Rick Watson runs through a busy week in retail. Walmart posted a $177.8 billion quarter, with revenue up 7.3%, U.S. comps up 4.1%, and global e-commerce up 26%, yet free cash flow landed at negative $1.9B as automation capex climbed. Advertising grew 37%, marketplace sales jumped close to 50%, and new shoppers skewed upper-income. At Sam's Club, more trips but smaller baskets.

Authentic Brands Group named a new CEO: founder Jamie Salter moved to executive chairman, and former MGM Resorts chief Matt Maddox took over. ABG holds 50-plus brands, $38B in system-wide sales, and 77% of the company behind Saks, Neiman Marcus, and Bergdorf Goodman. Salter floated an IPO within the year.

At Google I/O 2026, the Universal Cart follows shoppers across Search, Gemini, YouTube, and Gmail, AI Mode crossed a billion monthly users, and native checkout opened to UCP merchants. Kroger hit $16B in e-commerce with a first profit in sight, wages past $20, two senior exits, and 70 to 80 stores planned. Plus an Investor Minute on Global-e, Insider, and Brown-Forman.

This week's episode is sponsored by Avalara. For e-commerce brands, tax compliance grows more complex with every new channel, state, product, and market. Avalara Agentic Tax and Compliance automates the behind-the-scenes work so merchants can offer a smoother checkout, with accurate tax calculations, clearer visibility into tariffs and duties, and fewer surprises when orders arrive. It works with platforms like Shopify, BigCommerce, and WooCommerce, helping teams manage compliance faster and scale with confidence. Learn more at avalara.watsonweekly.com.