Tag: consumers

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Customers shall be spending extra on mother

Consumers will be spending more on mom

On this Mother’s Day, it’s more like breakfast in bed than an opulent buffet.

Although consumers are expected to spend more on their mothers this year, the celebrations will likely still take place at home, despite rising vaccination rates.

“There are more people planning a Mother’s Day brunch or a special getaway, but we’re not where we were before the pandemic,” he said Katherine Cullen, Senior Director, Industry and Consumer Insights, National Retail Federation. “I think consumers are still reluctant to plan these types of activities.”

In a recent survey by the trade group, only about half of the 7,818 consumers surveyed said they were planning a special getaway for their vacation, although consumers expect to spend more money on the occasion.

With caution, many restaurants offer brunch and dinner menus for Mother’s Day, which you can pick up or prepare at home.

“I’ve seen many restaurants that have a Mother’s Day deal that gives you all the ingredients. It can be partially assembled and you take it home and heat it and you can have a restaurant-quality meal at home.” “Said Cullen.” I think a lot of these trends and services will stay here. “

Flour, a Boston bakery with nine locations and a commissioner’s kitchen, has special Mother’s Day menu options, including frozen, ready-to-bake sticky buns and cinnamon rolls that can be picked up in-store. There’s also a second menu for items, including a coconut cake, which can be shipped across the country.

“We’re making a Mother’s Day gift box that we don’t normally sell and that is very popular for e-commerce,” said Holly Najdzin, senior operations support manager at Flour. The box contains homemade muesli, a crunchy butter toffee, sable biscuits, English breakfast tea, a tea towel and a mug for Mother’s Day.

Flour also offers virtual baking classes that can be offered as gifts, with the option to send the ingredients to the recipient for an additional charge.

Numerous other online courses are also available. For example, 1-800-Flowers.com offers workshops that teach you how to arrange flowers or make a sausage board. Both were popular Mother’s Day gifts this year.

“Live streaming experiences are also increasing compared to years before the pandemic as consumers try to connect with their mom virtually or simply from the comfort of their own home,” said Chris McCann, CEO of 1-800-Flowers.com.

Americans plan to spend an average of $ 220.48 on celebration plans and gifts for Mother’s Day from April 1-9 this year, according to the NRF poll. This brings the total expected spend for Mother’s Day to $ 28.09 billion.

It’s also an average of $ 15.74 more than consumers for 2020 and $ 24.01 more than planned for 2019.

“This is the highest anticipated Mother’s Day output we’ve seen since we started this survey over a decade ago,” said Cullen. “It’s really about giving things instead of gaining experience.”

After the greeting cards, consumers are most likely to buy flowers. 68% of respondents say this is part of their plan.

“Mother’s Day is the biggest flower holiday of the year and our brand 1-800-Flowers.com expects approximately 23 million stems to be shipped for the holiday,” said McCann.

Due to the shortage and higher transportation costs, buyers may spend more on flowers this year. Some florists say consumers should be willing to accept replacements and pay up to 25% more than last year, media reports said.

“Farms that don’t know how to plan for this year have withdrawn and there is a bit of an argument,” McCann said in Squawk Box on Thursday. “That, along with some weather conditions, has created the challenge we see in the flower industry today.”

1-800-Flowers said it was able to secure enough flowers to meet its demand.

McCann said he also sees greater demand for gifts for groceries, and NRF’s Cullen said consumers intend to spend more on jewelry.

“Despite all the difficulties that Covid has caused, despite all the uncertainties, consumers are really enjoying moments when they can celebrate,” said Cullen. “And we’ve seen that in pretty much every vacation and special event during the pandemic.”

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GM expects to supply self-driving automobiles to customers this decade

GM expects to offer self-driving vehicles to consumers this decade

GM unveiled the Cadillac Personal Autonomous Vehicle concept at CES 2021 in January.

Screenshot

DETROIT – Mary Barra, CEO of General Motors, expects the automaker to bring self-driving vehicles to consumers later this decade.

While autonomous vehicles for delivery and hail services are currently undergoing rigorous testing, manufacturing for retail customers is not a priority for automakers because the technology required for the systems is prohibitively expensive.

“I believe there is still a lot to be done later in the decade, but I believe we will have personal autonomous vehicles,” she told investors on Wednesday during the company’s earnings call for the first quarter.

It did not specifically state that GM would sell such vehicles directly to consumers. It could lease them or offer a subscription service to customers, as it did previously for Cadillac vehicles. A GM spokesman said the company had no further comment at this time.

Barra’s comments come after GM unveiled a personal autonomous vehicle concept car for its Cadillac brand in January. The vehicle was based on the Origin, an autonomous shuttle from the majority subsidiary Cruise.

GM is taking a two-pronged approach to such systems. Cruise leads the development of fully autonomous vehicles as the automaker expands its advanced Super Cruise system with driver assistance to 22 vehicles by 2023. Barra said the goal of Super Cruise is to enable hands-free calling in 95% of driving conditions.

“Both avenues are very important because the technology we are using for vehicles today, I believe, makes them safer and excites customers and gives us the opportunity to generate subscription income,” she said on Wednesday. “And then the ultimate work that we’re doing at Cruise, which is completely autonomous, really opens up more possibilities, and I think we can outline it today.”

Super Cruise currently enables hands-free calling on more than 200,000 miles of pre-mapped highways in the United States and Canada. Other systems, particularly Tesla’s autopilot, offer greater functionality but require the driver to “check in” by touching the steering wheel.

Key differences between Super Cruise and Autopilot include a driver-side infrared camera for monitoring attention and the pre-mapped roads that work with radar, sensors and cameras on board to drive the vehicle.

Commercializing autonomous vehicles has been far more difficult than many predicted a few years ago.

In 2018, GM announced plans to start hail drives in 2019 using self-driving vehicles with no manual controls such as steering wheels and pedals. These plans to conduct further testing have been indefinitely delayed.

In April 2019, Tesla CEO Elon Musk said the automaker would be shipping a car without a steering wheel within two years. However, the company has not updated these plans. Tesla didn’t respond to an email looking for a comment.

Tesla is currently testing a next generation of its system, marketed as a premium “self-drive” option for $ 10,000. Only some owners get access to the beta version of the self-driving system. Despite the name, Tesla has told California-based DMV that the system is not fully autonomous, according to correspondence between the company and the agency received by CNBC and other media outlets.

Last year, GM confirmed plans for a system called “Ultra Cruise” but has not released details of next-generation technology.

– CNBC’s Lora Kolodny contributed to this report.

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Chlorinated U.S. Chickens Gas British Customers’ Fears

Chlorinated U.S. Chickens Fuel British Consumers' Fears

LONDON – At this post-Brexit moment, amid the pandemic in the UK, whose economy is plagued by recession and the royal family in grief and turmoil, it is difficult to find a theme that unites this fragile nation. But US chickens – yes, the low, gurgling farm animal that is eaten by millions in all 50 states every day – have made it.

Everyone hates them.

The strange thing is that US chicken is not sold anywhere in the UK, and if people find their way here it never will be.

What exactly have US chickens done to terrify the British so thoroughly, even though few of the latter have ever tried the former?

The short answer is that some U.S. chicken carcasses are washed in chlorine to eliminate potentially harmful pathogens. Americans have devoured these birds without a fuss for years, but in the UK, US chickens are now tied to the word “chlorinated” the way warning signs are on cigarettes – that is always. US chickens have been denounced by editors, academics, politicians, farmers, and a host of activists. In October, a group of protesters dressed in chicken costumes gathered around Parliament.

“Beware of Chlorine” was emblazoned in Hazmat script on the front of her yellow onesies.

US poultry has long been ridiculed in the UK, but only became the subject of public vitriol a few years ago when it became clear that the two countries would sign a new free trade agreement after Britain left the European Union. Arguably the biggest anticipated sticking point in such a business is U.S. food standards, which are widely viewed here as subpar and tolerant of dirt and shabby conditions in search of profit.

It’s all a big smear, says the U.S. poultry industry, and an excuse to discourage a British industry from competing with far bigger American rivals. But dig a little and it quickly becomes clear that the chlorine chicken phobia is about more than edible birds. Somehow, America’s dealings with Gallus gallus domesticus, as it is known to scholars, have become a symbol of Britain’s fears that a trade deal with the United States will turn Britain for bad without the right guard rails.

“This is a classic example of how belief has overtaken evidence and embedded it in a complex sociopolitical discourse that is almost certainly motivated by something very different from this issue,” said Ian Boyd, professor of biology at the University of St Andrews. “Chlorine washed chicken is almost certainly a proxy for much deeper questions of trust.”

The details of this distrust are difficult to pinpoint. Most of it is a free-floating feeling that the United States is a careless juggernaut, and if trade between the two countries – now valued at roughly $ 230 billion a year – is unrestrained, it is not to see what the Americans will sell and ruin.

A similar fear was evident in the case articulated by some Brexiters. The United Kingdom is unique, and wrapping it into a union of 27 other states undermined its uniqueness, the argument goes. The word “sovereignty” came up frequently, along with the suggestion that much of it had been lost to the rest of Europe and had to be reclaimed.

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April 23, 2021 at 1:31 p.m. ET

In a way, “chlorinated chicken” is the new sovereignty, and that is reflected in some of the languages ​​used by vocal critics. As Tim Lang, Professor Emeritus of Food Policy, said in an interview: “The question is whether the United Kingdom will become the 51st state in America.”

For Professor Lang, the prospect of a US poultry invasion is not just an abstract concern for agrarian imperialism. It’s about health and safety. He noted that a number of high-profile food fears and outbreaks of salmonella, E. coli and mad cow disease hit the British during the late 80s and early 90s. The Food Standards Agency was founded in 2000 with a mandate to rethink the country’s processing systems. At around the same time, the European Union adopted the so-called precautionary principle for food and environmental safety.

“When in doubt,” he wrote in an email, summarizing the principle, “consumer or eco-interests triumph over business.” It is better to assume that there might be a problem than to do it, only to find out later that there was a problem. “

He and others say the U.S. approach to food processing is to let hygiene slip down while feeding, waxing, and slaughtering, and in the end, make up for mistakes with a good disinfectant. It doesn’t work very well, say critics. As evidence, Prof. Lang had a colleague submit an article quoting the United States Centers for Disease Control and Prevention which found that one in six Americans suffered from a food-borne disease every year. In the UK, that number as determined by the Food Standards Agency is one in 60.

In other words, the Chlorine Dunk isn’t just a little gross. It’s ineffective.

Nonsense, says Tom Super, spokesman for the National Chicken Council, which represents the companies that process about 95 percent of U.S. chicken. He noted that the UK Food Standards Agency website offers a warning about comparing food-borne disease rates between countries.

“The range of study methods varies between and within countries,” says the website. “This makes any comparison and any interpretation of differences difficult.”

Mr Super notes that only 5 percent of chickens are now washed in chlorine because the industry has moved on to a better cleaner. (Peracetic acid if you’re curious.) But focusing on how chickens are washed lacks the security and care built into the US system, he added, starting with how eggs are hatched and chickens are fed . Lower hygiene standards? A total canard, an apology for protectionism, and one that glosses over the results of the European Food Safety Authority, which found no evidence in 2008 that chlorinated chickens are unsafe.

“Science is on our side; The data is on our side, ”said Mr Super. “Americans eat about 150 million servings of chicken every day, and practically all of them are safe to eat. We would send the same chicken to the UK that we now feed our children and that we send to 100 countries around the world. “

The timing of a US-UK trade deal is unknown. The Biden government has said little on the subject. Katherine Tai, the US trade representative, said at her confirmation hearing that she wanted a pact that “prioritizes the interests of American workers and supports a strong recovery in our economy.”

Several trade experts said negotiations could take years, largely because the deal doesn’t appear to be a high priority in the United States. But a long wait might be just what the British need, said Professor Boyd of St. Andrews. Agriculture here has long had a claim to the national psyche that far outweighs its actual economic importance, he explained. Consumers here are more interested in maintaining an institution – agriculture – than buying something cheaper schnitzel. And educating the UK public about studies and test results is not going to change that.

“If we addressed the US chicken fears with evidence-based arguments and expensive advertising campaigns, it would be different,” said Professor Boyd. “This is a sociopolitical problem that can be resolved by having an enlightened partnership for building a trading relationship, not by hitting people with scientific facts.”

David Henig, director of the UK Trade Policy Project, which is part of a think tank in Brussels, said trade between countries will continue using conditions and agreements that have been in place for years. When the United States is ready to tackle the delicate issues, the British will be ready.

“The British side is very interested in a deal,” he said. “It’s just not keen on the chickens.”

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L’Oreal targets male magnificence, new customers in MENA, South Asia

L'Oreal targets male beauty, new consumers in MENA, South Asia

A newly created market in the South Asia Pacific and the Middle East will account for most of L’Oreal’s new business for the next decade – men make up a large chunk of that, the French cosmetics giant said.

The combined geographic zone – known internally as SAPMENA – will cover 35 markets in South Asia Pacific, the Middle East and North Africa. Headquartered in Singapore, the new zone is in response to shared consumer trends and growth opportunities, said region president Vismay Sharma.

“This region, or SAPMENA as we call it … will be an important growth engine for us. This is where we will win the most consumers in the next ten years,” he told CNBC on Wednesday.

The move also makes sense demographically, Sharma said. Overall, 40% of the world’s population live in the region, with an average age of 28 years.

“Over 40% of consumers (in the region) are under 25,” he said. “That makes it extremely exciting for us and a very strategic market for the future.”

The 112-year-old company is trying to adapt to changing consumer habits and new markets, despite holding up relatively well during the pandemic. Revenue rose 10.2% in the first quarter of 2021, nearing pre-pandemic levels.

kyonntra | E + | Getty Images

However, Sharma said the coronavirus crisis boosted certain categories like health and wellness, as well as the demand for sustainable products.

The demand for male cosmetics has also increased recently. Japanese beauty company Shiseido reportedly saw double-digit growth in one of its male makeup lines in 2020 as male consumers became more aware of their looks during pandemic video conferencing.

Sharma said he expected interest in male cosmetics to continue, particularly in the SAPMENA region.

Especially in Asia we can see that men are much more critical about their skin, about the scents they wear, about their hair

Vismay Sharma

President (SAPMENA), L’Oreal

“In the past, men didn’t use enough beauty products – so penetration was much lower, per capita consumption was much lower, and frequency of use was much lower,” he said.

Now, “especially in Asia, we can see that men put a lot more emphasis on their skin, the scents they wear, their hair,” he continued.

“This part is going to be extremely interesting. In terms of growth percentages, we’re seeing significant growth in this part.”

However, in absolute terms, women will remain a significantly larger consumer base of beauty products for some time, he noted.

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March retail gross sales are anticipated to have surged as customers spent $1,400 checks

March retail sales are expected to have surged as consumers spent $1,400 checks

A shopper wearing a protective mask checks out at a Costco store in San Francisco, California on Wednesday, March 3, 2021.

David Paul Morris | Bloomberg | Getty Images

Retail sales are expected to be strong in March, and some economists say that cyclical tests may have entered the economy quickly and are contributing to an even bigger gain of 10% or more.

March sales data, released at 8:30 a.m. ET on Thursday, could be the first in a series of strong reports on consumer spending as vaccinations surge and economic reopening continues. US $ 1,400 fiscal stimulus checks sent to individuals from mid-March appear to have spurred spending in an environment of pent-up demand.

“We expect the March retail sales report to be excellent, with retail sales and core retail sales growing more than 11% each month,” wrote Bank of America economists. “Stimulus, reopening and better weather were a powerful cocktail for consumer spending.”

A multi-month increase in consumer spending should fuel an economy that is expected to boom this year. The strongest growth is expected for the current quarter, which according to some economists could show a growth of the gross domestic product of more than 10%. Compared to the second quarter of last year when the economic standstill caused the economy to collapse and GDP fell by 33.3%.

Economists estimate retail sales rose 6.1% in March, or 5.3% excluding cars, according to the Dow Jones. That equates to a 3% drop in sales in February when severe winter weather in the south led to a freeze with massive power outages in Texas.

However, some economists say the spending data shows that sales could be even stronger. “It’s going to go up over 10%. Except for last May, it’s going to be a record. There are lots of vehicle sales, higher gasoline prices and everything else,” said Mark Zandi, chief economist at Moody’s Analytics. “The restaurants are coming back. The clothing stores are busy. This is the retail reopening and that will be reflected in the numbers.”

Zandi predicts retail sales are up 10.3% from February and are likely to grow 28% year over year.

“It’s reopening. It’s stimulus money. It’s an amortization of the weather, all of which are growing together into one gangbuster number,” said Zandi. “I think we’ll see very strong numbers in the future. We’re gone and running.”

Zandi said business-to-business spend data supports his view. According to software company Cortera, recently acquired by Moody’s, all company spending increased 14.5% year over year in March while retailer spending increased 9%.

Zandi said retailers and other companies such as airlines, benefiting from an economy reopening, outperformed companies working from home for the first time since the pandemic began in March.

“Spending increased in most retail segments, with restaurants, furniture stores, clothing stores, gas stations, and sports stores predominating,” said Cortera. “Spending in grocery and beverage stores fell as consumption shifted back to restaurants and bars.”

Cortera, which has roughly $ 1.7 trillion in business spend, found that grocery and beverage store spending was 14.6% lower than last year, but grocery and beverage spending, such as bars and restaurants, rose and almost 20% more than in the previous year.

Bank of America’s credit card spending also showed an increase in late March. BofA economists said card spending increased 67% in the seven-day period ending April 3. Spending in this period was also 20% higher than in the same period in 2019.

“Animal spirits have risen remarkably, and the conference committee’s confidence level rose to 109.7 in March, the largest one-month gain since April 2003,” noted Bank of America economists. “Consumers can increase their spending while increasing their savings. We expect the savings rate to be around 20%, if not higher, in March.”

Kevin Cummins, NatWest’s chief economist in the US, said he expected sales to grow 10% in March and admits that it was on the high end of projections. He believes sales should be increased by the $ 1,400 stimulus checks sent to individuals that reached bank accounts as of March 17.

“The back end of the month should be very strong,” he said. “If you look at car sales, it was the highest level in four years. It seems like restaurants with outdoor seating are getting busier.”

The range of forecasts is unusually broad. Economists expect growth of 4% to 11.5%. That said, the market reaction could be volatile.

“Usually the range can be 1 percentage point in a prepandemic [apart], maybe 2, “said Michael Schumacher, director of interest rates at Wells Fargo.

Bank of America economists said the retail sales data could spark another debate over whether companies will re-raise spending to stimulate the economy after consumer spending rises.

“With the data confirming consumer strength, the debate is now moving to the next phase of recovery,” say Bank of America economists. “Will this turn out to be just a sugar high with a painful hangover, or will it set off a positive feedback loop leading to a sustained recovery? We expect the latter, but it will depend on a positive response from Corporate America.”

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Chocolate gross sales are booming this Valentine’s Day, as shoppers keep near dwelling

Chocolate sales are booming this Valentine's Day, as consumers stay close to home

Ferrero Rocher chocolate and hazelnut confectionery in a supermarket.

Alex Tai | SOPA pictures | LightRocket | Getty Images

Reservations aren’t required this Valentine’s Day as the pandemic is making romantic dinners less likely. But chocolate will still be an important part of the celebration as people express their love not only for their romantic partners, but also close family members and friends.

According to the National Confectioner’s Association, 86 percent of Americans plan to buy chocolate or candy for Valentine’s Day this year.

“It will likely look a little different in 2021 than other years, but surely friend appreciation will still be very meaningful this season,” said Phil DeConto, vice president of category management and customer insights at the chocolate manufacturer Ferrero in an interview with CNBC.

According to a survey by the National Retail Federation and Prosper Insights & Analytics, spending is expected to decrease this Valentine’s Day. Consumers spend an average of $ 165 on gifts and celebrations this year. That’s $ 32 less than last year, mostly because people are mostly partying at home.

However, chocolate sales, especially for premium products, have increased. According to DeConto, total chocolate consumption has increased 4.7% in the last 52 weeks, and premium chocolate is double what it was before. The trend continues until Valentine’s Day.

“Premium chocolate could play a role in ensuring normalcy or a disruption in mental health,” Deconto said. Ferrero owns brands like Kinder, Nutella and Butterfinger, but also has premium products like Ferrero’s Golden Gallery.

With these different confectionery brands in its portfolio, Ferrero can appeal to a wide range of consumers during the holidays outside of traditional romantic relationships. For example, parents can surprise children with a new type of box of chocolates, while themed assortment bags are suitable for a Galentine Day celebration with friends. (Galentine Day, usually celebrated on February 13, was popularized by the sitcom Parks & Recreation more than a decade ago, and continues to have a following.)

Ferrero also saw increased demand for its Nutella chocolate hazelnut spread as consumers cook breakfast at home. DeConto said people are buying bigger jars of Nutella and more units.

“People make fewer trips, but when they are out, those trips count and the two possibilities, as we saw, were that the overall size of the basket increased and the size of the unit that people were buying increased.” he said.