Starbucks’ premium positioning is hampering its recovery as price-sensitive consumers seek cheaper ways to fuel their caffeine habits. US same-store sales were flat in the quarter ended September 28, with a 1% decline in comparable transactions offset by a 1% increase in average ticket. Starbucks’ ongoing weakness can be attributed at least in part to the challenging economic environment, which is driving consumers to cut back on consuming food and drinks outside the home. But its competitors’ ability to drive sales even with the same headwinds suggest that Starbucks’ hold on customer loyalty is slipping.
Rising costs and softening consumer demand led Kraft Heinz, Hormel, and Mondelez to cut their full-year outlooks, reflecting mounting pressure across the food industry. Hormel cited higher commodity costs and production setbacks, while Kraft Heinz and Mondelez reported slowing sales as inflation-weary shoppers traded down to cheaper or private-label options. Consumer confidence has fallen to its lowest level in months, and the looming SNAP benefit cutoff could further dampen spending. With costs climbing and value-conscious behavior spreading, food companies are being pushed to focus on efficiency and share preservation over aggressive growth.
Major casual dining chains are bracing for weaker Q4 sales as the government shutdown and broader economic headwinds weigh on consumer spending. Brinker International maintained its outlook despite Chili’s gains, while Cheesecake Factory reported slowing momentum and Chipotle cut its sales forecast for the third straight quarter. With real income growth stagnating and menu prices continuing to rise, many consumers are cutting back on dining out. To stay competitive, restaurants need to focus on value-driven promotions and loyalty programs designed to attract price-sensitive diners and encourage repeat visits.
Eli Lilly is partnering with chipmaker NVIDIA to build the pharma industry’s most powerful supercomputer. Lily claims it will be the largest AI factory owned by a pharma company and will be up and running in January 2026. Lilly’s partnership with NVIDIA highlights the shift pharma companies are making to rely on tech firms who have the computing power and AI expertise pharma needs to stay competitive.
Samsung Ads and AdGood have launched a partnership enabling nonprofits to advertise on connected TV for the first time at scale. Samsung will donate ad inventory from its free streaming service, Samsung TV Plus, to AdGood’s nonprofit exchange, allowing mission-driven organizations to reach viewers across premium streaming environments. The initiative reflects a broader shift in the CTV ecosystem—where unused inventory and automation are being repurposed to advance social impact, equity, and accessibility in digital media.
Hulu + Live TV and Fubo have struck a deal that will see the streaming platforms merge into a live TV streaming business after initially announcing an acquisition in January. Brands will benefit from access to growing subscribers and vast sports audiences that increasingly embrace digital, as the platforms combine scale with innovative ad formats.
OpenAI completed its public benefit corporation (PBC) restructuring, reflecting how the AI industry has matured since ChatGPT first launched. The company retains a nonprofit arm—the OpenAI Foundation—that holds a $130 billion equity stake in the OpenAI Group PBC for-profit arm. Prepare for rapid evolution of AI capabilities, faster product cycles, and more aggressive scaling of tools like ChatGPT Enterprise, Sora, and Pulse as OpenAI tests which offerings can grow into major revenue drivers.
A growing cohort of companies, including Next PR, Parcel Perform, and Geostar, is helping brands optimize their generative engine presence, ensuring that content surfaces in queries from consumers seeking recommendations and new products. Marketers should consider their brands’ strategic goals—whether it’s driving conversions or boosting visibility of web content—and identify the GEO partners that best align with them. As genAI tools become more mainstream for consumer discovery, proactive optimization is key to stay relevant and manage reputation in AI outputs.
Amid pressure to establish better child safety guardrails in the AI industry, Character AI will block users under 18 from chatting with bots on its platform. Starting November 25, minors will only be able to generate photos and images with safety limits in place and review prior chats. As regulatory and safety concerns rise, advertisers face greater scrutiny when looking to reach younger audiences. CMOs should assess brand alignment with AI platforms and, on platforms that have the potential to pose a safety risk for children, shift efforts to target adults users.
Heading into peak season, D2C ecommerce professionals are as concerned about technology limitations as they are about tariffs (37%), according to a July survey from Passport and Drive Research.
Adobe announced an expansion of its GenStudio at its Adobe MAX conference today, with updates including key AI innovations and new ad partner integrations. Advertising teams are faced with a landscape that increasingly relies on genAI for key processes once handled by humans.
Retailers and brands face a unique challenge this year as Black Friday and Cyber Monday (BFCM) approaches: Understanding how AI has changed the game for both consumers and sellers.
Pinterest announced AI-powered updates for its boards feature on Monday, with a new look and upgrades aimed at offering users a more personalized and relevant experience. With Pinterest now capable of picking up more subtle signals about user interests, including their aesthetics and preferred boards, advertisers can now better appear in contexts that are more aligned with user mindsets.
Wayfair extended its 2025 winning streak with Q3 earnings that far outpaced expectations, posting 70 cents per share and $3.12 billion in revenues, driven by rising orders and strong US demand. The retailer’s strategic pillars—Wayfair Rewards, Wayfair Verified, and new physical stores—continue to enhance customer loyalty and omnichannel strength. AI innovation, including its Muse engine and Discover tab, is boosting engagement and conversion. Despite housing headwinds and tariff pressures, Wayfair’s results underscore resilience, though sustaining momentum amid tightening consumer budgets remains a challenge.
SoFi reported net revenue of $950 million and member growth of 35% YoY, to 12.6 million, in its Q3 earnings. The bank continues to expand its range of consumer products with the launch of blockchain-based remittances, an AI-driven financial wellness tool. SoFi’s membership of 12.6 million pales in comparison to megabanks’ customer rolls—but the breadth of its consumer products does not. Traditional community and small regional banks are the most threatened, while SoFi’s infrastructure business puts it in direct competition with banks that provide licenses and infrastructure for consumer fintechs.
Amazon is cutting 14,000 roles from its corporate workforce as it reshapes its organization to prepare for an agentic AI future. The layoffs are unusual for a company still posting strong growth, but Amazon framed them as part of a broader move to gain efficiencies from genAI. While most retailers have thus far refrained from citing AI as a reason for mass layoffs, that could change as tariff pressures and other headwinds force companies to cut costs—and headcount—where possible.
PayPal’s revenues grew 7% YoY to $8.4 billion in Q3 2025, driven by the success of branded experiences, PSP, and Venmo, per its earnings report. While PayPal notched a successful quarter, storm clouds are on the horizon. Basket sizes are shrinking and average order value is sinking, per PayPal CFO Jamie Miller. Leaning into payment flexibility and desirable rewards like cash back can help payment providers earn loyalty from squeezed middle- class consumers.
PayPal deepened its commitment to agentic AI with two new partnerships, per press releases. PayPal’s been bullish on agentic technologies. To date, it’s struck partnerships with Perplexity, Google, and now ChatGPT for AI-led conversational commerce. A tie-up with AI-powered Rokt brought post-transaction ads to Venmo, PayPal, and Honey users. Fintechs, issuers, and payment rails cannot ignore the coming tide of agent-based payment methods. Striking early partnerships with major players allows all platforms to reorient for the future of ecommerce transactions.
Live shopping platform Whatnot raised $225 million in its most recent funding round, valuing the company at $11.5 billion, double its worth at the beginning of 2025. Platforms like Whatnot are introducing live shopping to a new generation of consumers who are more dialed into social video than channels like HSN and QVC. The company has generated $6 billion in gross merchandise value this year, more than twice last year’s amount. However, livestream commerce remains a tiny drop in the vast ocean of ecommerce, making it more useful as an engagement and community-building opportunity than as a sales driver.
Grubhub is partnering with Instacart to power its grocery ordering as the Wonder Group-owned platform works to better compete with DoorDash and Uber. Instacart will manage fulfillment and delivery through its 1,000-plus retail network, marking the first time its grocery experience is embedded in another app. The deal expands Instacart’s reach to Grubhub’s urban, suburban, and college users while helping Grubhub diversify into grocery and pharmacy delivery. As rivals deepen partnerships and retail media strategies, both companies aim to boost order volume and ad revenues, leveraging collaboration to counter intensifying competition in the delivery market.