Two of the biggest retail chains are sending very different signals around discretionary spending. In the third quarter, Walmart reported that general merchandise showed “positive unit growth,” while Target said there was “continued softness” in discretionary categories.

“Walmart has the upper hand over Target this holiday season, driven by its focus on low prices, everyday essentials, and the ability to attract cost-conscious shoppers—even those from higher-income households,” Angelica J. Gianchandani, professor of marketing at NYU, told Retail Brew via email. “In contrast, Target is struggling this season as dropping profits and reduced discretionary spending highlight the challenges of relying on non-essential categories in a cautious consumer market.”

In the years following the pandemic, as inflation-weary customers pulled back on making big discretionary purchases, Walmart’s relative strength in grocery and other essential goods was an asset, while Target’s relative strength in general merchandise was a liability.

Now these companies are showing how different strategies and positioning can lead to different outcomes, even as they face some of the same macroeconomic headwinds.

Keep reading here.—AV

The glory days of retail pharmacy may be over.

During the Covid-19 pandemic, retail pharmacies including CVS, Walgreens, Rite Aid, and Walmart saw increased foot traffic as customers flocked to the stores for medications and household items like toilet paper and hand sanitizer. Plus, with the help of government funding, chains earned billions from distributing Covid vaccines, collectively pulling in $7.5+ billion by the end of 2021, according to pharmaceutical research firm Drug Channels Institute.

CVS, for example, reported $66.9 billion in revenue at the end of its 2019 fiscal year. By the end of the 2021 fiscal year, that increased to $76.6 billion.

But things seemed to change for the sector by the end of 2022 when fewer people were getting Covid vaccines and tests. Rite Aid filed for bankruptcy last October, and CVS and Walgreens reported steep losses over 2024.

So, what went wrong?

Keep reading here on Healthcare Brew.—MA, CM

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Megan Bailey Darmody has spent more than eight years at e-commerce flower and gift company UrbanStems, serving as VP of brand marketing for the last year.

How would you describe your job to someone who doesn’t work in retail? I’ve always seen myself as a storyteller. My job is to create distinctive stories about brands, products, and experiences that deepen the customer connection and create differentiation from competitors.

One thing we can’t guess about your job from your LinkedIn profile? While my role is primarily marketing, communications, and creative, I have always operated with an awareness of logistics, operations, and execution. I see it as both a part of being an empathetic leader and colleague and as a way to move faster. If you are thinking ahead to how the campaign will affect your team, live in your different channels, or land with your customers, you are less likely to be surprised with an unexpected blocker.

What’s your favorite project you’ve worked on? I have very fond memories of bringing our Vogue partnership to life. From being in their offices for the big pitch to hand-packing the press mailer and watching the sales come in—we were a young brand at the time taking a big leap. I’m also very proud of how it has evolved years later and become a symbol of our premium positioning.

Keep reading here.—EC