How the purpose of stores is evolving

To connect with shoppers and reach new customers, retailers have been increasingly launching store concepts, aiming to differentiate themselves from the competition.

Some concepts, like The Vitamin Shoppe’s “Hometown” fixture, aim to bring more localized merchandise to consumers. Launched in March 2025, the concept is featured in stores across Los Angeles; Frisco, Texas; Paramus, New Jersey; and more, and spotlights products from brand partners, including Gorilla Mind, Bucked Up and EHPlabs.

Similarly, Coach has been expanding its “Play” concept, which is localized to the cities in which it operates. The concept was an attempt to win over Gen Z shoppers, which previously viewed the company more as “their mother’s brand,” Giovanni Zaccariello, Coach’s senior vice president of global visual experience and store design, said in March 2025.

Other retailers have also leveraged store concepts to target the demographic, including Bath & Body Works and Urban Outfitters.

“Retailers and brands must continue to adapt to evolving demographics, shopping behaviors, tendencies and trends in how we work, live and play,” Michael Brown, a partner and Americas retail leader in the consumer practice of Kearney, said in an email.

A number of retailers have also forged partnerships with popular brands to create store-within-a-store fixtures to showcase products from the brand and attract a new customer set.

Shop-in-shops certainly aren’t new. Department stores have been leasing space to other companies — like brands, restaurants and hair salons — for decades in an effort to offer a more holistic shopping experience.

These partnerships often serve both parties involved. Some tie-ups “will provide convenience [and] awareness for customers and a ‘bump’ in add-on revenue for the retailers,” Brown said.

The best store concepts, however, need to serve a purpose: to reach new and existing customers and make the space a destination, according to Brown.

Here’s a look back at some of the store concepts that launched in 2025.

1. Warby Parker’s shop-in-shops at Target

Warby Parker has been working to expand its presence offline by opening dozens of new stores per year. Now, the brand is taking those efforts further by bringing its products to the stores of one of the biggest household names: Target.

The two companies in February 2025 announced a partnership in which Warby Parker would open shop-in-shop locations within select Target stores. The first stores to add the concept were located in Illinois, Minnesota, New Jersey, Ohio and Pennsylvania, with more locations set to open throughout 2026.

Warby’s own employees will run the shop-in-shop concepts, and customers can access the brand’s selection of glasses, sunglasses and contacts, as well as vision screenings and eye exams.

Co-CEO and co-founder Neil Blumenthal said the concepts will intentionally mirror the experience of its stand-alone stores.

“When you’re shopping in Target, you’ll see a Warby Parker store. You’ll literally cross that threshold and these stores look like any other Warby Parker store,” Blumenthal said.

Target has offered a number of shop-in-shops before — some more successful than others. Target’s partnership with Ulta Beauty will come to an end in August 2026 about five years after launching.

“Shop-in-shops like Warby Parker in Target provide customers convenience and Warby Parker lower cost, high traffic locations to expand their footprint as every digital business has ever had to do for long-term success,” Brown said. “Warby Parker gets a deal on the space and Target gets one more reason for customers to shop them over a competitor.”

Entering Target also lends the potential to introduce new customers to the Warby brand, expanding its reach further, Brown added.

2. Urban Outfitters’ On Rotation 

Urban Outfitters’ new store concept is designed specifically for Gen Z.

Dubbed “On Rotation,” the space features lounge-style installations and highlights a revolving roster of brand partners. The concept launched in May 2025 with Nike as its first partner and included over 150 apparel and footwear products.

On Rotation debuted in cities such as New York, Washington, D.C. and San Diego.

“Urban Outfitters has always been a destination for discovery, especially for Gen Z, who are expressive, engaged, and intentional in how they shop and show up,” Cyntia Leo, head of brand marketing and communications at Urban Outfitters, said in a statement when the concept launched.

In August 2025, the retailer introduced its second iteration of the concept, tapping Levi’s as its partner. The space, the company said, is intended to possess “the energy of a vintage flea market,” featuring both new styles from the brand as well as vintage pieces.

Gen Z has increasingly become a focus area for Urban Outfitters. In addition to the On Rotation concept, the retailer has launched a separate localized concept targeting the demographic. The concept debuted in Houston and California, and the company in November 2025 announced plans to expand further.

3. Ikea’s shop-in-shops at Best Buy

In a first for Ikea’s U.S. business, the Swedish furniture company teamed up with electronics retailer Best Buy to bring its products and services to more consumers.

Over the summer, the retailers announced Ikea would bring its kitchen and storage planning services to select Best Buy stores.

“By bringing together our home furnishing expertise, products, and services with Best Buy’s leadership in appliances and technology, we’re creating a one-stop destination where customers can design their dream kitchen, storage solutions or laundry space with ease,” Ikea U.S. Chief Operations Officer Rob Olson said in July 2025.

The shop-in-shops span about 1,000 square feet and feature kitchen and laundry room settings from Ikea.

Employees from both retailers will connect to serve customers: Ikea employees will help shoppers plan and order home furnishings, while Best Buy team members will offer assistance with electronics.

“This partnership brings together the best of Ikea and Best Buy to create a truly unique experience that we know customers will love and where they can seamlessly imagine, design and shop for their kitchens and laundry rooms like never before,” Patrick McGinnis, chief merchandising officer at Best Buy, said in a statement.

The concept officially debuted in November 2025 in some stores in Texas and Florida. Select Best Buy stores will also serve as pick-up points for Ikea.

4. Bath & Body Works’ Gingham+ concept

Bath & Body Works also cooked up a store design specifically targeted for Gen Z customers.

Gingham+, which debuted in March 2025, features a scent bar, tech features, larger aisles and a new layout. 

“We’ve heard from this demographic that many of their purchase decisions are rooted in their ability to try a product first, and while we’ve previously offered this, our new design is more intentional with specific destinations in store to test and learn,” Eduardo Tonietto, group vice president of store design, said in a statement at the time of its launch. 

The concept initially rolled out to 15 of the retailer’s stores with plans to expand to the majority of new stores in its U.S. fleet in 2025. The space caters to Gen Z customers, who are “looking for a more relaxing and toned down in-store experience” by bringing in a softer, more neutral color palette, according to Tonietto.

The demographic is a focus for the retailer. Aside from the Gingham+ store concept, Bath & Body Works brought its products to 600 college campuses across the U.S. in 2025.

5. David’s Bridal’s Diamonds & Pearls tech concept

David’s Bridal debuted what it deemed a “store of the future” concept.

The high-touch, tech-powered concept called Diamonds & Pearls launched in the spring of 2025. The concept features a curated selection of couture and designer gowns, shoes, accessories and dresses for bridal parties. The store also has a selection of exclusive products not available at other David’s Bridal locations, including gowns from Marchesa Couture and Marchesa Notte.

“With Diamonds & Pearls, we’re taking this promise to the next level. This is where trend meets tradition, where high fashion meets high touch and high tech, and where we bring the full power of David’s and all of our offerings into a modern, elevated setting,” CEO Kelly Cook said in a statement.

The space includes AI-powered shopping tools, personal styling services, Shopify point-of-sale integration for both in-store and online shoppers, alterations and more.

“By hand selecting the products, brands and partners highlighted in our Diamonds & Pearls stores, plus the ability to digitally shop in store with our ‘endless aisle’ technology, we’re bringing sophisticated curation with a seamless, modern in-store experience today’s brides want and expect,” Cook added.

The concept initially debuted in Delray Beach, Florida, with another location opening in Burlington, Massachusetts, in November 2025.

Amazon announced it will close all of its brick-and-mortar Amazon Fresh and Amazon Go stores. An unspecified number of these storefronts will be converted into Whole Foods Market locations, as Amazon plans to open more than 100 new Whole Foods stores over the next few years. 

The company will shift focus to its same-day perishable groceries delivery offering, expanding the reach of the service to more communities in 2026.

Amazon’s decision to abandon its physical grocery store business comes about five years after the company entered the conventional supermarket space with the opening of the first Amazon Fresh store.

But while Amazon has opened dozens of stores under the banner since its debut in Woodland Hills, California, in 2020, the chain has struggled to attract shoppers and compete with established grocers.

In early 2023, the company temporarily stopped growing the chain as it looked for ways to better differentiate the stores and improve their financial performance, with executives acknowledging that Amazon had gotten ahead of itself in its zeal to grab market share from more seasoned grocers.

“There are some clear fundamentals that every grocer needs to get right. And we need to improve on that,” Claire Peters, then-vice president of retail for Amazon, said during a tour of the Woodland Hills store later in 2023.

Amazon expanded stores’ assortment, refreshed decor and doubled down on low prices while also highlighting high-tech features such as Dash Carts. But the e-commerce giant made clear in the announcement that it was not able to accomplish its goal of turning Amazon Fresh into a viable traditional supermarket chain.

“[W]e haven’t yet created a truly distinctive customer experience with the right economic model needed for large-scale expansion,” Amazon said in announcing that it was pulling the plug on the chain.

Amazon disclosed what it called a “difficult decision” to close down the Amazon Fresh and Amazon Go chains in the context of a broader announcement that played up the company’s vast reach in the online grocery space. The company highlighted its grocery delivery service, which is available in more than 5,000 communities, and noted that it has more than $150 billion in gross grocery sales.

Amazon also said that Whole Foods’ experiment with its small-format Daily Shop concept has been successful so far, adding that it intends to add five more Daily Shop locations by the end of 2026. The company noted that customers can continue to shop Amazon Fresh online for delivery.

“While Fresh and Go will no longer form part of Amazon’s grocery ambitions, this should not be taken as a signal that Amazon has given up on the category. Nor does it mean that Amazon has failed in grocery,” GlobalData Managing Director Neil Saunders wrote in emailed comments.

“In our view, in one way or another, Amazon’s physical grocery mantra is: we’ll be back,” he added.

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Today’s retailers face a litany of challenges, including narrow margins, increased competition from digital and non-digital entities and new channels including social and AI commerce.  That means it’s more important than ever to provide a consistent, fast and accurate experience at checkout regardless of the buyer’s path or channel—and a key part of that experience means tax needs to be accurately and consistently calculated across all commerce-related systems, including supply chain and procurement. 

To do this, retailers have to meet the challenge of maintaining product taxability data for an ever-changing list of product SKUs, as well as keeping up with ever-changing tax rules. If it’s done incorrectly, the result can be civil penalties, class action lawsuits, audits and fines. If it’s done correctly though with a tax automation solution that offers confidence, accuracy and consistency, the result is a seamless customer experience and enhanced profits.

Reducing transaction friction: the cost of delays

With increased competition across channels and geographies, retailers simply can’t afford delays in transactions—because in an age where shoppers expect instant gratification, even minor interruptions during checkout—whether online or in-store—can prompt them to abandon their purchase and look elsewhere for what they want.  Tax calculation plays an integral role in this process.

Consider the incredible amount of data that impacts tax calculations.  The average retailer has anywhere from tens to hundreds of thousands of SKUs they are managing—so first the details of the item being purchased needs to be identified in order to apply tax correctly. Then there are 21,000 jurisdictions, which impacts the tax rate depending on where the item is being purchased.

For many organizations, manual processes—such as having to frequently upload updated tax tables and update mapping for taxability—means a heavy workload for IT and finance teams. If this information is incorrect or outdated, then transactions can be inaccurate.

However, if there is a streamlined, reliable tax automation system in place, the risk of errors can be minimized, the transaction process can proceed more smoothly and accurately and the end result is a better, more frictionless experience for both the customer and the retailer.

Improving the buying experience: accuracy and speed at every step

Tax management is not confined to the final payment stage—it is woven throughout the entire buyer journey. From the moment a customer adds an item to their cart, accurate tax calculations influence the final price and ultimately their overall shopping experience. Whether it’s B2C or B2B, correct information regarding tax rates, fees and exemptions needs to be integrated into the transaction in order to achieve an accurate final price at checkout—and prevent unpleasant surprises at the last minute.

For example, in B2B transactions, certain items may be tax-exempt, or sourcing decisions might impact applicable taxes. In B2C sales, additional fees—such as a local mattress recycling fee—must be correctly applied. An effective tax automation solution helps ensure that these elements are integrated seamlessly, fostering trust and satisfaction in the retailer.

Ensuring scalability: managing spikes and constant change

Retailers frequently face dramatic surges in transaction volume during events like Black Friday, preparation prior to a major storm, or tax holidays. These spikes can strain even the most robust systems—leading to system crashes, delayed checkouts and frustrated customers. Not to mention, tax rules are constantly evolving and retailers need to be ready to accommodate these changes, ensuring compliance without slowing down operations. A scalable, flexible tax solution makes it possible to maintain system performance and accurate tax calculations. And when customers feel confident that they are being charged correctly and fairly, their overall experience and brand loyalty improves.

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Retail is changing at an unprecedented pace, and the stakes for getting tax right are high. Responsive, integrated tax solutions enable retailers to deliver frictionless customer experiences, expand confidently into new markets and ensure compliance in a complex regulatory environment. In today’s always-on, omnichannel retail environment, aligning tax technology with the latest commerce systems is not just a best practice—it’s a competitive necessity.

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Store openings slowed last year, according to a report from Telsey Advisory Group. Net retail openings in fiscal year 2025, excluding restaurants, are expected to have grown 0.7%, a slower rate than both 2023 and 2024.

Openings for 2026 are projected to accelerate, increasing 1.4% year over year, led by beauty, off-price and discount retailers, per the report. Tariffs and broader macroeconomic uncertainty have caused some retailers to be more cautious, with many revising their capital expenditure guidance to be lower in fiscal year 2025 and reducing or postponing store remodels. 

Retail openings and closure expectations for 2026 vary across category. Net closings for 2026 are expected in both the luxury and department store sectors. Meanwhile, store count at home retailers is projected to grow 1.4% year over year, though the biggest increases will come in off-price, beauty and apparel.

The analysts anticipate Best Buy will have fewer stores in both 2025 and 2026 because of its focus on existing store refreshes. Additionally, Target and Walmart are projected to have grown their footprints in 2025, as they “work to build a digital ecosystem and complete remodels to gain a greater share of wallet,” the report added.

Retail bankruptcies are also opening up prime real estate for the competition, according to Telsey Advisory Group.

“These new bankruptcies present opportunities for surviving retailers to acquire additional retail space, enabling off-price and beauty retailers to expand their presence and enter new markets with favorable locations and terms they may not be able to secure otherwise,” the analysts, led by Dana Telsey, said in the report. “In fact, these locations have competitive interest from a number of retailers and demand has remained high given overall limited supply.”

2026 already includes a major bankruptcy announcement, with Saks Global filing for bankruptcy protection in January. Telsey analysts noted they tracked 10 retail-related bankruptcies for 2025.

Among the 2025 retailers who filed for bankruptcy is the owner of Value City Furniture and American Signature Furniture, which is now set to shutter all of its remaining stores. Additionally, Claire’s, At Home and Rite Aid all filed during the year.

Investors, developers and retailers are taking a fresh look at B malls, especially those in areas with little competition. One thing that hasn’t changed much about these lower-traffic shopping centers — along with their flooring, layout and signage — is the challenge of running a store in them.

“Get the hell out of there. Leave. Being in a B mall is not an optimal situation, just to begin with,” Lee Peterson, executive vice president of thought leadership at WD Partners, said by phone. “But if you're going to be there, there are certain thought processes that go into the A-plus stores that still need to go into those B stores.”

This flows from Peterson’s notion that every store is a flagship.

The idea is to maintain the brand's vibe and meet customer expectations on a smaller scale and usually with fewer resources. 

Every store is (not) a flagship

Above all, Peterson said, every location — whether in the Flatiron District in Manhattan or a B mall in Lincoln, Nebraska — needs top-notch employees. This requires incentive, and it’s not a coincidence that the most beloved retailers, including Wegmans, Costco and Ikea, pay the best, he said.

“The importance of associates in any store, and especially a store in a mall that could be struggling a little bit, is paramount,” he said. “It's No. 1. When a customer does go there — which they don't do as much as they used to — and there's an associate in there that really knows what they're talking about, who is friendly, who remembers your name, who’ll do anything for you, those types of things create a loyalty that is often missing from a B mall.”

Hiring, like merchandising, should be localized and personal, according to Peterson.

“If associates is the No. 1 reason people go back to stores, then there's a lot of work to be done in B stores,” he said. “And I can almost guarantee you that the way headquarters and now AI is analyzing resumes is a huge mistake.”

Merchandising the store requires thought, too, in order to maximize the sales potential and maintain the brand’s vibe.

“If a retailer puts certain flagship items in flagship stores and not in your B store, what do you think is going to happen?” Peterson said. “That B store is going to fail.”

Still, while starting with a flagship mentality can be effective, a B mall store is likely to do better with less space and a smaller assortment, according to Peterson and Jeff Sward, founding partner at Merchandising Metrics. In some cases, it may be wise to shrink the space and assortment from what it has been, they said.

“Any retailer in a B mall wants to think in terms of the best possible brand storytelling, without succumbing to the exuberance of thinking it's an A store,” Sward said by video conference. “You've just got to make the math work in terms of the investment — in fixturing and visual merchandising and inventory — and buy accordingly so that it sells through and you make a buck at the end of the year. It’s about telling the brand story as robustly as possible without tipping over into over-sorting and over-buying.”

This is a balancing act that requires not just data but also occasional store visits, he said.

“There are no secrets there,” he said. “The retailer’s got to analyze the data through the eyes of the customer. That's why store visits are so critically important for everybody.”

The idiosyncracy of location

Where a store resides in a B mall also matters, experts say.

Considerations for anchors and in-line differ, for example, according to Bryn Feller, managing director and senior vice president at commercial real estate firm Northmarq.

Box stores that have taken over space once filled by department store anchors thrive “with a low-capex, value-oriented model that fits the trade area and embraces alternative access points,” she said by email, citing Burlington, Ross and T.J. Maxx/HomeGoods as examples.

“They’ve been able to step into carved-up department space, keep the build simple, and connect to exterior entrances,” she said. “Fitness users like Planet Fitness and entertainment concepts like Round1 or Cinemark have also been very successful at stabilizing B malls because they create a dependable traffic engine.”

Meanwhile, successful in-line stores “are those that build a habit loop with the customer, giving them reasons to come back regularly beyond passive walk-by traffic,” according to Feller.

Both need a good partnership with the landlord, she said.

“Successful tenants in B malls are the ones that proactively engage with mall management, share traffic and sales data, and adjust to where the center is going,” she said. “That’s often on the store manager and district leadership, it can’t all be done from the corporate office. In B malls especially, being plugged into what the landlord is trying to reposition the property into is critical.”

Those stores also remain dependent on anchors no matter how the mall is rated, according to Sward. In one mall with a long-empty Sears store, nearby specialty retailers saw traffic and sales pick up meaningfully after Primark took over the space, he said.

“If you're in an A mall, tucked in the most remote corner where you don't get much foot traffic, it might be a B store, just because of the location in the mall,” Sward said. “That's the idiosyncrasy of location.”

Retailers must appreciate such variables and remain realistic about any shopping centers’ prospects, but particularly at B malls.

“The tenants who right-size their economics, embrace the community, and collaborate with ownership are the ones who carve out sustainable success,” Feller said. “At the end of the day, retailers succeed in B malls by leaning into what the mall is, not what they wish it were.”

Completing the first phase of a larger remodel, Target opened its new design-focused SoHo store in New York City, per a company press release. The retailer initially announced the phased redesign plan in September 2025. 

The store concept features a rotating showcase of seasonal styles on the first floor called “The Drop,” a “Broadway Beauty Bar” with changing selections curated by beauty influencers and a “Gifting Gondola” for the holidays with exclusive Target-branded merchandise.

Target’s updated space also includes a seasonal edit called “Curated By” which features selections in partnership with influential people, starting with comedian and actress Megan Stalter. The store also has a “Selfie Checkout” spot encouraging customers to take photos with their haul. 

Target’s updated location in New York City will continue to evolve throughout 2026 and beyond. The SoHo spot will eventually debut experiential areas, as well as cafe and event programming.

"Style and design are part of Target's DNA, and there's no better place for us to showcase what's next for our brand than in one of the style capitals of the world," Cara Sylvester, chief guest experience officer at Target, said in a statement. "This store is a bold reflection of our commitment to style, and it's just one part of our larger investment in Target's design-driven future that grows our roots even deeper in New York City."

The new store format — which went from concept to completion in just four months — debuts under the leadership of incoming CEO and current COO Michael Fiddelke. While Fiddelke will officially take on the chief role in February 2026, he’s quickly becoming the leading voice for the company during earnings calls and for any company announcements. 

Fiddelke has set out to recapture Target’s “design-led merchandising authority,” as he described it when recapping his core priorities on a Q3 earnings call in November 2025.

“We are a design-led company. And that starts with our authority and merchandising,” Fiddelke told analysts. “Our ability to build a unique assortment of the right, stylish, on-trend products at incredible value — that's so central to who we are and key to our differentiation and future growth.”

Winning back the dollars of consumers through such initiatives is how Target hopes to turn around the business.

Its third quarter earnings added to a pattern of declines across net sales, comps and earnings. The company in November 2025 announced it would invest an additional $1 billion into the business in 2026, using a total of $5 billion in capital expenditure to “support new stores and remodels, enhancements to the store experience and advancements in technology and digital fulfillment capabilities.”

Almost a year into David Boone’s tenure as CEO, the executive is giving a glimpse into Michaels’ future in a post-Party City and Joann world.

“When [CFO Perry Pericleous] and I got here, as we worked on the strategy, the first thing that we concluded was there was tremendous disruption in the marketplace with the exit of Joann Fabric and the exit of Party City — and that job one was to go after that,” Boone said at the ICR Conference in January 2026. “In the last six-seven months, we have introduced a Party Shop by Michaels in every single store in our fleet, and we've introduced the Knit & Sew Shop in every single store in our fleet.”

To capitalize on share opportunities in the party space, Michaels built balloon bars, introduced nearly 500 SKUs and aims to double that product assortment in 2026. Boone said Michaels is the only retailer in the space where customers can customize balloons online, order ahead and pick them up days later.

In fabrics and yarn, Michaels is benefiting from the use of Joann’s IP and private labels, which it acquired in June 2025. The retailer grew its yarn assortment by 50%, added fabric to 850 stores (with plans to reach 1,100 stores this quarter) and has over 100,000 fabric SKUs online.

“We're ahead of our competition in the space, and we intend to stay that way,” Boone said of the party business. He added that competing in both party and fabrics has “powered the business this year” and that there is still room for growth for Michaels.

As of a few months ago, 60% of Joann’s customers still didn’t have a replacement for where they buy those products, according to Boone. And in party supplies, there’s only 50% awareness that Michaels is a part of this business, though that is up from 20% when they first rolled it out.

The retailer isn’t only relying on disruption to drive growth. Michaels is adding “patch bars” to stores to take advantage of a growing trend of adding patches to clothing and other items, and has plans to roll out 20 other similar programs in different categories. These will be part of a new store model debuting in the first half of 2026, which Michaels intends to build out at a pace of about 10 stores per year.

“We're going to take the best elements of that and bring it back to our existing fleet,” Boone said, adding that the retailer will prioritize updating its biggest and most productive stores.

Private labels, which make up 70% of Michaels assortment, are also getting a refresh, starting with Celebrate It and Artist Loft. Those two brands will get updated design and packaging, as well as a refreshed value and innovation strategy. Also coming to the assortment this spring, an exclusive partnership with designer Jonathan Adler will add products to all of Michaels’ categories.

The company has its eye on events as well, which are the fastest-growing part of the business. Michaels lowered prices on birthday parties in 2025 after rolling them out in 2024 and has since seen those events quintuple year over year.

“While we're capitalizing on the market disruption, we have an ambitious merchandise optimization and transformation agenda,” Boone said. “Services and events not only drive traffic, they drive profitability, but they connect us within a community in a way that this business has not been connected. Nobody does what Michaels does … Michaels is in a category of one in the retail space.”

After two years of closing underperforming stores, Allbirds is calling it quits on most of its store footprint.

Allbirds will close all of its full-price stores in the U.S. by the end of February 2026. As of its latest quarter, Allbirds had 21 stores in the United States and two brand-run international locations.

The closures will allow Allbirds to “dedicate resources toward its e-commerce platform, wholesale partnerships and international distributorships, all of which offer greater reach, flexibility and operating leverage,” the company said. Two outlet stores in the U.S. will stay open, as well as two full-price stores in London.

The one-time DTC darling has been on a journey to pare down its store footprint over the past few years. At the end of 2023, Allbirds operated 60 total stores, including 45 in the United States.

“This is an important step for Allbirds, as we drive toward profitable growth under our turnaround strategy,” CEO Joe Vernachio said in a statement. “We have been opportunistically reducing our brick-and-mortar portfolio over the past two years. By exiting these remaining unprofitable doors, we are taking actions to reduce costs and support the long-term health of the business.”

It marks the reversal of a growth strategy that once foresaw the opening of “hundreds” of stores over time. Instead, the retailer peaked at just over 60 locations globally in 2023, before beating a hasty retreat in the following two years.

Over the course of fiscal 2024, Allbirds closed 14 U.S. stores, followed by nine in the first half of 2025. Now the retailer plans to shutter the remaining roughly 20 locations, save two outlet stores and two brand-run stores in London. The rest of Allbirds’ international fleet was either closed or transitioned to a distributor model starting in 2023.

At press time, Allbirds’ website listed more than 20 international stores (largely distributor-run), two U.S. outlet stores, in California and Massachusetts, and one location in Atlanta.

All of the store closures have eaten into Allbirds’ sales over the years, as has its transition to a distributor model, though both actions are aimed at making the business more profitable in the long term. Revenue in its most recent quarter fell 23% year over year, while net loss narrowed slightly to $20 million, though Vernachio touted the success of new products and said customers were responding well to them.

In addition to launching new styles, Allbirds has spent the last two years revamping some of its older models with upgraded features.

While they may have gotten their starts online, most DTC brands will admit there’s merit in taking their brands offline.

A key reason is because consumers, particularly Gen Z shoppers, still like going into stores to see a product in person before purchasing.

Jewelry brand Mejuri, which was founded in 2013, started inviting its customers into its office two years after launching so they could touch and feel the merchandise. The brand, which officially opened its first store in 2018, now boasts a footprint of 55 locations.

“We assumed a lot of the people who were going to come to our stores were existing customers,” Noura Sakkijha, CEO and co-founder of Mejuri, said during a panel at NRF’s Big Show. “But to our surprise — and I'm glad that I was wrong — we found that 60% of the people buying in store are net new customers.”

The jewelry segment in particular skews heavily toward in-store purchases, with two out of every five transactions occurring in store, according to Sakkijha, further pushing the brand to embrace physical retail. 

Mejuri has been intentional in the details of its stores. In a nod to its early days of inviting customers into its office to see products, the brand designed its retail spaces to showcase its products without the glass-enclosed cases typically found in jewelry stores, encouraging them to pick up and look at the merchandise.

The brand has also found that the customer lifetime value is higher for individuals that shop in store versus online, Sakkijha said. “There is something about coming [in] and touching, feeling the products and really seeing the brand in real life that creates more loyalty.”

Beyond Yoga initially built a strong wholesale presence as a way to expand its distribution. But more recently, after Levi's acquired it in 2021, Beyond Yoga has worked to grow its store fleet.

“The customer is really craving that direct connection with the brand, and we see it across generations,” Katie Babineau, chief marketing officer at Beyond Yoga, said during the panel. 

The activewear brand opened its first permanent store in 2022, and in 2025 doubled its store footprint, now boasting 14 locations, according to its website.

And seven-year-old diaper brand Coterie — which was acquired in October 2025 by Harry’s owner Mammoth Brands — has leaned into wholesale to reach new and existing customers. While the majority of its sales still come through its DTC channel, the brand currently sells through Wegmans, Whole Foods and Erewhon.

“Whole Foods is really working for us,” Coterie CEO Jess Jacobs said.

Coterie is responsible for 100% of the category growth in Whole Foods, is the No. 1 diaper brand selling there and is responsible for 86% of the grocery store’s diaper sales, Jacobs said.

With its new big-box store concept, Amazon is taking another crack at brick-and-mortar retail, with groceries as one of the draws for consumers. 

Amazon plans to construct a nearly 225,000-square-foot retail store in Orland Park, a village in Cook County, Illinois, located near Chicago, according to local planning documents. The proposed store marks Amazon’s first retail store that is on par with Walmart’s supercenter format, which averages around 179,000 square feet. 

An Amazon spokesperson said the planned store is “a new concept that we think customers will be excited about.” The company noted that the store will offer a broad selection and low prices across fresh groceries, household essentials and general merchandise.

The “first-of-its-kind” retail store will be located at 9600 1569th St. and sit right next to a Costco, according to Orland Park. Plans for the 35-acre parcel include parking dedicated for pickup orders and multiple commercial outlets for smaller businesses. The site plans, which were approved by Orland Park’s Planning Commission, still need approval from the village’s board, Patch reported. 

The Amazon spokesperson noted that the e-tail giant regularly tests new shopping experiences. In 2025, a Whole Foods Market in Plymouth Meeting, Pennsylvania, started piloting a new concept that lets shoppers scan in-aisle QR codes to order an expanded selection of groceries from an in-store microfulfillment center. Whole Foods Market has also been expanding its small-format Daily Shop concept, which it launched in September 2024, and has operated its Amazon Go convenience store chain for the past several years. 

Amazon has struggled to gain traction with its physical retail locations. The company’s attempts at running apparel stores, bookstores and 4-star — a format that only sold items with a 4-star rating or better — have fizzled. The Amazon Fresh chain has seen stop-and-go growth since the first store debuted in 2020. 

The new big-box store concept further blends groceries with general merchandise — a strategy that Amazon has been pushing lately and one that Walmart has been doing for decades. In 2025, Amazon rolled out same-day delivery of perishable groceries, which lets customers order groceries alongside millions of products from Amazon.com, to roughly 2,300 cities and towns.

Amazon noted that over 150 million people in the U.S. turn to the company for grocery shopping and said that its grocery business rang up more than $100 billion in gross sales in 2024. Rival Walmart, which has told investors for several consecutive quarters that its grocery sales continue to improve in the U.S., brought in $276 billion in net sales of food and beverage items during its 2025 fiscal year.

A breakthrough at Macy’s – in the midst of its second turnaround project in five years – is evident at its Chicago flagship for the first time in well over a decade, Evercore ISI analysts led by Michael Binetti said in a client note.

“Our team has hosted tours in the State Street store for 15 years and, in our opinion, the changes the company is making today are driving more positive progress than any point we can remember over those 15 years,” Binetti said.

Improvements in merchandise and customer service were apparent, according to the report, which detailed a visit by analysts and investors accompanied by Macy’s Inc. Head of Investor Relations Pam Quintiliano.

In merchandising, that included the assortment as well as signage. The store contained “a balanced combination of core brands the retailer is known for, trending brands, younger brands, and even some higher-end brands that may not have fit in the stores of the past,” Binetti said. Visual upgrades “go well beyond new flooring and lighting” and brands like Ralph Lauren have participated in elevating their presentations.

Small changes are making a difference, too, with analysts spotting hangers “spaced at least two inches apart (giving the store a more polished feel).” They also noted that associates are better trained.

“This is a very detailed merchandising strategy and a noticeable update from the way stores have been over-merchandised and non-premium feeling over the last decade,” Binetti said.

These are probably welcome changes to the many Chicagoans who remain resentful of Macy’s takeover — and makeover — of Marshall Field’s, which built the flagship in the late 19th century. Meanwhile, the surrounding area, known as the Loop, is also making headway in its own recovery, after a low point during and after the pandemic. Office space is filling back up, restaurants and stores are opening and foot traffic is on the rise, according to a Q3 report from the Chicago Loop Alliance.

Macy’s customers, in this city and elsewhere, are also set to benefit this holiday season from a distribution center in North Carolina that opened during the third quarter, according to the Evercore analysts. Macy’s has a later e-commerce deadline in 2025 than many of its competitors, in part thanks to the new facility, they said.

Macy’s State Street location is a bellwether for the department store’s trajectory, according to Evercore. Not least, the merchandising has advanced to the point where brands, which a few years ago were exiting Macy’s, are again interested in a partnership. Nike is just one example.

“In other words, there’s a flywheel effect taking place where Macy’s initiatives are compounding traffic and bringing in better brands — which can build on itself if nurtured properly,” Binetti said.