Good afternoon,

Here’s the headlines for this week: 19 September 2025

ECOMMERCE

Ecommerce sales channels shine as traditional beauty retail loses luster

• Beauty brands are shifting away from department stores, drugstores, and travel retail as ecommerce, social platforms, and DTC models gain momentum.
• Ecommerce’s share of global beauty sales rose 11 points between 2019–2024, while department store sales dropped from 11% to 8%.
• Major players like L’Oréal and Estée Lauder are investing in digital tools (e.g., AR try-ons) and marketplaces like Amazon and TikTok Shop to strengthen online presence.
  

CONSUMERS

Almost 90% Of Americans Are Worried About The Cost Of Groceries

• According to an AP-NORC poll, 53% of U.S. adults say grocery prices are a major source of stress, while another ~33% say they are a minor stress.
• Grocery costs currently outrank many other financial worries — for many people, more stressful than credit card debt, child care, etc.
• Financial strain is widespread: lower-income, women, and Hispanic adults are especially likely to feel stress over food costs; people are adjusting behaviour in response (shopping cheaper stores, etc.).

TransUnion Analysis Identifies Four Distinct Consumer Groups Based on Their Ability to Keep Up with Inflation

• TransUnion segmented consumers into four groups based on how well they feel they are keeping up with inflation. Some believe they are managing; others feel they are not.
• The groups have different confidence levels, spending behaviours, and timing preferences. For example: “Stable Spenders” and “Young Strivers” among those doing OK; “Purposeful Planners” and “Budgeting Realists” among those struggling.
• The implication is that marketers and businesses need to tailor their approaches more finely, offers, communication, product mix, etc., to meet the different needs of each group.

TECH

US reaches a deal to keep TikTok on your phone

• The U.S. and China have reached a framework deal to allow TikTok to continue operating in the U.S., subject to further negotiation and finalization between Presidents Trump and Xi.
• Under the framework, TikTok's U.S. business is expected to be transferred to an entity under U.S. control, addressing national security concerns related to ByteDance’s ownership. 
• The deal pushes back or extends deadlines tied to laws that otherwise could force the app to shut down in the U.S. if the ownership conditions aren’t met.

Gmail is launching a tab for all your Amazon purchases

• Gmail is rolling out a new “Purchases” tab (web + mobile) that collects all your order-related emails (receipts, shipping updates, confirmations) in one place.
• Alongside this, Gmail is enhancing the Promotions tab, for example by highlighting “timely deals” and allowing filtering to show more relevant promotional emails based on user engagement.
• Part of a broader push to reduce clutter and make it easier for users to keep track of online orders, especially ahead of busy shopping periods.
  

RETAILERS

Amazon Experiences Drop In Google Search Visibility

• New data (from Audience Key) shows Amazon’s visibility in Google’s organic product grid has fallen significantly.
• The decline coincides with changes Amazon made to how it appears in Google Shopping, though it’s not fully clear whether those changes caused the drop or merely correlated with it.
• This drop could create opportunities for other retailers/third-party sellers to gain more prominence in Google search/product listings.

Target moves to better compete with Amazon and Walmart on delivery

• Target is expanding its next-day parcel delivery to cover 35 out of the top 60 U.S. metro areas, raising population coverage from 20% to 54%. 
• It is using a mix of fulfillment centers, local stores, Shipt (its acquired delivery service), and a strategy shifting toward localized delivery (market-based fulfillment) to achieve faster delivery. 
• The push is meant to close the speed/convenience gap with Amazon and Walmart, which already have high coverage and fast delivery options.

Best Buy builds retail media chops with in-store takeovers, sports deals

• Best Buy is expanding its “retail media” offerings — that is, selling advertising inventory associated with its physical and online retail presence. 
• It is also using in-store assets (takeovers) and sports-related deals to amplify advertiser reach, combining traditional retail media with experiential/offline advertising. 
• Another tactic is Best Buy’s Social+ platform, which allows advertisers to reach Best Buy customers off-site (on social platforms) as well as onsite, giving more flexibility and likely stronger performance metrics.

Walmart's fastest delivery this year was under 5 minutes, and it's a sign of what's to come

• Walmart’s fastest delivery recorded this year was under 5 minutes. 
• A sizable share of “ship-from-store” orders are fulfilled very quickly — many in under three hours, and a smaller fraction (1 in 15) arriving within 30 minutes.
• Walmart aims to continue pushing for ultra-fast delivery (minutes rather than hours/days), leaning on its large store network (~4,700 U.S. stores) to serve 94-95% of the U.S. population quickly. Also, faster delivery customers tend to spend more.

ADVERTISING

Netflix And Amazon Set Advertising Alliance

• Netflix and Amazon have formed a partnership so that Netflix’s ad inventory (for its ad-supported plans) will be available via Amazon’s DSP (Demand-Side Platform) in multiple markets (U.S., UK, Japan, Germany, etc.), starting Q4 2025. 
• The deal aims to give advertisers more flexibility, combining Netflix’s premium streaming audience with Amazon’s ad buying infrastructure. 
• For Netflix, this is part of scaling its ad revenue; for Amazon, it broadens its DSP’s reach and value proposition by including premium video content inventory.

MARKETING

Why physical touchpoints still matter in omnichannel marketing

• Even in a digital-first world where performance marketing (e.g. paid media, digital channels) gets a lot of focus, physical touchpoints (packaging, in-store displays, tactile experiences) remain important for brand storytelling, identity, and customer connection. 
• Physical elements help with building trust, emotional engagement, and sensory connection—things harder to achieve purely through screens. 
• Brands cutting back on brand-building via physical means risk weakening their long-term equity. Physical touchpoints also help differentiate in crowded omnichannel paths.

See you next week,

The ChannelSight Team

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