The Goods (U.S. Edition) – Catch Z If You Can
Welcome back to The Goods! This week we’re discussing looming labor shortages, the touch and feel of jewelry shopping, and next year’s hottest legume.
Are you traveling for Thanksgiving next week? If so, it will be you and about 80 million other Americans. AAA projects a record 79.9 million travelers will trek 50 miles or more from home over the Thanksgiving holiday travel period. This is an increase of 1.7 million people compared to last year and 2 million more than in 2019. It is projected that 71.7 million will travel by car, while 5.84 million will fly. Buckle up, butterball!
What’s In: This Week’s Trends
- Plug and Pay: Retailers and shopping centers are using electric vehicle (EV) charging stations as a way to attract customers and boost sales. Recent studies show a 4% increase in monthly visits and a 5% increase in spending for retailers within 200 meters of EV chargers after they were installed. Walmart is building charging stations under its own brand, while other retailers rely on charging companies who pay them a monthly fee for the space. EV sales in the U.S. were up 50% in 2023 compared to 2022, but have slowed this year.
- Help Wanted: Executives across the food, manufacturing and hospitality industries are concerned that President-elect Trump’s deportation plan may lead to extreme labor shortages and business closures. Foreign-born workers made up 18.6% of the U.S. workforce in 2023, and notably, it’s estimated that 54% of active restaurant workers in the U.S. lack documentation. Immigration attorney Amy Peck says that many food producers, manufacturers, and hotels have hired lawyers to audit the legal status of their workers.
- Grounds for Change: Nestlé, the world’s largest coffee maker, will raise prices and reduce pack sizes in response to rising coffee bean costs. The maker of Nescafe and Nespresso will focus more on soluble and capsule coffee, products that are less affected by the price of raw beans, and offer a variety of pack sizes like single serve mixes and refills to attract more customers. Nestlé plans to cut $2.5 billion in costs by 2027.
Cash or Card: Consumer Behavior
What’s going on with the consumer these days? This week we dig into hands-on jewelry shopping, how clothing rental platforms are trying to take on this holiday season, and why luxury brands need to win back the Gen Z consumer.
- Bling-and-Mortar: Jewelry shopping is a touchy experience for consumers…literally. Physical jewelry store openings grew 30% globally last year, as luxury jewelers are finding that consumers build relationships with pieces by seeing, feeling and trying them on. For one jeweler, Minka Jewels, sales have increased 12-15% since the brand opened its first by-appointment showroom in London. Since a jewelry purchase is a sizable investment, consumers feel more comfortable shopping in-store rather than online.
- Just My Two Rents: With many consumers cutting back on discretionary spending, clothing rental platforms like Pickle and Nuuly are positioning themselves as more affordable options for consumers to find their perfect holiday ‘fits. Thanksgiving, Christmas and Hanukkah are not generally the busiest time for rental platforms – they see more traction during times like Fashion Week or Halloween – but they are optimistic that people may be more open than in years past due to how many events they might have to attend. By offering lookbooks, exclusive collections, and other features, they hope to enhance user engagement and convenience.
- Catch Z If You Can: After focusing on the wealthiest clients and putting aspirational consumers on the back burner, luxury brands are now struggling to capture Gen Z. It’s estimated this generation could account for nearly a third of all luxury purchases by 2030, so brands are scrambling to figure out how to attract these younger consumers without losing their luxury allure. Experts say luxury brands will need to win back Gen Z through strategy shifts, creative partnerships and embracing affordable luxury options – including the secondhand market.
Making Moves: Industry Transformations & Innovation
ICYMI, even industry icons need to reinvigorate their brand presence through unique and creative ways. Here are some new brand moves that you should know about:
- Easy, Breezy, Digital: Built on decades of glossy magazine ads featuring A-list celebrities, makeup brand CoverGirl is now banking on influencers to boost sales. CoverGirl’s parent company Coty has created TikTok content-development studios across the country for influencers with millions of followers to shoot and share videos. CoverGirl’s market share is holding steady, while rival legacy brands L’Oréal Paris and Maybelline are losing ground. This is in part due to sales of makeup declining in drugstores but growing on Amazon, where CoverGirl is gaining share.
- A Higher Hauling: Seeking to compete with lower-priced platforms like Temu and Shein, Amazon has launched “Amazon Haul,” a mobile shopping platform targeting younger consumers with products priced at $20 or less. The experience features younger-skewing language, with product deals labeled as “crazy” and liberal use of emojis. Over half of Americans purchased from Chinese marketplaces in the last six months, and 69% plan to buy again. With its new offering, Amazon hopes to capture some of this share.
- It’s Called What? And Grown Where? In search of sustainable food solutions, companies are turning to a superfood that grows in ponds known as duckweed (or water lentils). Duckweed requires 90% less water than soybeans and yields more protein per acre, making it a promising plant-based alternative. Whole Foods has named it one of the top food trends of 2025, and startups like Plantible and GreenOnyx have secured funding to bring it to market. As we wait for FDA approval, we are all dying to know what the duckweed tastes like.
Capital Markets Corner
What consumer news is moving the market this week? Our investor relations experts break down this week’s trends and headlines.
- Snack Pull-Back: Food stocks tumbled last week after President-elect Donald Trump tapped Robert F. Kennedy – noted conspiracy theorist and well-known critic of “Big Food’s” influence on government – to head the Department of Health and Human Services. Soda giants PepsiCo and Coca-Cola saw shares fall 4% and 1.3% respectively, in addition to declines for snack and packaged food makers Campbell’s, Kraft Heinz and Conagra. Traders are concerned that Kennedy will increase scrutiny over snacks, packaged foods, and soft-drink brands.
- Risk It for the Biscuit: In a transaction valued at $1.45 billion, General Mills will acquire Whitebridge Pet Brands’ North American cat food and pet treat business. The Cheerios owner hopes the deal will drive sales growth by strengthening its pet food business, which currently includes Blue Buffalo and comprises 12% of its annual revenue. The transaction marks the fifth acquisition that General Mills has completed in the Pet category. Following the announcement, shares of General Mills remained flat, trading down 0.8%.
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