“Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go,” said Candace Nelson, who started the company after she lost her job in 2005. The closure was announced Dec. 30.

Nelson started Sprinkles Cupcakes in her own kitchen, and the first location was in a small Beverly Hills storefront that had previously been a sandwich shop. The brand would go on to ascend to national fame, and fans took to social media following the company’s announcement to lament the closure.

The company’s cupcake-dispensing machines in malls and airports briefly went viral on TikTok for the not-so-subtle “I love Sprinkles” jingle that played repeatedly while a mechanical arm delivered the dessert.

The company no longer has any products for sale on its website, which also has removed all operational locations across the country.

Nelson sold her business to private equity firm KarpReilly LLC in 2012 after the company had expanded to 10 locations across the country. The firm owns dozens of other companies for products including a health food home delivery service, kombucha and protein wellness shakes.

KarpReilly did not respond to an emailed request for comment Friday evening. Neither the firm nor Nelson provided a reason for the cupcake company’s closure.

Private equity has dramatically expanded its influence in restaurants over the last decade, investing $94.5 billion between 2014 and 2024, according to data from capital market company PitchBook.

Some outraged Sprinkles Cupcakes fans said on social media that the closures were part of a larger trend where private equity firms purchase restaurants and retail brands — like Red Lobster or TGI Fridays — that later file for bankruptcy or close altogether.

A customer watches as a “cupcake associate” serves Sprinkles Cupcakes in Beverly Hills in 2006. Twenty years after the cupcake chain was launched, it closed all shops abruptly on New Year’s Eve 2025. (File photo: H. Lorren Au Jr. / The Orange County Register)

Sprinkles Cupcakes, founded in 2005 in Beverly Hills, abruptly moved to close all of its locations on New Year’s Eve 2025. The cupcake chain launched by Candace Nelson touted luxuriously made sweets. She sold the chain to a private equity firm in 2013 for undisclosed terms. (File photo: H. Lorren Au Jr. / The Orange County Register)

LAS VEGAS, NV – MARCH 21: Founder and pastry chef of Sprinkles Cupcakes Candace Nelson poses at the grand opening of Sprinkles Cupcakes at The LINQ on March 21, 2014 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

NEW YORK, NY – MARCH 25: A woman takes her order of cupcakes after using a “Cupcake ATM” created by Sprinkles bakery on March 25, 2014 in New York City. The Cupcake ATM opened today, and while there were certain technical difficulties for the first day, lines of people waited to try out the new machine. (Photo by Andrew Burton/Getty Images)

CULVER CITY, CA – APRIL 24: Sprinkles Cupcakes are seen during Safe Kids Day 2016 presented by Nationwide at Smashbox Studios on April 24, 2016 in Los Angeles, California. (Photo by Jonathan Leibson/Getty Images for Safe Kids Worldwide)

Sprinkles Cupcakes, a chain of scratch-made gourmet cupcakes, cookies and cakes that got its start in Beverly Hills and was later bought by a private equity giant, is closing all stores on Wednesday, Dec. 31.

“A few days ago, I learned that Sprinkles Cupcakes, the company I started in 2005, and then sold to private equity in 2012, will be closing its bakery doors today,” founder Candace Nelson — an investment banker turned baker — said Wednesday in an Instagram video post.

Nelson opened the first Sprinkles in 2005 in Beverly Hills.

The chain, which was bought by investment firm KarpReilly LLC, operated 21 stores and 25 ATMs that dispensed fresh cupcakes 24 hours a day, seven days a week, in California, Florida, Nevada, Texas, Utah and Washington, D.C.

Spokespersons with Sprinkles Cupcakes and Greenwich, Connecticut-based KarpReilly were not immediately available for comment. However, an employee at Sprinkles’ Scottsdale store said that orders were no longer being accepted.

“After careful and thoughtful consideration, we’ve made the difficult decision to transition away from an operating company owned by Sprinkles Bakeries,” the worker read from a statement. “As a result, our company owned locations will be closing, with the final day of service scheduled for today.”

The worker, who declined to provide their name, would not comment further.

On opening day 20 years ago, Nelson sold 200 cupcakes in two hours, attracting celebrity devotees including Tyra Banks and Barbra Streisand. Nelson’s concept pioneered an explosion of specialty dessert and haute cupcake shops in Southern California.

The news of the chain’s closure hit the founder hard.

“Just to say that out loud is completely surreal. Even though I sold the company over a decade ago, I still have such a personal connection to it, and this isn’t how I thought the story would go. I thought Sprinkles would keep growing and be around forever,” Nelson said. “I thought it was a going to be my legacy. It’s hard to describe how I’m feeling right now. But one thing is for sure, I’m incredibly grateful for all of the joy our cupcakes brought to millions of people over the years.”

KarpReilly has a portfolio of 44 companies listed on its website and invests in small to mid-size consumer growth companies. Some of those businesses include Newport Beach-based California Fish Grill, San Diego-based Burger Lounge and downtown-Los Angeles-based women’s clothing brand Christy Dawn. Sprinkle Cupcakes was no longer listed as a current investment.

In 2007, the private equity firm acquired a majority position of Irvine-based Habit Burger Grill before taking it public in 2014, later selling in 2020 to Yum! Brands, the parent of KFC, Pizza Hut and Taco Bell.

KarpReilly manages funds and affiliates with capital commitments in excess of $800 million.

“I have so many amazing Sprinkles memories, which I plan to share over the next few weeks as I process this news,” Nelson said. “I built this company as a point of joy and connection.”

Over the years, Sprinkles was sold out of a cupcake truck and its proprietary mixes from more than 250 Williams-Sonoma stores throughout the United States and Canada. In 2012, the company debuted its cupcake ATM, dubbed as the world’s first such device.

Sprinkles also sold its bakery goods at Disneyland in Anaheim and through ATMs, such as those on the campus of the USC and the Little Italy neighborhood in San Diego. In Southern California, Sprinkles had stores in Beverly Hills, downtown Los Angeles, Irvine, La Jolla, Manhattan Beach, Newport Beach and The Grove shopping complex in the Beverly Grove area of Los Angeles.

The cupcakes were made fresh in small batches throughout the day and contained no preservatives, trans fats or artificial flavors, according to the company.

As of Wednesday morning, Nelson’s announcement on Instagram had received more than 360 comments on her post and nearly 2,100 likes.

“I’m so sorry. Damn PE (private equity) really does know how to f… up a good thing,” wrote one commenter under the handle of codiesanchez.

“Wow! Candace!!! That must be very tough. I’m happy you sold the company when you did, but truly sorry the new team was not able to grow and thrive with your strong foundation: Truly the end of an important chapter for you,” wrote another poster, faith_wheeler7.  “May one door close so another may open.”

Another poster, tayywalkerr of San Diego, wrote that she was speechless over the news. “This is so hard to hear. These cupcakes were my obsession for years. Still my favorite cupcake ever. You built something so amazing & always brought joy to anyone I bought cupcakes for.”

NEW YORK (AP) — The shopping rush leading up to Christmas is over and in its place, like every year, another has begun as millions of people hunt for post-holiday deals and get in line to return gifts that didn’t fit, or didn’t hit quite right.

Holiday spending using cash or cards through Sunday has topped last year’s haul, according to data released this week by Visa’s Consulting & Analytics division and Mastercard SpendingPulse.

But growing unease over the U.S. economy and higher prices in part due to President Donald Trump’s tariffs have altered the behavior of some Americans. More are hitting thrift stores or other discounters in place of malls, according to data from Placer.ai. The firm tracks people’s movements based on cellphone usage.

And they’re sticking more closely to shopping lists and doing more research before buying. That may explain why returns so far are down compared with last year, according to data from Adobe Analytics.

Here are three trends that defined the holiday shopping season so far:

A weaker holiday season for traditional gift giving

Americans are still spending on gifts, yet increasingly that shopping is taking place at thrift and discount stores, according to data from Placer.ai.

That’s likely forcing traditional retailers such as department stores to fight harder for customers, Placer.ai said.

Clothing and electronics that traditionally dominate holiday sales did have a surge but struggled to grow, according to Placer.ai. Both goods are dominated by imports and thus, vulnerable to tariffs.

For example, traffic doubled in department stores during the week before Christmas, from Dec. 15 through Sunday, compared with the average shopping week this year. But traffic in the week before Christmas this year fell 13.2% compared with 2024.

Traffic surged 61% at traditional sellers of only clothing in the week before the holiday compared with the rest of the year. But again, compared with the runup to Christmas last year, sales slid 9%.

Some of that lost traffic may have migrated to the so-called off-price stores— chains like TJ Maxx. That sector had a sharp seasonal traffic bump of 85.1% and a gain of 1.2% in the week before the holiday.

But it was thrift stores that were red hot, with traffic jumping nearly 11% in the week before Christmas compared with last year.

“Whether hunting for a designer deal or uncovering a one-of-a-kind vintage piece, consumers increasingly favored discovery-driven experiences over the standardized assortments of traditional retail,” Shira Petrack, head of content at Placer.ai, said in a blog post Friday.

Thrift stores broaden their appeal

In the past it may have seemed gauche to gift your mother a gently used sweater or a pair of pants from a local thrift store, but seemingly not so amid all of the economic uncertainty and rising prices, according to Placer.ai.

Through the second half of 2025, thrift stores have seen at least a 10% increases in traffic compared with last year. That suggests that environmental concerns as well as economic issues are luring more Americans to second-hand stores, Placer.ai said. Visits to thrift stores generally do not take off during the holidays, yet in the most recent Black Friday weekend, sales jumped 5.5%, Placer.ai. reported.

In November, as customer traffic in traditional apparel stores fell more than 3%, traffic in thrift stores soared 12.7%, according to Placer.ai.

The thrift migration has altered the demographics of second-hand stores. The average household income of thrift customers hit $75,000 during October and November of this year, a slight uptick from $74,900 last year, $74,600 in 2023 well above the average income of 74,100 in 2022, based on demographic data from STI:PopStats combined with Placer.ai data.

U.S. sales at thrift chain Savers Value Village’s rose 10.5% in the three months ended Sept. 27 and the momentum continued through October, store executives said in late October.

“High household income cohort continues to become a larger portion of our consumer mix,” CEO Mark Walsh told analysts. “It’s trade down for sure, and our younger cohort also continues to grow in numbers. ”

Fewer returns, so far

For the first six weeks of the holiday season, return rates have dipped from the same period a year ago, according to Adobe Analytics.

That suggests that shoppers are doing more research before adding something to their shopping list, and they’re being more disciplined in sticking to the lists they create, according to Vivek Pandya, lead analyst at Adobe Digital Insights.

“I think it’s very indicative of consumers and how conscientiously they’ve purchased,” Pandya said. “Many of them are being very specific with how they spend their budget.”

From Nov. 1 to Dec. 12, returns fell 2.5% compared with last year, Adobe reported. In the seven days following Cyber Week — the five shopping days between Thanksgiving and Cyber Monday, returns fell 0.1%.

From the Nov. 1 through Dec. 12, online sales rose 6% to $187.3 billion, on track to surpass its outlook for the season, Adobe reported.

Between Dec. 26 to Dec. 31, returns are expected to rise by 25% to 35% compared with returns between Nov. 1 through Dec. 12, Adobe said, and it expects returns to remain elevated through the first two weeks of January, up 8% to 15%.

This is the first year that Adobe has tracked returns.

Still, the last week of December sees the greatest concentration of returns: one out of every eight returns in the 2024 holiday season took place between Dec. 26 and Dec 31, a trend expected to persist this year, Adobe said.

Before you run out the door this Christmas — whether it’s to buy last-minute gifts or simply get out of the house — it’s wise to double-check operating hours, which can differ depending on their location. When in doubt, call ahead or look up more specific schedules online for stores in your neighborhood.

Here’s a rundown of major chains on Christmas Day this year.

IS WALMART OPEN ON CHRISTMAS?

Walmart will be closed on Christmas Day — and reopen at 6 a.m. on Dec. 26.

IS TARGET OPEN ON CHRISTMAS?

Target will be closed on Christmas and reopen at 7 a.m. on Dec. 26.

IS COSTCO OPEN ON CHRISTMAS?

All Costco warehouses in the U.S. are closed on Christmas Day.

IS CVS OPEN ON CHRISTMAS?

Many CVS locations will have modified hours on Christmas Day. Customers are encouraged to call ahead or double-check local hours online.

IS WALGREENS OPEN ON CHRISTMAS?

Walgreens stores will be open on Christmas Day but pharmacy hours may vary. All 24-hour locations will continue to remain open. You can double-check local hours here.

IS STARBUCKS OPEN ON CHRISTMAS?

Many Starbucks locations will be closed on Christmas, while some may have limited hours. It’s best to check ahead online.

IS MCDONALD’S OPEN ON CHRISTMAS?

Many McDonald’s locations in the U.S. are open on holidays like Christmas, but hours vary by location. Consumers can use the chain’s online store locator to confirm.

IS KROGER OPEN ON CHRISTMAS?

Kroger stores are closed on Christmas Day and will resume regular hours on Dec. 26.

IS ALBERTSONS OPEN ON CHRISTMAS?

Many Albertsons stores will be closed on Christmas — but there will also be locations that remain open with adjusted hours. Select pharmacies may also be closed or have different hours.

WHAT STORES ARE CLOSED ON CHRISTMAS?

Here’s some other grocery, convenience and retail stores that are closed on Christmas Day:

1. ALDI: Stores are closed.

2. Harris Teeter: Stores are closed.

3. Home Depot: Stores are closed.

4. IKEA: Stores are closed.

5. Jewel-Osco: Stores and pharmacies are closed.

6. Lowe’s: Stores are closed.

7. Macy’s: Stores are closed.

8. Meijer: Stores are closed.

9. Publix: Stores are closed.

10. Rite Aid: Stores are closed.

11. Sam’s Club: Stores are closed.

12. Sprouts Farmer’s Market: Stores are closed.

13. Trader Joe’s: Stores are closed.

14. Whole Foods: Stores are closed.

WHAT STORES ARE OPEN ON CHRISTMAS?

Here are some stores that are open on Christmas Day (or have select locations that are):

1. Safeway: Many stores are closed, but there will also be some locations open with adjusted hours.

2. Sheetz: Stores are open with regular hours (24/7).

3. 7-Eleven: Most stores are open 24/7 (including on Christmas), but some locations’ hours can vary.

NEW YORK (AP) — Sales at U.S. retailers and restaurants were unchanged in October from September as consumers moderated their spending amid worries about higher prices and other economic uncertainties after splurging over the summer.

But a big factor dragging down the figure was a 1.6% drop in sales at motor vehicles and auto parts dealerships, hurt by the expiration of federal government subsidies that sliced demand for battery-powered electric cars. Excluding that category, retail sales rose 0.4%, the Commerce Department said Tuesday in a report delayed more than a month because of the 43-day government shutdown.

The overall flat spending in October was less than economists expected and followed a revised 0.1% increase in September, the agency said. Retail sales jumped 0.6% in July and August and 1% in June.

The federal government is gradually catching up on economic reports that were postponed by the shutdown.

“The retail sales report for October was a dud, but the underlying details offer more encouraging signals for (fourth quarter) consumer spending and an elevated starting point for the critical two-month stretch for holiday sales,” Tim Quinlan, an economist at Wells Fargo, wrote Tuesday.

Still, Quinlan said other data suggest some slowdown through mid-December and leave the firm cautious on how the consumer crosses the finish line.

The government retail sales figures, which aren’t adjusted for inflation, show that Americans remained selective in October as many households struggled with high prices for groceries, rent, and many imported goods hit by tariffs.

The latest job report, released by the Labor Department Tuesday, also shows a souring employment picture.

The retail sales report covers about one-third of consumer spending, with the rest going to services such as travel, haircuts, and entertainment.

Sales at clothing and accessories stores rose 0.9%, while business at furniture and home furnishing stores increased 2.3%, likely due to rising prices because of tariff costs. Most furniture is made in China.

Online retailers posted a 1.8% sales increase, while department stores saw business rise 4.9%.

But business at restaurants, the lone services component within the Census Bureau report and a barometer of discretionary spending, posted a 0.4% sales dip.

The report comes as retailers are preparing for the crowds of last-minute shoppers with expanded hours and stepped up deals for the last stretch of holiday shopping before Dec. 25.

Hiring has generally been weak, while the unemployment rate has ticked higher, which could hurt consumer spending and the broader economy. The latest job report showed that the U.S. gained a decent 64,000 jobs in November but lost 105,000 in October as federal workers departed after cutbacks by the Trump administration.

The unemployment rate rose to 4.6%, the highest since 2021.

Despite lots of uncertainty, holiday shopping season had a solid start, with shoppers focusing on deals, according to data over the Black Friday weekend. But spending hasn’t been even across the board.

Third-quarter results from retailers released last month have been mixed. Walmart, the nation’s largest retailer, posted strong sales as it pulls shoppers across a wide spectrum of incomes who are drawn to its low prices. TJX Cos., which operates stores under such names as T.J. Maxx and Marshalls, has seen an influx of shoppers looking for a treasure hunt experience.

But Home Depot has seen slower spending as shoppers focus on small home projects, while Target, grappling with weak sales, is trying to revive its reputation as a place for affordable but stylish fashion and home goods.

The National Retail Federation, the nation’s largest trade group, still expects sales over November and December to increase 3.7% to 4.2%, compared with last year.

Retailers rung up $976 billion in holiday sales last year, or a 4.3% increase from the prior year, the group said.

But spending trends by income continue to show a K-shaped pattern, with higher-income Americans thriving with their salaries and wealth rising, while the bottom part points to lower-income households struggling with weaker income gains and steep prices.

Based on spending from its credit card and bank customers, Bank of America Institute found that high-income shoppers increased spending by 2.6% in November compared with the year-ago period, while lower-income groups lagged behind with a gain of just 0.6% compared with a year ago.

“Near-full employment has continued to support broad-based consumer demand,” Moody’s Rating’s Claire Li, vice president of credit strategy, wrote in a report published earlier this month. “But slowing hiring, cooling wage gains, and mounting affordability pressures are eroding households’ consumption growth.”

NEW YORK (AP) — Macy’s posted a surprise third-quarter profit and its strongest comparable sales in more than three years as an extensive overhaul of the 167-year-old New York department store begins to resonate with shoppers.

Macy’s raised its financial guidance for the year, but its outlook for the crucial fourth quarter was more reserved, reflecting the mood of many customers who have grown more selective in what they buy during the holiday season.

Trading was volatile Wednesday as investors weighed what appeared to be growing momentum for Macy’s under new CEO Tony Spring, and anxiety over the U.S. economy that threatens to curb holiday spending.

Comparable sales, a good barometer of a retailer’s health, have been an ominous sign at Macy’s for several years now, serving each quarter as a reminder that the storied department store chain had a long way to go.

On Wednesday, however, Macy’s posted a solid 3.2% increase for the quarter ended Nov. 1, following a 1.9% increase during the second quarter. Those sales includes licensed businesses like cosmetics.

For Macy’s, which also owns higher end stores like Bloomingdales and Bluemercury, the strong performance is notable because all retailers are navigating a challenging environment with consumers pulling back as prices rise in a U.S.-initiated trade war.

Yet consumer spending is uneven with higher income households continuing to spend more freely, while lower income families pull back in what is often referred to a “K-shaped economy.”

“The K economy is is real,” Spring told The Associated Press during a phone interview on Wednesday. “We’re fortunate. Bloomingdales and Bluemercury are solidly in the upper part of the K and about half of the Macy’s customers are in the upper part of the K. But we do also appeal to an aspirational customer and one that is choiceful. And so our job is to make sure that we get our fair share of the business. “

Spring said Macy’s had to be “realistic” and “sensible” with fourth quarter guidance.

The company has leaned into promotions to lure shoppers who are tight with their budgets, he said.

Under Spring, who took over the top job in early 2024, Macy’s has closed unprofitable stores while investing heavily in modernizing locations. The company has beefed up customer service in the fitting areas as well as the shoe department. It’s also been trying to differentiate its luxury business from its rivals with exclusive merchandise.

Roughly 50% of customers at the Macy’s have a household income of over $100,000 and at Bloomingdale’s and Bluemercury, there’s a larger percentage with household incomes over $150,000.

As Macy’s navigates what has become a volatile global trading environment due to U.S. tariffs, it’s trying to take a more surgical approach when it comes to price increases. The company is working with its suppliers to absorb some of the higher costs.

The impact of tariffs has been less than what Macy’s had anticipated, Spring said, but they remain a factor.

Macy’s reported net income of $11 million, or 4 cents per share, for the quarter. Adjusted earnings per share was 9 cents, catching industry analysts who had expected a loss of 13 cents off guard.

The company last year earned $28 million or 10 cents per share.

Net sales fell slightly to $4.71 billion, from $4.73 billion, reflecting the closure of poorly performing stores. But that still outperformed projections of $4.55 billion from analysts.

The stores it’s overhauled, 125 of them, booked comparable sales growth of 2.7% growth, outperforming the pace when all stores are included.

“While it would be an exaggeration to say that Macy’s is a retailer at the very top of its game, there is no doubt that it is now becoming a more proficient player on the retail field,” said Neil Saunders, managing director of GlobalData. “The sloppy and slapdash execution that once plagued the chain has largely disappeared.”

Macy’s now expects annual earnings per share of between $2 and $2.20, well above its previous guidance of $1.70 to $2.05 per share. It also projected annual 2025 sales in the range of $21.47 billion to $21.62 billion, up from its previous guidance of $21.15 billion to $21.45 billion.

Wall Street had been projecting earnings of $2 per share on sales of $21.3 billion, according to FactSet.

Shares rose 2% Wednesday.

NEW YORK (AP) — The nation’s shoppers may feel gloomy about the economy, but they certainly were in the mood to shop over the five-day Thanksgiving weekend that wrapped up on Cyber Monday.

As Wall Street analysts and retailers sift through the data from the weekend — the unofficial start to the season and a good barometer of shoppers’ financial health and the strength of the economy — the figures show that shoppers went online and in stores to scour for deals on everything from TVs to clothing. But all that economic uncertainty did affect spending. Shoppers were very focused and selective, some malls reported.

Of course, the weekend looks a lot different from 15 years ago, when shoppers camped out in the wee hours of the morning and fought in store aisles for doorbusters like TVs. Shoppers are still heading to stores, but the biggest growth is online, which now accounts for 30% of total holiday sales. That’s up from 15% in 2012, according to the National Retail Federation, the nation’s largest retail trade group.

Adobe Analytics reported Tuesday that so-called Cyber Week — the five-day period from Thanksgiving to Cyber Monday — brought in $44.2 billion online overall, up 7.7% year-over-year, bolstered by record spending online during Black Friday.

On Cyber Monday, consumers spent $14.25 billion, up 7.1% and making it again the year’s biggest online shopping day.

National Retail Federation’s CEO Matt Shay said Tuesday that shoppers wall off the winter holidays from all the economic noise, building a moat around the season.

“The holidays is really very much an emotional purchase,” Shay said. “Families plan for it. They invest in it. And as a component of the holidays, the five-day Thanksgiving weekend is really the psychological kickoff of the holidays.”

Based on the group’s survey of shoppers from the weekend, Shay called the period a “very solid beginning” to the holiday season.

The group still expects sales over November and December of between $1.01 trillion and $1.02 trillion. That would be up 3.7% to 4.2% more than last year.

Here’s a look at the data, the discounts, and what’s next for retailers among other issues:

The latest data shows record traffic

Software company Salesforce reported that for Cyber Week — it measures from Nov. 25 through Monday — global online sales increased to $336.6 billion, up 7% compared with the year-ago period. U.S. online sales increased to $79.6 billion, up 5% year for that week, compared with the year-ago period.

The Mall of America in Bloomington, Minnesota, reported on Tuesday that more than 235,000 people visited the iconic center on Black Friday, making it the busiest Black Friday on record in the mall’s history. The traffic number was up 8.5% compared with the same day on 2024 and nearly 2% above pre-pandemic 2019, the mall said.

Mastercard SpendingPulse, which tracks in-person and online spending, reported Saturday that overall Black Friday sales excluding automotive rose 4.1% from a year ago. The retail sales indicator, not adjusted for inflation, showed online sales jumped by double digits — 10.4% — while in-store purchases inched up 1.7%.

Still, shoppers were laser-focused.

William Lewis, marketing director of Westfield Garden State Plaza in Paramus, New Jersey, noted on Black Friday that, “People are definitely buying.” But Lewis noted that shoppers are more targeted and have done their homework ahead of time on social media or store sites.

“They know exactly where they are going,” he added.

Discounts were generous, but don’t expect them to get better

Ahead of the Thanksgiving weekend, promotions didn’t come as early as last year or were more muted, according to some malls and analysts. But for the big weekend, retailers ramped up discounting to be in line with last year’s sales event, according to Adobe and big malls like Mall of America.

But if shoppers were dilly dallying about buying a specific sweater and waiting for the prices to go down after this weekend, that may not be the best strategy. Discounts won’t improve on many items, and stores came into the season with leaner inventory amid an uncertain economy, analysts said.

Vivek Pandya, Adobe’s director of Adobe Digital Insights, noted that prior to the Thanksgiving weekend kickoff, discounts on average ranged from 10% to 17% and then accelerated to an average range of 18% to 30% for the holiday kickoff.

But he expects that retailers will likely pull back from those discounts and will hover a little above what shoppers saw to the run-up of Black Friday. The exception would be poor-selling seasonal items, which need to be sold before Dec. 25, Pandya said.

As for inventory, there were fears of empty shelves when tariff rates ballooned in April, but analysts said stores were able to navigate the vacillating tariff policy, bringing in goods at lower rates.

Nikki Baird, vice president of Aptos, a retail technology firm which works with fashion clients, noted that, “I think consumers will continue to find the things that they’re looking for, but there will be fewer choices.”

Some shoppers relied on artificial intelligence tools

Shoppers are using AI tools to track prices or get gift recommendations, though the usage is still modest. On Cyber Monday, AI traffic to U.S. retail sites — measured by shoppers clicking on a link — increased by nearly eightfold, according to Adobe. From Nov. 1 through Dec. 1, AI traffic is up nearly ninefold, it said.

The services were used most in categories including video games, appliances, electronics, toys, and personal care products, according to Adobe.

Salesforce reported that across Cyber Week, AI and agents influenced 20% of all orders, accounting for $67 billion in global sales. In the U.S., AI and agents drove 17% of orders, or $13.5 billion in sales. The figure encompasses everything from a ChatGPT query to AI-supplied gift suggestions on a retailer’s website.

What’s next

The Thanksgiving weekend is a key barometer of spending for the season. But with worries of rising prices, will shoppers taper their spending as the season progresses? And what about next year?

Baird said she will be looking at the period between the post-Thanksgiving weekend and the last week before Christmas to see whether spending keeps up.

“I think that will help us answer the question of whether this was a concentration of spending or a trend of spending,” she said.

Tiffany Yeh, a managing director and partner at Boston Consulting Group, believes there will be strong spending throughout the rest of the holiday season. Her concern is what’s in store for 2026. Yeh cited the consultancy’s shopper surveys pointing to consumers delaying purchases in order to spend during the holidays. She wonders if shoppers will mute their spending or instead steady their buying.

Costco Wholesale Corp. joined a fast-growing list of businesses suing the Trump administration to ensure eligibility for refunds if the U.S. Supreme Court strikes down the president’s signature global tariffs policy.

The nation’s biggest warehouse club chain is among dozens of companies to file lawsuits in a U.S. trade court since late October challenging President Donald Trump’s use of an economic emergency powers law to impose the levies, according to court records. It’s one of the biggest corporate players to jump into a fight largely driven this year by small businesses and Democratic state officials.

The Supreme Court heard arguments on Trump’s tariffs on Nov. 5. The justices put the fight on a fast-tracked schedule but didn’t say when they intend to rule. In the meantime, businesses of all sizes have brought cases pressing similar legal claims with the goal of avoiding uncertainty about their eligibility for refunds if the court rules against Trump.

Costco’s lawyers wrote that the complaint, filed on Nov. 28 in the U.S. Court of International Trade, was prompted due to the uncertainly that refunds will be guaranteed for all businesses that have been paying duties if the Supreme Court declares the tariffs unlawful.

The lawsuit doesn’t specify how much Trump’s tariffs have cost the company to date.

Costco argues that it needs a court intervention immediately because Customs and Border Protection denied its request to extend the schedule for finalizing tariff determinations under Trump’s use of the International Emergency Economic Powers Act. The company says that could jeopardize its ability to seek full refunds in the future.

Costco didn’t immediately respond to requests for comment on Monday.

White House spokesperson Kush Desai said in a statement that, “The economic consequences of the failure to uphold President Trump’s lawful tariffs are enormous and this suit highlights that fact. The White House looks forward to the Supreme Court’s speedy and proper resolution of this matter.”

Skeptical Justices

During arguments before the Supreme Court last month, key justices appeared skeptical of Trump’s tariffs, which have generated tens of billions of dollars a month. Lower federal courts ruled against the administration in a handful of lawsuits filed early on, but judges have allowed the government to enforce the tariffs until the Supreme Court issues its decision.

Other household names to bring tariff lawsuits in recent weeks include cosmetics giant Revlon Consumer Products Corp. and motorcycle maker Kawasaki Motors Manufacturing Corp.

The expansive, fast-changing tariff policies have disrupted the retail sector this year, threatening to raise prices of goods and hamper the purchasing power of U.S. consumers who are already cautious following years of inflation.

The impact has been more muted than expected due to exemptions and changes in rates after negotiations, though some items such as electronics and apparel are more expensive compared to a year ago. While retailers have warned that they continue to see higher costs, many big operators have not pursued lawsuits like Costco — making it an outlier.

Costco has said it’s working to mitigate tariffs, which primarily affect its non-food items. It has rerouted some products to non-U.S. markets, ordered more inventory early to get ahead of the levies and purchased from fewer suppliers by consolidating buying. When items get too expensive, it’s changing merchandising altogether.

“We’re doing everything we can,” Chief Financial Officer Gary Millerchip said in an interview with Bloomberg News earlier this year. “Whether that’s working with the suppliers to find efficiencies to offset the impact of tariffs, or whether it’s sourcing with them often to different countries.”

For example, Costco said in May that it kept steady prices of pineapples and bananas imported from Central and South America because they are important items to customers. At the same time, it increased prices of flowers sourced from the region because they are less of a necessity to shoppers.

The club chain said its big size and limited assortment — its stores carry a couple thousand items versus over 100,000 for some big-box retailers — give it a leg-up when navigating tariffs. Still, it’s difficult to predict what will happen to prices, company executives said.

The case is Costco Wholesale Corp. v. Customs and Border Protection, 1:25-cv-316, U.S. Court of International Trade.

©2025 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.

The development came amid a continuing strike by Starbucks’ union that began last month at dozens of locations around the country.

The workers want better hours and increased staffing, and they are angry that Starbucks hasn’t agreed on a contract nearly four years after workers voted to unionize at a Buffalo store. Union votes at other locations followed, and about 550 of Starbucks’ 10,000 company-owned stores are now unionized. The coffee giant also has around 7,000 licensed locations at airports, grocery stores and other locales.

Workers and the company dispute the extent and impact of the strike, but Mamdani, Sanders and some state and city officials sought to amplify the baristas’ message by mingling with scores of strikers and supporters outside a Starbucks shop in Brooklyn.

“These are not demands of greed — these are demands of decency,” Mamdani, a democratic socialist who ran on pledges to aid working-class people, told the crowd. Some workers carried giant mock-ups of Starbucks takeout cups, bearing the union’s logo instead of the coffee chain’s insignia.

Four years after the first shop’s union vote, “Starbucks has refused to sit down and negotiate a fair contract,” said Sanders, a Vermont independent who supported Mamdani’s campaign.

A message seeking comment on the progressive politicians’ picket-line visit was sent to Starbucks.

Striking baristas described a harried workplace with chronic short-staffing, online orders so complex that the ticket is sometimes longer than the cup, and last-minute calls to come in.

“It is the company’s issue to give us the labor amount to schedule partners fairly, and they are not scheduling us fairly, no matter how much money we are making them,” said Gabriel Pierre, 26, a shift supervisor at a store in suburban Bellmore.

Starbucks has been trying to bounce back from a period of lagging sales as inflation-conscious U.S. customers questioned whether its coffee concoctions were worth the money. The Seattle-based company recently reported the first increase in nearly two years in same-store sales — a term for sales at locations open at least a year — but restructuring costs, store redesigns and other changes took a bite out of profits in its July-September quarter.

Under the agreement announced Monday with New York City’s Department of Consumer and Worker Protection, Starbucks will pay $3.4 million in civil penalties, in addition to the $35 million it is paying workers. The company also agreed to comply with the city’s Fair Workweek law going forward.

The company said it’s committed to operating responsibly and complying with all applicable local laws and regulations everywhere it does business, but Starbucks also noted the complexities of the city’s law.

“This is notoriously challenging to manage,” spokesperson Jaci Anderson said.

Most of the affected employees who held hourly positions will receive $50 for each week worked from July 2021 through July 2024, the department said. Workers who experienced a violation after that may be eligible for compensation by filing a complaint with the department.

“I sure hope that it gives Starbucks an awakening,” said Kaari Harsila, 21, a Brooklyn store shift supervisor who was picketing Monday.

The settlement also guarantees that employees laid off during recent store closings in the city will get an opportunity for reinstatement at other Starbucks locations.

The city began investigating in 2022 after receiving dozens of worker complaints against several Starbucks locations. The investigation eventually expanded to hundreds of stores. The city said the probe found, among other things, that most Starbucks employees never got regular schedules, making it difficult for staffers to plan other commitments, such as child care, education or other jobs.

The company also denied workers the chance to pick up extra shifts, so they remained part-timers even when they wanted to work more, according to the city.

Associated Press writer Bruce Shipkowski contributed from Toms River, New Jersey.

NEW YORK (AP) — Shoppers scoured for deals online on Cyber Monday, delivering strong sales for retailers and capping a five-day spending spree that kicked off on Thanksgiving.

Adobe Analytics reported that as of 6:30 p.m. EST on Monday, U.S. consumers had already spent $9.1 billion online for Cyber Monday, up 4.5% from the same day a year ago.

Adobe expects that when the final tally is in, consumers will spend between $13.9 billion and $14.2 billion for the day, making Cyber Monday the biggest online shopping day of the year— and setting records for that day.

Online spending is expected to peak between 8 p.m. and 10 p.m. local time, with $16 million to pass through online shopping carts every minute nationwide, Adobe said

Electronics and apparel are leading the charge for Cyber Monday, Adobe reported.

The sales results are in line with Adobe Analytics prediction of $14.2 billion online Monday, or 6.3% more than in 2024.

U.S. consumers already spent $11.8 billion online during Black Friday, $6.4 billion on Thanksgiving Day and another $11.8 billion over the weekend — exceeding Adobe’s forecasts.

Adobe said Monday that it expects the five-day weekend to drive 17.2% of overall online sales this season, at $43.7 billion , up 6.3% compared with the year-ago period.

Purchases made across Cyber Week — the five major shopping days between Thanksgiving and Cyber Monday — provides a strong indication of how much shoppers are willing to spend for the holidays.

“Cyber Week is off to a strong start,” said Vivek Pandya, lead analyst at Adobe Digital Insights. “Discounts are set to remain elevated through Cyber Monday, which we expect will remain the biggest online shopping day of the season and year.”

Software company Salesforce — which tracks digital spending from a range of retailers, including grocers — reported that Cyber Monday was off to a “strong start,” with global online sales as of noon EST reaching $17.3 billion, up 5.3% from last year. It said that the number of online orders was unchanged from a year ago.

Salesforce said U.S. online sales hit $3.4 billion, or up 2.6%, on Cyber Monday during the same time frame. Online orders declined by 1% from a year ago.

With several hours of Cyber Monday shopping still ahead, Salesforce said it’s expecting global online sales to grow 6% compared with the year-ago period to reach $52.7 billion and for U.S. online sales to increase 4% compared with a year ago to $13.3 billion.

The numbers are coming in slightly below Salesforce’s original prediction for online sales to total $13.4 billion in the U.S. and for global sales to reach $53.7 billion on Cyber Monday.

While the amount of money going into online shopping carts is expected to reach new heights Monday, rising retail prices also may contribute to any record sales figures that materialize. Consumers may be buying fewer total items. Experts say tighter budgets are causing many to shop with more precision than in years past — such as focusing on a few “big ticket” purchases, for example, and spreading out what they buy over days of promotions in hopes of getting the most bang for their buck.

Businesses and households have watched anxiously for financial impacts from U.S. President Donald Trump’s tariffs on foreign imports. Workers in both the public and private sectors are also struggling with anxieties over job security amid both corporate layoffs and the aftereffects of the 43-day government shutdown.

For the November-December holiday season overall, the National Retail Federation estimates that U.S. shoppers will spend more than $1 trillion for the first time this year. But the rate of growth is slowing — with an anticipated increase of 3.7% to 4.2% year over year, compared with 4.3% during last year’s holiday season.

At the same time, credit card debt and delinquencies on other short-term loans have been rising. More and more shoppers are turning to “buy now, pay later” plans, which allow them to delay payments on holiday decor, gifts and other items.

Overall, mobile devices have become the dominant shopping platform consumers are turning to for the holidays. Adobe expects smartphones, wearable tech and other handheld electronics to account for 58% of online spending this season.

Five years ago, a majority of online purchases were made on desktops.

Shopping services powered by artificial intelligence are also expected to play a role in what consumers choose to buy. For Black Friday, Salesforce estimated that AI assistants and digital agents contributed to $14.2 billion of the total $79 billion it said was spent online worldwide.

To many, Cyber Monday is billed as the “last call” to take advantage of the deepest discounts in the days following Thanksgiving. But its reach has grown over the years.

Cyber Monday is two decades old now, dating back to when the National Retail Federation first coined the term in 2005. Today, sales continue to bubble up throughout the week — riding on the hype that the industry has built to fuel consumer spending.