After beauty's social return on ad spend (ROAS) dipped to $1.90 in Q4 2024, the category saw a marked jump up to $3.50 in Q1 2025, according to a March report from Cart.com.
A key inflation gauge that excludes food and energy prices picked up in July, suggesting tariff-related cost increases are being passed along to consumers. Core CPI, which strips out energy and food, rose 3.1% YoY, up from 2.9% in June. On a monthly basis, that closely watched measure rose 0.3%, the highest increase since January and up from June’s 0.2% advance. Retailers and producers are exhausting their early strategies to shield consumers and will need to plan for sustained cost pressures. Some strategies retailers can take on include negotiating with suppliers on cost-cutting measures or the use of lower-cost materials, exploring investments in onshoring production to avoid tariffs, and increasing D2C sales in a bid to improve profit margins.
Over half (56%) of US adults commonly purchase private label grocery/food and beverage products, the most popular category of private label purchased, according to April 2025 data from First Insight.
As consumers trade traditional search engines for social feeds, brands are approaching these platforms as drivers of brand awareness and conversion. TikTok Shop has rapidly become the eighth-largest beauty retailer in the United States, according to a February report from NielsenIQ. 41% of Gen Z turns to social platforms first for finding information, ahead of search engines (32%), AI chatbots (11%), and friends and family (9%), according to a May Sprout Social survey.
Ulta Beauty is tapping into trends like Korean beauty and wellness to stay relevant with younger consumers while Pop Mart has created viral excitement around its collectibles through smart digital marketing and gamification. In addition, Urban Outfitters has launched a back-to-school dorm makeover contest and Away Luggage is enhancing the travel experience with a giveaway. Here are the eight most interesting retailers and brands from last month, as ranked on our “Behind the Numbers” podcast.
9 in 10 Americans (93%) plan to cook at home as much or more in the next 12 months compared with the previous year, according to HelloFresh’s State of Home Cooking report. That shift is as much due to financial considerations as it is to a general desire among consumers to eat healthier. The shift to eating at home creates a prime opportunity for meal kit providers like Hello Fresh, provided they can make the case to consumers that their menus offer value for money—while also satisfying their seemingly-unquenchable desire for protein.To that end, these companies could highlight their budget-friendly options, as well as put the nutritional value of their meals front-and-center, while emphasizing the convenience that such kits provide.
Consumer goods giants Kraft Heinz and Unilever are moving to stimulate demand in a challenging sales climate by increasing marketing spending on their most popular products. Both companies are betting on marketing to spur demand and improve brand equity in a slower-growth climate. But the question is whether stepped-up marketing will be enough to overcome rising consumer caution, particularly in categories like snacks and personal care, where purchases are more discretionary in a tariff-driven environment. Increased investments in promotions could pressure margins in coming quarters.
As tariffs push prices up, consumers are reevaluating their brand loyalties—and many are walking away for good. What once felt like long-term relationships are now being tested by sticker shock, with even high-income shoppers turning to discount retailers and finding satisfaction in switching.
As more consumers start GLP-1 treatments, some CPG brands must work harder to stay in shopping carts. As many GLP-1 users eat less and change their diets, it opens new challenges and opportunities for retailers and marketers.
Chipotle lowered its FY sales forecast after same-store sales fell more than expected in Q2, marking the second-straight quarter of declining traffic as wary consumers think twice about dining out. Chipotle’s Q2 struggles clearly show that consumers are becoming much pickier about where they choose to spend their money. The vast array of meal deals available in the QSR marketplace means Chipotle can no longer compete on value alone—making menu innovation and limited-time offerings even more necessary to drive traffic.
Starbucks is taking a different approach to its much-hyped Pumpkin Spice Latte this year. Rather than pulling the launch forward, as it has done for the past several years, the drink will make its debut on August 26—four days later than in 2024, and the PSL’s latest launch date since 2022. Delaying the launch slightly could build excitement over Starbucks’ fall menu, and encourage customers to visit more often once the PSL hits stores. The move might also lift sales for Starbucks’ grocery assortment—especially given the current popularity of at-home coffee brewing—which could in turn help offset the company’s in-store softness. Still, the enduring popularity of the PSL alone won’t be enough to lift Starbucks out of its slump.
The strategy: Despite ongoing economic headwinds, Domino’s delivered solid Q2 growth across all income levels by doubling down on value and innovation—key pillars of its Hungry for More growth strategy. CEO Russell Weiner noted during the company’s earnings call that Domino’s has consistently gained about 1 percentage point of market share annually over the past decade—and sees ample opportunity to build on that momentum and further outpace rivals. Our take: Domino’s is proving that even in a challenging, price-sensitive environment, smart innovation and a sharp value proposition can drive growth across income cohorts. By blending crave-worthy new items like stuffed crust pizza with a more personalized loyalty experience and increased delivery flexibility, the brand is positioning itself to win market share from slower-moving rivals.
The news: Circle K owner Alimentation Couche-Tard has dropped its bid to buy Japan’s Seven & i Holdings, casting doubt on whether the 7-Eleven operator’s planned US IPO will proceed, Bloomberg reported. Our take: As 7-Eleven continues efforts to strengthen its core business, the failed takeover bid offers lessons for retailers and brands. Decisions involving globally recognized brands should be strategic, not reactive. Retailers must maintain flexibility to revisit IPO or spin-off plans as business circumstances change.
66% of U.S. adults have reduced nonessential shopping to manage expenses, according to March 2025 data from CivicScience.
Men’s care brand Every Man Jack employs a strategic calendar-based marketing approach that shifts focus throughout the year, responding to consumer behavior and competitive pressures.
Retailers and CPG brands may face challenges as President Donald Trump’s so-called “big, beautiful bill” takes effect, ushering in sweeping changes to the Supplemental Nutrition Assistance Program (SNAP).
The news: Kraft Heinz is planning to break itself up, The Wall Street Journal reported, a move that would allow it to focus on faster-growing segments without the burden of underperforming brands like Oscar Mayer and Maxwell House. Our take: Kraft Heinz’s unwinding is a warning sign to the growing number of food companies that see large-scale acquisitions as their ticket to success. While such deals can unlock efficiencies, they also risk creating bloated organizations that fail to keep up with the needs of consumers.
The news: Save A Lot introduced a new Hispanic-focused store format—its second—in partnership with Leevers Supermarket as it explores ways to build deeper connections with Hispanic consumers. The takeaway: The rationale for opening these stores is clear: Hispanic consumers wield increasing buying power and account for an outsize share of growth in categories like CPG, beauty, and food and beverage. By targeting these shoppers with formats and products best suited to their needs, grocers can win lasting loyalty.
The news: The wave of consolidation in the consumer packaged goods (CPG) sector is continuing with Italian candymaker Ferrero’s $3.1 billion acquisition of cereal manufacturer WK Kellogg. The deal will give the maker of Nutella and Ferrero Rocher a foothold in staple grocery categories, as well as deepen its North America presence—a particular area of focus for the company. Our take: With grocery spending strained and costs rising, most CPG companies are taking one of two tracks. Some, like Ferrero and PepsiCo, are making strategic acquisitions to broaden their portfolios and keep up with shifting trends. Others, like Conagra and General Mills, are shedding assets to reduce expenses and focus on the categories with the greatest growth potential.
The news: Ulta Beauty acquired upscale UK beauty retailer Space NK for an undisclosed amount, the company said, as it turns to new markets to offset slowing US growth. Our take: The US beauty market is becoming increasingly saturated as more retailers lean on the category to boost sluggish sales. While expanding to new markets comes with its own set of challenges, Ulta’s decision to rely on acquisitions and distribution partnerships will help smooth its path.