Alcoholic Beverage Industry Is Reluctant to Embrace E-Commerce
Manufacturers in the alcoholic beverage industry can’t sell directly to consumers due to a three-tier distribution system. This discourages them from having their own e-commerce channels.
In May, Wine & Spirits Wholesalers announced a strategic alliance with Drizly to offer consumers the option to shop for alcoholic beverages on digital and mobile platforms.
Macy’s opened its first international store under its Bloomingdale’s brand in Dubai in 2010. Nordstrom opened its first Canadian store in Calgary’s Chinook Centre in September 2014.
Facing heavy competition from online retailers, US department store sales have declined recently. Department stores are looking for growth opportunities in international markets.
High inflation in a restaurant’s food costs can squeeze its already tight operating margins.
When fuel prices are high, consumers tend cut back on unnecessary trips. This trend certainly affects restaurants that rely on their drive-through sales.
The US Personal Consumption Expenditure Price Index measures the price changes in goods and services that consumers purchase within the US economy.
Reaching a wide demographic, including the unemployed and underemployed, is important for restaurant chains. Casual dining restaurants are not performing as well as their fast food and fast casual restaurants.
With an increase in average hourly earnings, consumers can also increase their discretionary spending. This includes spending on retail and restaurant meals.
For the 11th straight week, jobless claims have been below 300,000, showing improvement in the US labor market. This indicates that more consumers can spend their discretionary income at restaurants.
Although it does not include restaurant sales, the Johnson Redbook index tracks consumer spending and is reported on a weekly basis.
The ICSC–Goldman index gives investors a weekly picture of consumer spending in the US. It excludes demand for vehicles, but it includes the same-store sales at retail outlets.
The ICSC–Goldman Sachs Weekly Retail Chain Store Sales Index and the Johnson Redbook Index are two significant economic indicators that follow retail sales trends.
Running a credit card division locks up some of a retailer’s capital and resources. Nordstrom’s credit card portfolio sale will let it focus on its core retail business.
On May 26, Nordstrom (JWN) announced the sale of its credit card portfolio to Toronto-Dominion Bank, or TD Bank, Canada’s second largest bank.
On May 20, PepsiCo (PEP) announced the launch of Pepsi Limon, a new cola with real lime juice. The company launched Pepsi Limon specifically to attract Hispanic.
The US dollar’s appreciation compared to almost every major currency isn’t helping the downward trend in food prices. A stronger dollar will continue to be a drag on US food prices.
What starts as a competitive strategy for Wal-Mart may also affect the general level of grocery price inflation in the United States.
Global agricultural production is outpacing demand, particularly for soybeans, wheat, and rice. This is putting downward pressure on food prices.
US dairy prices have been under pressure in 2015 due to higher production and declining exports. The higher US dollar has had a major impact on export sales.
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