Foot traffic fell 9% year over year at American Eagle stores for the week that began August 3, marking the second week of traffic declines since the retailer launched its controversial campaign featuring actor Sydney Sweeney, according to data from Pass_by provided exclusively to Retail Brew.

American Eagle launched its campaign, “Sydney Sweeney Has Great Jeans,” on July 23. For the first full week after the campaign, which began on July 27, its foot traffic declined 3.9% YoY. In both of the two full weeks preceding the campaign, its traffic increased over last year, up 5.9% on the week that began July 6 and 4.9% on the week that began July 13.

The latest week (from August 3 through August 9) saw foot-traffic declines among some of the retailer’s direct competitors for younger clothing shoppers, too, though not as steep as American Eagle’s 9% YoY drop.

Keep reading here.—AAN

This holiday season, toy shortages are an “absolute inevitability,” according to Jay Foreman, CEO of Florida-based toy manufacturer Basic Fun.

A combination of tariff-induced production cuts earlier this year and cautious purchasing behavior from retailers could create a scenario where the most sought-after toys are unavailable, Foreman told Retail Brew.

“The consumer is going to see empty shelves,” he said. “People are going to be chasing merchandise, at least the merchandise they want.”

That last word is key: want. Unlike toilet paper and baby formula, which experienced shortages during the height of the Covid-19 pandemic, toys are a discretionary purchase subject to the whims of trend-seeking consumers. And when it comes to keeping shelves stocked, ordering the right item is as important as ordering the right amount.

Keep reading here.—AV

Shopify’s e-commerce sales reported strong numbers for the second quarter, tariff impact notwithstanding, as the Canadian tech giant remained laser focused on serving its merchants.

GMV, or gross merchandise volume, which tracks the total dollar amount of all sales flowing through Shopify’s platform, grew 31% YoY in Q2. Enterprise brands including Starbucks, Canada Goose, and Burton Snowboards migrated to Shopify this quarter.

Shopify’s international GMV for the most recent quarter was up 42% YoY on a constant-currency basis, driven largely by top-notch performance in Europe, putting it ahead of North America.

Keep reading here.—VC