Edition #34: The Scrimp & Splurge Mentality — Plus The Top Retail Stories This Week

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As 2026 gathers pace, retail is entering a sharper, more unforgiving phase. Asset sales, tariff battles, platform pressure, and margin resets are colliding with new consumer behaviours and capital flows.

This week’s headlines show an industry recalibrating — fast.

🌍 World Retail Headlines

Estée Lauder puts three brands up for sale
The beauty major explores divestments as it streamlines its portfolio amid slowing growth and rising competition.
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IKEA battles Amazon and Temu as market shifts intensify
Low-cost platforms and marketplace giants pressure IKEA’s traditional value proposition and supply model.
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Buffett-backed Marubeni buys Gola sneakers owner Jacobson Group
The deal highlights renewed investor interest in heritage sneaker brands with global licensing potential.
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Vendors sue Saks Global as retailer searches for rescue
Mounting lawsuits reflect deepening stress across luxury wholesale and department store ecosystems.
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Over 1,000 companies sue Trump over tariffs
Businesses escalate legal action as trade policy uncertainty continues to disrupt pricing and sourcing.
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Rare Beauty to launch at Ulta
Selena Gomez’s brand expands brick-and-mortar reach, reinforcing celebrity-led beauty’s retail momentum.
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Zalando to close German fulfilment centre, 2,700 jobs at risk
The move reflects cost pressures and a reassessment of European e-commerce infrastructure.
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Amazon must face price-gouging lawsuit, U.S. judge rules
The decision keeps regulatory scrutiny firmly on marketplace pricing practices.
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📰 India Retail News

Global beauty majors face slowing growth amid rising competition
Local and regional brands continue to eat into share, challenging multinational incumbents.
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Textile and apparel exports hit by U.S. tariffs
Trade headwinds weigh on India’s export-led fashion and textile sectors.
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Cold snap boosts winter sales across north and east India
Seasonal demand rebounds after a sluggish start to winter.
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Agilitas enters retail with launch of SportsYard
The company moves toward a vertically integrated sports retail ecosystem.
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Hair crème and noodles clock fastest FMCG growth
Everyday consumption categories outperform as consumers remain value-conscious.
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Interio by Godrej targets 10% CAGR in modular kitchens
The brand bets on Tier 2–3 cities and tech-led customisation for growth.
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Reliance Retail brings K-beauty brand Hince to India under Tira
The move strengthens India’s fast-growing premium beauty and K-beauty segment.
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FRAI urges government to review tobacco excise duty
Retailers warn of pressure on small stores amid rising compliance and tax costs.
Read more

💻 Tech Headlines

E.l.f. Beauty launches virtual makeup experience on Roblox
Beauty brands deepen engagement with Gen Z through immersive virtual worlds.
Read more

CVC Capital leads race to buy ValueLabs
The deal underscores private equity appetite for scaled digital services firms.
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Meta faces China probe over Manus acquisition
Regulatory scrutiny intensifies around cross-border AI and data assets.
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Mobileye acquires Mentee Robotics for $900M
The acquisition accelerates automation and robotics capabilities in mobility and logistics.
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upGrad–Unacademy merger talks collapse
Valuation disagreements stall one of India’s most anticipated edtech consolidations.
Read more

🔥 Top Funding, IPO & Earnings

• AntiNorm raises ₹28 crore in D2C beauty funding led by Fireside Ventures

• Binny Bansal’s 3State Ventures invests an additional $6.4M in Oppdoor

• Aditya Birla Ventures backs GenAI firm Articul8 AI

• SkinInspired raises ₹24 crore in Series A funding

• BellaVita’s FY25 revenue jumps 2.5× to ₹456 crore, turns profitable

• Nitro Commerce raises $5M in Series A

• Amagi IPO delivers 14× returns for Premji Invest

• Haircare brand &Done raises ₹6.5 crore

• Under Armour shares surge after Fairfax discloses stake

• Primark-owner AB Foods shares tumble on profit warning

• Nike shares rise on insider buying by CEO and Tim Cook

• Kalyan Jewellers Q3 revenue jumps 42% on festive demand

👔 Key Retail Appointments & Exits

• Bed Bath & Beyond appoints Marcus Lemonis as CEO

• Meesho senior executive Megha Agarwal resigns

• Givenchy appoints new CEO

• Dior names new President for the Americas

🤖 Deep Dive: Consumer Behaviour in 2026 — The Rise of the “Scrimp and Splurge” Mindset

What’s Happening

Consumer behaviour in 2026 is no longer linear. Instead of trading down or premiumising, shoppers are doing both at the same time — aggressively cutting back in some categories while spending freely in others. This emerging pattern is being described as a “scrimp and splurge” mentality.

At a macro level, consumers have accepted that inflation, tariffs, and economic volatility are not temporary. As a result, spending decisions are becoming more deliberate, emotionally driven, and value-calibrated rather than purely price-led.

Key Behaviour Shifts in 2026

• Value Where It’s Invisible
  Consumers are scrimping on categories that feel functional or replaceable — everyday groceries, basics, commoditised apparel, and household goods. Private labels and discount formats benefit here.

• Splurge Where It Feels Meaningful
  Spending remains strong on experiences, beauty, wellness, premium food, travel, collectibles, and self-expression categories — purchases that deliver emotional return, status, or well-being.

• Brand Loyalty Becomes Conditional
  Loyalty now depends on clear value exchange — quality, trust, transparency, or emotional connection. Legacy brands without differentiation are most vulnerable.

• Smaller Baskets, Higher Intent
  Consumers are shopping more frequently but with tighter baskets, aided by quick commerce, subscriptions, and on-demand fulfilment.

• “Justified Indulgence” Takes Over
  Splurges are increasingly rationalised — positioned as self-care, mental health, productivity, or long-term value rather than impulse.

What It Means for Retail & Consumer Brands

• Mid-market brands face the most pressure as consumers polarise between value and premium.

• Assortment discipline matters more than range expansion — brands must clearly define which SKUs are “scrimp” and which earn “splurge” status.

• Pricing architecture becomes strategic, not tactical — good/better/best ladders are critical.

• Storytelling must justify premium, not just signal it.

• Private labels and premium niches can grow simultaneously — if positioned correctly.

Retailers that fail in 2026 won’t be the cheapest or the most expensive — they’ll be the ones that are unclear about what they stand for.

The BIG Takeaway

Consumers in 2026 are not irrational.
They are selectively disciplined.

Source:

WWD – Consumers Bring ‘Scrimp and Splurge’ Mentality in 2026

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