party marketplace. Internationally, innovative initiatives such as Chile’s “Carrito Listo,” which pre-builds shopping baskets and prompts customers via WhatsApp, showcase Walmart’s experimental approach to digital sales.

Walmart Q3 2025 Earnings Report Highlights

• Total Q3 revenue: $179.5B (+5.8% YoY)
• US comparable sales: +4.5%
• International net sales: $33.5B (+10.8% YoY)

Analysts note that McMillon’s investments in digital, supply chain, and omnichannel capabilities have positioned Walmart as a formidable competitor to Amazon in both US and global ecommerce markets.

Walmart Supply Chain Automation: Reducing Costs and Boosting Efficiency

Walmart is increasingly deploying automation across its supply chain. Its next-generation fulfillment centers, now twice as productive as legacy facilities, use robotics, high-density storage, and inventory-tracking sensors to streamline operations.

• Over 50% of fulfillment center volume now comes from automated processes. Consequently, Walmart merchants may benefit from lower fulfillment fees over time, potentially undercutting Amazon FBA fees and putting pressure on Amazon sellers’ profit margins.
• Delivery costs have fallen roughly 30%, enabling faster, cheaper ecommerce delivery. This reduction in delivery costs allows Walmart merchants to offer lower prices while maintaining margins, forcing Amazon sellers to be even more competitive on pricing.
• Nearly 35% of store-fulfilled orders are delivered in under three hours. As customer expectations for speed are rising, Amazon sellers relying solely on standard FBA delivery times may lose customers who want same-day or ultra-fast delivery options.

These innovations not only improve operational efficiency but also strengthen Walmart’s promise of “every day low prices” and competitive delivery times.

AI and the Next Frontier

Looking forward, incoming CEO Furner is emphasizing AI-driven tools to enhance customer experience. Walmart’s Sparky AI agent, for instance, provides personalized reorder nudges, helping shoppers stay stocked on essentials. Walmart is also exploring “agentic AI” to take proactive actions on behalf of customers, while continuing to test new technological capabilities internationally.

Overall, Walmart’s investment in omnichannel integration, automation, and AI marks its evolution into a tech-driven retail powerhouse capable of competing directly with Amazon. For sellers, adapting to and leveraging these new capabilities will be essential for long-term growth and profitability.

Other Amazon Sellers News This Week

1. AWS re:Invent 2025 Updates

The annual AWS event returns December 1–5 with a focus on Amazon agentic AI, featuring five keynotes, hands-on labs, and innovation demos. Expect announcements impacting retailers and brands using AWS for automation, data workflows, and customer experiences.

2. Amazon Updates Customer Service Insights

Customer Service Insights in Feedback Manager just got clearer. The Buyer Contact Rate and improved Average Contact Response Time make it easier to spot trends, benchmark against peers, and optimize your customer experience. Check your Feedback Manager to see where you can improve.

3. FBA Returnless Resolutions by Price Now Live

US sellers can now offer refunds without returns for eligible items, saving on processing and storage costs. Not every product qualifies, and the benefits depend on your current return rates. Feedback in the comments section has been mostly negative, so make sure this feature actually benefits the your catalog before enrolling.

4. Target Brings Shopping to ChatGPT

Target integrates with ChatGPT, letting shoppers browse, add to cart, and checkout: all inside the chatbot. Drive-thru and pickup orders are included, putting Target ahead of Walmart in the AI-shopping race.