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Looking back on the year, we have a lot to choose from, but here are the top ten themes that most impacted the automotive industry.
1. COVID Crisis
The rapid spread of the coronavirus forced auto factories across North America to shut from March into May. Thousands of dealers and other small businesses received emergency federal aid. Office workers began working remotely — and many are expected to continue doing so well into 2021. Dealerships, some of which temporarily had to close all or parts of their operations under government order, reinvented themselves with new sales and service processes that minimized face-to-face interactions.
2. Resilient Auto Sales
Vehicle sales were hit hard by the pandemic before showing surprising resilience throughout the remainder of the year. After starting the year strong, they plunged to an annualized rate of just 8.8 million in April amid state- and local-government ordered dealership shutdowns. But sales shot higher again as homebound consumers flocked to generously discounted pickups and SUVs, and commuters wary of public transit opted for a privately owned vehicle instead.
The annualized selling rate returned to more than 16 million by September and has stayed in that range since, despite lingering vehicle shortages caused by the spring factory closings and a fall surge in coronavirus cases around the country.
3. The Convenience Economy
While COVID forced millions of people to shelter in place, consumers spent more time and money online watching Netflix, viewing ads on Google and Facebook pages, filling Amazon shopping carts, exploring online learning, finding home-exercise options, and turning to online video games. Ecommerce became a lifeline for millions of people reluctant to leave their homes, as its adoption accelerated by close to a decade in a matter of months.
After years of talking about the possibilities of online sales, dealers were forced to embrace digital retailing efforts to keep selling vehicles while in many cases showrooms were forced to closed (or consumers wanted to avoid visiting them). Public dealership groups launched online brands such as Lithia’s “Driveway” and Asbury’s “Clicklane. Wholesale auctions also pivoted to digital formats; KAR sees the change as a permanent safety and efficiency improvement, while Manheim has resumed limited in-person auctions. Online players such as ACV Auctions, TradeRev and CarOffer saw tremendous growth.
Dealership service departments rolled out more contactless options, from mobile check-in capabilities to mobile service vans. While auto repair generally was considered an essential service during the spring shutdowns, dealerships expanded their use of pickup and delivery of customers' vehicles, bringing greater convenience at a time when customers were concerned about health and safety.
The interest in online selling buoyed Carvana’s stock price this year, generated a lot of interest from investors outside the automotive industry, and provided tailwinds for Vroom and Shift to go public. Vroom raised $468 million through its initial public offering in June. Shift Technologies went public via a special-purpose acquisition company, or SPAC, in October. That same month, CarLotz announced it would go public through a reverse merger, which is expected to close in the first quarter of 2021.
“It's impossible to imagine a future 10 years from now where a customer comes up and says, 'Jeff I love Amazon; I just wish the prices were a little higher,' [or] 'I love Amazon; I just wish you'd deliver a little more slowly.' Impossible. And so, the effort we put into those things, spinning those things up, we know the energy we put into it today will still be paying off dividends for our customers 10 years from now. When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it.”
4. EV Investments
2020 saw numerous electric vehicle (EV) manufacturers take the opportunity to go public, notably via SPACs. This year saw Fisker, Nikola, Canoo, Lordstown Motors, and Hyliion go public.
Many of the legacy OEMs indicated they were aggressively increasing their bets on EVs. GM boosted its planned spending on electric and autonomous vehicles by 35 percent to $27 billion through 2025. Volkswagen committed $41.5 billion through 2025 just for battery-powered vehicles. Ford is spending $11.5 billion on EVs and hybrids through 2022. Hyundai and Kia are planning to spend a combined $43 billion through 2025 on EVs, purpose-built vehicles and other new technology.
5. COVID Cancels Conventions
This year would have been my 22nd National Auto Dealer Association (NADA) show in a row, and it’s sad that I’ll miss it. It just won’t be the same attending virtually. NADA weekend is one of my favorite of the year, as I get to see industry folks that I otherwise never get to catch up.
In addition to NADA shifting to virtual, so have the big auto shows. It started with the Geneva auto show's last-minute cancellation and snowballed from there. New York, Los Angeles and Detroit were all show-less in 2020.
As a result, automakers had to find new, digital ways to create excitement and awareness for new vehicles. Software vendors needed to find new ways to prospect dealer customers.
6. Unprecedented Profits
Rolling the clock back to the beginning of the pandemic, I would have predicted that we were in for a hard year which might see thousands of dealerships go out of business, as consumer demand disappeared. Ironically, the opposite happened -- dealers and OEMs reported record profitability in Q3 2020.
Tight new and used inventory supply occurred as both supply dried up (auctions were either closed or running at partial capacity and new car plants were forced to close for some time) and demand strengthened. Both factors drove record profits across the dealer body and strong third quarters for most automakers, as they didn’t have to discount vehicles, and gross profit per car held strong.
7. Markets and SaaS Valuations at All Time Highs
The S&P 500, the Dow Jones industrial average and the tech-heavy Nasdaq all ended 2020 at or near their record highs, even as a deadly pandemic claimed the lives of more than 340,000 Americans and left millions jobless and without enough to eat.
Wall Street’s resurgence has been fueled by the largest federal government stimulus ever, historic support from the Federal Reserve and optimism about how quickly the economy is likely to bounce back next year as coronavirus vaccines become widely distributed. Investors have largely ignored the ongoing pain on Main Street, including pronounced unemployment, overrun hospitals and battered small businesses. On the eve of the new year, nearly 10 million people remain out of work, and we face a jobs crisis worse than anything seen during the Great Recession.
Investors are focused on the future. Stocks are a forward-looking mechanism. They don’t care about what is happening right now or what happened in the past. Goldman Sachs predicts growth of 5.9 percent next year — the best annual increase since 1984. And the unemployment rate is expected to fall to 5 percent, according to the Federal Reserve, meaning 2 million more people could return to work. Corporate earnings are forecast to balloon in the second half of the year, and crucially, stocks remain appealing for many investors because interest rates are so low, making them more attractive than other kinds of assets, such as bonds.
The market’s gains have also been driven largely by a handful of superstar stocks, a scenario eerily reminiscent of the dot-com era. Three of the biggest tech giants — Apple, Amazon and Microsoft — accounted for more than half of the S&P 500′s return in 2020. Absent the top 24 companies, which are dominated by tech and digital services, the S&P 500 return would have been negative in 2020.
As technology stocks have led the market higher, Software-as-a-Service (SaaS) multiples have hit an all-time high. The median public SaaS company valuation multiple was at 15.6 times Annual Recurring Revenue Run-Rate (ARR) as of year end, the highest it’s ever been. Multiples are high due to a convergence of factors, including monetary easing, trillions of dollars chasing investable targets, and an adoration of the SaaS business model.
8. Tesla Soars
2020 was a great year for both Tesla and Elon Musk. Elon is now the world's second-richest person, as Tesla became the most valuable automaker by far, eclipsing long time No. 1 Toyota by 150 percent at the start of December. The California company opened its first plant in China and started construction in Germany and Texas, and Tesla remains the fastest growing auto brand, in the U.S. as well as worldwide.
Tesla’s buoyant market capitalization ($669 billion at the start of 2021) has fueled more interest in other EV manufacturers, many of which went public in 2020 via SPAC.
9. Blurring of Lines Between Retail and Wholesale
I’ve spoken numerous times about the blurring of lines between wholesale and retail, which seems to be happening at an accelerated pace.
Maybe the best example of this blurring is CarGurus’ investment in a majority of CarOffer at a $275 million valuation. The move will allow CarGurus to provide a more end-to-end used car solution for their dealers, who can now source, appraise, price, advertise and dispose of used cars on their lot. This should allow CarGurus to go deeper into dealers’ wallets and make the product stickier (i.e., less churn).
Another trend in 2020, which really came to the forefront due to months of used inventory supply shortages are services that enable dealers to source private seller (“for sale by owner”) vehicles. Companies playing in this space include Drivably, Vettx, Boost Acquisition and Vehicle Acquisition Network (VAN). Dealers no longer need to solely rely on sourcing used vehicles from auctions or through dealer trades.
Companies who might have historically been viewed as dealers are starting to blur lines into the wholesale auction space. The largest retailer of used vehicles, CarMax, runs the third largest auction company in the country, with over 70 locations. CarMax sells over 400 thousand wholesale vehicles per year through these auctions. And remember that CarMax made a $50 million dollar investment in online shopping site Edmunds in early 2020, which raised a lot of eyebrows.
Carvana launched CarvanaACCESS in 2020, powered by Manheim’s OVE. Like CarMax, Carvana needs an efficient way to dispose of trade-ins and aged inventory they don’t need.
Finally, used car consignment company CarLotz announced that it will be going public in early 2021 via SPAC, with a vision of offering fleet cars directly to consumers.
10. 2020 is The Year of the SPAC
SPACs, often called blank-check companies, took the opportunity in 2020 to disrupt the traditional IPO market. SPACs are flourishing in the electric vehicle (EV) market, helping startups to avoid the complexity and strenuous paperwork associated with the traditional IPO. Many EV companies chose to go public this year via reverse mergers with SPACs, a faster, simpler and less demanding process than the conventional means of making a debut on the stock market.
We will exit 2020 with over 473 IPOs, a nearly quadrupling of IPO count, and the most in any calendar year, ever. The next closest year was back in 2000 with 397 IPOs -- at the peak of the Dot.Com bubble.
Much of the interest in the automotive space has been fueled by Carvana’s high market capitalization, as well as a COVID-inspired interest in online automotive shopping experiences. Specifically, Vroom IPO’d earlier this year, followed by competitor Shift Technologies going public via SPAC. And we already mentioned that CarLotz is coming to market shortly. All of these players are enjoying the tailwind of Carvana’s stock price being up 200% in 2020 to just shy of a $50 billion dollar market cap.
Only time will tell if consumer demand can support all of the EV automakers that went public in 2020. But in the meantime, it definitely was the YEAR OF THE SPAC, and I don’t see this trend slowing down as we enter 2021.


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To update [Thu 12th May, 2022 15:30 BST] Nintendo of America has now released the latest overview trailer in English! The trailer outlines a range of skills and systems for you to play around with when kickoff begins on June 10th.
The two skills that the trailer specifically addresses are:
- team tackle – You can push a teammate into an opponent player and you can also use it to score!
- hyperstrike – Grab a Strike Orb, charge your shot and let your skills do the talking. Think Final Smash but football related! A Hyper Strike goal earns you two points – if you can land the shot!
The trailer also confirms that there will be 10 players on the field, each with different perks and gear that can affect your characters’ stats. With eight player local multiplayer and the ability to team up with a friend locally to play online, this is definitely going to cause some controversy.
We also take a look at Strikers Club, an exclusive online mode that lets you create your own little Super Mario Premier League online or join someone else’s. You can earn points, and how many points you have at the end of a season determines which division you can play in next time.
Looks like we’ll be getting more updates as the Battle League release draws closer, so let’s stay in the crowd and keep an eye out for more exciting soccer bat news!
Original article [Fri 6th May, 2022 02:25 BST] Mario Strikers: Battle League is coming to Nintendo Switch next month and other than the first reveal, we haven’t seen too much of this upcoming release. With that in mind, Nintendo has now released an extensive overview trailer for the game, highlighting more about the gameplay, characters, modifications that can be made to players, and much more.
The catch is, it’s all in Japanese. Nintendo usually localizes these trailers, but if you’d rather see more footage of the game sooner rather than later, this nearly five-minute video is still worth a look.
Canadian developer Next Level Games is once again responsible for this latest entry in the Mario Strikers series. Just last week it was spotted recruiting for future projects via social media and its official website. In related news, Nintendo also broadcast the official Mario Strikers: Battle League website live in Japan.
What do you think of this latest footage? Will you pick it up when it arrives on June 10th? Leave a comment below.
https://www.nintendolife.com/news/2022/05/nintendo-releases-new-introductory-video-for-mario-strikers-battle-league Nintendo releases new introductory video for Mario Strikers: Battle League

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Following extensive coverage of both its enormous 56-inch ‘Hyperscreen’ and the rest of its cabin, Mercedes-Benz has finally shown off its new fully electric EQS sedan in full.
As predicted by many, the production EQS looks like a somewhat neutered version of the three-pointed star’s EQS Concept from 2019. All the lines are more or less the same, but the car gets a front bumper that ties it in with the rest of the Mercedes line-up, and the rest of its panels make it look like a tweaked S-Class.
But, this isn’t just an S-Class with a silent powertrain. It sits on an all-new platform dedicated to future Mercedes EVs, making this the brand’s first electric car that’s engineered from nose to tail to be an EV. In terms of size, it’s 5265mm is longer than a standard S-Class. The new platform is modular, meaning can be used for vehicles of all shapes and sizes. A smaller EQE is set to come next year, built on the same architecture.
For now, Mercedes has announced two different EQS models; the 450 and the 580 4Matic. The former is rear-wheel drive, and extracts 245kW/568Nm from its solitary permanent magnet synchronous (commonly abbreviated to ‘PSM’) motor, and can hit 100km/h in 6.2 seconds.
The more powerful 580 4Matic, meanwhile is all-wheel drive as the name suggests. It gets 384kW/854Nm from two motors, and subsequently chops the 0–100km/h sprint down to 4.3 seconds. If that’s not quick enough, know that there’s an AMG variant in the works.
Range is a slight enigma, with Mercedes not yet releasing full information about which models are capable of what. The brand has only said the model is capable of 770km, making it the second longest-range electric vehicle on the market behind the Tesla Model S Plaid Plus (which claims to do 837km). It’s not known which model in the line-up actually accomplishes this feat.
While it doesn’t topple the Plaid, that’s still an impressive feat from Mercedes. The EQS achieves its lofty range targets by having a very svelte 0.20 Cd drag coefficient figure, and by top speed on both models being limited to 210km/h. Buyers get either a 90kWh or 107.8kWh lithium-ion battery pack, the latter presumably being the one capable of knocking out over 700km.
It gets 400V charging architecture, meaning it lags a touch behind the 800V functionality of the Porsche Taycan. Hooked up to a 200kW charger, it will go from 10 per cent charge to 80 in just 31 minutes, while 15 minutes of charging is said to be enough to give you 300km of travel.
As reported previously, the EQS packs an enormous amount of kit inside — helping it add to the S-Class’s existing legacy for pioneering tech. Overnight the German marque showed off the EQS’ futuristic new cabin. It features next-gen ‘MBUX’ digital voice assistant, facial recognition cameras pointed at the driver for biometric authentication, 15-speaker Burmester audio, and an enormous 56-inch (1.41 meter) curved infotainment screen — known as the ‘Hyperscreen’.
The screen spans almost from pillar to pillar and is topped by a scratch-resistant cover. It’s actually made up of three smaller screens; a 12.3-inch driver’s display, a 17.7-inch central display, and a 12.3-inch front passenger display (the latter pairing both being OLED screens).
The screen unit packs 12 actuators to provide haptic feedback wherever the operator’s finger touches the screen. And when you’re not using all three screens or their key features, users can programme the screen to show some form of background.
It won’t be standard on all models, for those who aren’t keen for the full tech effect. Ironically the entry-level model looks more like an S-Class inside, with a (still fairly hefty) 12.8-inch primary ‘floating’ screen.
Other notable features in the EQS cabin include the existence of a ‘Power Nap’ feature. If the driver wants a break from longer trips, the car can activate a three-phase function designed to first assist the driver in falling asleep, then keep them asleep, then eventually wake them up.
While it hasn’t been formally confirmed for New Zealand just yet, we expect the EQS to be part of the local line-up eventually. It’s already been announced for Australia, where it will go on sale in December.


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All Macy’s stores across the United States are getting a Toys R Us shop.
The department store chain announced on Monday that it is bringing the beloved Toys R Us brand to all of its stores in the country in time for the holiday season later this year.
Macy’s Toys R Us in-store shops will range from 1,000 sq. feet and span up to 10,000 sq. feet in flagship locations, including Lenox Square, Atlanta; State Street, Chicago; Ala Moana, Honolulu; Memorial City, Houston; South Coast Plaza, LA; Aventura, Miami; Dadeland, Miami; Herald Square, NYC; Roosevelt Field, NYC; Union Square, San Francisco; and Valley Fair, San Jose.
The floor area of these shops may get an additional 500 to 3,000 sq. feet during the holiday season to offer an even wider assortment of products.
The in-store shops will come to life with playful colored fixtures as well as hands-on demonstration tables for customers to interact with various toy assortments. Each shop will also feature a life-size “Geoffrey on a Bench” photo opportunity for kids and the entire family.
When will Macy’s Toys R Us in-store shops open?
The opening of the shops will start later this month, with all locations expected to be operational by October 15th. To celebrate the openings, all Macy’s stores will host in-store events for nine days, beginning October 15th through October 23rd. The events will feature various family-friendly activities as well as daily giveaways from brands like Barbie, LEGO, and more.
“Macy’s cannot wait to bring the Toys R Us experience to life in our stores,” said Nata Dvir, Macy’s chief merchandising officer, in a press release announcing the huge move. “We hope Toys R Us kids of all ages discover the joy of exploration and play within our shops and families create special memories together.”
Macy’s and Toys R Us partnership
Macy’s and Toys R Us first joined forces last August when Toys R Us products started to become available at macys.com/toysrus and when Toys R Us launched its own website powered by Macy’s digital and fulfillment ecosystem.
In its reported earnings for the first quarter of 2022, Macy’s said that its toy sales were 15 times higher than the comparable period before its partnership with Toys R Us started.
Toys R Us comeback
After being squeezed by debt and tough competition from large online platforms like Amazon and Walmart, Toys R Us filed for Chapter 11 bankruptcy in 2017, resulting in the closure of all its U.S. locations.
In 2018, Tru Kids bought the toy brand during a liquidation sale and later opened two new pop-up locations in New Jersey and Texas. Both stores, however, were permanently closed in January due to poor mall traffic caused by the COVID-19 pandemic.
In 2021, WHP Global purchased a controlling interest in Tru Kids and opened the newest flagship store of the toy brand in December of that year inside American Dream, a premier retail and entertainment complex in Bergen County, New Jersey.
While fans wait for the opening of Macy’s Toy R Us in-store shops, fans, as mentioned above, can shop for the products of the toy brand online at Macy’s and Toy R Us websites.


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In the new survey, all but one of the Fed's 12 regions indicated that economic activity was "stable," showed "signs of stabilization" or had "firmed." The one exception was the St. Louis region, which continued to report that the pace of decline in economic activity appeared to be "moderating."
Looking ahead, businesses in most Fed regions said they were "cautiously positive" about the economic outlook.
The assessments of businesses on the front lines of the economy was brighter than those they provided for the previous Fed report in late July. At that time, most regions said the recession was easing its grip and some of them reported signs that activity was leveling off.
In Wednesday's survey, the Dallas region indicated that economic activity had "firmed." The Fed regions of Boston, Cleveland, Philadelphia, Richmond and San Francisco mentioned "signs of improvement." The Atlanta, Chicago, Kansas City, Minneapolis and New York regions described activity as "stable or showing signs of stabilization."
Analysts predict the economy is growing in the current July-September quarter at anywhere between 3 and 4 percent.
Most of that growth should come from more spending from businesses, which had slashed investments - often by double-digits - during the recession.
Consumer spending, however, is expected to turn up only because of the binge-buying of automobiles generated by the short-lived Cash-for-Clunkers program. Buyers were given cash rebates to trade in less efficient gas guzzlers.
The Fed's survey found that the majority of regions did report that the government's clunkers program "boosted traffic and sales." But aside from brisk businesses at auto dealerships, other merchants struggled. Consumer spending remained "soft" in most Fed regions.
Manufacturing, meanwhile, reported "modest" improvements. Residential real-estate markets, which were clobbered during the downturn, also flashed signs of improvements. But the commercial real-estate market continued to be a drag in most markets.
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Our LITE290 at the Craft Bike Days Show 2022
Wow! What an event.
First of all we want to say a big thank you to the organizers of DT Swiss, who brought the 2022 edition
of the Craft Bike Days to life. A super organized event waited for us in Beelen.
Unfortunately we were unable to participate last year due to illness. So we wanted to bring a very special bike to life this year.
So we thought about a great show bike. But more about that later.
The Craft Bike Days itself has the goal of getting young and small companies with great innovative power together to debate, philosophize and of course network.
In the end, 30 companies from a total of 7 different countries exhibited their bikes at the Craft Bike Day Show.
Everything kind of bike was shown, from gravel bikes to enduros and long-distance bikes – the show could fill the needs of any rider.
In addition to talking with other manufacturers the two-day event was also peppered with workshops that offered us great value.
We absolutely appreciated the open communication of the brands and loved to meet so many great people here in Beelen.
For this we want to thank the organizers DT Swiss | Ergon | MTB News from the bottom of our hearts! Great to be part of this show.
But what kind of bike did we actually bring to Beelen?
We build our Craft Edition with the latest Intend parts, eye-catching Onza Porc tires, DT Swiss wheels and
further noble Parts. An absolute eye-catcher and especially with the mint Cerakote coating.
Even at a event like the Craft Days our bike really stood out of the crowd. We have adapted the Cerakote coating especially for the fair and is currently an unique frame.
Feel free to check out the article of the guys from MTB News – there you’ll also find a small interview of our founder Chris and Michael from MTB News about the new LITE.
If that’s not enough, Johannes Herden from MTB News did a great job on his camera! Check it out!


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CEAMA demands that GST rate on consumer durables be set at 18%
This move would also be aligned with the Government initiative of ‘Make in India’ and would curb the inflationary impact, the association said
“A GST rate of 28% will increase the tax burden on the goods and this would be inflationary,” said Manish Sharma, president of Consumer Electronics and Appliances Manufacturers Association (CEAMA) said after a meeting with finance ministry officials on Monday.
“The consumer durable goods are not luxury items, this increased incidence of tax on such goods will impact the consumption and therefore slow down the demand for such goods,” he added, highlighting concerns of the industry which includes players like Samsung, LG, Sony and Panasonic among others.
Categorising consumer goods as items of mass consumption, the association has requested that the rate on all consumer durable products be kept at 18%. This would also be aligned with the Government initiative of ‘Make in India’ and would curb the inflationary impact, the association said.
The government took the first step towards creating a uniform tax rate structure for the country with GST, but decided on a four-tiered tax system - 5%, 12% 18% and 28% - where first three rate slabs comprise goods of mass consumption used by the common populace. The 28% slab comprises white goods, cars, luxury cars, pan masala, tobacco and aerated drinks. Additionally, a cess would be imposed on luxury products and products like pan masala, tobacco and aerated drinks.
A committee of secretaries will now allocate items into different tax categories, which is why industry associations are lobbying for their products to be put in certain tax slabs. The consumer electronics association says that the consensus arrived at the by the GST Council hints at making the tax regime complex for the consumer durable industry.
“Under the suggested tax structure consumer durable product details need to be worked out by the council to reduce the burden of complexity for the industry. Secondly, multiple registrations across states under the suggested GST model might add more hindrances,” Sharma said.


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Sentinel on the go: Mobile apps unveiled
Smartphone users can now check out The Holland Sentinel on the go.
The Sentinel is unveiling mobile apps for the iPhone and Blackberry smartphones available at the Apple and Blackberry app stores. An app for Android model phones is on the way. The apps provide better connectivity and improved functionality over The Sentinel’s mobile platform and provide quick access to breaking news as well as continuously updated local news and information.
The apps can be downloaded at: Mobile apps.


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LinkedIn, the most widely used professional social network in the world, with more than 720 million accounts created, has been trying to encourage the creation of original content on its platform for some time. To that end, among other tools, he launched his own Stories -although only a couple of months ago he deleted them- or blog articles and now the company is testing an option to host paid events on the social network.
LinkedIn is testing the introduction of paid events that generate original content on the platform
LinkedIn has not officially confirmed this development, but it is known that it is testing it because TechCrunch has had access to the development code of this tool. Through it you can know that the platform will enable a option for ticket sales.
Likewise, it is known that users who organize these events will have access to a panel to manage the sale of tickets. From that screen they will be able to know how many tickets have been sold, how much money have you collected and then moderate the event itself.
With the pandemic and the establishment of telecommuting, LinkedIn has seen the perfect occasion to reinforce its events. As a company spokesperson explained, only in 2020 did they participate in events on LinkedIn more than 21 million people.
In recent months, LinkdIn developers have been feeding on the observations made by event organizers with the aim of enriching the experience. They have also been on the lookout for competition, as Twitter recently launched its paid events on Twitter Spaces.
LinkedIn created its Events section in 2019 and, since then, has been incorporating new features to facilitate interaction between users. Shortly after the pandemic began, in May 2020, it already introduced surveys and a live video platform.
Last March, the company announced that it was working on developing a Clubhouse-inspired audio chat room for professional use. And, this summer, a native videoconferencing tool, integrated into chat, has been added to its platform that allows remote meetings to be held.


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Grocery eCommerce growth has boomed over the past two years. Two years of insights reveal the consumer trends and the takeaways for grocers.
To measure grocery eCommerce growth and shopper behavior through the pandemic, in March 2020 Brick Meets Click began conducting a monthly Grocery Shopping Survey, sponsored by Mercatus.
Pre-pandemic, the survey was conducted annually since there was modest grocery eCommerce growth rate at the time. But when the pandemic reached the U.S., Brick Meets Click anticipated that this was a very disruptive moment for grocery shopping and grocery retailers.
“COVID demonstrated how quickly circumstances can change,” says David Bishop, Partner, Brick Meets Click. “And because of the uncertainty triggered by this, monitoring buying behaviors monthly not only makes more sense, but it also helps us better understand why those shifts are occurring.”
Using Brick Meets Click’s last annual survey before the pandemic, which was completed in August 2019 – the monthly surveys provide an invaluable comparison of the online grocery industry pre- and post-pandemic.
This high-level view of grocery industry trends helps inform where the industry is heading. It also offers valuable insights on what’s required for grocers to succeed. Here’s a recap of what we’ve learned.


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Spearheaded by Apple’s main operatingofficer, Jeff Williams, the report is the first time Apple has offered acomprehensive check out of its approach to healthcare marketplaces in the eight yearssince it commenced releasing wellbeing functions this kind of as a clinical data storagesystem on iPhones. It has also began partnering with institutions these kinds of theStanford College School of Medicine to perform substantial-scale official medicalstudies.
Significantly of the function has centered all over the AppleWatch, a gadget that Williams performed a essential function in bringing to market place and whichcontains sensors for coronary heart health and fitness and other features.
In the report, Apple explained its aim forconsumers is on supplying a secure place for users to retail outlet their health andmedical data on iPhones though utilizing resources like the Apple Look at to warnand nudge people towards superior wellbeing. The product can warn persons to heartirregularities and detect when a man or woman takes a tough tumble to warn an emergencycontact, amongst other options. Apple claimed its method can now shop 150various kinds of health and fitness information that is encrypted so that only buyers, not Apple,can access it.
The enterprise also outlined function it is doingwith healthcare scientists to enable them to use Apple equipment to conduct research,as effectively as enable sufferers to share and focus on facts collected by Apple devicesso that they can keep an eye on their wellness much better involving doctor’s visits.
Williams wrote in the report that Appleintends to continue to keep developing overall health-related capabilities for both people and thehealthcare market.
“Our eyesight for the foreseeable future is to continueto make science-dependent know-how that equips people with even moreinformation and functions as an smart guardian for their overall health, so they are nolonger travellers on their personal wellbeing journey,” Williams wrote.


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Madeline and Dawson Ellis—owners of jewelry company Mimosa Handcrafted—dreamed of staging a trunk show featuring a few friends and local craft makers to better sell their wares before Christmas last year. But the demand to see the artisonal goods soon outgrew their space at home. The Ellis’ moved the event to Mid City on the corner of Eugene and Government Streets. And Mid City Makers Market was born.
Thanks to demand, this simple dream has now has expanded to include 30 local craft makers each month, along with food, live music and even a kid’s corner. To learn more about this event, read the article in our August issue here.


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Hagemeyer North America-Industrial Distribution Group, Charlotte, NC, a subsidiary of Sonepar USA, has announced it will rebrand as Vallen Distribution Inc.
The company will begin operating under the Vallen brand as of mid-October 2016. The use of the name, which in the U.S. is typically associated with safety equipment, will expand to encompass all U.S. business lines of Hagemeyer-IDG. The two Sonepar operations in Canada and Mexico that also use the Vallen name will continue unchanged.
Hagemeyer North America and IDG joined forces in 2014.


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Automakers continue to scramble as the shortage of microchips confounds plans to boost production during the second half of this year.
Nissan is the latest manufacturer to push back the launch of a major new product line, the all-electric Ariya now expected to debut in winter, rather than mid-year, a senior company official told reporters.
Ford, meanwhile, said it will give a $1,000 to some buyers who have been forced to wait longer than originally promised to take delivery of a new vehicle because of ongoing production cuts. The rebate covers a wide range of vehicles, including the Mustang coupe, the F-150 and the Bronco Sport.
The auto industry has been struggling for months to find supplies of the semiconductors used for everything from engine controls to infotainment systems. It’s not uncommon for today’s vehicles to have more than 100 microprocessors onboard. But chip supplies have become increasingly scarce.
An assortment of problems
The shortages have been blamed on a variety of factors — including a sharp cutback in orders during spring 2020, when the COVID-19 pandemic first hit and automakers expected vehicle sales to crash. After a sharp, short downturn, however, automotive demand rebounded sharply and the industry tried to restore previous orders. Unfortunately, chipmakers found new customers, suppliers of consumer electronics like smartphones, webcams and game consoles. Add to that a series of disasters that disrupted chip production.
So, where automakers normally like to maintain a 60- to 75-day supply of vehicles on dealer lots, that’s down to an industry average of around 30 — and falling. Toyota has barely 13 days of inventory available, auto operations chief Bob Carter told TheDetroitBureau.com this week.
“The truck drives up and the cars roll off and they’re already accounted for” by customers, Carter said during an interview at Toyota headquarters near Dallas.
The crisis has been especially hard on high-demand vehicles like pickups and SUVs. But it has also posed serious challenges for some of the new battery-electric vehicles coming to market this year. BEVs may use as many as 10 times more microprocessors than conventional gas and diesel models.
Nissan delays first new EV in a decade
As a result of the ongoing issue, Nissan will delay the launch of its all-new Ariya battery-electric SUV. It was scheduled to go on sale in Japan around the middle of this year, with the U.S. and Europe set to follow around two months later. Now, however, the Japanese launch will be pushed back to “this winter,” Nissan Executive Vice President Asako Hoshino told reporters. That means the BEV won’t reach American showrooms until early in 2022, and perhaps not until spring.
The delay is a setback for Nissan which launched the world’s first mainstream battery-car, the Leaf, more than a decade ago. Ariya is meant to help it catch up with competitors such as Tesla, that have raced ahead with multiple BEVs of their own.
More broadly, Nissan now expects to lose about 500,000 vehicles worth of production worldwide due to the chip crisis.
GM catches a break; Ford doesn’t
Virtually every manufacturer has struggled to deal with the chip shortages – though, as TheDetroitBureau.com today reported, General Motors says it has lined up supplies that will help it boost production of some of its hot-selling trucks, including the Chevrolet Silverado.
Ford has yet to lock down the chip supplies it needs. That was a major reason why the second-largest domestic automaker suffered a sharp decline in sales during an otherwise strong May.
Like other manufacturers, Ford is worried some buyers might cancel orders, perhaps shifting from an F-150 to a Chevy Silverado, if that model is available. So, to keep customers from bolting, it has launched a $1,000 Retail Order Bonus Cash Certificate. It’s retroactive to April 1, 2021 and will cover purchases made through July 6.
The program covers a broad range of Ford products, including the F-150, Mustang, even the Bronco Sport. Several models are notably excluded, however, including the all-electric Mustang Mach-E and the bigger Bronco that is set to come to market this summer.
A costly crisis
All told, a May report by AlixPartners estimated the global auto industry will lose about $110 billion in sales due to the chip shortage, nearly double what the consultancy forecast earlier this year. And it’s unclear how long the crisis will continue.
The Nissan Ariya is just one of many 2022 models that could be delayed, said Dan Hearsch, a managing director at AlixPartners, noting that, “There are simply going to be instances where they won’t be able to get all the parts” to bring some new models to market on time.


text: Manufacturing Korea’s Hyundai plans new assembly plant in Saudi Arabia By Pramod Kumar January 3, 2023 SPA The MoU stipulates building an assembly plant with the CKD system for electric and internal combustion engine cars Saudi Arabia’s Ministry of Industry and Mineral Resources and South Korea’s Hyundai Motor Company have signed a memorandum of understanding (MoU) to build a completely knocked down (CKD) assembly plant in the kingdom. The deal will see the construction of a Saudi-based assembly plant with the CKD system for electric and internal combustion engine cars, state-owned SPA news agency reported. Saudi’s national industry strategy is aiming to localise the vehicle sector and increase investment opportunities, with light car sales expected to increase by 2.2 percent during the upcoming decade. In November 2022, Crown Prince Mohammed Bin Salman, Saudi Arabia’s prime minister and chairman of its Public Investment Fund, launched Ceer, Saudi Arabia’s first electric vehicle brand, to boost its automotive sector. The kingdom is betting big on electric vehicles. US-based EV maker Lucid Group said it will open its first showroom in the Middle East in Riyadh. The company has unveiled plans for a full production factory at King Abdullah Economic City.


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Ukraine exported the first million tons of grain of the new harvest
The volume of grain exports from Ukraine since the beginning of 2021/22 MY has reached more than 1 million tons.
This is reported by the Ministry of Agrarian Policy and Food of Ukraine with reference to the data of the State Fiscal Service.
As of July 19th, 292 thousand tons of wheat have been exported since the beginning of the season, which is 29% less than in the previous season. Supplies of barley to foreign markets equals to 207 thousand tons (-31%), rye – 3.7 thousand tons, corn – 498 thousand tons, which is 26% more than last year.
At the same time, the export of Ukrainian flour since the beginning of the season amounted to 6 thousand tons, which is 51% less than the indicator for the same date of the last season.
Note that in 2020/21 MY, the export of grains and leguminous crops amounted to 44.6 million tons: wheat – 16.6 million tons; barley – 4.2 million tons; rye – 17.1 thousand tons; corn – 23.1 million tons; flour – 126.9 thousand tons.
Let us recall that Barva Invest has summed up the results of the marketing year 2020/21 for USM and assessed on which of the importers Ukraine should focus, which is more profitable for the exporter – wheat or corn, and in general – how the next export season might surprise.
Read also: Season 2020/21: what it was and what to expect from the next


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Haleon: Sold-Off Spin-Off Looks Like A Buy
Legal fears have left an attractive business available for a sparkling valuation.
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In 1997, Joel Greenblatt published You Can Be A Stock Market Genius. Despite the title — which admittedly sounds like a ghost-written tome by some third-rate CNBC anchor trying to capitalize on the bull market of the time — it’s a highly respectable, and highly respected, book.
Genius is probably best remembered for Greenblatt’s discussion of spin-offs, in which a company carves out a portion of its business into a new independent company, and distributes ownership in that company to existing shareholders. Greenblatt pointed to a study from Penn State University in 1988 which showed long-term outperformance for spin-offs over time, and highlighted a number of reasons for the consistent record of excess returns.
Two appear most important: first, that spin-offs often see indiscriminate selling, as existing shareholders don’t necessarily want the spun business; and second, that management incentives in the new company improve sharply. Indeed, Greenblatt pointed to post-spin stock option pricing as something investors should watch closely, citing the example of a complex spin by John Malone’s Liberty Media (it’s nice to know that some things never change.)
As recently as 2017, a S&P Global study noted that long-term returns for spin-offs continued to beat the market. Short-term underperformance does occur, but that seems to match well with Greenblatt’s theory about indiscriminate selling. Many other great investors too have touted the value of spin-offs, though the group did perform poorly last year.
Haleon HLN 0.00 is the market’s biggest spin-off this year, with a market cap of $27 billion. Like many of Greenblatt’s examples, it has fallen sharply since the spin. Unlike other spin-offs, however, there’s a more concrete reason why.
But the catalyst for the selling in recent weeks looks potentially overblown. As a result, investors have an opportunity to own an attractive franchise at an even more attractive valuation.
In mid-2019, Pfizer (PFE) and GlaxoSmithKline (now known as simply GSK plc) closed on a joint venture of the companies’ respective consumer health businesses. (GSK’s business itself had been buttressed by a joint venture with Novartis (NVS) that was established in 2015; GSK then bought out Novartis for $13 billion in 2018.) Two years later, after divesting roughly 50 brands during the interim, GSK officially announced that it would spin off the JV. The spin-off, named Haleon, closed on July 18 of this year.
Simply put, Haleon is a powerhouse. With sales in over 170 countries, it is the world’s largest over-the-counter business, with top market share in the U.S. and a second-place ranking in China. As of Q1 2022, trailing twelve-month revenue was just shy of £10 billion (nearly $12 billion US).
In the 20-F filing ahead of the spin (see p.73), Haleon delineated its nine “power brands: Panadol (acetaminophen), Voltaren (arthritis relief), Advil (ibuprofen), Otrivin (nasal spray), Theraflu (influenza treatment), Sensodyne (toothpaste), Polident (denture care), paradontax (toothpaste), and Centrum (vitamins).
Those brands drove 58% of sales in 2021, and Haleon’s portfolio includes other well-known products:
source: Haleon 20-F
Trailing twelve-month revenue (as of Q1 2022) is reasonably diversified across five major categories (percentages don’t foot due to rounding):
Oral Health: 28%
Pain Relief: 24%
Digestive Health: 20%
Vitamins, Minerals and Supplements (VMS): 16%
Respiratory Health: 13%
Pfizer owns about 32% of Haleon; GSK another 13%-plus (6% at the corporate level, 7.5% in a pair of partnerships), with the remaining ~54% being distributed to GSK shareholders. Haleon shares were listed on the London Stock Exchange; the NYSE-listed HLN is an ADR (American Depositary Receipt) which represents two ordinary shares.
The Case For The Haleon Business
That brief description hints at the argument that Haleon is a truly attractive business. The fundamentals confirm that thesis.
In 2021, Haleon posted adjusted gross margins of 63%. Adjusted operating margins were 22.8%. Those two metrics alone show the brand strength and pricing power inherent in the portfolio.
Revenue growth of late perhaps doesn’t look terribly impressive. Organic growth was 2.8% in 2020 and 3.8% in 2021. But the novel coronavirus pandemic has provided a headwind to growth. In the first quarter of 2022, for instance, organic growth in Respiratory Health was 53 (fifty-three) percent, due to a historically soft cold & flu season in the winter of 2020-2021. (Consumers avoiding the coronavirus of course avoided many other viruses as well.) On an organic basis, Haleon actually outgrew the consumer health of Johnson & Johnson (JNJ) over the two-year period, even with the cold & flu headwind.
Looking forward, Haleon management has said it expects revenue growth to accelerate to 4% to 6% over the mid-term, along with “moderate expansion” of its operating profit margins. That revenue target (and by extension the margin outlook) assumes the business can modestly outgrow an overall end market that should, on average, increase 3% to 4% annually.
There are reasons to see that prediction coming to pass. Again, a return to normalcy alone provides the potential for acceleration from a 3%-plus CAGR over the past two years. Haleon plans to increase advertising and promotion spend at a rate modestly above that of revenue growth, with higher gross margins allowing the company to drive operating leverage regardless.
The power brands account for almost 60% of revenue — but 80% of growth. And some of those brands offer room for penetration in new markets, with developing markets a particular focus. The 20-F notes that per capita spending on OTC and VMS in the US in 2021 was £110 per person — yet £29 in Central and Eastern Europe, £22 in China and, incredibly, only £2 in India (where Haleon has ~4 million points of distribution and impressive growth of late).
A pivot into “natural” products targets millennials. E-commerce is another driver. And it’s possible that, as Greenblatt argued 25 years ago, the separation will provide a boost, given that a consumer-facing business is now removed from a pharmaceutical industry management structure.
To be sure, those factors alone don’t mean the 4% to 6% bogey will be hit. Wall Street analysts clearly have at least some skepticism, given how often the target was raised during the Q&A period of GSK’s Consumer Health Capital Markets Day at the end of February.
But the broad point here holds: this is an attractive business. It’s defensive, highly profitable, and growing at a reasonable clip even amid recent headwinds. It’s a business that in theory investors should want to pay up to own.
The Case For Haleon Stock
But investors aren’t paying up right now. At Friday’s close just below $6, HLN trades at 14.4x TTM adjusted pro formanet income, ~13x 2021 Adjusted EBITDA and 17x the average free cash flow for 2020-2021 (as with net income, pro forma for added interest expense).
Relative valuation here is difficult, because there isn’t a logical direct peer. The other two major, global, consumer health businesses are part of larger companies: J&J (which is planning its own spin-off) and Reckitt Benckiser (RKT.L) (RBGLY).
But the valuation assigned to J&J as a whole implies a high valuation for its consumer health business, given that JNJ merits a sharp premium to pharmaceutical peers and a higher multiple than the likes of medical device rivals like Medtronic (MDT). And there’s one intriguing comparison which suggests that HLN is sharply, and maybe, ridiculously undervalued.
In its fiscal 2022 (ending June), Procter & Gamble (PG) generated an adjusted operating margin of 23.6%. For the year, P&G drove organic sales growth of 7%.
The midpoint of Haleon’s target revenue growth range is two points below P&G’s FY22 performance. Its operating margin is ~100 basis points lower. On a TTM basis, PG trades at 21x EV/EBIT. HLN is now below 14x.
To be clear, PG merits a premium. Its growth is better, and its market positioning likely more dominant. And we were also skeptical toward PG’s valuation in April (though that stock is probably ~two turns lower on an EV/EBIT basis at this point).
Still, the gap between the two stocks’ valuations is enormous. The gap between the two businesses is nowhere near as large.
There’s another key data point here as well. In January, Unilever offered £50 billion for the assets that would become Haleon. GSK turned down the bid, saying it undervalued the business. Haleon now has an enterprise value under £32 billion.
To be fair, Unilever shareholders hated that offer, but they no doubt would have felt differently at a price one-third lower. That aside, absolute valuation works as well. Assume 5% annual free cash growth (once again, from a base that accounts for interest expense going forward), 2% terminal rate, and an 8% discount rate and HLN is worth $7.22, 21% upside from here.
Obviously, any DCF is only as good as its inputs, and the leveraged balance sheet (~4x EBITDA on a net basis) might argue for a higher discount rate. But the fundamentals here are telling us one thing with almost absolute certainty: the market is pricing in not only that Haleon will miss its targets, but that the business will not be nearly as impressive going forward as it has been looking backward.
The Zantac Problem
The question, of course, is why.
The bullish interpretation is that HLN is being sold off due to short-term factors — among them post-spin dynamics like those discussed in the introduction to this piece.
Certainly, HLN has absolutely collapsed since the spin took place just five weeks ago:
But, as the chart shows, the selling didn’t start immediately. In fact, at its Aug. 8 close, HLN had gained a bit over 3% from its opening price.
What’s happened since then is, to be honest, a bit confusing. A wave of selling has hit a number of stocks, including both HLN and GSK, over concerns about exposure to a number of lawsuits over the antacid Zantac (ranitidine). Like HLN, GSK has dropped over 20%. Sanofi SA (SNY) has sold off as well; the total hit from what appears to be a Zantac-driven sell-off across several stocks now exceeds $40 billion.
Perhaps the most confusing aspect is the timing. In the 20-F, Haleon disclosed potential liabilities from lawsuits that claim Zantac caused cancer, following decisions in the EU and US to pull the product from shelves. GSK did the same before the spin. The London Sunday Times posited this weekend that UK analysts were late in coming to awareness of the first trial in the US, which was due to take place later this month. The Times noted that the issue had merited relatively little commentary from analysts in the months leading up to the spin.
Yet that initial lawsuit was dropped this week amid conflicting reports over whether the plaintiff had settled with other companies. That news did nothing for HLN, GSK, or SNY, which suggests either that a) something else is at play and/or b) investors are simply selling first and asking questions later.
The core reason to believe explanation b) is the fact that no one knows at all how this will play out. J&J has dealt with lawsuits over asbestos in its talcum powder that the company argued were baseless; that company booked nearly $6 billion in related expenses across 2020 and 2021. The plantiffs’ cases related to Zantac appear (from this legal tourist’s perspective) to be relatively thin, but that alone doesn’t mean the defendants will win.
There’s a major distinction here, however. At the least, investors knew that J&J was responsible for liabilities related to its talcum powder. In the case of Zantac, ultimate responsibility itself may well be a source of litigation.
The Haleon 20-F traces the history of Zantac, which provides a microcosm of the wheeling and dealing across the pharmaceutical industry over the past two decades. Zantac’s OTC rights began in 1993 with a joint venture between Warner Lambert and GSK; that JV was terminated in 1998 with rights going to Warner Lambert.
Pfizer bought Warner Lambert in 2000; J&J acquired Pfizer’s OTC business six years later, then sold it on to Boehringer Ingelheim. Sanofi then bought Boehringer’s consumer health business in 2017.
In other words, Haleon hasn’t controlled the product since 1998; its 32% owner, Pfizer, divested Zantac in 2006. As Haleon noted in a press release this month, the company does have a potential indemnification requirement to both Pfizer and GSK, but only if other third parties with their own requirements don’t pay up and only if Haleon is determined to be liable. Notably, Haleon is “not a party to any of the Zantac claims,” and never marketed Zantac in the US.
And yet Haleon has lost more than $7 billion in market capitalization over the past few weeks.
What Else Can Go Wrong
That seems like an enormous overreaction. It’s possible that some liability trickles down to Haleon via a convoluted legal process, certainly. But that liability is years away, and there seems minimal chance that Haleon must bear the burden alone. (To be clear, this is not legal advice.)
Even the example of J&J is instructive. JNJ stock plunged more than 10% in December 2018 after a Reuters report highlighted its talc liabilities; five days later, the company lost a motion to overturn a $4.7 billion verdict. Since the beginning of 2019, JNJ has returned (including dividends) a bit over 10% annualized.
Yet HLN seems to be pricing in pretty substantial liability. Again, mid-single-digit EPS/FCF growth suggests a price above $7 — and a market cap more than $5 billion higher. If we knew that Haleon was going to have to pay $5 billion over time, the stock would look attractive here. The expected value of potential outcomes, on a present value, seems like it comes in well below that figure. (To repeat, not legal advice.)
The question then becomes: what else can go wrong? In this environment there are plenty of catalysts, to be sure.
The macroeconomic environments in the U.K. and Europe are a clear risk. The EMEA (Europe, Middle East, and Africa) region drove 40.6% of 2021 revenue, at higher operating margins (24.8% vs 23.5% in North America and 21.5% in Latin America and Asia-Pacific). Higher energy costs and inflation more generally might raise the risk of consumers trading down, either hitting revenue and/or reducing margins through price competition.
Haleon management has been constructive on this point so far. Competitors are facing similar challenges, albeit without the benefits of scale. The weaker pound provides a potential margin benefit as well: currency was a modest headwind to margins in 2020 and 2021, but the British pound has reversed sharply so far this year. Direct commodity costs, meanwhile, are less than 10% of revenue, and Haleon has costs locked in through this year and in some cases beyond.
From a near-term perspective, there is the possibility of more post-spin selling, given the weak performance. Pfizer’s ownership provides an overhang, as the company has said it will sell its stake, albeit in “a disciplined manner.” Filings show that as of Aug. 9, Pfizer had not yet sold any shares. It’s possible the company has done so since, but given the industry’s apparent surprise at the nature of the broader Zantac-driven sell-off, it seems unlikely.
A Long-Term Buy
Between the macro picture and the legal uncertainty, there are risks here. But they seems like risks worth taking. Below $6, HLN is pricing in both substantial liability related to Zantac and a notable deceleration in its top- and bottom-line growth.
It’s possible one or both occurs. But even with the leverage on the balance sheet, the risk/reward here seems skewed to the upside. 2024 Adjusted EBITDA of $3 billion (an ~8% compound annualized growth rate), 3x net leverage (in line with the expressed target), and a 15x EV/EBITDA multiple suggests total returns in the range of 20% over the next two years. (Haleon plans to start a dividend next year with a payout ratio of 30%, building over time.)
Similar downside here requires a massive legal liability (think $10 billion-plus), significant compression in margins, or a big contraction in already-reasonable valuation multiples.
Again, it’s possible one of those occurs. All three would be a stunning surprise. This looks like an overreaction, one perhaps amplified by post-spin dynamics. And it thus looks like a buying opportunity.
As of this writing, Vince Martin has no positions in any securities mentioned. He may initiate a position in HLN this week.
Disclaimer: The information in this newsletter is not and should not be construed as investment advice. Overlooked Alpha is for information, entertainment purposes only. Contributors are not registered financial advisors and do not purport to tell or recommend which securities customers should buy or sell for themselves. We strive to provide accurate analysis but mistakes and errors do occur. No warranty is made to the accuracy, completeness or correctness of the information provided. The information in the publication may become outdated and there is no obligation to update any such information. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Contributors may hold or acquire securities covered in this publication, and may purchase or sell such securities at any time, including security positions that are inconsistent or contrary to positions mentioned in this publication, all without prior notice to any of the subscribers to this publication. Investors should make their own decisions regarding the prospects of any company discussed herein based on such investors’ own review of publicly available information and should not rely on the information contained herein.
This accounts for interest rates from new borrowings totaling £317 million ($395 million). That calculation includes a 5% placeholder for planned borrowings required to fund a dividend to GSK and for floating rate bonds whose interest rate was not disclosed in the 20-F. Those borrowings total less than 20% of total post-spin debt, so if the 5% figure is off it should be manageably so.
Haleon hasn’t disclosed Adjusted EBITDA for Q1.


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Before the pandemic, over half of business payments were done by paper check.
But that iceberg of inertia that was freezing innovation within B2B payments is slowly starting to melt under the heat of new necessities around enhancing liquidity and improving cash flow visibility.
Payments industry executives told PYMNTS that the four themes that defined B2B payments’ transformation in 2023 were speed, security, artificial intelligence and tooling.
And those four trends will continue to reshape the commercial transaction landscape in the year ahead.
The past year’s ongoing economic uncertainties helped drive an increased emphasis on visibility and certainty around cash flow, areas that manual and legacy methods struggle with.
One thing PYMNTS heard repeatedly throughout the year is that business customers are now starting to expect the same, seamless and technology-driven experience in B2B transactions as they receive in their day-to-day lives as consumers.
“All the innovation that’s happening in the consumer space will move into the B2B world, as well,” Anu Somani, senior vice president and head of global payables and embedded payments at U.S. Bank Global Treasury Management, told PYMNTS in October.
Particularly as behavioral — and generational — shifts reshape the B2B ecosystem, providing a higher level of digital ease, convenience and visibility over B2B payments is becoming increasingly crucial.
“In general, business customers are no longer accepting of the clunky manual processes long associated with B2B accounts receivables,” Shawn Cunningham, managing vice president and head of Capital One Trade Credit at Capital One, told PYMNTS in October.
Organizational leaders are starting to wake up to the inefficiencies woven into B2B payment workflows. Invoicing, reconciliation and even the application of cash are riddled with manual touch points, paper and a general lack of clarity.
“As 2024 dawns, we’ll likely see an increasing number of providers broaden their payments services for buyers to help hasten the shift away from the paper check,” Chris Wyatt, chief strategy and product officer at Finexio, explained to PYMNTS in October. He projected that the use of virtual cards will proliferate and be tied to enterprise resource planning and accounting software so that reconciliation is automatic and error-free.
“There are three themes [around B2B payment innovation] we’re seeing: payment velocity, tooling and the role of artificial intelligence,” Nick Izquierdo, executive vice president of payments at Billtrust, told PYMNTS in November.
The faster movement of money is also seen as a crucial factor in navigating the economic landscape, especially in times of prolonged uncertainty where faster transactions fulfill the strategic imperative of enhancing liquidity and improving cash flow visibility.
“[But] innovation in B2B payments is heating up, and it’s centered around the ongoing digitization of the space, which brings a lot of optimization around operational efficiencies, cost efficiencies and just a better way of moving money,” he added.
“What makes B2B payments such a great market is the presence of true white space, which is rare in payments today,” Ben Weiner, senior vice president and global head of B2B payments at Nuvei, told PYMNTS in November.
While B2B transactions are historically more complex than consumer transactions, the biggest problems frequently equal the biggest opportunities — and advances in cloud-based systems and other enterprise solutions are increasingly making integrating new B2B payment technologies a must for savvy organizations.
“There has been so much innovation … we’ve seen a proliferation of so many different payment options around things like speed, terms and visibility,” Flock Freight Chief Financial Officer Pat Dillon told PYMNTS in November.
“[B2B innovation] requires integration, and none of it is as quite as easy as you would hope it to be — but it is definitely an area where there is a consensus that moving the ball forward is a win-win for everyone,” he added.
Today’s modern and advanced B2B payment platforms are not one-size-fits-all solutions; instead, they provide a toolkit for businesses to customize their payment interactions. However, that doesn’t mean integrating them is as easy as one-two-three.
“People are afraid of new payment rails and deviating from the script,” Doug Brown, president of NCR Voyix Digital Banking, told PYMNTS in November. After all, “payments are a very complicated ecosystem.”
But change is on the horizon. Legacy systems are giving way to modern, cloud-native platforms that facilitate seamless, real-time transactions. The elimination of paper-based methods and the adoption of digital processes bring unprecedented efficiencies, reducing operational costs and enhancing overall transaction speed.
“[T]he movement of money is fairly commoditized,” he added. “The real value add is in the automation and the reconciliation.”
“There is value in convenience; it makes customers more sticky,” Eric Foust, vice president of banking partnerships in North America at Trustly, told PYMNTS in November, noting that there can be a cost-to-utility value trade-off when it comes to certain B2B payments innovations.
Particularly as the market evolves and matures, “if businesses aren’t focused on what’s next, they are missing out,” he said.
For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.


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Over the last year, drone use has exploded in the commercial sector, with its applications growing more numerable by the week. According to DroneDeploy.com, the usage of drones in 2018 exploded 239% over 2017. Where are drones headed for construction in the future? Let’s start by looking at where they were.
History of Commercial Drone Use
Drones were initially used to extend surveillance capabilities. By 2015, drones were making their presence known on the jobsite, though they weren’t fully regulated and approved by the FAA until June 2016. By that time, the construction industry began investigating their potential ability to aid the building process. By 2017, 18 drone companies began to target the construction industry with products designed to make work easier.
Drones on the Jobsite
With advances in technology and drone applications expanding, construction companies use them in a variety of ways, from monitoring sites to aiding in surveying and planning and more.
With connectivity often being available in remote areas, drones can connect to software systems to boost their function, aiding in determining things such as volumes of materials on-site or recognizing heat signatures. Lasers combined with drones (LiDAR sensors) are one of the ways this is achieved. Using drones to collect data has drastically improved jobsite planning and execution, especially thanks to the integration of drone data with software systems and data applications.
In Construction Dive’s article about drones in construction, David Shearer, VP of Marketing for drone-maker Kespry says, “Let’s face it, no one is into this because they want drones. They’re into it because want they want data. That’s the main reason to have a drone — it is a flying robot with built-in sensors to provide you with an edge to your business in the field.”
Because of the extensive benefits drones offer, it’s crucial to ensure your connection in remote areas is reliable, fast, and secure.
Who’s Using Drones
According to research gathered by DroneDeploy.com, the top roles benefitting from drone data to-date are project managers, technology managers, and superintendents. “It’s no surprise that project managers are leading the charge to bring drones to the job site. The typical project runs over budget, behind schedule. Drones help close the gap.”
Most companies use them to track progress, monitor sites, scout, and aid in pre-construction tasks.
Send in the Drones
We’ve only scratched the surface when it comes to the capability of drones. Thankfully, BigRentz.com created the infographic below illustrating this exact purpose.
How is your construction site using drone technology? Tell us on Twitter: @CCRJobsite.


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Imagine Entertainment is launching a new audio division tied to an exclusive deal with iHeartMedia.
The film and TV company’s chairmen Brian Grazer and Ron Howard announced Tuesday that Imagine will co-produce a slate of unscripted podcasts for the digital giant. The agreement will encompass six new series over the next two years.
The effort will be overseen by Imagine’s chief strategy officer Justin Wilkes and led by producer Kara Welker.
“We couldn’t be more excited to have iHeart as our partner as we launch the Imagine brand into the audio space,” said Wilkes. “Audio has proven to be a fantastic incubator and engine for IP development and between our connectivity to talent and storytellers, as well as our ability to create high-quality content, we’re incredibly well positioned to enter the category.”
While no flagship projects have been unveiled, the Imagine team said the goal was to expand the new division into immersive experiences that encompass filmed content, live events, and tours and merchandise — all leveraging its library of intellectual property.
“Imagine stands for the very highest quality content – behind some of the greatest film, TV and digital content the world has seen,” said Conal Byrne, CEO of iHeartMedia Digital Audio Group. “As the largest podcast network in the world, our goal is simple and consistent: We want to work with the most innovative, passionate storytellers in the world — producers who don’t just work in mediums, but who pioneer them. That’s Imagine.”
iHeartMedia’s iHeartPodcast Network hosts more than 750 originals, clocking more than 321 million global downloads each month, the company estimates. Categories include business, sports, spirituality and technology, entertainment, family, comedy and true crime.
Source: Read Full Article


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Caffè Nero enjoyed a strong summer with sales 20% ahead of last year and like-for-like sales up 5%, the coffee shop chain said today.
The company opened 17 new stores from June to September taking its total units to 327.
Caffè Nero, which was taken private by chief executive Gerry Ford in January, left the Alternative Investment Market in February.
Reporting strong results for the full year ended 31 May, Ford said it had been "an excellent year for the group".
Caffè Nero has secured several sites In Northern Ireland due to open at the start of 2008 as it looks to go international and has offer deals in negotiation.
Domestically it signed agreements with department store group House of Fraser to operate in store and launched a travel division Nero Express to service railway and airport locations.
It currently has five Express locations with up to 15 planned by May of next year.
Ford said: "We continue to be encouraged by Nero's brand appeal as we expand into new formats and geographic locations."
Turnover in the year increased 20% to £108.8m (2006: £90.7m). Like-for-like sales, which strip out new openings, grew 4%. Pre-tax profit was 31% higher at £9.6m (2006: £7.3m).
By Chris Druce
E-mail your comments to Chris Druce](mailto:firstname.lastname@example.org?subject=Caffè Nero reports sales up to 20%) here.


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Several companies, including Apple and Microsoft, are betting that the world of tomorrow will, at least in part, be carried out in the metaverse. To this end, Microsoft recently acquired the video game giant Activision Blizzard for US$68.7 billion.
As more of our daily activities take place online, we believe it’s time to consider how this may eventually play out; if tomorrow’s city dwellers prefer the metaverse to brick-and-mortar stores and other urban amenities, what will it mean for cities and what purposes will cities ultimately serve?
As professors in the departments of urban environment and digital culture we delve into this question and examine how the metaverse could profoundly change our relationships with urban spaces. This vision of the future may seem quite dystopian, but let’s take this opportunity to imagine what the cities of tomorrow might look like.
From science fiction to reality
The term metaverse does not come from the fields of science and technology, but rather from science fiction. Neal Stephenson coined the term in 1992, in his novel Snow Crash to designate a dystopian virtual urban environment.
Stephenson’s metaverse is depicted as a very long boulevard generated by powerful computers. It is controlled by the Global Multimedia Protocol Group, which manages building permits, regulates zoning and delimits the boundaries of businesses, parks and advertising spaces. These spaces, rented or bought by large corporations, make the metaverse a virtual urban environment entirely controlled by private interests, those of the digital technology giants.
Virtual urban environments: grab your helmet!
Thirty years after the publication of Stephenson’s novel, elements of science fiction are now giving us a preview of the new realities and new urban challenges to come. We are currently spending astronomical amounts of money to make our cities more liveable, equitable and sustainable, but what good are these investments if the citizens’ of tomorrow will only experience the city virtually?
Let’s start by tackling social activities. Many urban attractions such as cinemas, restaurants, museums and historical monuments will see a drop in the number of customers passing through their doors. It’s already possible to visit several museums virtually.
As the metaverse grows, it will need more money, land and infrastructure to house the computer servers it runs on. Although the experiences are virtual, their costs — in terms of money, energy and environment — are real and increasing.
Will funding come from budgets previously allocated to urban spaces and infrastructures? Will our governments follow Saudi Arabia’s or South Korea’s example and start investing in infrastructure and plots of land within these novel virtual cities?
In the coming years, other social activities such as enjoying a coffee or a beer with friends, may also take place online. Not only will these virtual meetings eliminate the constraints of distance, reducing our use of urban transport, but they will also allow us to choose a location for a meeting anywhere on the “planet.”
For example, a morning coffee with colleagues in the virtual garden of the Eiffel Tower could give way, in the evening, to festivities at a Super Bowl game in augmented reality. It would be like having sideline seats, but with the ability to choose different camera angles with a wave of the hand.
Microsoft already offers a vision of this futuristic sporting experience with an augmented reality helmet called the HoloLens. Not only does the helmet give viewers the impression they are sitting in the stadium, it also allows them to interact with the screen using hand gestures.
Urban outings in virtual mode
Will the sociability of strolling through shopping malls, already virtualized by online sales, be reincarnated in the metaverse? Several companies believe so, including Samsung and Nike, which have launched retail spaces in the metaverse. And the Ralph Lauren clothing company launched a digital collection in the Roblox immersive world in December.
Imagining a future where social activities take place in the metaverse may seem hasty and even a bit far fetched, but the transition is already underway. Several major events have already transitioned to virtual venues, including the Sundance Film Festival, and artists like Ariana Grande, J. Balvin and Travis Scott are performing virtual concerts. Scott’s concert, shown on the video game platform Fortnite in 2020, attracted more than 12.3 million guests.
Physical activities are also increasingly being carried out virtually. Companies like Peloton now offer Tour de France and Giro-caliber bike rides, without the hassle of having to travel to Europe. Their popularity has soared to 5.9 million users in 2021 from 1.9 million users in 2019.
Another example would be the company Tempo, which uses artificial intelligence to offer in-home workouts with a virtual personal trainer.
A new urban exodus
While practical, this transition to the metaverse changes the ways we interact with the urban envrionment and forces us to reconsider our urban priorities.
Even today, many cities focus their attention on improving the quality and quantity of their parks and green spaces. But what will be the use of these parks and green spaces — places to meet, socialize and exercise — if tomorrow’s city dwellers carry out these activities online?
Without the need for urban spaces and the businesses that surround them, the benefits of living in the city may also diminish. Many Canadian households became used to telecommuting during the pandemic, and have since chosen to move out of the city and take advantage of more affordable rents. If, in addition to working from home, many people are able to carry out their social and physical activities remotely from the metaverse, we could very well see a new urban exodus.
Reinventing urban planning
Apple, Meta and Microsoft are not the only companies convinced that we will occupy the virtual worlds they are investing in, and cities must start taking this into consideration. Many urban spaces, infrastructures and developments will have to be reviewed and even reimagined. This process can take many forms.
For example, one response to the corporate promises of virtual happiness associated with the metaverse could come in the form of new urban projects, such as the creation of community gardens and the redevelopment of coastal areas into urban beaches. Initiatives such as these, coupled with a renewed supply of affordable housing, could very well partially counteract the expected urban exodus.
Regardless of the chosen solution, it must stem from concerted and collective efforts from both the public and private sectors. Such efforts will have to involve current citizens to establish what roles we wish the metaverse to play in the cities of tomorrow.
If we do not start asking these questions soon, Silicon Valley will be happy to provide the answers. There’s little to prevent Stephenson’s dystopian metaverse world from becoming reality.
In any case, it is clear that the more private companies invest in virtual urban environments, the less we as a society are paying attention to the urban spaces we live in.


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First Alcohol Supermarket Opened in Kenya
Kenya Breweries Limited (KBL) has opened the first alcohol supermarket in the country.
The project which is a partnership between KBL and Liquor House will see the supermarket fitted with Diageo’s World Class Tasting Room, where most of it’s top of the range products will be displayed.
According to KBL’s Head of Spirits, Flavia Othim, the store will enable customers to interact with the products
“Off-trade has been an integral part of our business, especially during this time in the new normal. Therefore, we believe that this space will help us, understand consumer’s needs and give them the opportunity to interact with our products,” Othim said during the launch.
“we will continue to invest in partnerships and platforms to ensure our brands can be enjoyed by consumers across the country,” she added.
The Liquor House Store will showcase a wide range of popular Diageo brands such as Singleton, Don Julio, Bulleit Bourbon, Lagavulin, Ciroc amongst other exclusive Diageo luxury brands.
KBL, Head of Off-trade sales, Juliet Gathuma also assured customers of a good experience in their store.
“We’re delighted to deliver a unique space for consumers to enjoy a world-class experience interacting with our top of the range luxury brands.”
The Diageo Worldclass room will be instrumental in transforming fine drinking and cocktail culture prepared using Diageo’s reserve brands portfolio including Ketel One and Cîroc vodkas, Ron Zacapa rum, Johnnie Walker Super Deluxe range, and their single malts Range.
The company also hosted a live tasting session at the venue, where guests were treated to cocktails prepared on the spot using each bartender’s exclusive recipes


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Essilor of America Appoints Dr. Millicent Knight to Lead Customer Development Group
Essilor of America announces that Millicent “Millie” Knight, OD, FAAO, FAARM, will be joining the company as Senior Vice President, Customer Development Group and member of the leadership team, reporting to Rick Gadd, incoming President, Essilor of America. In this role, Dr. Knight will be responsible for Essilor of America’s professional relations, communications and eye care professional and sales training efforts.
“Dr. Knight has a diverse and extensive background in the optical industry, including experience in a hospital-based ophthalmology/optometry practice, two optometric practices and a former member of Vision Source,” Gadd says. “Her rich industry knowledge and deep connections to eye care professionals ensures that our customers will continue to have a voice at the highest level of the company.”
Prior to Essilor, Dr. Knight was Vice President of Professional Affairs, North America at Johnson & Johnson Vision Care, Inc. While there, she served on the North American Leadership Team where she developed and deployed a competitively differentiated eye care professional strategy, establishing connections between the company’s strategy and eye care professionals and industry leaders by building industry affiliations, education platforms and advocacy.
Dr. Knight has consulted for eye care and health and wellness companies, conducted contact lens and solutions office clinical trials, and lectured on a wide variety of topics including contact lenses, leadership, cultural sensitivity, eye and systemic health, and business and entrepreneurship. She has published numerous articles, and has received wide-ranging industry and academic recognition including “Optometrist of the Year” by both the National and Illinois Optometric Associations, Vision Monday’s Most Influential Women in Optical, and a Women in Optometry Theia Award for Leadership.
Dr. Knight received her Doctor of Optometry degree and a Bachelor of Science, Visual Science degree from the Illinois College of Optometry. She also holds a Bachelor of Arts degree in Biology from Augustana College. She served on the board of trustees of both alma maters and has received leadership awards from both institutions.
Essilor Optometry Student Bowl Celebrates 27th Annual Competition
Northeastern State University College of Optometry took home top honors in front of more than 700 students and practitioners
The Essilor Optometry Student Bowl™ (OSB) is always a popular part of Optometry’s Meeting, and this year was no exception. Essilor of America, the nation’s leading manufacturer of optical lenses, once again pulled out all the stops to celebrate the 27th annual OSB held at Optometry’s Meeting in Denver, CO. More than 700 attendees gathered to watch the contestants — students from all schools and colleges of optometry, answer optometry-related questions while their fellow classmates energetically cheered them on wearing war paint, school colors and displaying brightly colored banners. This year, the OSB also welcomed the Chicago College of Optometry as a first-time participant.
“Essilor is committed to creating value for our students and investing in the future of our industry. We are honored to host the Optometry Student Bowl again this year, which continues to be a highlight of the conference,” says Dr. Ryan Parker, Director of Professional Relations at Essilor of America. “The passion and excitement created was contagious and we always appreciate seeing the creativity, innovation and team spirit that is fostered through this fun and competitive setting.”
In addition to bragging rights, the winning school, Northeastern State University College of Optometry, took home $1,000 and will house the coveted crystal trophy until next year’s meeting in St. Louis, MO. The winning question below, was answered by David Hurd, class of 2019.
“What toric soft contact lens axis would you order based upon the data below?” Spectacle Rx OS: -1.00 -1.75 x 080; Diagnostic CL OS: -1.00 -1.75 x 070; Rotation: 10° nasal (Answer 90°)
Second-place winner, Steve McArty, from the Illinois College of Optometry, received $750 and third-place winner, Jimmy Nguyen from the New England College of Optometry received $500.
As in previous years, each OSB contestant was presented with a Volk® Pan Retinal® 2.2 blue ringed lens, generously donated by Volk Optical President Dr. Jyoti Gupta. In addition, the first place winner was presented with a suite of 6 Volk diagnostic lenses.
- The Spirit Award went to Southern California College of Optometry, who will create next year’s “rules video” that is played at the beginning of the event.
- The social media-based Virtual Spirit Award was given to four schools: Kentucky College of Optometry, Northeastern State University at Oklahoma, Southern California College of Optometry and University of Houston College of Optometry.
- AOSA T-shirt design competition winner was Southern California College of Optometry.
This year’s prestigious panel of judges included:
- Lead Judge – Dr. Linda Casser, professor, Pennsylvania College of Optometry at Salus University; author, educator, clinician, and 1997 American Optometric Association (AOA) Optometrist of the Year.
- Dr. Diane Adamczyk, author, lecturer and professor at State University of New York College of Optometry and 2016 PCO Alumna of the Year.
- Dr. Jeffery Walline, representing the American Academy of Optometry, is Associate Dean of Research at the Ohio State University and was a two time OSB student contestant in the 90’s.
- Dr. Barbara Horn, 2006 AOA Young OD of the Year and VP of the American Optometric Association
- Dr. Karla Zadnik, past president, AAO, Dean at the Ohio State University College of Optometry, 2014 National Optometry Hall of Fame Inductee and past president of ASCO.
For more information and to see some of the excitement from this year’s Essilor Optometry Student Bowl, visit www.facebook.com/essilorPro.
Essilor of America Brings Back Wildly Successful Promotion
The Ultimate Offer proves to be game-changing program for eyecare practices while providing patients with their best possible vision
Due to popular demand, Essilor of America is bringing back the Ultimate Offer, a consumer promotion supporting the “Essilor Ultimate Lens Package” that has increased practice revenue and profit, by driving new patients into the practice and increasing premium lens sales like no other promotion Essilor has offered. Available only to independent eyecare professionals, this offer is available from until December 31, 2018 and will be supported by national television and digital consumer advertising.
“At Essilor of America, we are focused on helping independent eyecare professionals thrive in today’s competitive landscape,” says Chief Marketing Officer Sherianne James. “Customers who have actively engaged in selling the Ultimate Lens Package and participating in the Ultimate Offer have seen unprecedented returns. Engaged customers realized an average sales price growth that is two times faster, and an increase in second pair sales of more than three times. This program has fundamentally transformed how their patients buy premium lenses.”
“By participating in the Ultimate Offer my daily practice revenue grew by more than 30% and we saw our multi-pair sales grow quadruple,” says Dr. Dave Ziegler OD, Ziegler-Leffingwell Eyecare. “I’ve tried many things to drive second pair sales and this has been the best by far. It has created happier patients and has made our staff confident knowing that they’re recommending the best lens to meet patients’ needs.
Continued success of Varilux® X Series™
Eyecare professionals will be able to continue to build momentum with the Ultimate Lens Package for progressive lens wearers featuring the best-in-class Varilux® X Series™ lenses with Xtend™ Technology, which allows the wearer to see multiple distances through a single point in the lens.
A stylish addition to the Ultimate Offer
And now the Ultimate Offer is more stylish than ever to attract single vision patients. Single vision patients will continue to get their ultimate in vision with Eyezen™+ lenses, and can now get the ultimate style by pairing them with the new Transitions® Signature® Style Colors and Transitions® XTRActive® Style Mirrors. These trend-setting offerings open the door to a new, fashion-conscious wearer who wants to create a unique, personalized look with their lenses and frames and protect their eyes from harmful light. The Transitions Signature Style Colors will be available as an option for the single vision Ultimate Lens Package with Transitions® Signature® VII. Transitions Style Mirrors and Style Colors will both be available as an option for the second free pair of lenses offered to consumers through the Ultimate Offer.
Consumers can double their lenses by purchasing the Essilor Ultimate Lens Package, benefitting from three innovative technologies in one lens, and getting a second pair of qualifying lenses that is of equal or lesser value at no cost with frame purchase through independent eyecare professionals who enroll in the offer. The offer applies to both the progressive and single vision Ultimate Lens Packages.
“We believe every patient deserves the best sight possible, and we know that once patients try a premium product and experience the difference, they don’t go back,” James says. “The Ultimate Offer is a way for independent eyecare professionals to upgrade their patients to Essilor’s best visual solution.”
Visit www.essilorultimatelens.com to learn more.


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In recent years, a significant shift has been observed in consumer behavior, with an increasing number of shoppers turning away from established name brands in favor of alternative options. This trend, accelerated by economic fluctuations and the COVID-19 pandemic, has reshaped the landscape of consumerism, bringing generic and private-label brands into the spotlight. This article delves into this evolving trend, exploring the reasons behind this shift and its implications for both consumers and retailers.
The Allure of Affordability
The primary appeal of alternative brands lies in their cost-effectiveness. Generic brands, often significantly cheaper than their name-brand counterparts, offer substantial savings without necessarily sacrificing quality. In an era where budget-consciousness prevails, the allure of affordability is undeniable. From groceries to medications, consumers are finding that alternative brands can provide the same level of satisfaction at a fraction of the cost.
Quality at a Bargain
There’s a common misconception that lower prices equate to lower quality. However, many generic brands are made from the same ingredients and follow similar quality standards as their name-brand counterparts, especially in categories like foods, drinks, and medications. Consumer reports and studies have consistently demonstrated that the quality of these alternative brands often matches and sometimes exceeds, that of traditional brands.
The Pandemic’s Impact on Brand Loyalty
The COVID-19 crisis disrupted supply chains, leading to product shortages and a significant shift in brand loyalty. Consumers, faced with empty shelves, turned to alternative brands for their needs. This period of disruption highlighted the fact that brand loyalty could be fluid, influenced heavily by factors such as availability and convenience.
The Budget-Conscious Consumer
The pandemic brought about a heightened sense of financial uncertainty, leading consumers across all demographics to reconsider their spending habits. There has been a noticeable shift in consumer priorities from brand names to cost-efficiency and practicality. This trend is not just a temporary response to the pandemic but a more enduring change in consumer behavior, emphasizing value over prestige.
Private Labels: From Underdogs to Powerhouses
Private labels in markets like Europe and Canada have evolved, now offering innovative products or enhanced quality compared to national brands. These brands have transformed from being mere alternatives to becoming powerful drivers of store loyalty and customer engagement.
The Marketing Perspective
Businesses are adapting to this consumer preference shift by focusing on value proposition and quality assurance in their marketing strategies. The future of marketing, particularly for alternative brands, lies in highlighting their unique benefits and competitive pricing.
Consumer Testimonials and Success Stories
Many consumers who have switched to alternative brands share stories of satisfaction and budget optimization. These real-life accounts underline the potential of alternative brands to meet consumer needs effectively while offering significant savings.
Challenges and Considerations
While there are undeniable benefits to alternative brands, there are challenges too, such as variability in quality or limited product ranges. Consumers and retailers alike must navigate these challenges thoughtfully, balancing the benefits with potential drawbacks.
The growing popularity of alternative brands marks a significant shift in consumer behavior. This trend, driven by the pursuit of value, quality, and budget-friendliness, is reshaping the landscape of consumerism. As the marketplace continues to evolve, it will be fascinating to see how these changes influence brand loyalty and consumer preferences in the long term.
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