Retail Brew // Morning Brew // Update

February 17, 2026

It’s Tuesday, and the last day of the New York Toy Fair. The event’s conclusion coincides with a hopeful moment for the industry: Sales are up 7% after three years of consecutive declines, as adults give the category a boost and major brands such as Hasbro rake in revenue from collectible card games. Here’s to rolling a D20.

In today’s edition:

—Alex Vuocolo, Vidhi Choudhary

TECH

Bubble trouble

Thai Liang Lim/Getty Images

The AI hype train hit a prominent bump last month when Microsoft CEO Satya Nadella expressed concern that the sector could be dangerously overvalued if—and here’s the caveat—a wider set of companies don’t start benefitting from the technology soon.

“For this not to be a bubble by definition, it requires that the benefits of this are much more evenly spread,” Nadella said during the World Economic Forum. He added that non-tech firms specifically need to see the upside of AI investment.

Keep reading here.—AV

From The Crew

Retail’s group chat is going IRL

Join 100+ retail marketing leaders on March 19 for a morning packed with sharp insights and real-world strategies shaping 2026.

Hear from execs at David’s Bridal, OLAPLEX, Urban Outfitters, VaynerMedia, DUDE Wipes, and more on turning scrolls into sales, fans into communities, and data into lasting loyalty. Big ideas. Candid conversations.

Zero “thought leadership” fluff. Grab your ticket now.

RETAIL MEDIA

Target audience

Scott Olson/Getty Images

Sponsored ads from Target and its retail media arm Roundel will appear alongside shopping conversations on ChatGPT, dropping relevant products and deals based on what people are actively searching for, the company said last week. In the past, Roundel has worked with brands like Apple and Mars for its ad business.

The retailer said traffic from ChatGPT to Target grew 40% on average each month. An indicator that consumer behavior is shifting toward conversational commerce. So far, major retailers including Target and Walmart have gone live on ChatGPT.

“We believe ads play an important role in continuing to support broad access to AI,” Asad Awan, ads and monetization lead at OpenAI, said in a statement. “By working closely with partners like Target in this pilot, we’re able to thoughtfully test new ad experiences and learn together to ensure ads are separate and clearly distinct, relevant, and useful while maintaining the trust people place in ChatGPT.”

Keep reading here.—VC

STORES

Gathering pace

Marvel/Wizards of the Coast

The success of Hasbro’s Magic the Gathering collectable cards brand is widening the gap with its closest rival Mattel. Both companies released their full-year earnings last week, and Hasbro’s results showed a 14% increase in revenue year over year, while Mattel’s net sales declined 1%.

In Q4, Magic showed its strength as a standout seller for the toymaker. While overall revenue grew 30% in the quarter and consumer products grew 7%, the Magic brand alone saw an 86% spike in sales growth, topping off 60% sales growth for the year.

CEO Chris Cocks told shareholders the momentum is carrying over into 2026, with a mix of original intellectual property releases and series based on popular franchises such as Avatar: The Last Airbender, Teenage Mutant Ninja Turtles, and Marvel Super Heroes. The latter comes out of the company’s “longest-standing” brand partnership with the Walt Disney Company.

“This balance of tentpole releases, premium offerings, and evergreen play reflects how the Magic system is designed to perform,” Cocks said.

Keep reading here.—AV

Together With The Ibotta Performance Network

Catch up on consumer spending. If you’re suffering from CPG heebie-jeebies, pause, take a breath, and read up. Ibotta surveyed more than 5,000 US grocery shoppers to shed light on consumer spend in 2026. Get the full report here.

SWAPPING SKUS

Today’s top retail reads.

Destocking the pantry: Consumer food giant General Mills has cut its annual sales forecast in response to weakening consumer demand and a shift to cheaper goods. (Reuters)

Inflation redux: A number of companies are raising prices once again, as labor, tariffs, and insurance costs hit home. (the Wall Street Journal)

Side effects: Congress is revisiting the long-standing debate over whether drug companies should be allowed to advertise directly to consumers. (the New York Times)

JOBS

Tired of one-size-fits-all job boards? CollabWORK highlights roles that reflect your interests and goals—delivered through communities like Retail Brew. Click here to explore the full job board.

SHARE THE BREW

Share Retail Brew with your coworkers, acquire free Brew swag, and then make new friends as a result of your fresh Brew swag.

We’re saying we’ll give you free stuff and more friends if you share a link. One link.

Your referral count: 0

Click to Share

Or copy & paste your referral link to others:
retailbrew.com/r/?kid=6b35f7e7

ADVERTISE // CAREERS // SHOP // FAQ

Update your email preferences or unsubscribe .
View our privacy policy .

Copyright © 2026 Morning Brew Inc. All rights reserved.
22 W 19th St, 4th Floor, New York, NY 10011

☕️ Prove it