Yearly Archives

318 Articles
Miscellaneous

It’s September – who’s ready for CHRISTMAS!?!

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Retailers have holiday plans of their own… and that is to hire as many workers as humanly possible. The Gap plans to hire 65,000 seasonal workers, Target will try to snag 120,000 workers, and Macy’s is looking for 80,000. And to deliver your Christmas presents, UPS will be hiring 100,000 workers and FedEx 55,000 workers.

 

That should be easy… NOT. Unemployment is already under 4%, and wages are climbing fast. Oh, and since most people already have jobs, this holiday season is poised to be HUGE because everyone has money to blow. It is estimated that retail sales will hit $720 billion this year, up 4% compared to last year.

 

Here’s the job outlook… 6.9 million jobs were open in July, and the number of unfilled retail positions were up by 100,000 compared to last year. Kohl’s started hiring for Christmas this past JUNE and JCPenney began in JULY. So those other companies looking to recruit an army of season workers better get on it and fast. We heard Gap is giving a generous 50% discount on full-priced Gap, Banana Republic, and Old Navy clothing – any takers?

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Miscellaneous

Yusaku Maezawa is the most interesting man in the world…

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The Japanese billionaire… goes by Yusaku Maezawa and is a rock star turned fashion entrepreneur. Now, not only is Maezawa a fashion mogul, but he is set to become the first-ever “moon tourist.” SpaceX just announced that Maezawa has a seat aboard the Big Falcon Rocket to take a trip around the moon as soon as 2023.

 

How he got so effing rich… Maezawa decided to skip college (because who needs it?) and follow his then-girlfriend to the United States. In the US, Maezawa started collecting CDs and vinyl records and eventually, went into the business of selling CDs and vinyls by mail from Japan after returning in 1995. In 1998, Maezawa launched Start Today; a mail-order music business. Eventually, Start Today started selling clothing, and it was such a hit, the fashion arm of the company was spun off into Zozotown.

 

Zozotown was so good… that Vogue even dubbed it ‘a cross between Net-a-Porter and Amazon.’ And unlike other CEO billionaires in Japan, Maezawa doesn’t wear suits and likes to have fun – he even delivered his company’s yearly results dressed as a mushroom. And nowadays, this guy runs a company, collects art, and apparently, flies around the moon. I think we all need to be a little more like Yusaku Maezawa.

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Blue Chip

Visa, Mastercard flush $6.2 billion down the toilet

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Don’t violate antitrust laws… because it could cost you $6.2 billion and 13 years of your life. That number, a billion with a capital ‘B’ is what Visa and Mastercard were required to pay as a settlement for, well, violating antitrust laws. The lawsuit was settled back in 2012 but rejected by major retailers as ‘unfair’ and eventually overturned on an appeal.

 

Okay, so this settlement… represents a $900 million increase from the original one and still must be approved by the court. However, as you can imagine, both companies are excited to put this behind them and move forward. As for the retailers…they’re excited the extra cash.

 

The biggest retailers… opted out of the settlement and that includes Walmart, Target, and Kroger. These stores represent the top 1% of merchants and were able to negotiate better deals on their own. However, the other 99% saw justice served, and it was a victory for the little guys. So, what did we learn today?

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Blue Chip

Your new car could have Google’s Android in it

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Google is partnering with… cars produced by Renault, Nissan, and Mitsubishi to start putting Android in their cars. The alliance of these three automobiles accounts for 10.6 million vehicles sold last year. Now you will be able to see and use Android whether or not you have the phone.

 

Here’s what this entails… Google Maps, Google Play Store, and Google Assistant. However, don’t expect to see this soon because the technology won’t be installed in these cars until 2021. This move by Google is exciting news nevertheless because car companies have been known to develop their own tech to use in vehicles.

 

The automakers are excited… and said in a statement that the deal gives customers “one of the most intelligent infotainment systems in the market.” And now (or in 2021) you won’t have to worry about using your personal device to navigate, listen to music, or do whatever else it is you do with your phone on the road.

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Fang

Welcome to the ‘Instagram Shop’

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Now you can shop on Instagram… and that’s just what you wanted, right? Well, on Monday the company announced that it would be giving users the ability to shop items via Stories and on the Explore page – whether you like it or not! Brands can add one product tag sticker per Story, and the Explore page will recommend brands based on your tastes.

 

Shopping on IG is a massive opportunity for retailers… and Instagram for that matter. The possibility exists because over 90 million accounts already tap to see tags in shopping posts. The shopping features should also fit seamlessly with the app because people already use IG to get their fashion inspiration – you know, by stalking the people they want to be.

 

It’s called ‘social shopping’… ever heard of it? In fact, the new app feature is eerily similar to what Pinterest just started doing with its “buyable pins” where users can purchase the items they see directly on the platform. It remains to be seen, but Instagram may also have a standalone e-commerce app in the works. The world is getting closer to becoming one BIG advertisement!

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Miscellaneous

Transportation stocks are on the move!

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Ever heard of the… Dow Jones Transportation Average? Probably not. However, it is basically the lesser known, possibly estranged relative to the Dow Jones Industrial Average…you know, but for transportation. Interestingly enough, the index has gained 9% on the year which is slightly better than the DJIA which is up 6% on the year.

 

You should invest in transportation… because even Warren Buffett does it. If Warren Buffet does it, you do it. Okay? Berkshire Hathaway has stakes in UPS, United, American, Delta, and Southwest. Heck, Warren Buffett has even contemplated buying an airline and said he “wouldn’t rule out owning an entire airline.” Buffett even acquired railroad Burlington Northern Santa Fe for $26 billion back in 2009.

 

But not so fast… because high oil prices could hurt the transportation industry. Amazon also is investing in cargo freight airlines and experimenting with drones which could put a dent in transportation. Last but not least – trade tensions could drive demand down for imported goods. But for now, all is well for planes, trains, and automobiles…

Blue Chip

From ‘Coke’ to ‘Cannabis’

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They’re watching alright… what are they watching you ask? Coca-Cola is watching CBD, a non-psychoactive part of marijuana. And non-psychoactive means it doesn’t get you high. However, CBD can ease pain, inflammation, and nausea. The marijuana industry is growing and multiplying quickly.

 

First reported by Bloomberg… so we’re not making stuff up this time. Coke is actually in talks with the Canadian cannabis company Aurora Cannabis. Aurora Cannabis is also interested in producing cannabis drinks (or probably doing anything with Coke, for that matter).

 

Constellation, Svedka, and Casa Noble… are all investing $4 billion in Canopy Growth which is yet another Canadian marijuana company. And ever since marijuana was legalized in Canada, some of these companies are trading on US stock exchanges and getting investment from American companies. However, it seems that we are quite some time from seeing marijuana-infused Coca-Cola, but one can dream…

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International

Samsung: Pack your $#!&… we’re going to North Korea

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That’s right… Jay Y. Lee is headed to North Korea with other business leaders and the South Korean President Moon Jae-in Tuesday. And today marks the first trip to North Korea by a South Korean president in over ten years. The goal? To improve relations, connect the two economies, and gain access to valuable trade and infrastructure links.

 

Here’s how Samsung could benefit… obviously, there is an untapped market in North Korea; but it’s not just smartphones because the company also does engineering, construction, and shipbuilding. However, Lee is more or less along for the ride for now and is going out of a perceived obligation rather than a business opportunity.

 

Here is what the future holds… Samsung Securities, the company’s investment arm, is analyzing the potential for future business in North Korea. North Korea’s economy includes 25 million people, cheap labor, good location, and untapped natural resources. These attributes are all perfect for business, but all of that is easier said than done and any company has their work cut out for them dealing with the “ruling regime.” Kim Jong Un doesn’t like many people – except Dennis Rodman. He loves Dennis Rodman.

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Mid caps

L Brands is shutting down this store after 123 years in business

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If you are unfamiliar with Henri Bendel… don’t worry because most people are in the same boat. The brand was founded in 1895 and became best-known for its designer purses and shoes. L Brands, the owner of big-time brands like Victoria’s Secret and Bath & Body Works, acquired Henri Bendel around 30 years ago.

 

And after 123 years in business… the company will be closing up shop in its remaining 23 locations, including its iconic Saks Fifth Avenue spot which opened way back in 1913. This move comes at a time where L Brands stock is down 55% on the year; that number alone is pretty bad, but those results are magnified by the fact other retailers are having record-breaking years.

 

Here’s why they are shutting down… L Brands is trying to “improve company profitability and focus on our larger brands that have greater growth potential.” Sound familiar? This is something we have seen play out multiple times this year – companies cutting ties with weaker brands and going all-in on what’s working (or sort of working). Still, 123 years is one helluva run.

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Miscellaneous

Chill, man…legalizing marijuana takes time

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Legalizing weed… is not as easy as it sounds. Believe it or not, Uruguay was the first country to legalize the drug nationally in 2013. And Uruguay wants to do things the right way; but doing things the “right way” involves a lot of time and restrictions to show everyone that the country itself is in control of the system. This means only 14 pharmacies in the entire country can legally sell marijuana.

 

Here are the issues… first, only two companies are licensed to grow in Uruguay, Symbiosis and Iccorp. Next is the fact that pharmacies in Uruguay go through United States banks which cannot serve accounts that are involved in the marijuana biz.  This means marijuana transactions must be cash-only which has presented a barrier for most pharmacies to get involved. But if more do get involved, the currently supply will not be enough from just two distributors.

 

Drug dealers hate it… because regulated cannabis has slowed the black market for it down – it is estimated about 55% of marijuana users are using the regulating system to get their fix. Marijuana is also priced in-line with the black market to hinder competition from illegal sources. So some good has come out of legalization after all; but the other “good” things will take time…

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