Story of the Week
Government shutdown begins as White House moves to cut billions in funding
The federal government began to shut down on Wednesday after Democrats and Republicans failed to reach an agreement to extend government funding ahead of the October 1, 2025, deadline. The White House moved to pause or cancel billions of dollars in funding meant for blue states on the first day of the shutdown, including $18 billion in infrastructure projects in New York and $8 billion in climate-related projects in 16 states that voted for Kamala Harris in the 2024 election. A top White House official also told lawmakers that widespread layoffs could begin in the coming days. The moves were widely seen as an attempt to ramp up pressure on Democrats. As many as 750,000 government workers are facing furloughs, according to the Congressional Budget Office, and they will not receive pay until Congress appropriates funding and the shutdown ends. Workers deemed essential will stay on the job, although they will also not receive pay until Congress reaches a funding deal.
Apparel & Footwear
Journeys owner shuffles brands, leadership
Journeys’ owner, Genesco Inc., has shuffled its portfolio and shaken up its leadership, creating the Journeys Global Retail Group. That entity now houses its Journeys, Schuh, and Little Burgundy teen brands, the company said on September 30th. Andy Gray has been named CEO of Journeys Global Retail Group. Previously Journeys’ president, he arrived in January 2024 after over 20 years at Foot Locker. Chris Santaella, who arrived around the same time as Gray, with over 30 years of experience at Foot Locker, is the chief merchant.
Shoe Prices Are Up, And Footwear Could Be Off Some Holiday Gift Lists
Consumers are spending, but not necessarily on shoes. U.S. consumer spending intentions on softgoods, such as apparel and shoes, over the next 90 days are up 5.9 percent versus year-ago levels, according to a UBS survey earlier this month. High-income consumer spending intentions jumped 10.4 percent. “We think this is very important since high-income consumers account for a disproportionate amount of total softgoods spending,” wrote UBS softlines retail analyst Jay Sole in a report. Sole said spending intentions also appear to bode well for the holidays, noting that the market could be underestimating how U.S. consumers prioritize and plan for holiday shopping. He also expects “moderate price increases because of tariffs,” adding that conversations with softline firms suggest low- to mid-single digit price increases in the fourth quarter so as not to “spook consumers or risk losing market share to rivals who raise prices less.”
Athletic & Sporting Goods
Bass Pro Shops Acquires Hobie, Bringing Iconic Brand Back to the USA
In a move that connects two of the most iconic names on the water, Bass Pro Shops and White River Marine Group have officially acquired Hobie, the legendary Southern California-based watersports brand. And in a major win for American manufacturing, Hobie’s production is coming home—from Mexico to Lebanon, Missouri, just a short drive from Bass Pro’s Springfield HQ. The move not only preserves Hobie’s legacy but plants it firmly in the heart of the American outdoors. This deal brings together over a century of innovation between Johnny Morris, founder of Bass Pro Shops and White River Marine Group, and the late Hobie Alter, a pioneer in surf and kayak design. Each man built his brand from the ground up, fueled by a passion for making time on the water accessible, innovative, and unforgettable.
Escalade, Inc. Acquires Gold Tip Archery Business from Revelyst
Escalade, Inc., the maker and marketer of indoor and outdoor games and hardlines, has acquired the Gold Tip archery business from Revelyst, Inc., the parent company of Camelbak, Bell Giro, Simms Fishing, and several golf tech brands, including Bushnell Golf and Foresight Sports. Founded in 1989, Gold Tip manufactures products for target archery and bow and crossbow hunting. The company also produces the Bee Stinger line of bow stabilizers. Escalade’s portfolio of archery brands includes Bear Archery, Trophy Ridge and Cajun Bowfishing. Gold Tip and Bee Stinger will join Escalade’s archery portfolio, which is led by Jon Lené, president of Bear Archery.
Big 5 Completes Go-Private Transaction
Big 5 Sporting Goods Corp. announced the completion of its merger with a partnership comprised of Worldwide Golf and Capitol Hill Group. With this, Big 5 becomes a wholly owned subsidiary of the partnership. Big 5 operates 410 stores in the western United States. Worldwide Golf is a retailer of golf equipment, apparel, shoes, and accessories with 95 stores across 25 states Capitol Hill Group is a Bethesda, MD-based private investment firm with diversified holdings, including retail. This acquisition combines Capitol Hill Group’s financial resources with Worldwide Golf’s specialty retail expertise and is expected to provide Big 5 with the long-term capital and strategic support to re-energize growth and further build on its competitive position in the sporting goods retail sector across its western United States footprint.
Nike sees modest revenue growth but profits drop
Nike reported modest year-on-year revenue growth of 1% in the first quarter, but a 31% year-on-year drop in profits, as it navigates lower margins and ongoing challenges in key markets. In the first quarter of its 2026 financial year, which ended on the 31st of August, Nike’s total revenue amounted to 11.7 billion US dollars. This represents a 1% increase on a reported basis, but a 1% decline on a currency-adjusted basis, as compared to the same period in the previous financial year. However, it’s an improvement on the respective 12% and 11% declines reported in the prior quarter.
Cosmetics & Pharmacy
Givaudan to acquire Belle Aire Creations
Givaudan, the global leader in fragrance and beauty, announced its intention to acquire Belle Aire Creations, a prominent US-based fragrance house known for its creative expertise and strong regional customer relationships. The transaction aligns with Givaudan’s 2030 strategy to expand its customer reach among local and regional customers. Since its founding in 1982, Belle Aire Creations has been driven by creativity, passion, and an unwavering commitment to excellence. From its entrepreneurial beginnings to its current industry leadership, the company has remained a beacon of innovation and growth –always guided by the belief that true success is measured by customer satisfaction.
BeautyHealth Appoints Pedro Malha as President and CEO
The Beauty Health Company, parent of Hydrafacial, has appointed Pedro Malha as President and Chief Executive Officer. He succeeds Marla Beck, who has stepped down and will remain in an advisory capacity. Malha brings more than 20 years of global experience in healthcare and medical devices, most recently serving as Worldwide Division President and Corporate Officer at Abbott Laboratories, where he led the neuromodulation business. His career also includes senior leadership roles at Zimmer Biomet, Abbott, and Johnson & Johnson. At BeautyHealth, Malha will oversee the company’s next phase of growth as it advances its pipeline of science-backed innovations and strengthens its operational infrastructure.
Flower Beauty Shuts Down as Maesa Exits Mass Makeup
Flower Beauty, the mass-market makeup brand co-founded by Drew Barrymore and incubated by Maesa, has closed after 13 years. The closure comes as Bain Capital-backed Maesa shifts its focus from color cosmetics to faster-growing categories, including skincare, body care, fragrance, and haircare. Flower Beauty’s website and social media accounts have gone inactive, and products are now discounted at Ulta Beauty and are no longer available at CVS. Industry data revealed steep sales declines across various product categories, with visibility and marketing support declining in recent years. Launched in 2012, Flower Beauty initially generated an estimated US$50 million in annual retail sales. It debuted at Walmart before expanding to Ulta and CVS.
Ulta Beauty to Enter Middle East with Alshaya Partnership
Ulta Beauty is set to expand internationally with its first stores in the Middle East, opening in Kuwait, the UAE, and Saudi Arabia through a partnership with franchise operator Alshaya Group. The first branch will open in Kuwait City’s The Avenues, followed by Mall of the Emirates and Dubai Mall in December. Saudi Arabia locations are scheduled for the first half of 2026. Stores will feature Ulta’s multi-category format, covering makeup, skincare, fragrance, haircare, and wellness, alongside localized assortments that highlight regional brands. Ulta confirmed that 80 brands will make their Middle East debut, including its own Ulta Beauty Collection.
Discounters & Department Stores
Holt Renfrew Names Franco Savastano as New CEO
Holt Renfrew has announced a leadership change with the appointment of Franco Savastano as its new President and Chief Executive Officer. The move marks a pivotal moment for the Canadian luxury department store chain as it continues to navigate shifting consumer expectations, competition, and a retail landscape that increasingly demands strong digital integration alongside traditional luxury service. Savastano succeeds Sebastian Picardo, who stepped down effective September 30, 2025, after five years at the helm. The appointment is expected to usher in a new era of strategic direction while reinforcing Holt Renfrew’s role as Canada’s leading luxury retailer.
Walmart investing $300M in North Carolina e-commerce fulfillment center
Walmart Inc. continues expanding its infrastructure to support the timely delivery of online orders. The discount giant plans to open a new fulfillment center in Kings Mountain, N.C. Walmart expects the estimated $300 million investment to create more than 300 new jobs in Gaston County, N.C. The 1.2 million–square–foot facility is slated to open in 2027 and will ship large items, such as patio furniture and lawnmowers, directly to customers as soon as the next day. “As our e-commerce business continues to grow, this new fulfillment center will play a critical role in helping us serve customers faster,” said Karisa Sprague, senior vice president, supply chain, Walmart U.S..
Emerging Consumer Companies
Once Upon a Farm files for IPO
Once Upon a Farm has registered for an IPO in the US, a decade after the organic baby-food manufacturer was set up. Founded in 2015 by Cassandra Curtis and Ari Raz, the business sells baby and children’s foods, including refrigerated pouches, oat bars, frozen meals and pantry snacks. John Foraker, the former CEO of US food group Annie’s – later acquired by food major General Mills – joined the business as chief executive in 2017, when he was described as a co-founder of Once Upon a Farm. The company’s products are marketed in major US retailers such as Whole Foods, Kroger, Walmart and Target, as well as via its own direct-to-consumer channel. In 2022, Once Upon a Farm raised $52 million in a series D funding round led by CAVU Venture Partners, alongside existing investors S2G Ventures, Cambridge and Beechwood.
Scorability raises $40 Million to transform the future of college sports recruiting
Scorability, the rapidly growing software company reinventing how college coaches discover, evaluate, and connect with athletes, today announced a $40 million investment round, led by Bluestone Equity Partners. Additional investors included affiliates of Luther King Capital Management, and returning investors Silverton Partners, Next Coast Ventures, and Scorability’s founder, Brian Cruver. The new capital will accelerate product innovation, expansion into additional sports, and continued growth of the Scorability team. The company is also pursuing strategic acquisitions to further entrench its leadership in the recruiting space. Scorability now serves thousands of college sports programs and more than a million athletes.
Prep Network, a leading prep sports platform focused on subscription content, live events, and collegiate athlete recruitment, today announced it has entered into a strategic partnership with Maple Park Capital Partners, to support its continued platform expansion and product innovation. Co-Founders, longtime friends and former collegiate athletes Jake Phillips and Nick Carroll will continue to lead the company as Chief Executive Officer and Chief Growth Officer, respectively. Prep Network was founded in 2012 based upon the personal experiences of its co-founders and their belief that a significant opportunity existed to fill white space and limit frictions within the high school sports landscape. Nearly 15 years later, Prep Network is recognized as a leading authority and most comprehensive platform for youth and high school sports analysis, rankings, tournaments, and showcases.
Charlie Javice, founder of Frank, sentenced to seven years
Charlie Javice was sentenced to seven years in prison for using wildly exaggerated data to fool JPMorgan Chase into paying $175 million for her startup — far more than the 18 months her lawyers asked for. Javice’s prison sentence will be followed by 3 years of supervised release, resulting in a total 10-year sentence. The judge ordered her to report to prison 60 days after she exhausts her appeals to higher courts. Javice must forfeit over $22 million in ill-gotten salary, stock, and bonuses she received for selling the company and working for a year as a managing director before the fraud was uncovered. Javice must also share with her co-defendant Olivier Amar the burden of paying $287.5 million in restitution — the Frank sale price, plus more than $100 million that JP Morgan Chase was obligated under bank bylaws to pay them in legal fees.
Marissa Mayer’s Sunshine is shutting down
Sunshine, the consumer AI startup founded by former Yahoo CEO Marissa Mayer in 2018, has seen brighter days. The small startup is shutting down, and its assets are being sold to a new entity incorporated by Mayer called Dazzle. Mayer sent the email to Sunshine shareholders on September 17, informing them that Dazzle has officially incorporated and is ready to acquire Sunshine’s holdings. The deal requires approval from shareholders, including Sunshine cofounder Enrique Muñoz Torres, Norwest Venture Partners, Felicis Partners, Ron Conway’s SV Angel, the PR firm Archetype Agency, and others. As of last Sunday afternoon, 99 percent of shareholders had signed, according to sources close to the situation. Mayer is the company’s largest shareholder and investor. Sunshine’s first product, Sunshine Contacts, launched in 2020. At that point, the startup had raised $20 million in venture capital funding, in addition to Mayer’s personal contributions.
Food & Beverage
GLP-1s leading to reduced food spending
Glucagon-like peptide-1 (GLP-1) medication users are decreasing their monthly food spending by over $200 per month, according to new survey data from health and wellness brand Sunlight.com. The survey, which evaluated responses from 1,200 GLP-1 users, found that monthly food and diet-related spending fell $218, or almost 30%. Fast food and snack purchases saw the largest decline in dollars spent, decreasing from $183 to $106, followed by grocery spending (declining from $351 to $282) and restaurants/bars spending (down from $183 to $127). “It’s certainly the new GLP-1 economy, as we call it,” said Angela Tran, MD. “On average, GLP-1s can lead to 15% or more body weight reduction, and for those who have lived with obesity for years, their lives will change dramatically.
Heineken to buy FIFCO businesses for $3.2 billion in Central America push
Dutch brewer Heineken will acquire the beverage and retail businesses of Costa Rica’s Florida Ice and Farm Company for $3.2 billion in cash, it announced, thereby expanding its presence across Central America. Heineken will gain ownership of Costa Rica’s century-old Imperial beer brand through the deal, as well as a soft drink business with its own brands and a PepsiCo bottling license. The South and Central American regions have become increasingly attractive to leading brewers such as Heineken and Anheuser-Busch InBev, in the face of slowing sales volumes in Europe and the United States.
Grocery & Restaurants
Amazon debuts private-label grocery brand with most products under $5
Amazon on Wednesday expanded its private-label grocery lineup with the launch of a new brand aimed at “price-conscious” shoppers, with most products priced under $5. The brand is called Amazon Grocery and includes more than 1,000 items, ranging from dairy, fresh produce, meat and seafood to snacks and baking essentials, the company said in a release. Amazon said the new offering unites its Happy Belly and Amazon Fresh brands under one label. “During a time when consumers are particularly price-conscious, Amazon Grocery delivers more than 1,000 quality grocery items across all categories that don’t compromise on quality or taste – from fresh food items to crave-worthy snacks and pantry essentials – all at low, competitive prices that help customers stretch their grocery budgets further,” Jason Buechel, Amazon’s vice president of worldwide grocery, said in a statement.
Amazon shuts 4 Fresh stores in Southern California after UK closures
Amazon is closing four more Fresh supermarkets in Southern California as the e-commerce giant continues to focus its grocery strategy around Whole Foods and delivery. The closures will take place in the coming weeks, Amazon confirmed to CNBC. They follow the shuttering of four other U.S. locations in recent months, in Washington, Virginia, New York and a Los Angeles suburb. “Certain locations work better than others, and after an assessment, we’ve made the decision to close these Amazon Fresh locations,” Amazon spokesperson Griffin Buch said in a statement. “We’re working closely with affected employees to help them find new roles within Amazon wherever possible.” Last week, Amazon said it intends to close 14 Fresh grocery stores in the U.K. and convert its five other locations there into Whole Foods markets.
Home & Road
Steelcase rides rebound as HNI merger nears, but tariffs still bite
Office furniture supplier HNI has taken a key financing step in its pending $2.2 billion acquisition of Steelcase, announcing the launch of an exchange offer for any and all of the latter company’s outstanding 5.125% senior notes due 2029. The offer, announced Sept. 26, would allow noteholders to exchange up to $450 million in Steelcase debt for new HNI notes with the same coupon, maturity and interest dates. Investors who tender before the Oct. 9 early deadline will receive $1,000 in new HNI notes plus a $2.50 cash consent payment per $1,000 principal amount tendered. Those who tender after the early date but before the Oct. 27 expiration will receive $970 in new notes. The new securities will be guaranteed by a slate of HNI subsidiaries, including The HON Company and Allsteel. Within 30 days of the deal closing, certain Steelcase entities also will become guarantors. The transaction is expected to close in the fourth quarter of 2025, pending shareholder and regulatory approvals. On a pro forma basis, the combined company would have generated roughly $5.7 billion in 2024 net sales.
Jewelry & Luxury
Pandora CEO will retire in 2026 as marketing chief takes helm
Danish jewelry maker Pandora has announced that its President and CEO, Alexander Lacik, will retire in March 2026, following nearly seven years in the role. He will be succeeded by Berta de Pablos-Barbier, the group’s Chief Marketing Officer (CMO). Berta de Pablos-Barbier became part of Pandora’s executive leadership team in November 2024. As CMO, she managed the strategic positioning of Pandora as a full jewelry brand under its growth strategy, Phoenix. The company stated in a press release: “She will lead […] continued strategic evolution as a full jewelry brand, building on the strong results during Alexander Lacik’s tenure.”
Prada gets EU approval for Versace acquisition
The Prada Group has received the European Commission’s green light to acquire Versace. On Tuesday, September 30th, the EU cleared Prada’s purchase of Versace’s parent Givi Holding Srl, stating that it “would not raise competition concerns, given the companies’ limited market positions resulting from the proposed transaction.” The operation, in accordance with EU regulations on concentration, pertains mainly to the design, production, and distribution of luxury goods. Prada, which also controls the Miu Miu, Car Shoe, and Church’s brands, has stated that its Versace acquisition is expected to close in the second half of 2025.
Canali Expands Global Footprint
Italian luxury menswear brand Canali is expanding its retail footprint with the opening of flagship stores in Los Angeles and Seoul. On Rodeo Drive in Beverly Hills, Canali’s boutique reinforces its presence in the U.S. with the unveiling of its new Lifestyle Store Concept, first introduced in New York on Madison Avenue in 2022. “This boutique allows our clients to fully immerse themselves in the Canali lifestyle — a place where every architectural element has been crafted to reflect our identity and convey the essence of Italian elegance,” said Stefano Canali, president and chief executive officer of the Italian menswear tailoring company. “Los Angeles, with its unique blend of creativity, influence, and global allure, offers the perfect stage for this vision.
Office & Leisure
Rival, a leading fan engagement platform built on gaming competitions, has acquired Shake, the fast-growing Gen Z-focused social games platform. The acquisition strengthens Rival’s product suite, enabling partners to engage audiences across both short-form social play and long-form gaming formats—all while capturing valuable first-party data and driving real-world rewards. Co-founded in 2024, Shake has quickly built a reputation for creating lightweight, high-frequency prediction contests tied to live sports and entertainment. The platform resonated with Gen Z users through its quick-hit format, social mechanics, and brand-sponsored competitions. With the acquisition, Shake’s technology and product thinking will be integrated into Rival’s infrastructure, with a combined platform that offers new opportunities for teams, leagues, and brands to connect with next-gen fans in more personal, repeatable, and measurable ways.
Pursuit Acquires Full Control of Glacier Park Subsidiary in Montana
Pursuit Attractions and Hospitality, Inc. has announced the full acquisition of its subsidiary, Glacier Park, Inc., which manages nine distinctive lodging properties and multiple dining and retail outlets in and around Glacier National Park. With this move, Pursuit now holds one hundred percent ownership, having previously controlled an eighty percent stake. The transaction underscores Pursuit’s dedication to enhancing and preserving one of America’s premier national park experiences, while driving sustainable growth and tourism development in the region. Glacier Park, Inc. is integral to Pursuit’s broader portfolio, which spans seventeen world-class attractions and twenty-nine lodging properties across North America, Iceland, and Costa Rica. The company specializes in creating authentic travel experiences that connect guests with nature, culture, and unique environments.
Big Ten discussing $2 billion private capital deal
The Big Ten is in discussions about a private capital deal that would infuse at least $2 billion into the league and its schools, sources told ESPN. The discussions include a 10-year extension of the league’s grant of rights until 2046, sources told ESPN, which would ensure long-term stability in the Big Ten. According to sources, the private capital deal and grant of rights extension have been discussed for months and presented in multiple forms. A deal and the grant of rights extension would also be a distinct blow to the outside entities attempting to form super leagues around college sports. While there is support from nearly the entire league, according to sources, a few of the league’s biggest brands — including Ohio State and Michigan — are still in discussions with the league. The aim is to have unanimous support before a vote, sources told ESPN.
Technology & Internet
OpenAI’s ChatGPT now lets users buy from Etsy, Shopify in push for chatbot shopping
OpenAI is turning ChatGPT into a virtual merchant that can help sell goods for Etsy and Shopify as the artificial intelligence company looks for new revenue in online commerce. ChatGPT users can now buy directly from Etsy sellers while interacting with the chatbot and will soon be able to do the same with Shopify sellers. Competing with the likes of Amazon and Google for purchase fees from digital shopping could be a new source of money for OpenAI. The company hasn’t made a profit and has relied on investors to back the costs of building and running its powerful AI systems. OpenAI said it is working with payments company Stripe on the technical standards that will enable purchases through the “Instant Checkout” system.
Finance & Economy
Stocks close at record highs as investors shake off shutdown concerns
The three leading U.S. indexes closed at record highs on Thursday, October 2nd, as investors shrugged off concerns tied to a U.S. government shutdown that had entered its second day. The S&P 500 inched up 0.06% to close at 6,715.35. It was up 0.3% at the day’s peak, reaching a fresh all-time intraday high. The Dow Jones Industrial Average climbed 78.62 points, or 0.17%, to finish the day at 46,519.72, while the Nasdaq Composite rose 0.39% to finish at 22,844.05. The tech-heavy index also hit a new intraday record, supported by a gain in Nvidia shares, which also reached an all-time high, as investors continued to pile into the artificial intelligence giant.
Unemployment changed little in September, while layoff and hiring rates both slowed, according to separate labor market reports on October 2. The jobless level barely moved at 4.34%, according to a relatively new set of data indicators compiled by the Chicago Federal Reserve. That represented little change from August, though it was just 0.01 percentage point away from moving up to 4.4%, the highest level since October 2021. In September, the central bank district announced it would be releasing its own dashboard of labor market indicators that also includes the layoff rate, which was little changed monthly at 2.1%, and the hiring rate, which moved lower to 45.2%, down 0.4 percentage points from August.
Treasury Secretary Bessent says U.S. GDP could take a hit from the government shutdown
Treasury Secretary Scott Bessent stated on October 2nd that U.S. economic growth could be negatively impacted by the government shutdown. “This isn’t the way to have a discussion, shutting down the government and lowering the GDP,” Bessent said during a CNBC “Squawk Box” interview. “We could see a hit to the GDP, a hit to growth, and a hit to working America.” The Cabinet official spoke on the second day of the government closure as the two warring sides in Washington, D.C., have yet to come to an agreement on a continuing resolution that would allow spending and operations to proceed. Growth in the U.S. has been on an upward trajectory over the past two quarters after the economy slogged through the early part of the year.
