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Insider Today: Mark Cuban vs. Big Pharma
  + stars: | 2024-08-04 | by ( Dan Defrancesco | ) www.businessinsider.com   time to read: +5 min
But first: Big Tech reporting for duty. AdvertisementEven before Amazon, Apple, Meta, and Microsoft reported earnings, investors' focus was clear. Meta CEO Mark Zuckerberg didn't shy away from his intention to keep plowing money into AI, but investors didn't mind. Softening demand from shoppers for Amazon led to a miss in reported net sales and a weaker-than-expected sales forecast for the third quarter. Also read:Getty Images; Jenny Chang-Rodriguez/BIMark Cuban's pharma missionIn 2022, Mark Cuban launched a low-cost online pharmacy with the goal of cutting drug prices for consumers.
Persons: , Jeff Bottari, Rebecca Zisser, Tesla, Mark Zuckerberg, iStock, That's, Gen, Zers, Tyler Le, Tetiana Lazunova, Jenny Chang, Rodriguez, Cuban's, Mark Cuban, somebody's, Emily Durham Organizations: Service, Business, Big Tech, Getty Images, Apple, Meta, Microsoft, Apple Intelligence, Amazon, pharma, Cuban's pharma, Cost, Pfizer, Novo Nordisk Locations: China
"If I was using rideshares and the delivery apps and everything the way I was, I would run out of money each month," she said. For some, like Manley, it means going back to the old-fashioned way of doing certain things: shopping around for hotel deals, taking public transit more, and working out at home with fitness classes on video. AdvertisementGrant Plotkin, 26, is a Gen Zer who experienced the pre-2020 millennial subsidy as a young adult. The next iteration of the millennial subsidy might be gamifying surge pricing for groceries or a side of fries. AdvertisementHas the loss of the millennial subsidy affected your finances or lifestyle?
Persons: Sarah Manley, Manley, She's, they'd, Millennials, YipitData, Grant Plotkin, Zer, he's, Plotkin, Ubers, Brett House, that's, Bilal Baydoun, Baydoun Organizations: Service, Business, Bloomberg, Netflix, Columbia Business School, Dollar, Aldi, Big Tech, American Locations: Baltimore, it's
As part of its continuing evolution, J.Crew released a collaboration with Maryam Nassir Zadeh, a New York City-based brand, in July. Instead, they were scattered throughout the floor with pieces from other J.Crew lines. The skirt that fit my waist felt tight on my hips, while the skirt that fit my hips was too big at the waist. Overall, I was most impressed by the everyday items from J.Crew and Maryam Nassir Zadeh's collection, particularly the cotton pieces. They were so soft, lightweight, and versatile that I instantly wanted to make them staples of my summer wardrobe.
Persons: , Abercrombie, J.Crew, Maryam Nassir Zadeh, Maryam Nassirzadeh, weren't, Samantha Grindell, Maryam Nassir Zadeh's Organizations: Service, Business Locations: New York City, Soho, York
The big storyFor saleGetty Images; Jenny Chang-Rodriguez/BIOne of Tesla's biggest assets is its willingness to try new things, but its unique approach to sales is also what's giving it headaches. AdvertisementA key issue is Tesla's inability to evolve its sales tactics as the EV market rapidly changes . Business Insider's Grace Kay spoke to more than a dozen current and former employees in Tesla's sales division about how the company has tried to kick-start its sales unit . Not unlike its cars, Tesla's sales approach is innovative compared to the rest of the automotive industry. It's a great strategy when the cars sell themselves — which Teslas did for a while — since you don't need to maintain a traditional sales structure.
Persons: , Jenny Chang, Rodriguez, It's, Elon Musk, Insider's Grace Kay, There's, Teslas, Justin Sullivan, Fintechs, chatbots, Rebecca Zisser, Goldman Sachs, James Knightley, Andy Jassy, Mike Blake, Chelsea Jia Feng, Venu, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, Annie Smith, Amanda Yen Organizations: Service, Business, EV, Tech, Citadel, ING Economics, Big Pharma, Pfizer, Novo Nordisk, Department of Labor, Chevron, ExxonMobil Locations: New York, London
CEO Tom Kingsbury estimated in late May that those expanded categories, including Babies R Us, are “a $2 billion-plus sales opportunity” in the coming years. On a store tour in New Jersey on Wednesday, Chief Merchandising Officer Nick Jones showed off the first Babies R Us shop. Kohl’s will put Babies R Us shops next to its existing baby apparel. Courtesy KohlsOver the past few weeks, online shoppers have also seen Babies R Us on Kohl’s website. As it relaunches Babies R Us, Kohl’s will test whether the brand has remained relevant or grown stale.
Persons: hasn’t, Tom Kingsbury, Nick Jones, Hatch, Frida, Graco, Baby Bjorn, Kohl’s, Jones, That’s, Dana Telsey, “ There’s, , Stephen Hinz, , They’re, ” Hinz, Macy’s, Zola, Babylist, Kingsbury, Isaac Mizrahi, Natalie Gordon, WHP, Christie Raymond, Geoffrey, influencers Organizations: U.S, U.S . National Center for Health Statistics, Nike, Telsey Advisory, U.S . Census, Walmart, CNBC, WHP Global, WHP, WHP Holdings, Macy’s Locations: N.J, Wisconsin, New Jersey, U.S, Bath, New York City, Instagram
Hundreds of them staged a demonstration this week at an office affiliated with Temu in the southern Chinese city of Guangzhou. They were protesting what they called “unjust” fines levied by the company or withheld payment on goods already sold, among other complaints. Temu operates as an online store, carrying cut-price merchandise from self-employed sellers. Four sellers interviewed by CNN said the fines ranged from one to five times the wholesale price of the product. CNN has seen screenshots of the seller’s Temu account showing a total of just under two million yuan was ineligible for withdrawal.
Persons: Temu, “ I’m, , Shein, ” Temu, Abe Yousef, Goldman Sachs, Ivy Yang, , Peng Organizations: Hong Kong CNN —, Temu, CNN, Super, Shein, Consumers Locations: China, Hong Kong, Guangzhou, Chinese, Thailand, Temu, , United States, Latin America, East, Southeast Asia
Kohl's plans to have 200 Babies R Us shops in its stores by the end of September. CEO Tom Kingsbury estimated in late May that those expanded categories, including Babies R Us, are "a $2 billion-plus sales opportunity" in the coming years. On a store tour in New Jersey on Wednesday, Chief Merchandising Officer Nick Jones showed off the first Babies R Us shop. Over the past few weeks, online shoppers have also seen Babies R Us on Kohl's website. Jones said Kohl's will decide whether to open Babies R Us in more stores after learning from the first 200 shops.
Persons: hasn't, Tom Kingsbury, Nick Jones, Hatch, Frida, Graco, Baby Bjorn, Kohl's, Jones, That's, Dana Telsey, There's, Stephen Hinz, They're, Hinz, Macy's, Zola, Babylist, Kingsbury Organizations: U.S, U.S . National Center for Health Statistics, Nike, Telsey Advisory, U.S . Census, Walmart, CNBC Locations: N.J, Wisconsin, New Jersey, U.S, Bath
Amazon just gave a bleak sign about the economy
  + stars: | 2024-08-01 | by ( Geoff Weiss | ) www.businessinsider.com   time to read: +1 min
Amazon says that deal-seeking shoppers dented its sales. Amazon is presenting a bleak picture of the economy as rising prices batter American wallets. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementAmazon said deal-hungry shoppers dented sales in the second quarter, presenting a bleak picture of the economy as prices continue to batter American wallets.
Persons: , Brian Olsavsky Organizations: Service, Amazon, Business
Learn moreThe LG G4 is one of the most stunning premium displays I've tested. Judged against other 2024 models, the LG G4 is easily one of the best TVs you can buy for top-notch image quality. But the G4 is technically the best OLED TV LG has ever made. LG 65-inch G4 OLED 4K TV The G4 is one of the most impressive OLED TVs we've tested, but its benefits over last year's more affordable G3 are subtle. Steven Cohen/Business InsiderThe LG G4 delivers high-end image quality that's a clear step above cheaper TVs.
Persons: It's, HLG, Steven Cohen, I'm, you'll, steadying, it's, webOS Organizations: Business, LG, Amazon, Walmart, Dolby, HLG Smart, Sony, Samsung, Google, Disney, Luna
Amazon is pointing to an unusually busy news cycle as one of the drivers behind its weak revenue forecast. For the third quarter, which runs through September, Amazon said it expects revenue of $154 billion to $158.5 billion. The disappointing guidance, coupled with a revenue miss for the second quarter, sent Amazon shares sliding more than 7% in extended trading. Disclosure: CNBC parent NBCUniversal owns NBC Sports and NBC Olympics. NBC Olympics is the U.S. broadcast rights holder to all Summer and Winter Games through 2032.
Persons: Andy Jassy, Brian Olsavsky, Olsavsky, Donald Trump, Amazon, didn't, Jassy, Wayfair, Josh Silverman, It's Organizations: Amazon.Com Inc, Paris Olympics, U.S, Republican National Convention, Amazon, CNBC, Paris, NBCUniversal, NBC Sports, NBC Olympics, NBC, Games Locations: Seattle , Washington , U.S, Pennsylvania, U.S
Kicking off the series of costly festivities is typically an engagement, which often means the purchase of a pricey diamond ring. After all, the rule-of-thumb is that a engagement ring is supposed to cost the buyer three months' salary. "Feel free to disregard the 'three-months' salary' rule, as this is an outdated myth that was actually based on a marketing campaign from the Great Depression era, and not based on current facts or data," she says. Indeed, the "three months' salary" rule originated from an advertisement campaign for a diamond company in the 1930s meant to increase the sale of diamonds. The company, Da Beers, initially said that a man should spend one month's salary on a ring, but over the next few decades it continued to raise the bar until it was three months' salary.
Persons: Zola, Sarah Hanlon, Da Beers, Hanlon Organizations: of America Survey Locations: vouge
Miu Miu's revenue increased by 93% for the first half of 2024, compared to the same period in 2023. The brand is popular with Gen Z shoppers and young celebrities like Sydney Sweeney. Asia was a significant driver for Prada Group's sales in the first half of 2024. While the rest of the luxury fashion industry seems to be slowing down, Miu Miu was one brand that has not gone out of style. Miu Miu made up 23% of Prada Group's total revenue.
Persons: Miu, Sydney, Miu Miu, Organizations: Prada, Service, Business Locations: Sydney Sweeney, Asia
Urban Revivo's fits felt way better than Zara'sThe author trying out basics from Zara and Urban Revivo. In contrast, Urban Revivo felt like it had intentionally curated its space with a flow in mind. Aditi BharadeUnlike Zara's bright lights, Urban Revivo was lit more dimly, creating a more relaxed environment. "Urban Revivo has a variety of products, but there is a 'sophomoric' feel to it," Angel said. They also say that it's too early to determine if Urban Revivo will be a true threat to Zara.
Persons: , Urban, Zara —, Aditi Bharade, Revivo, Zara, Urban Revivo, de Matos, Zara doesn't, Marcie Cooperman, Gregory Angel, Parsons, Angel, Cooperman, Braz de Matos, Richard Tang, Tang, gunning Organizations: Service, Business, Zara, Urban, Fish Lab, Parsons School of Design, Flying Fish Lab, Fashion Momentum Locations: Zara, China, Southeast Asia, New York, London, Israel, Gaza, Jewel, Urban, cardigan, Singapore
Read previewShoppers are slowing down spending on everything from burgers to dishwashers, and that's bad news for a growing number of companies. While inflation has since cooled, Americans are still stuck with higher prices for many of the things they buy. Shoppers are slowing down food spending — even at grocery storesThe spending slowdown has hit restaurant chains, which have launched new deals to get customers in the door. Over the past two years, income growth has helped consumer spending beat expectations, Jefferies analyst Corey Tarlowe said in a note on Monday. One bright spot in consumer spending: Cruises, which are seeing record demand.
Persons: , McDonald's, Burger, Taco, Jefferies, ETIENNE LAURENT, Laxman Narasimhan, It's, Dirk Van de, Van de, Andrew M, Watterson, Michael Liersch, Wells, Corey Tarlowe, Horacio Villalobos, dreuter@businessinsider.com Organizations: Service, PepsiCo, UPS, Business, Shoppers, Burger King, Taco Bell, Starbucks, Getty, Walmart, Bureau of Labor Statistics, Unilever, Whirlpool, Airlines, Jefferies, Costco Locations: Pellegrino, North America
Read previewHundreds of people thronged the Guangzhou office of the e-commerce platform Temu in rallies this month, protesting fines and refund policies they said are destroying small merchants' profits. About 80 merchants gathered on Monday on the 30th floor of the Guangzhou office building, with some eventually gaining entry to the company premises, Chinese outlet Yicai reported. The China Securities Journal, a Beijing-based outlet run by state agency Xinhua, wrote that merchants had approached the Guangzhou office about 10 times in July over their complaints. On China's social media, anger is mounting toward what is being seen as Western shoppers taking advantage of Chinese merchants. "Foreigners can buy products from Chinese merchants, receive the goods, and not spend any money," wrote one blogger based in Hebei.
Persons: , Temu Organizations: Service, PDD Holdings, Business, South China Morning, China Securities Journal, Xinhua Locations: Guangzhou, Temu, Beijing, Hebei, China
Prada Group's Japan sales rose 55% for the first half of 2024, most of it from local customers. Other luxury players are seeing more Chinese shoppers flocking to Japan. Hermès also reported strong local Japanese customer sales. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementJapan's currency might be slumping, but it hasn't stopped Japanese customers from shopping for luxury at Prada and Hermès.
Persons: Prada, Hermès, , hasn't Organizations: Service, Prada, Prada Group, Business Locations: Japan
Why Americans are snubbing McDonald’s and Starbucks
  + stars: | 2024-07-31 | by ( Allison Morrow | ) edition.cnn.com   time to read: +4 min
New York CNN —On the surface, it looks like Americans are laying off the Big Macs, booze and even — gasp! On Monday, McDonald’s reported sales fell 0.7% in the US from the same period in 2023. The once reliably cheap McDonald’s pushed its prices up, while sit-down restaurants leaned into value and convenience. Applebee’s, for one, made a direct pitch to the hordes of ticked-off McDonald’s customers who felt the chain had abused its pricing power. Now, McDonald’s is trying to win back poorer customers while appealing to more affluent customers who want something new.
Persons: CNN Business ’, McDonald’s, Johnny Walker, It’s, it’s, they’re, , RJ Hottovy, Jonathan Maze, I’m, , Chili’s, , Taylor Swift Organizations: CNN Business, New York CNN, Starbucks, Diageo, Restaurant Business, Dine Brands, CNN Locations: New York, United States, North America, Texas, Paris
Tesla is having trouble wooing new EV shoppers
  + stars: | 2024-07-30 | by ( Nora Naughton | ) www.businessinsider.com   time to read: +4 min
That's bad news for Tesla, especially as a yearlong slowdown in EV demand is beginning to impact the EV leader's sales. That's off from 55% share a year ago and nearly 80% market share back in 2020, according to Experian data. AdvertisementThat leaves a potential opening for traditional automakers at a time when the EV market is getting tougher. That's already helped the brand chip away at Tesla's market share. And at Ford, EV sales were up 61% in the second quarter, trailing only Tesla in sales so far in 2023.
Persons: , Tesla, Elon, Power, Frank Hanley, That's, Hanley Organizations: Service, JD Power, Business, Cox Automotive, EV, Chevrolet, Silverado, Ford
But US consumers aren’t only taking a financial hit from this summer’s extreme heat by way of their electricity bills. Shoppers could soon have to pay much higher prices for fruit and vegetables as farmers shoulder higher growing costs from the heat, a reversal of a trend seen over the past year with the cost of fruits and vegetables dropping by 1%, according to June Consumer Price Index data. For the rest of this summer, consumers aren’t likely to see markedly higher prices for seasonal fruits like blueberries because contracts with distributors and retailers tend to be worked out in advance, he said. Climate change, he said, is causing his business to suffer financially with reduced crop yields. However, the steep costs to make that switch could also contribute to higher prices consumers pay for produce.
Persons: It’s, Tom Avinelis, , Avinelis, Tom Avinelis “, Mohamed bin, Kumaraswamy Ponnambalam, Ponnambalam, coauthors, Henry Gordon, Smith, it’s, Gordon Organizations: New, New York CNN, Foods, Costco, Safeway, CNN, Atlantic Council, University of Waterloo, University of Artificial Intelligence, , Smart Agriculture, Columbia University Locations: New York, Fresno , California, Willamette, Oregon, California, Ontario, Canada, University, Abu Dhabi, Santa Maria , California
This summer, a shocking shade of lime green seems to have taken over. On Etsy, shoppers and sellers alike have eagerly hopped on the trend. Search Etsy for "brat" and you'll see over 1,000 results for brat-themed shirts, stickers, buttons, stationery and more. Others pair the brat green with different cultural phenomena like Taylor Swift lyrics, or increasingly, homages to Vice President Kamala Harris. Here's how Etsy sellers are getting in on the action.
Persons: Charli, you've, Julia, Taylor Swift, Kamala Harris, Joe Biden, Harris, Charli XCX, Kamala Organizations: CNBC, Democratic
Federal regulators have determined that Amazon can be held responsible for defective goods sold by third-party merchants on its online marketplace, rejecting the company's position that it's merely an intermediary between consumers and sellers. Amazon's marketplace, which hosts millions of third-party sellers, now accounts for approximately 60% of the company's e-commerce sales. The company has previously said it invests hundreds of millions of dollars per year to ensure products sold are safe and compliant. At issue were 418,818 goods sold through Amazon, including faulty carbon monoxide detectors, hairdryers without electrocution protection and children's sleepwear that posed a burn risk. This program gives Amazon "far-reaching control" over the products sold on its platform, the judge said.
Persons: it's, It's, they're Organizations: U.S . Consumer Product Safety Commission, Amazon, Consumer Locations: Robbinsville , New Jersey, U.S, Tennessee
From saving money by bulk-buying groceries to taking advantage of executive membership rewards, there are tons of reasons it's beneficial to shop at the warehouse. AdvertisementThe warehouse has a very flexible return policy on most merchandiseCostco has a flexible return policy with guaranteed customer satisfaction. The executive membership, in particular, offers great perksI love the rewards I earn through my Costco executive membership. On the other hand, the executive membership gives customers 2% cash-back rewards on qualified purchases. I'd say my family of four saves almost $1,000 each year, not including the 2% cash-back rewards I accumulate through my executive membership.
Persons: , Veronica Thatcher, Veronica Thatcher Costco Organizations: Service, Costco, Business
CNN —A fossilized mammoth skull, centuries-old ceramics and Banksy’s famous self-shredding painting are among hundreds of high-value collectibles on show at Sotheby’s ambitious new retail outpost in Hong Kong. With younger collectors seemingly in mind, items on the first floor range in price from 5,000 to 50 million Hong Kong dollars ($640 to $6.4 million). The venture is the latest signal that major auction houses still consider Hong Kong to be their long-term hub in Asia. In June, Hermès also unveiled its expanded retail space in the neighborhood. It has simultaneously sought to grow its footprint in Hong Kong — not only with its newly unveiled Maison, but also a nearby 36,000-square-foot regional headquarters, due to open later this year.
Persons: Maison, Hong Kong, Art Basel’s, Isaac Lawrence, Louis Vuitton, Hermès, Sotheby’s, Patrick Drahi, Hong Kong —, Christie’s, Zaha Hadid’s, Phillips, Bonhams, Nathan Drahi Organizations: CNN, Hong Kong, UBS, Art, Art Basel, Getty, PricewaterhouseCoopers, Louis, Sotheby’s Locations: Hong Kong, Central, Asia, China, Hong, Hong Kong's Central, AFP, London, Singapore, Shanghai, Sotheby’s, Sotheby’s Asia, Paris, New York
The topic of Temu and Shein's growth will hover over tech earnings this week, as Amazon reports second-quarter results alongside Meta, eBay and Etsy. watch nowIn Amazon's report on Thursday, the company is expected to show revenue growth of about 11% to $148.6 billion, according to LSEG. That's where Temu and Shein come into play, as merchants now have new ways to get products to American consumers. Amazon has continued to highlight its delivery prowess and its focus on speed in the face of growing competition from Temu and Shein. However, while it's long touted itself as the "lowest-priced U.S. retailer," Amazon has shown that it's well aware of Temu and Shein's increasing popularity.
Persons: Stefani Reynolds, David Zapolsky, Zapolsky, it's, Shein, Andy Jassy, Jassy, It's, Angus Mordant, Temu, Meta, Susan Li, Jamie Iannone, Etsy, Amazon, Amazon's Zapolsky Organizations: Apple, CNBC, Afp, Getty, eBay, Meta, Etsy, Tech, YouTube, Microsoft, Intel, Qualcomm, Google, PDD Holdings, Amazon, European Union, Bloomberg, Barclays, Finance, EBay, Bank of America, Walmart Locations: U.S, China, Temu, New York, Asia, Pacific, San Francisco, Singapore
Business Insider visited a Rite Aid store in the Crown Heights neighborhood of Brooklyn, New York, over nearly three months. It was difficult to find hair care and hygiene products at this Brooklyn Rite Aid location. The empty shelves at Rite Aid look like they've remained that way weeks after our first visits. Rite Aid is one of several store chains closing locations this year, alongside Family Dollar and Conn's. Do you work at Rite Aid and have a story idea or details on your store to share?
Persons: , Jordan Hart, Coke, they've, There's, Walgreen, abitter@businessinsider.com Organizations: Service, Business, Rite Aid, Brooklyn Rite, Brooklyn Rite Aid, BI Locations: Crown, Brooklyn , New York, Brooklyn
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