Inflation on the Rise Again as Consumer Sentiment Falls
March’s inflation reading was the largest month over month jump since 2022
Compared to March 2025 prices were up +3.3%
Three-quarters of that increase was from fuel costs
Excluding fuel, the core PCE was a more reasonable +2.6%
Consumer sentiment reached its lowest level since data began being collected in 1952 Read More >>
The Checkout Lane
Source: Retail Dive, Chain Store Age, Nation's Restaurant News
Amazon has reached a deal with the US Postal Service to keep 80% of its existing shipment volume (1 billion parcels) with the agency. Amazon said continuing the partnership with USPS is essential to its goal of speeding up rural delivery service, even as it builds out to 200 of its own rural delivery stations.
Bed Bath & Beyond has gone on an acquisitions spree as the company attempts to relaunch under new ownership. The brand first moved to acquire The Container Store and its affiliated divisions for $150 million in stock and debt notes. The Container Store’s 100 locations will rebrand as “The Container Store / Bed Bath & Beyond”. Less than a week later, BB&B announced plans to purchase F9 Brands also for $150 million (this time $37 million in cash with the rest in stock). F9 is the parent company of Lumber Liquidators and Cabinets to Go. Both brands will be wrapped under the Beyond Home Services division along with Closet Works and Elfa and their products will be offered at all The Container Store / Bed Bath & Beyond locations.
Buckets, a full-service restaurant specializing in chicken and other comfort foods, has opened its first location in Akron, Ohio this year. What makes Buckets stand out from other fledgling restaurant brands is that this project is the work of the Lebron James Family Foundation. The LJFF helps at-risk students and their families in the Akron Public Schools gain valuable career experience in a variety of fields including retail, entertainment, and catering operations.
Gamestop closed over 700 stores last year and 1,300 over the last two years. However, the company said that it does not expect any significant reduction in store count for 2026. Meanwhile, its stores continue to shift more towards collectibles which now represent 1/3rd of its sales, up from just 21% last year.
JCPenney may not be the first name you think of when Paris Fashion Week comes to mind, but the department store pulled out all the stops in Paris last month, including a runway show and other experiential events. The caveat is that this all occurred in Paris, Texas as part of their “Yes, JCPenney” campaign. I wonder what Wim Wenders would think?
Nordstrom announced the closing of two full-line stores this year: at the Galleria Mall in Dallas and at the Christiana Mall in Newark, Delaware. Meanwhile, the company is going full steam ahead with growing the Nordstrom Rack brand with plans for 23 new stores, one more than 2025.
Painted Tree is closing all 60 of its stores and plans to file for Chapter 7 liquidation soon. A physical retailer that curated its selection by subleasing its space out in stalls to local small businesses and artisans, Painted Tree was sometimes called “Etsy IRL”. However, with little turnover in the merchandise, driving new traffic became an insurmountable problem.
Raising Cane’s is opening its 1,000th location in the coming weeks. However, this store is not your typical Raising Cane’s. Located on Hollywood Boulevard in Los Angeles, the design was based on the Walk of Fame and includes such standout features as a 7-foot tall statue of Cane III, the brand’s canine mascot. The LA store is one of approximately 100 new locations set to open this year including its first international restaurants in London and Mexico.
Saucy, a chicken tenders focused brand from the owners of KFC, will expand to its 2nd state when it opens a new store in Frisco, Texas later this year. The brand launched in Orlando, Florida in late 2024 and has since expanded to 10 locations – all in Florida. Yum Brands former CEO David Gibbs cited Saucy as a major part of the company’s turnaround strategy for KFC in coming years.
Shoe Carnival announced it will slow its plans to rebrand as Shoe Station, following a less than warm reception at certain locations that underwent the transition to the more upscale banner. The company has not given up on its plans and hopes to rework the merchandising to help the struggling locations. In 2026, 21 stores will rebrand, though the originally stated goal of rebranding over 90% of stores by 2028 would seem to be off the table.
Target’s comeback plan will involve some changes to store operations, including a new dress code for employees and an enhanced employee discount. Team members will now receive 20% off all private label apparel. The changes will be in effect this summer and are part of a broader $6 billion turnaround plan. Read more about Target’s plans here >>
The Big View
Inventory shrink became a major issue for retailers following the 2020 pandemic. Several retailers sounded the alarm bell as the economic displacement following that period and the rise of third party marketplaces on e-commerce platforms saw organized theft become a real drag on retailers’ bottom lines. However, new data suggest that the tide has turned significantly. Target and TJX even reported shrink levels are now at or below pre-pandemic levels. Daphne Howland has more details on this encouraging trend in this article from Retail Dive >>
Developer Peter Edelmann is reinventing the open air shopping center with the Essex Experience in Vermont. After struggling for years to turn around the dying retail center, Edelmann focused on curating a mix of tenants that is a reflection of Vermont’s unique culture and values. Essex Experience is fully leased and counts 22 of its 23 tenants as locally owned. In addition to restaurants and a theater, the center includes a cidery, a therapeutic salt cave, and the state’s largest gallery of local art. Find out more about this innovative project here >>
Video of the Month: Kroger made headlines eight years ago with a multi-billion dollar investment into automated fulfillment centers. Using technology from UK digital grocery powerhouse Ocado, the company hoped to supercharge its online presence and offer grocery delivery at a faster pace while entering new markets. The bet didn’t pay off and the company has quietly shut down many of these facilities. To learn more about why this strategy didn’t work, watch this video from The Hustle >>
By the Numbers
From the Research Desk
Asian culture is having a moment in the West right now. From the rise of K-pop, anime, and the proliferation of restaurants celebrating the cuisines of east Asia; the continent’s influence on contemporary culture is undeniable. This has led to a sea change in retail as well.
At the grocery store, Asian food sales are growing four times faster than overall sales. Specialty stores like H Mart, Mitsuwa, and 99 Ranch are becoming cultural icons attracting customers from all walks of life. Meanwhile, in the malls, PopMart is popping up all over the place. PopMart’s store experience is bringing back novelty and surprise to brick & mortar retail with its focus on “blind boxes” (aka “gachapan”). Buy one gachapan and what you get is a surprise – from licensed merchandise from the likes of Disney, Peanuts, and Sanrio to homegrown phenomena like Labubus. PopMart has plans to open 200 stores in the U.S. and is currently at 45. Even more expansion will come with their “roboshop” vending machine experiences which were a big hit at ICSC last year.
Perhaps no other up and coming brand will have a bigger impact on our business than Daiso. Feeling like a cross between Five Below and Dollar Tree, but with a Japanese twist, Daiso has around 200 stores in the U.S. already (including at Big V properties like The Rim and Glade Parks) and has plans to grow to over 1,000 stores here by the end of the decade. Daiso’s stores run between 5,000 and 10,000 square feet and feature homegoods, food, pet supplies, crafting accessories, and more. Most items cost less than five dollars. Splitting the difference between PopMart and Daiso is Miniso, which also has over 200 U.S. stores and combines Daiso’s value proposition with PopMart’s focus on licensed IP and novelty.
What these stores all have in common is the same treasure hunt experience that has made off-price stores like TJ Maxx and Nordstrom Rack so appealing. Come back in a week and you might find something new. The thrill of discovery helps to drive traffic, while the low prices are important to an increasingly value-conscious consumer. American retailers should be taking notice as this new competition seems here to stay.
Song of the Month: Reggae fans don’t need an introduction to the late, great producer Lee “Scratch” Perry. The legendary producer worked with legends like Bob Marley, The Congos, and The Clash. Along the way, he was one of the primary innovators in the development of dub music, a precursor to the modern remix. Though he passed away in 2021, Perry’s last recordings are just being released this year. Recorded in collaboration with German electronic music icons Mouse on Mars, the first single is called “Rockcurry” Listen Here >>
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