Weekly Consumer News Update // January 10, 2023

Here's our weekly roundup of recent consumer and retail news. This week, Amazon, Salesforce and Goldman Sachs announce major layoffs, Disney Princesses return to Mattel and more. 

 M&A and INVESTMENTS

• Microsoft to invest in autonomous trucking startup Gatik Reuters
• Madison Square Garden Entertainment has hired Goldman Sachs to explore a sale of Tao Group NYPost
• Fanatics is divesting its 60% stake in NFT company Candy Digital CNBC
• Naver closes on $1.2 Billion Poshmark acquisition RetailDive
• CVS Health in talks to buy Oak Street Health Reuters
• Over 100 parties have expressed interest in buying at least one part of FTX Business Insider
• Microsoft Considers $10 Billion Investment in ChatGPT Creator Yahoo

INDUSTRY NEWS

Hyper Growth Is Over for Sneakers. What’s Next?

As incumbents like Adidas and Nike grapple with a cooling market, niche players and newcomers have an opportunity to flourish. BoF

Microsoft and OpenAI Working on ChatGPT-Powered Bing in Challenge to Google

Microsoft is preparing to launch a version of its Bing search engine that uses the artificial intelligence behind ChatGPT to answer some search queries rather than just showing a list of link. The Information

Salesforce to cut about 10% of staff

Salesforce will cut approximately 10% of its workforce and reduce its real estate footprint, making it the latest tech company to slash expenses as broader economic uncertainty continues to hit Silicon Valley particularly hard. CNN

Elon Musk’s Twitter Says It Plans to Expand Political Ads Allowed on Platform

Twitter Inc. said it plans to expand the political advertising it allows on the social-media platform after banning most political ads in 2019, in the latest policy change by new owner Elon Musk. WSJ

DoorDash will now return your packages for you

DoorDash is launching a new ‘Package Pickup’ offering that lets users request a delivery person to pick up their prepaid package from their home and drop it off at a UPS, FedEx or USPS location. TechCrunch

U.S. FDA allows abortion pills to be sold at retail pharmacies

The U.S. Food and Drug Administration (FDA) will allow retail pharmacies to offer abortion pills in the United States for the first time, the agency said on Tuesday, even as more states seek to ban medication abortion. Reuters

Dollar General, Family Dollar, and Dollar Tree are taking over the US with more new stores than any other retailer

More customers turned toward discount deals due to inflation jacking up the prices of goods. Business Insider

How DTC Brands Are Cutting Costs

Start-ups under pressure to operate in the black have logistics and marketing expenses in their sights. BoF

Amazon will lay off more than 18,000 workers

Several teams will be affected, including the human resources department and Amazon Stores, according to a memo from CEO Andy Jassy shared with employees. CNN

How Homeware Became the Most Important Category For Fashion

The homeware sector is expected to reach a market value of more than $200 billion by the end of 2031. WWD

Bloomie’s Advances Its Expansion Agenda

By opening a Bloomie's in the Seattle area, the Bloomingdale's brand fills what's been a big geographic void in its national footprint. WWD

Pickleball popularity explodes, with more than 36 million playing the sport

Across the country, tennis courts and being replaced, and pickleball courts are moving in as other investors are shoring up big money. CNBC

Bed Bath & Beyond has ‘substantial doubt’ it can stay in business

The retailer said that there is “substantial doubt about the company’s ability to continue” because of its deepening financial turmoil. CNN

Delta plans to offer free Wi-Fi starting Feb. 1

The plan to introduce free internet service comes as airlines compete for customers in the travel rebound. CNBC

Noma, Rated the World’s Best Restaurant, Is Closing Its Doors

Copenhagen chef René Redzepi says fine dining at the highest level, with its grueling hours and intense workplace culture, has hit a breaking point. NYT

Party City Plans Bankruptcy Filing Within Weeks to Cut Debt

The retailer’s recent Halloween sales came in at the low end of expectations as inflation curbs customer spending. WSJ

Compass Is Eliminating More Jobs as US Housing Market Slows

The brokerage’s latest layoffs are its third round of job cuts in less than a year as higher borrowing costs cool the real estate market. Bloomberg

McDonald’s plans reorganization, job cuts as it accelerates restaurant openings

The company will be deprioritizing and halting certain initiatives, but will speed up its development plans for new restaurants. CNBC

Disney Princesses Return to Mattel as Barbie Maker’s Turnaround Ambitions Grow

Nearly a decade after losing the Walt Disney Co.’s princess doll license to rival Hasbro Inc., Mattel is back to making and selling the doll versions of some of Disney’s iconic characters. WSJ

Goldman Sachs will lay off up to 3,200 workers this week

 Like its Wall Street rivals, Goldman Sachs has been hit by a slump in global dealmaking activity as fewer companies merge or seek to raise capital. CNN

Macy stores closing: Four more stores shuttered in latest round

Macy's has announced another round of store closures, including locations in Colorado, Maryland, Hawaii and California. USA Today

Amazon Expands Prime Delivery Service to More Web Stores

‘Buy With Prime’ service will be widely available in the US by the end of January. Bloomberg

COMINGS & GOINGS

• Bark Appoints Zahir Ibrahim as Chief Financial Officer BusinessWire
  
• Google Hires Top AI Ethics Expert From Microsoft The Information
• StitchFix CEO steps down, founder Katrina Lake to reassume post CNBC
• Merrell Names Jessica Adler as Vice President of Sales WWD
• Jack Ma to give up control of fintech giant Ant Group BBC
• Lacoste Moves to Collective Model as Louise Trotter Exits Vogue
• Cotopaxi CEO & Founder, Davis Smith will transition to Chairman of the Board in July 2023 WWD
• Rite Aid CEO exits, names ex-Humana exec Elizabeth Burr as interim CEO MarketWatch
• Morgan Stanley COO Jon Pruzan to retire Reuters
• Sharon Leite Joins Ideal Image as CEO WWD

GOOD READS

• ‘The duopoly has been disrupted’: Why 2023 could be a huge year for retail media ModernRetail
• Why America’s Migration Back to Stores Will Stick WWD

INSPIRATION