Monthly Archives

It’s not a real holiday… but it sure sounds like one and Amazon’s ‘Prime Day’ just got six hours longer. Last year’s special event was the largest sales day in company history. Apart from sales, the tech giant hopes to drum up even more interest in the brand and recruit more Prime users.

It begins on July 16 at 3 p.m. ET… and there will be special deals on the Echo, Fire TV, and Fire tablets. There will also be discounts on security cameras and internet-connected doorbells, courtesy of Ring who was purchased by Amazon back in February. Last but not least, there will be deals at Whole Foods stores for all of you health nuts!

You will have to wait and see… what other deals are offered on Prime Day. The company will be sure to highlight its brand but has promised more than a million deals around the world. With tens of millions Prime customers purchasing something during last year’s event there has got to be something you need – or don’t need but will buy anyway.

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Let’s take a trip down memory lane… going back to 2012 when the economy was down but on its way back. That year was the last time mall vacancy rates were at the level they are now (8.6%). There were way too many malls and not enough businesses to fill them.

Fast-forward to 2018… and welcome to the world of online shopping. Brick-and-mortar is still alive, but it may not be “well” due to the rapid growth of e-commerce. While online shopping only accounts for one-tenth of retail sales, it is growing at a much faster rate.

This time it is a little different… because America wiggles out of recessions. Now we are seeing retail stores closing in droves, even though the economy is doing well. The number of major store closings more than tripled to 7,000 in 2017. The ‘retail apocalypse’ is upon us, and it is so real that it even has its own Wikipedia page. And if we learned anything in school, it is that Wikipedia is 100% accurate, 100% of the time.

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Fireworks are not safe… however, I am not here to bore you with the dangers of mixing alcohol and explosives – you can figure that one out. I am here to let you know that fireworks are a $1.24 billion industry and our friends in China are the leading exporter of them. With the Trump administration compiling a $200 billion list of products to slap duties on, fireworks are fair game.

Okay, they are safe for now… because companies like Jake’s Fireworks, American Promotional and Phantom have stocked up for America’s 242^nd birthday. Yes, the 4^th of July is America’s unofficial season for fireworks. Every firework company knows this and prepares accordingly.

As if they weren’t expensive enough… the taxes would likely be passed on to the firework-buying party animals themselves. Given that 85.6% of the world’s fireworks come from China, you may be paying a little extra to celebrate the birth of America next year.

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Elon Musk has made shareholders a lot of money… despite not making a lot of money. Heck – the company lost nearly $2 billion last year and used up $3.4 billion in cash after capital investments. Yet Tesla’s stock is up close to 2,000% since its IPO on June 29, 2010.

Investors seem to like so-called disruptors… and are buying into companies like Tesla that are finding ways to survive in a rapidly changing world. Other companies that focus on near-term profit often don’t stick around long enough for that metric to even matter.

A bet on the future… because our dear friend Elon might just disrupt the entire auto industry and own a lion’s share of the market as the world moves toward electric cars. Similarly, Netflix is another company with sky-high equity returns without much profitability. This is being made possible by the company’s ability to succeed in the future on a large scale. These companies are throwing investment dollars away like hot potatoes and investors are loving it.

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Traveling abroad is overrated… but stuffing your face with foreign McDonald’s food is all the rage. If you can convince yourself of that, your wallet will thank you and McDonald’s is now giving you that option. The fast-food chain’s eatery headquarters, located in Chicago, is now offering the favorites of our worldwide compadres.

You have had the quarter-pounder… but what about a quarter-pounder topped with blue cheese? Or how about the wasabi fries which are popular in Hong Kong? There is also a Sausage McMuffin Tomato Salad with your name on it. A couple of other highlights include an Australian McCafé area and a Latin-America style dessert center.

It also includes… things that you want, but probably don’t have at your local McDonald’s such as self-order kiosks and an app that allows you to pay and order on your phone. They also have things you probably don’t want, like table service (at McDonald’s, really?). If you are in the area, be sure to stop in so that our nation’s large fast-food chain can show you just how creative and diverse they can get.

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In eight years… it will be 2026, most of us twenty-somethings will be in our thirties (sorry) and it will be North America’s turn to play host to the World Cup. In anticipation of this event, there are 23 cities lobbying for the opportunity to host the games.

It’s cool to host… but easier to let someone else host. Hosting the Cup can make money or leave you penniless and that is important to keep in mind. Brazil hosted in 2014 in hopes of saving their economy but doing so had the exact opposite effect. They spent $3.6 billion on stadiums for the event! And if they didn’t need these stadiums before, what are they doing with them now?

Throwing it back to ’94… when the United States hosted the Cup and only spent $5 million on stadiums. Not counting inflation, that is like 700 times less than Brazil spent. Thanks to the NFL, the US already has stadiums equipped to handle this event with a few tweaks. Take the cost-savings from using existing stadiums, combined with that sweet tourism windfall and add the media circus and one US city may stand to score big in the 2026 World Cup.

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Domino’s fearless leader… CEO Patrick Doyle has officially stepped down as of yesterday. The company is now welcoming Richard Allison as their new chief executive. So, what’s next for the pizza chain? Similar to their delicious pizza, the company has a recipe for success that will hopefully continue their success.

They are on a roll… and Doyle has given consumers and investors alike plenty of dough over his eight-year run. The company’s stock is up nearly 2,000% and market share has increased from 9.7% to 16.4% under Doyle’s command. They are also responsible for about 1 in 6 pizzas sold in the United States.

A dash of digital investment, a sprinkle of convenience… and a whole lotta cheap is Domino’s recipe for success. In fact, 85% of their menu items are priced under $5.99. They will also continue to invest in AI voice-ordering systems and set up “Hotspots” which are open for business in nontraditional settings, such as the beach. Things are going great and we have one message for Mr. Allison – don’t screw it up!

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If you have yet to see… “Incredibles 2,” “Jurassic World: Fallen Kingdom,” “A Quiet Place,” or “Avengers: Infinity War” – what are you doing with your life? These movies contributed to a US box office record high of $3.3 billion in the second quarter of 2018.

The big screen lives on… after an unimpressive summer last year. However, 2018 has been the opposite with revenue up 15.3% from the same time a year ago. These numbers show that people aren’t forgoing the movie experience to sit at home and watch “Sharknado 3” on Netflix among a host of other, erm…options?

What to look for next month… includes “Ant-Man and the Wasp,” “Mission Impossible – Fallout,” and “Christopher Robin.” These movies are coming from brands that have given us nothing if not reliable entertainment over the years. There you have it – not only is the big screen alive and well, but it is calling your name!

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LeBron isn’t the only one switching teams… tennis great Roger Federer also made an interesting change from Nike to Uniqlo ending a 21-year partnership. While the brand still has LeBron James and about fifty other big names, Federer will not be easy to replace.

The brand switch isn’t just a fashion statement… it is critical to both brands. Nike has gone as far as to say “investments in endorsements by high-profile athletes, sports teams and leagues” drove sales up 6%. The fact of the matter is – if it is good enough for Federer, it is good enough for you (so buy it!).

Oh, and about Uniqlo… they are a Japanese company known for their low-cost, no-nonsense casual clothing. Federer will predictably become the face of the brand after signing his endorsement deal. Also, for a reported $300 million over ten years, he better do just that.

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Automakers are not happy… because the Commerce Department is considering slapping tariffs on cars made in foreign plants and on foreign-made auto parts. These tariffs are bad news for car companies because every vehicle sold in America is at least partially imported. In other words, these taxes would raise costs – even for domestic car companies.

The most “American-made” automobiles are… still comprised of at least 25% imported parts. There is no way around this either because American auto parts makers can’t produce all of the necessary components. Additionally, all major automakers build some cars in Mexico and would pay a tariff on those vehicles, as well.

You can run, but you can’t hide… because the cost of tariffs is unavoidable for all car companies. Expect higher car prices, lowered sales and lost jobs, as a result of the proposed taxes. Trade wars are fun, huh?

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