Good afternoon,

Here’s the headlines for this week: 14 March 2024

ECOMMERCE

Stocks slide as Trump warns of US economy 'transition'

• President Trump's recent statements about an impending 'transition' in the U.S. economy have raised investor concerns, leading to significant declines in stock markets. ​
• The ambiguity surrounding potential economic shifts has contributed to increased market volatility, with major financial institutions reassessing recession risks.

CONSUMERS

Shoppers brace for tariffs, looking to sales and coupons to offset price increases

• Looking for sales or coupons is the most popular way consumers plan to deal with potential price increases, according to the same data.
• 95% of consumers worldwide would exchange their personal data for discounts or coupons, according to August 2024 data from Marigold.

TECH

TikTok usage and spend fall as U.S. ban looms

• Brands' engagement with TikTok has decreased, with usage dropping from 88% to 73% among brands and retailers, and those allocating marketing budgets to the platform falling from 87% to 70%.
• The looming U.S. ban on TikTok has led to reduced marketing spend and a reevaluation of the platform's effectiveness for conversions and branding.

TikTok plots local services expansion to the U.S.

• TikTok plans to expand its local services in the U.S. by hiring staff to connect local merchants with creators, aiming to bolster its positive impact on local businesses.
• This strategy is part of TikTok's efforts to strengthen its position amid ongoing legal challenges that threaten its U.S. operations.

Amazon's AWS forms new group focused on agentic AI

• Amazon Web Services (AWS) has established a new group dedicated to developing agentic artificial intelligence, aiming to enhance automation for users without the need for prompts.
• Swami Sivasubramanian, previously vice president of AI and data, will lead this initiative, reporting directly to AWS CEO Matt Garman.

RETAILERS

Retailers to continue frontloading amid tariff tumult: forecast

• U.S. retailers are expected to maintain elevated import volumes in the coming months, a strategy to mitigate the impact of ongoing tariff uncertainties.
• This proactive approach aims to ensure inventory levels remain stable despite potential supply chain disruptions from new tariffs.

How Walmart Built the Biggest Threat Amazon Has Faced

• Using its 4,700 stores and Spark driver network, Walmart now delivers to 93% of U.S. households, doubling deliveries to five billion items last year.
• Walmart leverages low-cost grocery delivery to attract online shoppers, boosting sales of higher-margin products like clothing and home goods.
• While Amazon dominates e-commerce, Walmart’s fast delivery and premium offerings are drawing high-income shoppers, making it a serious challenger.

Walmart Asks Chinese Suppliers for Major Price Cuts on Trump Tariffs

• In response to new U.S. tariffs, Walmart has requested Chinese suppliers to reduce prices by up to 10% to keep consumer prices low. ​
• This move underscores Walmart's efforts to manage costs amid escalating trade tensions.

Target posted to Instagram eight times for Black History Month last year. This year? Just once.

• Target significantly reduced its Black History Month posts on Instagram from eight in previous years to just one this year.
• This reduction follows the company's recent decision to scale back its diversity, equity, and inclusion initiatives, leading to public criticism.

Walgreens sells to private equity firm Sycamore Partners

• Walgreens Boots Alliance has agreed to be acquired by Sycamore Partners for approximately $10 billion, transitioning the company to private ownership after nearly a century.
• The acquisition aims to provide Walgreens with the flexibility to restructure and address financial challenges away from public market pressures.

See you next week,

The ChannelSight Team

‍

Sign up below to get Coffee & Commerce delivered to your inbox each week.