Checkout is changing. Small retailers are pulling back on self-checkout lanes in brick-and-mortar, while Gen Z consumers show a strong preference for digital wallets at online checkout—some will even abandon their carts if the option isn’t available.

Plus, companies launch new AI tools specifically for retailers and small businesses.

And it’s spooky month! Stores are stocked with Halloween merch—here’s what Lowe’s has this year.

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Fast fashion fallacy. An article that feels like a straightforward answer in the headline and then leaves you deep in thought by the end. Can fast fashion retailers—the ones who arguably created sustainability issues—mend their business models to become green?

Revolving door. A look at which retail execs moved to which companies over the last month.

Cashier #3. Self-checkout might be falling from its heyday. Small and midsize retailers are pulling back on self-checkout lanes as merchandise losses tick up.

Target’s new leader. One year into having a new CEO, has Target turned things around? This podcast explores the question.

Print’s comeback. A magazine with actual paper pages you can hold in your hands! Revolve just launched an annual magazine. (There’s also a digital version for the screen lovers.)

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As you open more locations, disconnected POS, payments, loyalty and data systems start creating friction you don't notice until it's already costing you sales. Here, you'll learn:

See how NCR Voyix brings it all together on one platform.

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Small businesses are facing delays as they try to get tariff refunds—especially if their importers of record are carriers like FedEx or DHL. Asher Rapkin, the co-founder of a watch retailer, has spent nine months trying to get back the $164,000 he’s owed. Rapkin pointed out the cruel irony that FedEx demands payments in weeks, but when the tables are turned, there’s little explanation for months-long refund delays. Many small retailers are questioning whether the time and effort spent trying to obtain tariff refunds is even worth it.

Why this matters: Big-box retailers typically serve as their own importers of records, which means a swifter process for tariff refunds. Walmart has already gotten back nearly $3B in refunds from the U.S. government. Meanwhile, small retailers are jumping through hoops and waiting months for their refunds. If this continues, cash flow could become a problem. Every dollar withheld is one fewer that they’re able to invest back into CapEx, hiring or innovation. (Wall Street Journal)

Meta has extended its new AI agent Muse to small businesses. The agent integrates with software like Asana, Dropbox, QuickBooks and Zoom so it understands a retailer’s entire operation and branding. Muse is free with usage limits, and businesses that want more have the option to buy a subscription.

Why this matters: SMBs “told us they’re short on hours, not ideas,” Meta said. OK, relatable. The pitch of Muse is that it saves time for busy business owners and plugs into the software they already use. The question is how comfortable owners feel providing data and access to an AI agent that looks like a Labubu. (TechCrunch)

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HOLIDAY FORECAST: Online Nov-Dec sales projected to reach $275.1 billion up from $257.8 ​billion last year

ABANDONED CART: Study finds Gen Z shoppers leave their online cart if Apple/Google Pay unavailable during checkout

SMB BOOST: Back-to-school shopping helped drive small business sales up 2.2% in Sept.

5 NEW LOOKS: Retailers give their private label brands a design, packaging makeover

WALMART’S PROMISE: Walmart says it won’t use personal info to set prices on digital shelf labels

IN REVERSE: DoorDash launches service to pick up returns from consumers

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Our upcoming Q&A is all about pricing, promotions and what small retailers need to know about consumers hunting for deals. Shoppers are savvy and attuned to sales, Carls says. And if your regulars are the only ones using promo codes, you’re just losing revenue rather than winning new consumers. Coming to your inbox next Wednesday.

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Shopify debuted a tool called Canvas last week. Retailers use Shopify’s AI agent, Sidekick, to design an online store in about 20 minutes. Merchants can interact in natural language to describe how they want the site to look and see any changes in real time.

Why this matters: Coding and web design probably aren’t the main reasons most retailers got into the industry. The idea with the Shopify tool is that AI handles coding so you can spend time running your business and focusing on human connection with your customers. (Shopify)

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The SKUpe is curated and written by Shefali Kapadia and edited by Bianca Prieto.