Consumer & Retail Report #3: 7/24 Recap
Summary of the Week in Consumer and Retail
Welcome to our Consumer and Retail recap where we share noteworthy headlines, updates, and insights. Never spam.
Table of Contents:
Why this matters? - The closure comes amid a broader unionization push across the country, mainly being driven by Starbucks. SBUX 0.00%↑ has unionized 180 stores in the last year and fear of a spread to other chains such as Apple has finally made its way to Chipotle.
Why this matters?- A few big names have already had some stores start to unionize, Starbucks is the biggest one with Apple having one store petitioning to unionize as well. In today’s age, it seems like this unionization effort is spreading like the early days of the plague and can have some serious impacts on company retail costs should it continue. Looks like lululemon is now the latest company to succumb to this movement on top of Chipotle closing a store where employees were trying to unionize.
Apple sued by payment card issuers, alleging antitrust competition issues over Apple Pay policies
Why this matters? - A class-action lawsuit against Apple is accusing the company of illegally profiting from payment card issuers through its Apple Pay policies, allegedly extracting up to $1 billion annually in fees in violation of federal antitrust law. This behavior fits in with other “monopolistic” claims made in the past against the company.
Russia strikes Odessa Port after signing a deal to unblock Ukrainian grain exports.
Why this matters? - The signed agreement aimed at ending the grain crisis caused by the war, could free up about 18 million tons of wheat, corn and other supplies that have been stuck at Ukrainian ports and grain silos for weeks. That took a turn Friday night when Russia started bombing Odessa again. Wheat futures took a meaningful dip on Friday on the news but with new uncertainty, prices can move upwards again prolonging any commodity inflation occurring right now. This would have a continued impact on food margins (restaurants, etc.) and general food shortages around the world.
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Paul Cerro | Cedar Grove Capital
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