Story of the Week
VF Corp. is selling the Supreme brand to EssilorLuxottica for $1.5 billion, according to a securities filing Wednesday. The deal is expected to close by the end of the 2024 calendar year. Supreme generated $538 million in revenue during VF’s latest fiscal year, per the filing, and the sale of the brand is expected to cause reduction in the value of VF’s earnings per share in its 2025 fiscal year. VF, which also owns Vans, Timberland and The North Face, previously announced it was initiating a “strategic review of the brand assets within its portfolio,” which could include a sale. In VF’s latest earnings report in May, CEO Bracken Darrell said the review was complete.
Apparel & Footwear
Adidas raises guidance again as Q2 sales surge 9%
In another sign of its shifting fortunes, Adidas reported Q2 revenue grew 9% to 5.8 billion euros ($6.4 billion), according to preliminary results. The increase marks the second consecutive quarter of growth after a disappointing 2023 that saw sales fall nearly 5% and its first annual net loss in three decades. Operating profit also improved in Q2, surging almost 97% to 346 million euros, including 50 million euros from the sale of Yeezy inventory. As a result of the positive numbers, Adidas raised its guidance for the second time this year, now expecting currency-neutral revenue to increase at a high-single-digit rate and for operating profit to reach 1 billion euros instead of 700 million euros.
Hugo Boss shares plunge 9% as firm cuts 2024 guidance amid slumping China demand
Hugo Boss shares plunged after the company cut its sales outlook, becoming the latest high-end fashion line to warn of persistent woes in the luxury sector. The German fashion house said that it expects full-year sales of up to 4.35 billion euros ($4.73 billion), down slightly from a previous forecast of up to 4.45 billion euros. The company attributed the revised outlook to “persistent macroeconomic and geopolitical challenges” and cited China and the U.K. as particularly challenging markets. “We are operating in a period of significant global macro uncertainty, which also affected our performance in the second quarter,” CEO Daniel Grieder said in a statement.
Athletic & Sporting Goods
LA Fitness Acquires XSport Gyms, Expanding in NY, Chicago
Fitness International, operator of LA Fitness and several other gym brands, has acquired XSport Fitness in a move that will expand Fitness International’s presence in New York, Chicagoland and Virginia as it assumes 35 XSport gym locations. Speculation had swirled for weeks surrounding the deal, which will see Fitness International investing in the newly acquired XSport Fitness gyms and rebranding them under one of its four brands. The XSport Fitness website is no longer running, instead directing users to LA Fitness’ site. Along with LA Fitness, Fitness International operates Esporta Fitness, City Sports Club and Club Studio.
New Balance partners with the WNBA as the brand looks to grow in women’s sports
New Balance announced a multiyear deal with the WNBA, joining a growing roster of backers for women’s sports. The agreement will make New Balance an official partner of the WNBA and will include broadcast, digital and retail content featuring Los Angeles Sparks rookie forward Cameron Brink. New Balance joins Adidas, Nike, Puma and Under Armour as a league partner. The WNBA does not have an exclusive footwear partner, but only league sponsors are permitted to display their logos on court. Financial terms of the deal were not disclosed. The deal comes as New Balance looks to grow the company’s share across basketball and to become a leader in women’s sports. The 118-year-old Boston-based company did $6.5 billion in sales last year, up 23% from 2022, according to New Balance. For the last three years, the brand has seen double-digit growth globally across footwear and apparel, according to the company.
Cosmetics & Pharmacy
The Body Shop acquired out of UK administration
A consortium of investors led by Auréa Group has emerged from a competitive bidding process within The Body Shop’s administration, the equivalent of bankruptcy in the U.K., and is set to buy the beauty retailer for an undisclosed amount. The transaction is expected to be completed “in the coming weeks,” following a period of due diligence, according to a joint statement sent by email. Charles Denton, who previously led U.K. beauty and bath brand Molton Brown, will lead the management team. The Body Shop entered the administration process in February after exploring strategic alternatives for months. Brazilian beauty conglomerate Natura & Co. acquired The Body Shop from L’Oréal in 2017, but the retailer has struggled to take advantage of the surge in beauty sales and the popularity of eco-friendly ingredients that has been its focus since its founding in the 1970s.
Rodan and Fields announces new business model, cuts 100 jobs
Rodan and Fields has pulled back from its multi-level marketing model because it wants to streamline operations and reach new customers, according to the company. Instead, the brand will support its consultants through marketing and advertising across traditional channels and social media. Consultants will receive increased commissions on sales and product discounts, resulting in over 90% having “higher earning potential based on their current sales performance,” per the company. “We are confident these changes will enable us to meaningfully expand the lives we can impact and — importantly — allow us to continue to provide our passionate Consultants with a modern and meaningful earning opportunity,” Dimitri Haloulos, CEO of Rodan and Fields, said in a statement regarding the changes.
Rite Aid confirms cybersecurity breach
Rite Aid confirmed that last month it experienced a security breach wherein customer data was acquired. On June 6 an unknown third party impersonated a company employee and gained access to its internal systems, according to a company press release. The drugstore retailer detected the incident within 12 hours, launched an investigation and determined that the outside party acquired data regarding the purchase or attempted purchase of specific products. Data accessed included customer names, addresses, date of birth and driver’s license or other form of government-issued ID presented between June 6, 2017 and July 30, 2018.
Douglas raises net sales forecast and sells off Disapo
Douglas has announced that it has raised its sales net growth forecast for the current financial year from 7 percent to approximately 8.5 percent. The company also revealed that it has agreed to sell its online pharmacy business, Disapo, to MYA Health. The transaction is expected to close at the end of this month. Financial terms of the deal were not disclosed. Douglas said that its revised forecast followed sustained positive business development and strong preliminary net sales numbers for the third quarter and first nine months of the current financial year. The sale of Disapo is in line with its strategic focus on the strongly growing core premium beauty business.
Discounters & Department Stores
Kohl’s expands dress selection with dedicated shops at 700 stores
Building up its product assortment, Kohl’s has introduced a dedicated dress shop on its website and across 700 locations, the retailer announced Thursday. Kohl’s has expanded its dress selection to include more brands, styles, fits and fabrics, as well as more social, career and occasion dresses. Kohl’s has positioned the new dress shops at the front of the store and arranged the dresses to highlight new brands and products, and “color and print stories,” the company said. New brands and products will continue to be added, per the release. New brands entering Kohl’s as part of the effort include London Times, Harper Rose, Taylor, Nanette Lepore, Nicole Miller and others. In addition, Kohl’s has deepened its dress assortment from existing brands like Nine West, LC Lauren Conrad, Draper James and Simply Vera Vera Wang.
Dollar General to offer over 100 back-to-school products for $1 or less
As consumers begin their back-to-school shopping early, Dollar General is offering back-to-school discounts for teachers and savings for shoppers, the discount chain announced Monday. Dollar General is offering multiuse 30% off discounts on school supplies for teachers through Sept. 6, but they must register and verify their status using its Teacher’s Central portal, the retailer said. Other shoppers can save $2 on qualifying school supplies purchased for $10 or more both this month and next month with a special coupon. The retailer is also touting value-oriented back-to-school product offerings, including more than 100 school supplies available for $1 or less, like notebooks, pencils, glue sticks and folders. Backpacks are available for $5 each and Crayola coloring packs for $3, the retailer said.
Macy’s ends buyout talks with Arkhouse and Brigade after months of negotiations
Department store Macy’s said its board has unanimously decided to end negotiations with the activist group that had been looking to take the retailer private for roughly $6.9 billion, saying in a statement that questions on financing and premium were insurmountable. “We have concluded that Arkhouse and Brigade’s proposal lacks certainty of financing and does not deliver compelling value,” Macy’s lead independent director Paul Varga said in a press release. Arkhouse and Brigade had for months been attempting to buy out the storied retailer. Earlier this month, the bidders increased their offer to $24.80 per share, the latest in a series of price hikes since they first launched their takeover effort last year. Macy’s said the company had gone “well beyond what is customarily required” in a due diligence period, offering the bidder group store-by-store profit and loss information and leases for each location. The company also noted that Arkhouse and Brigade had been allowed to share that confidential information with more than a dozen “credible financing sources.”
Emerging Consumer Companies
Astor, financial services platform tailored to women, opens waitlist and raises $1.4 million
Astor, a free personal finance platform for women that merges community and investing, opened its waitlist and announced a $1.4 million fundraise. Stellation Capital, TMV, NFX, MBA Fund and a group of angel investors made up the round, which enabled new hires in engineering, design and marketing. After a user downloads Astor, they input all of their bank and brokerage information into the app to understand the user’s current financial situation. Users will be able to see the network of funds available, for example, an emergency fund, savings goals, retirement investment accounts and personal investment accounts. It’s similar to what the former financial planning app Mint would do to give a picture of someone’s net worth.
Kins raises $7 million, brings on strategic investor
Kins, a digital-first hybrid care physical therapy practice, announced a strategic investment, which includes funding from Healthworx, the investment arm of CareFirst Inc. This investment is part of a $7M financing round with additional investors including Redesign Health, W Health Ventures, and Asahi Kasei Ventures. The company will use funds to accelerate development of its virtual and in-person care platform and to expand into Washington D.C., Maryland, and Virginia markets. Kins is a physical therapy practice that delivers personal connection and modern convenience. Offering a hybrid model of virtual and in-person care, Kins enables therapists and patients to collaborate in creating a course of care designed around the patients’ needs. Since its launch in 2021, Kins has provided 1-on-1 hybrid care to thousands of patients.
Kudos, disposable diaper brand, raises $3 million
Kudos, the first disposable baby diaper company to use 100% cotton rather than the usual plastic, raised $3 million in fresh funding. Investors include Precursor Ventures, Xfund, and Oversubscribed Ventures. To date, the company has raised $6.2 million, with this latest inflow of cash serving as a seed extension round. Kudos will use the money to expand its footprint to attract new customers. The company offers monthly subscriptions, with the option of a one-time purchase. It is open to expanding into the broader diaper market, creating, for example, adult diapers, with the goal of one day creating a fully compostable diaper.
Food & Beverage
Bud Light loses more ground, slipping to No. 3 in America
Bud Light, formerly the top-selling beer in the United States, has had a tough year since a boycott upended the industry. The brand has now fallen into third place. Michelob Ultra, also brewed by Anheuser-Busch, leapfrogged Bud Light to become the second-best selling beer at grocery and convenience stores during a crucial sales period stretching between Memorial Day and July 4 holidays, according to NIQ data shared by industry trade publication Beer Marketer Insights. Modelo Especial, made by rival Constellation Brands, remains the top-selling beer at retailers in the US after surpassing Bud Light last year. For the past four weeks ending on July 6, Bud Light captured 6.5% of beer dollar sales at retail stores compared to 7.3% for Michelob Ultra, NIQ data shows. Meanwhile, Modelo maintains its top share at 9.7%.
Smithfield Foods’ parent weighs spin off of US, Mexico operations
WH Group Ltd., the parent company of Smithfield Foods Inc., plans to spin off its operations in the United States and Mexico and list the company on the New York Stock Exchange or NASDAQ. Wan Long, chairman of WH Group, wrote that shareholders and potential investors should know that the move needs approval from “the Stock Exchange, the final decision of the Board, and review by the US Securities and Exchange Commission, and there is no assurance that proposed spin-off will take place or as to when it may take place.” Smithfield’s US operations have undergone plant closings and operational transitions throughout the last year.
Reborn Coffee to acquire Korean baking brand
Sustainable coffee brand Reborn Coffee has signed a memorandum of understanding to acquire Korean baking brand Bbang Ssaem Bakery. Founded in 2019, Bbang Ssaem Bakery offers a variety of pastries, bread and cakes that reflect “the rich culinary heritage of Korea,” Reborn Coffee said. The brand currently operates 31 locations throughout South Korea. Bbang previously has distributed its own coffee, but the acquisition means it will now distribute the proprietary Reborn roasted coffee to all Bbang Ssaem locations in Korea. Meanwhile, Reborn Coffee will integrate the extensive retail operations of Bbang Ssaem Bakery in South Korea and the United States. Reborn Coffee also will use the proprietary dough technology of Bbang Ssaem to support future franchise expansions into other states across the United States.
Lotus Foods receives $22.5 million investment
Lotus Foods has received a $22.5 million investment from Grounded Capital, a San Francisco-based investment firm. With the investment, Lotus Foods said it will scale its business by investing in its value chain, sourcing new global rice cultivation communities and growing its customers. Lotus Foods was founded in 1995 by Caryl Levine and Ken Lee and partners with small family farmers to promote regenerative rice cultivation. Its product line includes heirloom and organic rice varieties, rice-based noodles and ramen and soup cups. “When we founded Lotus Foods, our goal was to create positive change in the industry by focusing on the well-being of our farmer partners, our consumers, and the world that we live in,” Levine and Lee said. “Grounded Capital shares those values, and we are proud to welcome them into the Lotus Foods family to help us scale our economic, social and environmental impact.”
Grocery & Restaurants
Olive Garden parent Darden agrees to buy Chuy’s in $605M deal
Darden Restaurants Inc., parent to such casual-dining chains as Olive Garden, LongHorn Steakhouse, and Cheddar’s Scratch Kitchen, has agreed to buy Chuy’s Holdings Inc. in a $605 million deal, the company said Wednesday. Chuy’s, founded in Austin in 1982, owns and operates full-service restaurants with Tex-Mex-inspired dishes. As of June 16, Chuy’s had 101 restaurants in 15 states. In the last 12 months ending March 31, Chuy’s generated total revenues of more than $450 million, and average annual restaurant volumes of $4.5 million. Darden said the purchase price of $37.50 a share was about a 40% premium to the 60-day volume weighted average price. The purchase price represents a 10.3-times implied multiple of Chuy’s latest 12 months, ending March 31, of earnings before interest, taxes, depreciation, and amortization, Darden said.
Domino’s Pizza warns of slower Q3 sales; shares fall
Domino’s Pizza forecasted sequentially slower third-quarter comparable sales and trimmed its target for new international store openings, sending its shares down 13%. The company’s target of opening more than 925 international outlets for the year is expected to fall short by about 275 after its Australia-based master franchisee said earlier this week it was closing low-volume stores in Japan and France. Domino’s Pizza Enterprises is the brand’s largest franchisee and has more than 3,800 stores in 12 international markets, according to Domino’s Australia’s website. “The market is anxious about risk going forward that this type of headwind will spread to more markets beyond Japan and France,” Northcoast Research analyst Jim Sanderson said.
Home & Road
HexClad Receives $100-Million Strategic Investment From Studio Ramsay Global
Los Angeles-based HexClad, a global premium kitchenware brand, has announced a strategic $100-million investment from Studio Ramsay Global, the partnership between multi-Michelin-starred celebrity chef Gordon Ramsay and FOX Entertainment. The deal comprises a combination of cash and media commitments. A digitally native, direct-to-consumer brand, HexClad has rapidly established itself as a global market leader in the kitchenware category by delivering premium-quality, innovative designs and patented hybrid technology to culinary enthusiasts. The move expands Ramsay’s ownership in the unicorn brand after the chef first invested in HexClad as an equity partner in 2021. By increasing this stake, Ramsay has pledged his commitment to ensuring HexClad “owns the kitchen,” while expanding its market share and global footprint through the continued introduction of watershed culinary innovation.
Dorel to lay off 130, citing significant downturn in business
Home furniture manufacturer Dorel Inds. will lay off 130 non-unionized workers at its Ameriwood plant in Tiffin, Ohio, according to a WARN notice filed with the state. “This reduction is a result of a significant downturn in our business,” the notice reads. “Our parent company Dorel has been forced to make some hard financial decisions to survive this economy.” The notice explains that the Tiffin manufacturing plant will be converted to a distribution and warehouse operation supporting Dorel. Production and equipment will be moved to other production facilities, the notice said. Around 40 employees will work at a converted plant. “This means a drastic change to the number of employees that will be needed going forward and the permanent elimination of a large number of jobs in Tiffin,” the company said. The last day of production will be Sept. 5.
Store closures begin mounting for Conn’s
Top 100 retailer Conn’s HomePlus has started closing several stores in recent weeks, according to local reports. Recent reports have noted that The Woodlands, Texas-based retailer, which also owns Badcock Home Furniture &more, might be close to a Chapter 11 bankruptcy filing. According to a July 12 report from the Acadiana Advocate in Louisiana, signs in front of Conn’s Baton Rouge store indicate it will close soon. A report, also dated July 12 by Urbancast, notes that Conn’s has announced closings in its locations in Alexandria, Shreveport, Monroe, Lafayette, Baton Rouge, Houma, Harvey and Slidell, all in Louisiana. A Facebook post dated June 29 links to a list of closures in Western Georgia published by The City Menus, which includes the Conn’s showroom in Newnan, Ga. The report notes that the store is closing soon.
Jewelry & Luxury
Burberry retail revenue plummets 22% in first quarter
Burberry Group saw a retail revenue decline of 22% for the first quarter of fiscal 2025, according to its Q1 earnings report. The release, which was posted four days earlier than projected, showed retail revenue had dropped to 458 million pounds, or approximately $594 million, from 589 million pounds in the same period last year. Comparable store sales were down 21% for the period. Earnings were posted the same day the company announced the appointment of Joshua Shulman as CEO, replacing Jonathan Akeroyd, who had been in the position since 2022.
Canada Goose appoints new chief digital and information officer
In its latest C-suite appointment, Canada Goose named Alfredo C. M. Tan as its new chief digital and information officer, the retailer said Friday. Tan replaces Matt Blonder, who was in the position of chief digital officer for about 16 months. Tan will step into the role on Aug. 7 to manage the company’s strategy, implementation and adoption across the brand’s customer-facing digital platforms. Tan and his team will also execute the company’s data and artificial intelligence strategy. Tan joins Canada Goose from Loblaw Companies where he was the senior vice president and managing director of the retail media division. He also held leadership positions at Meta Platforms, Rogers Sports and Media and WestJet Airlines.
The Current State of the Diamond Market Is…Not Good
Both the natural and lab-grown diamond sectors are hurting right now, industry members acknowledged at a panel on “The Current State of Diamond Market,” held July 16 during the Initiatives in Art and Culture’s 14th annual Gold + Diamond Conference in New York City. “Business is quiet for both natural and lab-grown,” said Ronnie Vanderlinden, president of Diamex, which deals in both products. “There’s struggles at the moment. Liquidity is not strong. The U.S. market is the strongest market in the world right now. We hope that by the time September comes around, consumers will wake up and there will be better demand for both natural and lab-grown.” He noted that Martin Rapaport recently lowered prices on his widely read list. “They came down for a reason,” he said. “Prices were dropping. They’re not dropping in all categories. They’re actually lifting in certain categories, and staying stable in other categories.” Matthew Schamroth, partner and CEO of M. Schamroth & Sons diamond company, has also seen a “softening” in the market, but noted that certain items are scarce.
LVMH Appoints New CEOs for Hublot, TAG Heuer
One week after Richemont shuffled the heads of its two most prominent jewelry brands, LVMH has appointed new CEOs for watchmakers Hublot and TAG Heuer. In a surprise move, Julien Tornare was named CEO of Hublot—just six months after he became CEO of TAG Heuer. Before moving to TAG, Tornare served as CEO of Zenith, which means he’s now headed all three of LVMH’s major watch brands. He’s also worked at Raymond Weil and Vacheron Constantin. Tornare succeeds Ricardo Guadalupe, who’d been Hublot’s CEO since 2012 and has become the brand’s honorary president. At TAG Heuer, Antoine Pin will replace Tornare as CEO, making him the brand’s third CEO in less than a year (Tornare had replaced Frédéric Arnault, LVMH chairman Bernard Arnault’s 29-year-old son, who was promoted to CEO of the conglomerate’s watch division).
Office & Leisure
Former Five Below CEO to take the reins at Petco
Petco announced Joel Anderson was named CEO, effective July 29. He also was elected to the company’s board of directors, according to a company press release. “Joel is an inspirational leader and a highly experienced retail CEO,” Glenn Murphy, executive chairman of the board, said in a statement. “I look forward to working closely with him as he leads Petco’s initiatives to improve operating and financial results.” Anderson’s appointment also marks “a key step in the company’s revitalization,” according to Wedbush analysts led by Seth Basham. In its most recent earnings report, Petco reported net revenue fell 1.7% year over year to $1.5 billion as comparable sales fell 1.2%. Losses widened during the period, with operating loss reaching $16.8 million from a profit of $27.6 million in the year-ago period and net loss widening to $46.5 million from $1.9 million last year.
Accel Entertainment Buys Fairmont Holdings for $35M in Stock
Accel Entertainment announced the acquisition of Fairmont Holdings for $35 million in equity, adding a horse racetrack to the video gaming terminal (VGT) firm’s portfolio of assets. Privately held Fairmont owns FanDuel Sportsbook & Horse Racing in Collinsville, Ill. The venue has 65 live race days and 435 horse races per year. The track is nearly a century old and was rebranded as FanDuel Sportsbook & Horse Racing in 2020. Accel is one of the largest distributed gaming operators in the US. Last year, Fairmont posted $29 million in sales and “modest earnings before interest, taxes, depreciation, and amortization (EBITDA).”
Mazaii to Be Acquired by Las Vegas SPAC in $500 Million Deal
Mazaii, a Canadian provider of iGaming games and solutions, will be acquired by blank-check firm Relativity Acquisition Corp. in a deal valuing the target at an initial enterprise value of $500 million. The deal signals there’s still a strong appetite for iGaming assets and technology despite the fact that no new states have approved that form of wagering this year. Six states allow it. Relativity Acquisition is a Las Vegas-based special purpose acquisition company (SPAC) that was originally formed with the intention of affecting a deal in the cannabis space, but the blank-check firm told investors it would be flexible about exactly where it would find an acquisition partner. The combination with Mazaii could prove prescient.
Technology & Internet
Amazon Prime Day: U.S. online sales climb to record $14.2 billion
Online spending in the U.S. surged 11% year over year to $14.2 billion during Amazon’s 48-hour Prime Day event, topping estimates and setting a record, according to Adobe Analytics. Adobe said the strong showing was driven by back-to-school shopping and an “apparent product refresh cycle,” as consumers looked to snap up new tablets, TVs and Bluetooth speakers in droves. That’s a shift from last year, when inflation-weary shoppers used the discount event to stock up on household essentials like pantry staples and office supplies. The company had predicted U.S. shoppers would spend $14 billion online during the two-day event. Adobe tracks transactions not just on Amazon but also across a wide swath of U.S. retail sites. Amazon’s Prime Day event, which ran Tuesday and Wednesday, has become a big revenue driver for other retailers, which often hold competing sales timed around Prime Day. Amazon said Thursday it also saw “record-breaking” Prime Day revenue, though it didn’t disclose total sales from the event.
Meta in talks to buy 5% stake in Ray-Ban maker EssilorLuxottica
Meta Platforms is in talks to acquire a stake of about 5% in EssilorLuxottica, its production partner for Ray-Ban smart glasses, the Wall Street Journal reported on Thursday, citing people familiar with the matter. The stake in the world’s largest eyewear company could be worth 4.33 billion euros ($4.73 billion) based on its latest market value of 86.50 billion euros, according to Reuters calculations based on LSEG data. The potential deal could give Meta further control over the roadmap for the smart glasses at a time when tech giants including Apple are investing millions to create cutting-edge gadgets based on augmented- and mixed-reality technologies. The Ray-Ban Meta smart glasses, first launched in 2021, have been an important part of Meta’s consumer products portfolio.
Finance & Economy
US Consumer Spending Remains Surprisingly Resilient
Consumers appear to still have more spending left in them, despite market watchers anticipating a sales slowdown in the second half of 2024. Many economists expected U.S. consumers to begin to take a breather and slow down on their purchases in June. But retail sales report showed spending was unchanged. The Census Bureau also updated its results for May, moving its sales data higher by 20 basis points to now reflect a 0.3% rise when compared with the prior month. Strong retail sales helped the economy perform better than expected in 2023 helping dodge a recession. It has kept up a healthy pace so far in 2024, despite worries that a slowdown was in store for the second half of the year. However, some economists are now asking if consumers are set to keep spending.
US consumer sentiment ebbs in July; inflation expectations improve
U.S. consumer sentiment ebbed in July, but inflation expectations over the next year and beyond improved, a survey showed. The University of Michigan’s preliminary reading on the overall index of consumer sentiment came in at 66.0 this month, compared to a final reading of 68.2 in June. Economists polled by Reuters had forecast a preliminary reading of 68.5. “Nearly half of consumers still object to the impact of high prices, even as they expect inflation to continue moderating in the years ahead,” said Surveys of Consumers Director Joanne Hsu. “With the upcoming election, consumers perceived substantial uncertainty in the trajectory of the economy, though there is little evidence that the first presidential debate altered their economic views.” The survey’s reading of one-year inflation expectations dipped to 2.9% from 3.0% in June. Its five-year inflation outlook also fell to 2.9% from 3.0% in the prior month.
US online retail sales to reach $1.2 trillion this year: report
Indicating the continued growth in e-commerce, U.S. online retail sales are forecast to rise 9.8% to $1.2 trillion this year, according to a new report from FTI Consulting. U.S. e-commerce sales will make up 22.7% of the overall retail market share this year, up from 21.6% last year. Online sales growth accounted for 57% of total U.S. retail sales in Q1, its highest rate since 2017 excluding the pandemic period. Total U.S. e-commerce sales this year will reach “high- to mid-single-digit sales growth for several more years,” a shift from the mid-teen annual growth rate it experienced in the decade before the COVID-19 pandemic, according to the report.
‘Largest IT outage in history’ leaves world reeling
Financial services and doctors’ offices were disrupted on Friday, while TV broadcasters went offline as businesses worldwide grappled with an ongoing major IT outage. Air travel has been particularly hit, with planes grounded, services delayed and airports issuing advice to passengers. Earlier on Friday, cybersecurity giant CrowdStrike experienced a major disruption, the company told NBC, following an issue with its latest tech update. The company’s CEO George Kurtz has since said that the company is “actively working with customers impacted by a defect found in a single content update for Windows hosts,” stressing that Mac and Linux hosts are not affected.
