Weekly Consumer News Roundup // July 16, 2024

This week, Amazon Prime Day sales projected to hit record $14 billion, chains like Chipotle, Sweetgreen experiment with restaurant robots, and more.

WORDS FOR THE WEEK

For more inspiration, visit @dailystoic and @dailyphilosopher on Instagram. 

M&A and INVESTMENTS

• Google Near $23 Billion Deal for Cybersecurity Startup Wiz WSJ
• Macy’s ends buyout talks with Arkhouse and Brigade CNBC
• Alphabet Shelves Efforts to Acquire HubSpot Bloomberg
• American Exchange Group Acquires Island Surf Company SGB Media
  
• Mod Pizza acquired by Elite Restaurant Group Restaurant Dive
  
• WSG Brands Acquires Fashion Brand Von Dutch BoF

CULTURE/ GOOD READS

• The Brand Collectors: How IP Managers Are Taking Over Fashion WWD

INDUSTRY NEWS

CPG

Monthly US consumer prices post first drop in four years

U.S. consumer prices fell for the first time in four years in June amid lower gasoline costs and moderating rents, firmly putting disinflation back on track and drawing the Federal Reserve another step closer to cutting interest rates in September. Reuters

Cheetos Are the Latest Economic Red Flag

PepsiCo and Conagra are the newest in a long list of companies warning that shoppers are stretched. WSJ

How GLP-1 drug use is boosting beauty and wellness sales

The health and wellness industries are seeing a boom as an indirect result of Ozempic and Wegovy use. Modern Retail

Private brands hit record highs in unit and dollar share in first half of 2024

Store brands’ year-over-year growth for both measurements outperformed that of national brands, according to Circana data shared by PLMA. Retail Dive

RETAIL

US retailers try to move back-to-school shopping to July

With deals on sneakers, computers, kids' clothing and backpacks, Walmart, Target and Shein hope to entice parents to start back-to-school shopping and capture dollars that might otherwise go to Amazon, which holds Prime Day on July 16 and 17. Reuters

Shein to Address Fashion Industry Waste Ahead of Potential Listing

Online fast-fashion giant Shein will invest about $270 million in the U.K. and Europe over the next five years to address industry waste as it prepares for a potential London listing. WSJ

Walmart is opening five automated distribution centers as it tries to keep its grocery dominance

Walmart will open five automated distribution centers for fresh food across the country, as the retailer chases efficiency and its online grocery business grows. CNBC

Shoppers Have Fewer Choices. Brands and Retailers Like It That Way.

Finance chiefs are lopping their wares down to a select, smaller assortment to raise profit margins, cut costs and hopefully get inflation-singed consumers to spend. WSJ

Costco to raise membership fee for the first time since 2017

The increase, which will start Sept. 1, is likely to generate $350 million in incremental sales and profit over the next two years, according to one analyst’s estimate. Retail Dive

Stop & Shop closing 32 underperforming grocery stores in the Northeast

Grocery store chain Stop & Shop says it will close 32 underperforming grocery stores across the Northeast by the end of this year. ABC News

Amazon Prime Day sales to hit record $14 billion, data firm says

Shoppers are likely to spend roughly $14 billion during Amazon's Prime Day two-day shopping event this week, according to projections from Adobe Analytics, a firm that studies e-commerce transaction data. Reuters

Developers turn to apartments to help revive aging malls, often replacing former department stores

Many mall owners are working to diversify their properties with entertainment, offices and educational tenants, but a study published last year by real estate firm JLL found housing was the most popular use in these projects. Modern Retail

MEDIA & TECH

CNN to cut 100 jobs in major overhaul to focus on digital

CNN will merge its news-gathering and digital news teams, invest in video operations and launch pay-per-view news products. CNN

Spotify is no longer just a streaming app, it’s a social network

With Spotify’s recent launch of comments on podcasts, the streamer is taking yet another step toward building a social networking experience in an app primarily known for music. TechCrunch

While TikTok chases YouTube, Instagram vows to focus on short-form content

As TikTok continues to test the waters with longer videos, Instagram Head Adam Mosseri has said the Meta-owned social network will continue to focus on short-form content. TechCrunch

NBA finalizes TV deals with ESPN, NBC, Amazon, but TNT could still match

The NBA and network executives finalized contracts that will make NBC and Amazon Prime Video new partners, while maintaining ABC/ESPN as the home of the NBA Finals, under agreements that will extend for 11 seasons and be worth $76 billion. NYT

RIP Redbox: DVD Kiosk-Rental Business Is Shutting Down With Parent’s Bankruptcy Liquidation

In another nail in the coffin of physical media, Redbox is shutting down after more than two decades of serving up DVD rentals from thousands of kiosks across the U.S. Variety

RESTAURANTS & HOSPITALITY

Wendy’s to open hundreds of restaurants across Europe in next decade

Wendy’s Co. said Tuesday it has signed development agreements with franchisees in Ireland and Romania as part of plans to open hundreds of restaurants across Europe in the next decade. MarketWatch

Rise of the Restaurant Robots: Chipotle, Sweetgreen and Others Bet on Automation

Chains experiment with machine helpers like Flippy, Chippy and Autocado as they face increasing labor costs. WSJ

Nestlé’s Nespresso opening ‘immersive’ coffee boutiques across US

The outlets are tailored to Gen Z and others wanting to learn more about coffee and establish a deeper connection with the premium brand. Food Dive

COMINGS & GOINGS

• Bloomingdale’s Names David Thielebeule Men’s Fashion Director WWD
• Mulberry Names Andrea Baldo as CEO BoF
  
• Macy’s hires new CIO from within Retail Dive
  
• Chipotle CFO Jack Hartung to retire after two decades Restaurant Dive
• CBS News president Ingrid Ciprián-Matthews abruptly steps down CNN
• MSG Sports Names Chief Operating Officer SGB Media
  
• The Estée Lauder Cos.’ CFO Tracey Travis To Retire WWD
• Olaplex’s New CEO Makes Changes to Her C-suite WWD
• Burberry Replaces CEO as Turnaround Challenges Persist WSJ
• Primark appoints Nigel Jones as chief operating officer Retail Bulletin
• Ewa Abrams Tapped as Kering Americas’ President BoF