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☆ Target flashes a recession warning: Shoppers are buying fewer clothes and more necessities
▼ + stars: | 2023-05-17 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —Shoppers are pulling back at Target, Home Depot and other major chains as they face pressure from higher prices and borrowing costs. But digital sales fell, and the company said shoppers pulled back on discretionary purchases in what CEO Brian Cornell called a “very challenging environment” for consumers. It’s the latest retailer to say shoppers pulled back on items like clothing and home goods and shifted to groceries and necessities. Retail shrink hit $94.5 billion in 2021, a 53% jump from 2019, according to the National Retail Federation’s annual survey of around 60 retail member companies. But the impact of shoplifting on retail losses may have been overstated in some cases.

☆ Shoppers are pulling back at Home Depot
▼ + stars: | 2023-05-16 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +1 min

New York CNN —Consumers are taking on smaller home improvement projects as higher interest rates and inflation take their toll. Home Depot (HD) said Tuesday that sales fell 4.5% at stores open at least a year during its latest quarter, and its income decreased 6.4% from the same stretch a year ago. It expects sales to decline between 2% and 5% in 2023 from a year prior. Home Depot said 2023 would be a “year of moderation” for the home improvement market, and sales for the quarter were below its expectations. “The state of the homeowner is that they’re very healthy,” Home Depot chief financial officer Richard McPhail said in an interview with CNBC.

☆ Amazon is changing how it gets packages to you
▼ + stars: | 2023-05-15 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

Amazon (AMZN) has traditionally operated one national delivery network that distributed orders from warehouses spread across the country. If a local warehouse didn’t have the product a customer ordered in, say, Detroit, Amazon (AMZN) would ship it from another part of the country. So in pursuit of boost its profitability, the company has created eight regions in smaller geographic areas designed to ship products over shorter distances. I don’t need same day or next day delivery for most things,” he wrote. Amazon also recently started adding a “frequently returned” badge on certain products on its website for customers.

☆ Premarket stocks: What happens if the debt ceiling and banking crisis collide?
▼ + stars: | 2023-05-15 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —President Joe Biden said over the weekend that debt ceiling negotiations were moving along and that talks between the White House and House Speaker Kevin McCarthy would resume on Tuesday. It may become more difficult to access credit, further exacerbating the challenges individuals and companies are already facing because of the banking crisis. Before the Bell: What do the ongoing debt ceiling negotiations mean to small and medium businesses? Do you think bank executives and members of the business community can put pressure on Congress and the White House to come to a deal? The White House has estimated more than 8 million jobs would get wiped out if there is a protracted default.

☆ Pickleball is replacing Bed Bath & Beyond and Old Navy at malls
▼ + stars: | 2023-05-13 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +3 min

New York CNN —Pickleball is coming to your local mall, replacing shuttered Bed Bath & Beyond, Old Navy, and Saks Off 5th stores. Malls need new tenants to fill vacant spaces and draw customers beyond their traditional department store anchors and clothing stores. Backers of the game and developers are desperate to find vacant spaces to build courts. The Meadows at Lake Saint Louis, an outdoor mall, plans to fill the space once occupied by Bed Bath & Beyond with a pickleball club. A pickleball facility recently opened in a former Burlington store space at Shore Mall in New Jersey, and a pickleball club took over an Old Navy space at a New Hampshire mall.

☆ The real reasons stores are closing in big cities
▼ + stars: | 2023-05-12 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +9 min

These big chains and others have closed stores in major US cities recently, raising alarm about the future of retail in some of the country’s most prominent downtowns and business districts. How policymakers remake their downtowns — with retail as a crucial attraction — will be crucial to cities’ fiscal health and regional economies. People who are being employed in those stores are losing their jobs” because of crime, New York City Mayor Eric Adams, a Democrat, said in February. San Francisco lost around 6% of its retail establishments from 2019 to 2021, according to the think tank’s research. For example, chain-store closures in New York City have correlated to the products most frequently bought online.

☆ The all-you-can-eat buffet line is crowded again
▼ + stars: | 2023-05-05 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

The owner of Old Country Buffet and Furr’s Fresh Buffet filed for bankruptcy in 2021. “The higher quality concepts that stuck it out are reaping some rewards, like Golden Corral and Pizza Ranch,” said Jonathan Maze, the editor-in-chief at trade publication Restaurant Business Magazine. “People wanted the buffet back,” Golden Corral CEO Lance Trenary told the trade publication. The company plans to add up to 250 more Golden Corral buffets around the United States over the long run. The median household income of Golden Corral, Cicis and Pizza Ranch customers is below the national average, according to Placer.

☆ How on-demand delivery services hobbled America's biggest city
▼ + stars: | 2023-05-05 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +9 min

But even the largest city in the country isn’t designed to handle the rise of online ordering and the influx of delivery workers. The way New York City handles these issues will shape the response in other major cities. “People view delivery workers as dirty, smelly and taking up too much space,” said Wood, a member of Workers Justice Project, an advocacy group for delivery workers in New York City. The growing dependency on e-bikes has been driven by demands on delivery workers, including faster delivery and bigger areas to cover. “But delivery workers are on the front lines of this and it’s even more necessary for them.”

☆ Kroger will pay $68 million in West Virginia opioid settlement
▼ + stars: | 2023-05-04 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —Kroger will pay $68 million to resolve a lawsuit in West Virginia alleging the company contributed to the oversupply of opioids in the state and failed to maintain effective controls. West Virginia Attorney General Patrick Morrisey on Thursday announced the settlement in a statement. Kroger was the last remaining defendant in a state lawsuit involving Walgreens, Walmart, CVS and Rite Aid. More than 564,000 people died from overdoses involving any opioid, including prescription and illicit opioids, from 1999-2020, according to the latest CDC data. State and local governments have filed thousands of lawsuits against drug companies and wholesalers accused of fueling the crisis, resulting in a plethora of settlement deals.

☆ Congress presses Chinese fast-fashion giant Shein on forced labor
▼ + stars: | 2023-05-02 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —US Congress is stepping up the pressure on Chinese fast-fashion giant Shein. The United States has banned all imports from the Xinjiang region over concerns of the use of forced labor. Lawmakers “are demanding transparency and seeking independent verification — free from state influence — that the company does not use Uyghur forced labor,” according to the letter. A Shein spokesperson told CNN that the company has no suppliers in the Xinjiang region and it has zero tolerance for forced labor. The letter illustrates how Congress is scrutinizing Shein and rival fast-fashion app Temu amid their surging popularity in the United States.

☆ Kroger will stop mailing weekly grocery advertisements in newspapers
▼ + stars: | 2023-05-02 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +3 min

Atlanta CNN —Kroger, the largest grocery chain in the United States, is ditching its long-running weekly newspaper ad circulars announcing the latest grocery specials. The ads for Kroger (KR) stores and subsidiaries, including Ralphs, Fred Meyer and King Soopers, will shift online. “Kroger is joining many retailers in shifting the way our weekly ads are distributed,” a spokesperson told CNN. The move could deal a blow to shoppers who plan their store trips based on weekly newspaper ads. Some companies, such as Walgreens (WBA), stopped printing coupon catalogs and moved their weekly advertisements online.

☆ What Bed Bath & Beyond, Toys ‘R’ Us and RadioShack have in common
▼ + stars: | 2023-04-29 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +8 min

Staples is “a classic ‘category killer,’ like Toys R Us,” Mitt Romney, then Bain & Co.’s managing general partner, said in 1989. Another category killer fell this week, when Bed Bath & Beyond filed for bankruptcy. Once the go-to stop for everything in customers’ homes, Bed Bath & Beyond was brought down by shopping changes, competition and its own missteps. Founded in 1971 as Bed ‘n Bath as a small linen and bath store, the company changed its name to Bed Bath & Beyond in 1987 to reflect its expanded merchandise selection and built larger superstores. It’s somewhat ironic that there is now nostalgia for Bed Bath & Beyond and other once dominant chains that drove mom-and-pops out of business.

☆ Jenny Craig is reportedly winding down its weight-loss centers and warning of mass layoffs
▼ + stars: | 2023-04-28 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —Jenny Craig is reportedly shutting down some of its weight-loss centers and warning employees of mass layoffs amid upheaval in the industry from popular new prescription drugs like Ozempic. Jenny Craig alerted employees to potential layoffs as it begins “winding down physical operations” and hunts for a buyer, according to NBC News. Jenny Craig has nearly 500 weight-loss centers in the United States and Canada. We will have more details to share in the coming weeks as our plans are solidified,” a spokesperson for Jenny Craig said in a statement to CNN. Ozempic has gained popularity in part due to celebrities using it for weight loss.

☆ Gap will cut 1,800 corporate jobs
▼ + stars: | 2023-04-27 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +1 min

New York CNN —Gap said Thursday that it will lay off 1,800 employees as the struggling retailer looks to cut costs. As of January, Gap had around 95,000 employees globally, and 9% of them were corporate staff. In September, Gap slashed roughly 500 corporate jobs. Dozens of major companies have cut jobs in recent months, including Tyson Foods (TSN), 3M (MMM) and Lyft (LYFT) in April. The slew of widely publicized layoffs comes as the job market begins to slow, following months of historic post-pandemic growth.

☆ Premarket stocks: Democratic senators want to ban trading in Congress
▼ + stars: | 2023-04-24 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Before the Bell spoke with Sen. Jeff Merkley, the lead sponsor of the Senate bill. For both reasons that stock trading needs to end. But even if Bed Bath and Beyond does emerge from bankruptcy, its future is not guaranteed. If it’s able to find a buyer, Bed Bath & Beyond will halt store closings. But if a buyer doesn’t come forward, Bed Bath & Beyond will likely be liquidated entirely and go out of business.

Hong Kong/New York CNN —Temu and Shein are taking off in the United States, topping app stores and creating a frenzy with consumers. Shein was started in China, while Temu was launched by a Chinese company that now bills itself as a multinational firm. Both firms have enjoyed major success in the United States, noted Nicholas Kaufman, a policy analyst for the US-China Economic and Security Review Commission. Topping the chartsTemu and Shein have taken the world’s largest retail market — the United States — by storm. It has quickly become the most downloaded app in the United States, and continues to expand its user base.

☆ Bed Bath & Beyond files for bankruptcy
▼ + stars: | 2023-04-23 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +9 min

Chris Hammons unloads a bag of items she purchased at a Bed Bath & Beyond store in Dallas, Texas September 23, 2009. In its bankruptcy filing, Bed Bath & Beyond said it had $5.2 billion in debt and assets of just $4.4 billion. Discount chains such as HomeGoods and TJ Maxx have also undercut Bed Bath & Beyond’s prices. Without the differentiators of the lowest prices or widest selection, Bed Bath & Beyond’s sales stagnated from 2012 to 2019. And Bed Bath & Beyond is the latest retail chain to file for bankruptcy this year.

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☆ Bed Bath & Beyond stiffed thousands of workers on severance pay
▼ + stars: | 2023-04-20 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +9 min

Bed Bath & Beyond has been on bankruptcy watch and has been closing hundreds of stores since late 2022. Toys "R" Us and other chains that filed for bankruptcy have been criticized for failing to pay workers severance. There is no federal requirement for severance pay, although some collective bargaining agreements with unions cover severance agreements. At Bed Bath & Beyond, CEO Sue Gove is eligible for $7.1 million in severance pay and former Bed Bath & Beyond CEO Mark Tritton is suing the company for $6.8 million in unpaid severance. ‘This was our reward’Some Bed Bath & Beyond employees recently laid off in other states did not receive severance pay either, as first reported by Bloomberg.

☆ David's Bridal files for bankruptcy
▼ + stars: | 2023-04-17 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +3 min

But it hasn’t been enough for David’s Bridal, the largest bridal retailer in the United States. David’s Bridal has been hurt by a range of factors, including inflation and competition from online retailers and secondhand retailers. “An increasing number of brides are opting for less traditional wedding attire, including thrift wedding dresses,” David’s Bridal said in a bankruptcy filing. David’s Bridal has also been hurt by changes in how women shop for wedding dresses. But if David’s Bridal is not able to find a buyer, it could have to close all stores and liquidate.

☆ What Walmart’s pullback from Chicago says about Corporate America’s limits
▼ + stars: | 2023-04-15 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +9 min

New York CNN —A line of Chicago mayors heavily courted Walmart over the last two decades, brushing aside community protests. Chains like Dollar General and Family Dollar are expanding in low-income areas, but they don’t sell fresh groceries. Walmart is closing neighborhood markets around the country, and three of the four stores closing in Chicago fall into that category. In Chicago, Walmart is closing in both low-income and high-income areas, a sign that it’s struggling across the city. But it’s the stores in low-income areas that will feel the loss most.

☆ Amazon is cracking down on returns
▼ + stars: | 2023-04-12 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —Amazon is attempting new measures to get customers to return fewer of their online orders, including charging a fee to return items to UPS stores. So, Amazon will start charging customers a $1 fee if they return items to a UPS store when there is a Whole Foods, Amazon Fresh grocery store or Kohl’s closer to their delivery address. Shoppers have become accustomed to endless free returns in recent years, but Amazon and other companies are trying to curb this customer habit. Amazon also recently started flagging “frequently returned” products on its website. More often, returned products can end up in liquidation warehouses or even landfills, which are an environmental threat.

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☆ Inflation hits the mailbox: Postage stamp prices are rising, again
▼ + stars: | 2023-04-12 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

The US Postal Service said Monday that it filed a notice with its regulators to increase prices on first-class mail stamps to 66 cents from 63 cents. The Postal Service said the hike was necessary to offset a rise in operating expenses. Surging prices have dented business across the global economy over the past two years, pushing up workers’ wages and increasing the costs of doing business. “These price adjustments are needed to provide the Postal Service with much needed revenue,” the agency said in a statement. Domestic postcards will also increase from 48 cents to 51 cents, and international postcards from $1.45 to $1.50.

☆ Why Walmart is closing half its stores in Chicago
▼ + stars: | 2023-04-12 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +8 min

Walmart announced Tuesday that next week it will close four poor-performing stores out of the eight it operates in Chicago. Now, it's closing four Chicago stores. Walmart said its remaining four Chicago stores “continue to face the same business difficulties,” but it believes closing these four will give the others the best chance of staying open. There were fears that Walmart and other businesses would leave Chicago, but Walmart pledged to stay and invest in the city. Some retailers have also cited higher levels of theft and other crime in their city stores.

☆ Leon Levine, Family Dollar founder, dies at 85
▼ + stars: | 2023-04-11 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +2 min

New York CNN —Leon Levine, who built Family Dollar into a discount retail giant catering to America’s lower-income and middle-class shoppers, has died at 85. Three dollar store chains — Dollar General, Dollar Tree and Family Dollar — are now the fastest-growing US retailers. Levine opened the first Family Dollar store in 1959 at age 22 in Charlotte, North Carolina, with his cousin. “We’re just the opposite of a Wal-Mart,” Family Dollar president George Mahoney told the Associated Press in 1993. (Today, there are more than 8,000 Family Dollar stores.

☆ Bed Bath & Beyond gets $120 million lifeline to help it stock near barren shelves
▼ + stars: | 2023-04-05 | by ( Chris Isidore | ) edition.cnn.com time to read: +3 min

New York CNN —Cash-starved Bed, Bath & Beyond, which is scrambling to avoid bankruptcy, announced a $120 million lifeline to help it stock near-empty shelves. One reason that the chain’s sales have fallen and losses have mounted is that the company doesn’t have the funds needed to buy inventory in order to stock shelves. The money comes from ReStore Capital, which will purchase up to $120 million of merchandise from Bed, Bath & Beyond’s suppliers in order to supplement stock at Bed Bath & Beyond and buybuy BABY. “This … solution can allow us to strengthen merchandise availability and better fulfill demand.”Shelves are seen empty inside of a closed Bed Bath and Beyond store on February 08, 2023 in Larkspur, California. Last week, the company disclosed in a filing plans to sell $300 million worth of its stock to raise much-needed cash.

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