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The spooky season is in full swing, but the industry is proving to be even scarier than those larger-than-life skeletons. From companies crawling their way out of decline to frighteningly sky-high prices, it hasn’t taken much to rattle retail. With the industry's biggest quarter ramping up, it's more important than ever to deliver solid experiences for consumers, especially in a year where they're more selective in where they allocate their budgets. While some retailers have stepped up, others have floundered. Here's a look back at some of the biggest horror stories that hit retail this year. 1. Nike’s slower-than-anticipated turnaround Two years ago, Elliott Hill stepped in as Nike’s CEO and was tasked with correcting a DTC pivot that had gone too far. BNP Paribas earlier this month said that around that time, they heard from leadership that Nike’s Win Now strategy would be completed by the end of 2025. That timeline was later kicked out to the end of 2026. But at the start of this month, the athletics retailer introduced its latest restructuring plan, Pace, which includes consolidating geographies, creating a more flexible supply chain, opening a campus in India, and putting resources toward product innovation, brand storytelling and more. Pace represents Nike’s third restructuring program since fiscal 2024, and the retailer said that it has “significant work ahead,” particularly within its sportswear, Jordan Brand and China segments. While Nike did not provide an estimated timeline for when it intends to complete its turnaround, BNP Paribas senior analyst Laurent Vasilescu said that “rightsizing of the business may last for several years to come.” 2. Walmart’s pricing defense Late last month, Walmart CEO John Furner attempted to ease concerns over dynamic pricing. In a letter, the executive addressed concerns that the retailer is using technology like digital shelf labels to personalize pricing and charge shoppers differently. He also said information shared with its AI shopping agent, Sparky, won’t be used to change prices or hide lower-priced goods. Furner said Walmart does not set “different prices based on who you are or the time of day, and we won’t. Your income, shopping history, urgency or what we think you could pay won’t change the price. And whether you’re buying groceries or electronics on a hot afternoon or in a sudden rush for an item, it’s never a reason to charge you more.” But consumer advocacy group Groundwork Collaborative called attention to an existing patent the retailer was granted in 2023 related to remotely controlled electronic shelf labels. That patent says that labels and prices could change based on what it knows about a shopper's cart through its scan-and-go tech About a week later, Walmart responded, maintaining that it does not use digital shelf labels for individualized pricing. “A patent isn’t a plan,” a Walmart spokesperson said at the time. “This patent describes a possible use of technology; Walmart does not use, and will not use, digital shelf labels to change prices based on what’s in a shopper’s cart, who they are or the time of day. The patent has issued, but we will not use it or renew it.” The patent’s adjusted expiration date is April 2039. 3. Bed Bath & Beyond’s acquisition reversal At the start of the year, Bed Bath & Beyond — now Neighborhood Intelligence — announced a turnaround strategy focused on three distinct pillars: omnichannel retail, home services and home ownership. A key part of that strategy has been growing its business by acquiring other companies. Those deals began taking shape last year and kicked off a wave of acquisitions that included The Container Store and The Brand House Collective (formerly Kirkland’s). But they also included entities that would support Bed Bath & Beyond’s ambitions to expand beyond a traditional retail company. The company in April announced plans to acquire F9 Brands, the owner and operator of Cabinets To Go and Lumber Liquidators. As part of that deal, F9 Brands CEO Jason Delves was tapped to lead the “Beyond Home Services” pillar of Bed Bath & Beyond’s turnaround. In June, the company said it would acquire real estate platform Fathom Holdings, a deal intended to support its home ownership pillar. Now, both of those deals have been called off, and the company said it won’t pursue other acquisitions as it focuses on organic growth within its existing businesses. 4. Chip Wilson’s attack on Lululemon Lululemon founder Chip Wilson last year began pushing for major changes across the activewear brand’s board. Wilson in December moved to nominate the former co-CEO of On Holding, Marc Maurer; former ESPN Chief Marketing Officer Laura Gentile; and former Activision CEO Eric Hirshberg. At the time, Wilson said the nominees represented “the change that is needed to redefine Lululemon and begin this company’s next chapter of success.” The back-and-forth battle between Wilson and Lululemon continued into this year, with the brand’s board calling the founder’s actions “the latest iteration of his long-standing personal grievances and desire to regain influence at Lululemon.” Eventually, the two parties entered into a cooperation agreement, which included two of Wilson’s nominees — Maurer and Gentile — joining the board. Lululemon last week also added Tara Poseley — former chief product officer at the retailer — to its board of directors, a move supported by Wilson. 5. Gas prices Consumers’ budgets have been hit by lingering inflation, largely driven by rising energy costs. While the national average for a gallon of regular gasoline has decreased 4.6% month over month, compared to a year ago, prices are up nearly 40%, according to AAA’s tracker. That has strained household budgets and eroded consumer confidence, with it falling to a 12-year low last month. And broader retail sales are “starting to crack,” Navy Federal Credit Union Chief Economist Heather Long said in emailed comments. “As gas prices soared, consumers spent more at the pump but had to pullback elsewhere.” Areas that have historically performed well, like sporting goods and hobbies, are starting to show signs of slowdown, Long added. “That may be an early canary in the consumer mind.”
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