It’s been another week with far more retail news than there is time in the day. Below, we break down some things you may have missed during the week and what we’re still thinking about.
From initial reactions to the new Lululemon CEO to a revival of a Kellogg’s favorite, here’s our closeout for the week.
What you may have missed
Pat McGrath Labs exits bankruptcy with GDA Luma
Cosmetics brand Pat McGrath Labs — founded by makeup artist Patricia McGrath — completed its restructuring process and exited Chapter 11 bankruptcy, per a Monday press release. GDA Luma provided about $65 million in financing and holds a controlling equity interest.
McGrath will continue to serve in a chief creative officer role. The move comes after the brand filed for bankruptcy in January, outlining deep disputes with lender GDA PMG Funding, which is connected with GDA Luma.
GameStop goes all-in on ‘Retro’ offering
GameStop is expanding its Retro section to all of its U.S. stores by the end of May, according to details emailed to Retail Dive.
The Retro section features consoles, handhelds, cartridges and more dating back to the early 2010s and earlier. GameStop said the move was driven by both customer demand and an increase in trade-in volume for older games and hardware.
“It's a direct signal of support for physical gaming at a time when the industry is moving the other direction,” the company said.
The move comes about a month after the gaming retailer reported fourth-quarter net sales fell nearly 14% year over year to $1.1 billion and net income fell 3%.
Retail therapy
A sugar-coated surprise
To the delight of kids and kids-at-heart everywhere, Kellogg’s is bringing back toys inside cereal boxes for the first time in over a decade, according to a company press release. The effort is in celebration of the movie “Toy Story 5,” which will be released this June.
"At Kellogg's, there's a real sense of childhood nostalgia tied to the moments families remember most – and breakfast is a big part of that," Laura Newman, vice president of brand marketing at WK Kellogg Co., said in a statement. "Bringing toys back inside the box reintroduces that sense of discovery through a simple, screen-free moment of play that parents can now share with their own kids.”
The special-edition cereal boxes will be available starting Sunday.
What we’re still thinking about
$40 billion
That's how much U.S. consumers have in their pockets right now thanks to tax refunds, according to Wells Fargo economists Tom Porcelli and Shannon Grein. It’s 17% more in tax refunds compared to this point in 2025.
“And the total number of refunds sent is up 3 million more versus the same time last year,” they said in a research note this week. “So it would be hard to ignore this reality, especially as it relates to the state of spending today.”
They’re talking about the scenario where consumers keep spending despite their increasingly pessimistic view of the economy and their own financial situation. Indeed, retailers just polished off the first quarter of 2025 with healthy growth in discretionary categories, as March retail sales in the segments covered by Retail Dive rose more than 8% over last year.
What we’re watching
The market’s reaction to Lululemon’s new CEO
Lululemon after market close on Wednesday announced its next CEO would be longtime Nike veteran Heidi O’Neill. Reactions to the move were mixed. Shares fell 13% on Thursday.
Some analysts attributed that reaction to disappointment that Lululemon didn’t name Ralph Lauren veteran Jane Nielsen to the top spot, an idea that was proposed by Elliott Investment Management in December.
William Blair analysts called O’Neill an “out-of-left-field” choice for the role and many analysts appeared sidelined on whether she was a good fit for the brand. BNP Paribas Equity Research senior analyst Laurent Vasilescu was more blunt, saying the move was disappointing and implies Lululemon still thinks of itself as a growth company.
“At this juncture, lululemon needs a turnaround CEO and not a growth CEO,” Vasilescu wrote.
Others see hope in the appointment, given O’Neill’s long tenure at Nike and experience in women’s activewear. GlobalData Managing Director Neil Saunders called her “an obvious choice,” if a traditional one.
“This argument is partly valid as a lot of cultural change is needed at Lululemon in order to improve performance,” Saunders said. “However, in our view, O’Neill is her own person who will come with an agenda of change.”
