News Briefs

The end of the penny is proving problematic for retailers.

The Retail Industry Leaders Association is urging lawmakers to prioritize addressing the nation’s ongoing penny circulation problems and swiftly pass legislation addressing the issue when the second session of the 119th Congress begins in January. (Earlier this year, the U.S. Treasury announced plans to end production of the penny, citing cost savings and inefficiencies associated with minting the coin. Production officially ceased this summer.)

Retailers across the country are grappling with significant challenges due to the absence of clear legal guidance regarding the future of the penny, especially on critical matters such as rounding cash transactions, noted RILA. Only Congress can provide the clarity and directives necessary to ensure a smooth transition for both retailers and consumers. 

Without legislative action, the lack of guidance cost the nation’s largest retailers millions of dollars in the midst of the busy holiday shopping season — imposing a rounding fee on retailers at a time when the use of cash as a payment traditionally increases, said Austen Jensen, RILA’s senior executive VP of public affairs.

 “Congress should act quickly to provide the fix needed for retailers and ensure that cash tendered payments aren’t disrupted by the abrupt end of the penny," she continued.

In a RILA survey conducted in November, many of the nation's largest retailers reported widespread shortages. Of the 25 companies surveyed, nearly one-quarter indicated that more than 1,000 of their store locations are currently without pennies. Two-thirds of respondents said they are rounding transactions to the benefit of consumers when pennies are unavailable — a practice that, while fair to shoppers, is costing businesses millions of dollars as small amounts add up across thousands of daily cash transactions. 

This is not an issue that can be left to the states to resolve, according to RILA. Retailers who operate in multiple states need a uniform approach that can only be set by the federal government. RILA urges Congress to move expeditiously and deliver the legal certainty and direction that retailers and their customers depend on. 

Consumers are leaning on artificial intelligence tools to help them find the best prices.

Over 70% of consumers are leveraging or exploring AI to uncover better deals, according to new data from XCCommerce’s 2026 Retail Promotions Study. Ten percent of respondents said that AI tools would make shopping easier and more convenient, while four-in-10 (42%) are open to it only if they maintain control over their preferences.

XCCommerce’s survey found that for most consumers, a discount is the best reason to move forward with a purchase. Eight-in-10 (79%) surveyed shoppers said a percentage or money-off discount makes them most likely to purchase an item, while nearly half (46%) admitted they buy more than planned or try new brands when redeeming an offer. XCCommerce says this highlights the “critical role of incentives” for retailers.

[READ MORE: Bain: How next-gen AI is disrupting the shopping journey]

"Shoppers define a 'good deal' as one that balances quality and price," said Danny Rosenoff, CEO of XCCommerce. “To capitalize on this, retailers must ensure their promotions are not only generous but also flawlessly executed across all touchpoints.”

Additional insights from the survey include the following:

• Three-quarters (75%) of shoppers expect personalization from retailers’ loyalty programs. However, only 13% of respondents cited "the program feels personalized to me" as a primary loyalty driver.
• Valuable savings or rewards (82%) are the top reason for joining a loyalty program.
• More than half (52%) of consumers expressed willingness to share personal data if it results in a better shopping experience.

The full 2026 Retail Promotions Study will be released on Feb. 1, 2026 in partnership with National Retail Federation.

Happy Holidays from Chain Store Age!

In celebration of the Christmas holiday, CSA’s DayBreaker newsletter will not publish on Thursday, Dec. 25 or Friday, Dec. 26. We will resume publishing on Monday, Dec. 29.

The Chain Store Age team wishes you a happy and healthy holiday season!

U.S. consumers combined in-store visits with online browsing to secure the best promotions and maximize convenience this holiday season. 

Shopify is entering a new partnership to deliver complete, AI-enabled visibility of the entire digital customer experience journey to retailers on its platform.

In collaboration with AI-equipped digital analytics provider Contentsquare, Shopify is offering its retailers granular behavioral insights spanning first click to checkout via the new . Specific features include:

• A session replay solution that lets users watch key customer sessions to see exactly where shoppers struggle or drop off in the checkout flow.
• Heatmaps that display which parts of a page customers engage with or ignore.
• Zoning capabilities automatically break each page into individual elements to enable performance measurement at a granular level.
• Performance, error and frustration signals surface technical issues and friction that may impact revenue, from slow-loading steps to broken elements.
• AI-based insights and recommendations flag the biggest opportunities to improve the shopping experience and tells users where to focus to drive conversion and reduce drop-off. 

[READ MORE: Shopify Plus retailers can now deliver via Uber]

"Shopify gives brands the foundation to grow, and Contentsquare shows them how to make every customer interaction count," said Jean-Christophe Pitié, chief marketing and partner officer at Contentsquare. "With this partnership, teams finally get full visibility into the moments that drive revenue — and the ones that create friction — so they can fix issues faster and deliver an enhanced shopping experience."

Users can also leverage Contentsquare experience analytics features across the rest of their storefront, including experience monitoring, user lifecycle analysis, and “voice of customer” feedback monitoring capabilities.

Barnes & Noble is continuing to expand its retail footprint amid a resurgence in brick-and-mortar bookstores. 

The bookseller plans to open 60 new locations across the country in 2026, reported USA Today. According to a list obtained by the publication, Barnes & Noble plans to open stores in Ohio, Texas, Florida, Illinois, Colorado, Washington state, California, Virginia, Georgia and Washington D.C., with "several openings" in these states scheduled between now and June 2026.

"Barnes & Noble is enjoying a period of tremendous growth as the strategy to hand control of each bookstore to its local booksellers has proven so successful," Barnes & Noble said in a statement to USA Today. "In 2024, Barnes & Noble opened more new bookstores in a single year than it had in the whole decade from 2009 to 2019."

In November, Barnes & Noble entered into an in-store partnership with indie film studio and entertainment company A24 to open "A24 Shop” experiences in select locations.

Barnes & Noble opened over 60 new stores across the country throughout 2025, according to the report. The retailer currently operates about 600 bookstores nationwide.

Barnes & Noble was acquired by British private equity group Elliott Investment Management in 2019. The all-cash deal was valued at about $683 million. The deal followed Elliott’s 2018 acquisition of Waterstones, the largest retail bookseller in the U.K.