?? Retail Daily Minute | Sprouts Loyalty Launch, Walmart’s AI-Powered Wally, and Forever 21’s Bankruptcy Concerns

Hello Omni Talk Fans! Sprouts is only in 24 states and doesn’t even have a loyalty program yet? Talk about avenues for growth!

In today’s Retail Daily Minute:

• Sprouts Farmers Market Rolls Out First-Ever Loyalty Program – After a successful test in select markets, Sprouts will launch its loyalty program chainwide in Q3 2025.
• Walmart Unveils 'Wally' AI for Merchandising Teams – Walmart’s new AI tool, Wally, automates data analysis for merchants, allowing real-time access to sales, pricing, and inventory data.
• Forever 21 Considers Second Bankruptcy Filing – The fast-fashion retailer may close 200 stores as it struggles to find a buyer for its U.S. store leases.

PLUS, a quote from a film I watched over the weekend about the founder of the National Lampoon.

?? Listen now

Today’s Top Headlines

1. Sprouts Expands While Private Labels Soar

Sprouts Farmers Market demonstrated significant growth in 2024 with an 18% increase in Q4 net sales to $2 billion, successful expansion to 440 locations, and private label products accounting for over 23% of revenue. The company is poised for continued expansion in 2025 with plans for 35 new stores and a phased rollout of their loyalty program, reinforcing their position as a destination for health-conscious shoppers. (Read More)

2. Walmart’s AI Revolution Transforms Merchant Decision-Making

Walmart has introduced Wally, an innovative generative AI tool that helps merchants rapidly analyze vast amounts of sales data and make informed decisions about product selection and pricing across their retail ecosystem. This AI-powered solution has significantly reduced the time spent on manual data analysis from hours to seconds, enabling merchants to respond more quickly to changing customer demands while maintaining alignment with Walmart's internal merchandising guidelines. (Read More)

3. Forever 21’s Second Bankruptcy Looms Large

Forever 21, the once-dominant fast-fashion retailer, is contemplating its second bankruptcy filing in five years while planning to shutter 200 of its approximately 350 nationwide locations after failing to secure buyers for its U.S. leases. The company's decline reflects broader challenges in the fast-fashion sector, including intense competition from online retailers like Shein and Temu, shifting teen shopping preferences toward resale, and ongoing struggles with retail overhead costs. (Read More)

4. Trump’s USPS Commerce Merger Plan Sparks Historical Shifts

The U.S. Postal Service faces a potential executive branch takeover through a proposed merger with the Commerce Department, marking the first major structural change since its 1970 independence. This transformation, suggested by former President Trump, aims to address the agency's financial struggles while maintaining its essential services, though it raises significant questions about the future of postal operations and its 640,000-strong workforce. (Read More)

5. Catalyst Brands Faces Tumultuous Business Restructuring

Catalyst Brands is undergoing significant corporate restructuring, including layoffs and the sale of Reebok's U.S. operations, while also exploring strategic options for Forever 21. The company, led by former J.C. Penney CEO Marc Rosen, aims to achieve positive EBITDA this fiscal year despite challenges across its retail portfolio. (Read More)

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Be careful out there,

-- Chris, Anne, and the entire Omni Talk team