Dana Telsey on Retail Trends: Assortment, Activation, and 2026 Outlook

Holiday Shopping Season Performance

• 🛍️ The recent Super Saturday saw very good traffic, indicating that 3-4% sales growth for the season is likely achieved.
• 💡 Consumers are actively buying but are watching prices carefully, with assortment and activation being the key drivers of demand.
• 🛒 The buy online, pick up in-store option remains critical for consumers to secure gifts for the holidays.

Impressive Retailers and Areas for Improvement

• ✨ Victoria's Secret, Hollister, Urban Outfitters, Free People, and Steve Madden are performing well, with cold weather boosting sales of items like tall boots.
• 📉 TJ Maxx is also noted as an off-price retailer that still needs more traffic.
• ⚠️ Concerns exist for some women's apparel retailers, Tommy Bahama, and Torrid, particularly those that have not adapted or invested in advertising.

Department Stores and Activewear

• 🎯 Nike is showing improved traffic compared to six months ago, with new products and collaborations like Skims being visible.
• 🌟 Macy's and Bloomingdale's are highlighted as department store winners for 2026 due to their introduction of new brands.
• 🤸 Lululemon needs newness to reinvigorate its activewear segment, though it is seen as fixable with potential leadership changes and product enhancement.

The Resurgence of Fashion

• 💃 Fashion is firmly back as fashion, driven by people going out again and attending events post-pandemic.
• 👗 Consumers desire new attire for these occasions, shifting away from the previous focus on electronics.

2026 Retail Outlook

• 🚀 Looking ahead to 2026, assortment and activation will continue to be crucial for driving appreciation, especially with major events like the World Cup, Olympics, and America 250 on the horizon.