The Goods (U.S. Edition) – Sound the Parm Alarm
Welcome back to The Goods! This week we’re discussing tariffs on European imports causing champagne problems, Gen Z’s trend fatigue, and new policies at Southwest Airlines that are causing turbulence.
Did you know the average American eats 9 pounds of avocados every year? Since 2007, U.S. avocado consumption has increased more than as the green fruits are added to everything from sandwiches to sushi and smoothies. Now, the nutrient-dense food is on the frontlines of a potential trade war, as the nearly 3 billion pounds of avocados imported to the U.S. annually are almost all from Mexico.
Speaking of trade war… what should finance executives be doing to navigate the risks posed by tariffs to their businesses? While a stronger dollar might seem like a win, the broader consequences of increased tariffs and shifting trade relationships require careful attention. The challenge lies not only in managing immediate cost increases but in anticipating the longer-term effects on growth, supply chains, and profitability. CFOs will need to stay agile, adapt quickly, and think strategically. Read more from FTI Consulting’s Office of the CFO team about tariff mitigation strategies in a Trump Administration.
What’s In: This Week’s Trends
- We Didn’t Start the Hire: Amid tariff uncertainty, the geopolitical environment and decreased consumer spending, retail job postings are on the decline. The retail industry shed 6,000 jobs in February, according to the Bureau of Labor Statistics. In another interesting trend, across all industries, the number of people who wanted full-time jobs but settled for part-time work jumped by 460,000 last month – indicating that many are cobbling together multiple shifts to cover their expenses. In total, the number of workers with multiple jobs jumped from 8.4 million to over 9 million year-over-year.
- Sound the Parm Alarm: Here’s some not “grate” news…potential tariffs imposed by President Trump could make France’s Champagne and Italy’s Parmigiano cheese much more expensive for American consumers, pushing some to domestic alternatives. The uncertainty surrounding trade policies is already impacting U.S. restaurants, grocery retailers, and importers – with many businesses stockpiling foreign-made goods in anticipation of price hikes. While Trump argues tariffs will boost domestic production, European producers insist their unique products cannot be replicated in the States.
- Who Are You Boycotting? Following the “economic blackout” we reported on last week, this rise of social-media driven Amazon boycotts is sparking concerns among small business sellers who make up more than half of the platform’s sales. Sellers argue that the proposed boycotts overlook the crucial role Amazon plays in supporting small businesses, and they are encouraging consumers to learn how to determine if what they are buying is from Amazon or actually from a third-party seller relying on sales to earn a living. A 40-day boycott of Target also kicked off this week, though it’s unclear exactly how much staying power some of these boycotts will have.
Cash or Card: Consumer Behavior
What’s going on with the consumer these days? This week we talk about the pressure on Gen Z to buy buy buy, spending trends in luxury, and the renewed desire for some good old-fashioned pen and paper.
- Trend à Spend à Repeat : Gen Z is trapped in an endless trend cycle, swapping $35 Stanley tumblers and cheetah prints one week for the next viral must-have the next – all while fighting to keep up or risk being out of style. The pressure to fit in is draining their wallets (and sanity), as their status symbols only have the lifespan of this week’s TikTok trend. Some influencers are pushing back with “underconsumption core” and “low-buy year” movements, but even those anti-trend trends are already fading, leaving many wondering if there’s any escape from the endless cycle.
- Chanel No. Dive: Credit card data released by Citi showed U.S. spending on top luxury brands dropped 5% in February compared to a year ago. Transaction numbers declined, while the average value of transactions were up. This indicates a shift in U.S. consumer behavior, as middle-income shoppers are hesitant to buy, while ultra-wealthy consumers demonstrate more resilience. A 9% decrease in handbag sales suggests aspirational shoppers are feeling the pressure, while high-end jewelry brands who cater to the super rich remained steady. This could be bad news for luxury brands, who are already feeling the strain from continued weakness in China.
- So Wrong, It’s Write: Consumers are back to putting pen to paper – literally. Valued at $147.5 billion last year, the global stationary market is projected to hit $213.7 billion by 2034. Higher literacy rates, increased participation in higher education, and an appreciation for analogue tools are contributing to this growth. Studies have found writing by hand to boost focus and creativity, highlighting why journaling and calligraphy remain popular in the digital age.
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:
- RX Marks the Spot: CVS is rolling out a dozen mini-pharmacies that ditch the greeting cards and nail polish in favor of solely health essentials. These scaled-down stores, less than half the size of a standard CVS, will only carry health-related products, such as over-the-counter pain medications and first-aid must-haves. After announcing a significant downsize in footprint in 2021, the chain plans to close 270 locations in 2025 after 800 net closures over the last three years. These new pharmacies will strategically target areas where residents don’t have a place nearby to fill prescriptions and receive immunizations.
- Priority Lumber One: In an effort to increase online sales and return to growth, Home Depot is expanding the generative AI tool on its website – known as Magic Apron – to help consumers tackle their home improvement projects. In the coming months, the AI platform will expand to include design ideas, product comparisons, summarized reviews, and recommendations. Following two years of soft growth, this year’s spring season is key for Home Depot, which is focused on selling more products to professional contractors as consumer spending softens.
- A Cabin the Back: Southwest Airlines, known for its “Bags Fly Free” slogan and customer-friendly policies, is now aligning with competitor strategies by adding fees for checked bags and placing expiration dates on flight credits. The shakeup follows the airline’s first-ever layoffs of 1,750 corporate employees last month. This is not Southwest’s first move away from distinctive policies that their fiercely loyal fanbase once loved: last year, the airline ditched open seating and began selling some seats with extra legroom, partially due to pressure from activist investor Elliott Management.
Capital Markets Corner
What consumer news is moving the market this week? Our investor relations experts break down this week’s trends and headlines.
- Exciting Things in C-Store: 7-Eleven operator Seven & i Holdings and Circle K owner Alimentation Couche-Tard (ACT) are exploring a store sale plan that would set the stage for a merger between the two companies. By selling off a portfolio of U.S. stores, Seven & i and ACT could ink a deal while avoiding antitrust scrutiny.
For more information about FTI Strategic Communications Retail & Consumer Products sector service offerings and expertise, please contact [email protected]
Get More Goods Here
- Retail & Consumer Products, The Goods U.S.
- North America
The Goods (U.S. Edition) – Sweat Outta Here
- Retail & Consumer Products, The Goods U.S.
- North America
The Goods (U.S. Edition) – Hooked on a Peeling
- Retail & Consumer Products, The Goods U.S.
- North America
The Goods (U.S. Edition) – One Spray Or Another
- Retail & Consumer Products, The Goods U.S.
- North America
The Goods (U.S. Edition) – Thread the Word
The views expressed herein are those of the author(s) and not necessarily the views of FTI Consulting, Inc., its management, its subsidiaries, its affiliates or its other professionals.
FTI Consulting, Inc., including its subsidiaries and affiliates, is a consulting firm and is not a certified public accounting firm or a law firm.
FTI Consulting is an independent global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political and regulatory, reputational and transactional. FTI Consulting professionals, located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges and opportunities. ©2025 FTI Consulting, Inc.
All rights reserved. fticonsulting.com
