Shopify is expanding its AI ecosystem—moving beyond the basics like using AI for content generation—with new AI tools and upgrades to better support merchants throughout their journey.

This new AI strategy begins with the launch of Horizon, Shopifyʼs new theme architecture that comes with built-in AI, and controls how an online Shopify store looks and feels. Plus, there is a new AI Store Builder that will take keyword prompts within Horizon to create a new store design for sellers quickly. Shopify is also releasing a new Knowledge Base App or Shopifyʼs version of a backend support box for sellers to use when they are working with agentic AI assistants. These tools are launching for merchants on Wednesday as part of Shopifyʼs “Edition” release, a biannual showcase of product launches and improvements from the past six months.

Sidekick, Shopifyʼs AI-powered conversational consultant for merchants, also gets a big step up with voice chat and screen share functionality, enabling merchants to interact with the platform using voice commands.

Overall, Shopify’s new AI tools suggest the tech giant is aiming to reduce the overall cost of running an e-commerce store at a time when potential recession risks and tariffs are pressuring merchants to raise prices, Mark William Lewis, founder of e-commerce agency Netalico, which helps brands set up on Shopify, told Retail Brew. “The focus is on eliminating those cost barriers and making it simpler and easier to run your Shopify store,” Lewis said.

Keep reading here.—VC

Remember when “buy now, pay later” company Klarna partnered with DoorDash and everyone said that people wanting to pay for food on layaway was a recession indicator? Well, that might not have actually been one, but this might be.

Klarna reported $99 million in losses for the first quarter of 2025, more than double what it lost last year over the same period. It also delayed its US IPO, citing market uncertainty from the Trump administration’s tariff policies.

On the other hand, the company also reported a 13% increase in revenue and reached an important milestone: 100 million active users.

Keep reading here.—JK

On Wednesdays, we wear pink spotlight Retail Brew’s readers. Want to be featured in an upcoming edition? Click here to introduce yourself.

Ann McFerran is founder of press-on nail and magnetic lash company Glamnetic.

How would you describe your job to someone who doesn’t work in retail? I’m thrown into 25 different jobs on a daily basis including content creation, video editing, crafting brand decks, managing people, responding to customers, developing in-store retail displays, coaching affiliates, optimizing the website, developing new products, and more. Being a leader, I’ve had to learn how to be the best in all the areas, even though no one is giving me a road map. From what I’ve learned, it’s equal parts intuition, trial and error, experience, and utilizing best practices.

One thing we can’t guess about your job from your LinkedIn profile? I’ve become a part-time trend forecaster. As someone with past experience in stock trading, who knew predicting nail-art trends would feel like reading the stock market?

What’s your favorite project you’ve worked on? Our Harry Potter x Glamnetic collaboration and our first Hello Kitty collab are definitely my top two! Not only were they incredible creative challenges where we pushed the boundaries of our imagination, but they also broke records for us as a brand and took Glamnetic to new heights.

Which emerging retail trend are you most excited about right now, and why? The rise of DTC brands building community. It’s not just about selling products anymore—it’s about cultivating a relationship with consumers who share your brand values. This bond helps turn customers into loyal brand advocates.

Keep reading here.—EC

From Walmart.com’s debut (2000) to Amazon Prime’s launch (2005) and the rise of social commerce, retail has transformed in ways we never imagined. This quarter-century project explores the defining moments that reshaped shopping, supply chains, and consumer engagement. See how the past fuels the future of retail.