December retail roundup:

Each week I write a Monday Scroll for Retail Women in Tech, looking back at the biggest retail stories emerging from the US.

As I look back at December in full, the headlines feel directional. Beneath the usual holiday sales updates, there were stronger signals about where retail is heading in 2026.

Here’s the lowdown on what shaped the month.

AI moved from experiment to infrastructure

If November was about AI hype, December was about proof.

According to Adobe, AI-driven traffic to retail sites surged more than 800 percent year on year during peak holiday trading. On Black Friday alone, AI-guided shopping spiked again, as tools like Walmart’s Sparky and Amazon’s Rufus quietly shaped purchase decisions in real time. Salesforce estimates AI could influence $263bn in global holiday sales, roughly one fifth of all seasonal orders!

At the same time, brands pushed AI deeper into operations. Zara began using AI-generated imagery featuring real models styled in multiple outfits, reducing reliance on traditional photoshoots. CVS Health outlined plans for an AI-driven platform unifying insurance, pharmacy and healthcare into a single app. The Walt Disney Company committed $1bn to OpenAI, signalling that character IP and generative tools are set to blend further.

The shift is really important. AI is influencing discovery, merchandising and decision-making at scale.

Physical retail still has chapters left

While digital acceleration dominated conversation, December also challenged the long-running narrative that stores are in decline.

Barnes & Noble, Inc. announced plans to open 60 new stores in 2026, building on a strong year of expansion. Salomon confirmed it will double its US store footprint next year too.

Consumers are also stepping back into physical formats in unexpected ways. Gen Z is fuelling renewed interest in trading card games and secondhand collectibles on eBay. Even DVDs and CDs are regaining niche appeal as younger shoppers seek offline, algorithm-free experiences.

In a hyper-digital world, the store is becoming deliberate again. It is less about ubiquity and more about destination, community and tactile experience.

Spending continues, but intention is rising

December’s trading data tells a nuanced story. Let me explain...

Black Friday sales in the US rose 4.1 percent YoY, according to Mastercard Spending Pulse. Thanksgiving online sales increased 5% and restaurant reservations were up 13%, suggesting convenience continues to trump tradition for many households.

YET Adobe reported that holiday e-commerce returns were down 2.5% YoY. 

Lower returns signal more considered purchasing. Add to that the growing normalisation of resale, with Poshmark appointing its first Chief Revenue Officer to sharpen commercial strategy, and December begins to look like a month defined by intention rather than impulse.

Consumers are still spending but my view is they are just choosing more carefully.

Culture and commerce are blending further

Retail continues to collide with entertainment, gaming and identity.

E.L.F. BEAUTY launched Glow Up! on Roblox, creating a virtual beauty playground for users aged 13 and above. This is immersive brand participation.

At the same time, the collectible toy frenzy around Labubu cooled sharply, with shares in POP MART falling roughly 40%. (Ouch, that's a sharp fall; a reminder that hype cycles can accelerate and unwind at speed. Retail in 2025 is cultural currency but volatility travels just as fast!).

Boardroom resets before the new year

December often reveals what companies want resolved before January strategy decks are finalised.

Pandora accelerated its CEO transition, with Berta de Pablos-Barbier stepping in earlier than planned. Sleep Number Corporation confirmed Amy O’Keefe as permanent CFO amid a complex turnaround. Giorgio Armani strengthened its board with heavyweight industry appointments.

Meanwhile, negotiations around a potential sale of Costa Coffee by The Coca-Cola Company stumbled over valuation, underlining the continued caution around large-scale deals.

Leadership, capital allocation and operational resilience were clearly front of mind as the year closed.

Stability please!

One final reminder came from Target, which confirmed its online operations had stabilised after a holiday technology outage disrupted order pickup and returns.

It was a small headline in a busy month, but one I couldn't not include. As omnichannel ecosystems grow more complex, resilience is just as critical as innovation.

December = direction

AI embedded itself into the shopping journey. Physical retail pushed back against its critics. Consumers spent, but with more intent. And leadership teams quietly recalibrated for 2026.

The noise of the holidays masked something bigger. Retail is not retreating, rather it is refining.