Latest news with #MarkMathews
Time of India
01-07-2025
- Business
- Time of India
Layoff wave spreads across US: Starbucks, FedEx, Frito-Lay, Microsoft may axe jobs in July - here's what's going wrong
Layoffs across the United States are expected to intensify this month, with nearly 95 employers planning job cuts in July, according to data from cited by ET. The mass layoffs span a wide range of industries including tech, retail, healthcare, delivery, pharmaceuticals, and manufacturing, with thousands of jobs on the line. Companies are required to submit WARN (Worker Adjustment and Retraining Notification) notices before executing such large-scale reductions. While some companies are restructuring for profitability, others cite Donald Trump's tariff moves, inflation and weaker consumer demand as driving factors. A mong the highest-profile cuts, Microsoft is expected to lay off between 1,000 and 2,500 workers this month. Here's the full list of employers grouped by sector: Technology, Software & Digital Services Microsoft Google Amazon 10x Genomics Technology Partner Remote Workers RTX Eikon Therapeutics Retail, Food & Beverage Foot Locker Starbucks Panera Frito-Lay Kroger (closing 60 stores) The Fresh Market Tom Thumb Store GTM Discount General Store Lamps Plus Museum of Ice Cream End of Sandwich Tavern Restaurant Healthcare & Pharmaceuticals CVS Genentech Allergan Aesthetics MedStar Mobile Healthcare Virginia Mason Franciscan Health Virtual Services Crothall Healthcare Morrison Healthcare Eagle Healthcare American Contract Systems Main Street Manor Waste Harmonics Keter Delivery, Logistics & Airlines UPS FedEx GEODIS Menzies Aviation NFI Industries Saddle Creek Corporation Manufacturing & Industrial Chevron Berry Global INOAC Exterior Systems Mortech Manufacturing Company Barrette Outdoor Living Silgan Containers Manufacturing Corporation Coronado Stone Products Revlon Consumer Products Advanced Pressure Technology Globe Motors Cornerstone Chemical Company U-Line Corporation Collins Aerospace Air Distribution Technologies Anthony International Atco Rubber Products Kraton L.A. Turbine Spreckels Sugar Company Education & Research Unitek Learning Education Group American Institutes of Research College Success Foundation Financial Services & Staffing Atria Wealth Solutions PMAB-5 Summit BHC New Jersey Tend Exchange Subsidiary / Delaware Tender Staffing Navitor Wells Fargo Mulligan Security Consumer Goods & Apparel S&S Activewear LaCroix Colosseum Athletics Primo Brands Telecom & Utilities United States Cellular Corporation First Student Agriculture, Chemicals & BioTech Corteva Pivot Bio Lewis Tree Service F&S Produce West Other Enterprises Surfair Mobility Vigor Alaska Dufry by Avolta GroundGame Health Island Peer Review Org Truvant North America Powin All-Rite Leasing Jai's Six Flags Entertainment Corporation Lakeshore Learning Materials While retail sales remain largely stable, executives and analysts warn of growing consumer caution. According to the ET report, Mark Mathews, research director at the National Retail Federation (NRF), said: 'We're seeing an uptick in higher-income consumers shopping at discount and off-price retailers. This kind of trading down is a signal of distress beneath the surface.' Ben Johnston, COO of small business lender Kapitus, said many businesses are now taking a wait-and-see approach, avoiding growth investments due to uncertainties around tariffs and demand. At Kroger, interim CEO Ronald Sargent said the 60-store closure plan is aimed at improving profitability while continuing to open new stores in high-growth regions. Walgreens is also executing a 1,200-store closure strategy, with 500 stores shutting in FY25. Together, the WARN notices, cautious borrowing, and softening demand suggest the US economy may be entering a more vulnerable labour phase, driven by a mix of regulatory pressure, political uncertainty, and shifting consumer confidence. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Yahoo
10-06-2025
- Business
- Yahoo
Here's What It Means That Wealthier Americans Are 'Trading Down' to Save Money
Discount shops' gains among higher-income consumers suggests flagging consumer sentiment has motivated them to save, said Mark Mathews, executive director of research at the National Retail Federation. Although the economy is fairly healthy by a number of metrics, consumer sentiment has fallen in recent months and layoffs have been growing. Behavioral shifts may be most pronounced among people with incomes in the second lowest quartile, said Mickey Chadha, vice president of corporate finance at Moody's not just lower-income Americans who are feeling financial stress these days. Families with six-figure incomes are becoming regulars at dollar and thrift stores, which experts say marks yet another sign of pressure felt by the U.S. consumer. Metrics suggest Americans' financial health is holding up—but under duress. Consumers' confidence in the economy has fallen as the U.S. has levied tariffs on imports from several trading partners, according to Mark Mathews, executive director of research for the National Retail Federation. And while consumer sentiment held steady from April to May, it declined in prior months as concerns about inflation hit levels last seen in 1981. Unease has prompted consumers to save, in part by 'trading down' or switching to cheaper versions of products, Mathews said, while executives at several retailers have said higher-income households are seeking value to stretch their budgets. Some households have less to spend because they bought electronics and cars sooner than they envisioned in an attempt to get ahead of the import taxes, according to Mathews. 'They are being much more careful with their money,' Mathews said. 'You see consumers trade down either from purchasing brand name products to purchasing generic products, or moving from mid- to higher-level price point businesses to lower-level price point businesses." Households making more than $100,000 annually have been flocking to Walmart (WMT), known for its "rollback" prices, its leaders said. Dollar Tree (DLTR) is gaining traction with this group with new merchandise, the chain said last week. And six-figure earners have become a bigger audience for the secondhand store operator Savers Value Village (SVV), its executives said. 'We saw the highest percent of trade-in customers we've had in the last four years," Dollar General (DG) CEO Todd Vasos said last week, a reference to middle- and higher-income shoppers. The changes may be most pronounced among Americans with incomes in the second lowest quartile, said Mickey Chadha, vice president of corporate finance at Moody's Ratings. Wealthier consumers may not be feeling squeezed yet, while lower-income households have already adjusted their behavior due to financial stress, Chadha said. Sporting goods retailer Academy Sports & Outdoors (ASO), is doing less business with households earning under $30,000 annually, CEO Steve Lawrence said at a conference in April. He theorized that these customers are consolidating their shopping outings at places like Walmart. Overall consumer spending has been relatively robust and employment rates remain healthy, analysts said. But layoffs have ticked up this year, touching the highest levels since the pandemic. Uncertainty about the economy may be making people more cautious, said Bill Fahy, vice president of corporate finance at Moody's Ratings. The budget-mindedness has benefited retailers with a reputation for offering value, such as Academy Sports & Outdoors, which has been drawing higher-earners, Lawrence said in April, according to a transcript provided by AlphaSense. 'As consumers increasingly have trouble affording their lifestyle and switch to credit cards and buy now, pay later, solutions like that, there's—even at those upper income quintiles—there's a quest for value,' Lawrence said. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Why 'uncertain' consumers are retailers' biggest challenge
Retailers are split on how to handle tariffs: Some are raising prices, while others are absorbing the hit. National Retail Federation executive director of research Mark Mathews joins Morning Brief to explain how consumer uncertainty is shaping spending patterns and what strategies could help retailers stay competitive. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Well, retailers across the U.S. are taking different approaches to tariffs, with some raising prices for consumers and others choosing to eat the costs. Joining us now, we've got Mark Matthews, who's the National Retail Federation Executive Director of Research. Good to have you back on the program with us. How are you viewing the retail landscape right now and and the pulse that you're hearing from some of the executives in the face of some of the uncertainty that they're citing when they report earnings? Yeah, it's a great question. It's a really challenging environment right now, uh, just trying to understand what the consumer is doing and how the consumer is behaving. In January and February, we saw, uh, strong disposable income, we saw strong, uh, you know, consumer finances, but sentimentally, consumers have been weak. Uh, you know, as we all know, sentiment is is very low. Uh, and we definitely saw some fallback, fall off in spending in in January and February. Uh, however, we saw the opposite in in March and April, uh, as we saw consumers pull purchases forward because they were worried about tariffs. And and right now, I guess the big question for everybody is, you know, what's going to happen next? Uh, you know, some of those pulled forward purchases represent lost future sales, uh, and we still have a very uncertain consumer. Uh, so the the the challenge becomes understanding where they're headed. And right now, as we see, consumers are are are uncertain, they're concerned, and it looks like, you know, we we see a lot of trading down. You know, consumers are looking for value for the for their dollar. Yeah, they certainly are, Mark. It makes me wonder, too, which retailers are best positioned to win in that particular environment. What do you think is the winning strategy for retailers to navigate tariff policy? Yeah, I think we saw something pretty similar in in 2022 when we had high inflation. When the consumer is out there looking for the best price, uh, you want to be a retailer that is offering the best price. Uh, you want your consumer to believe that, uh, they're getting value for their dollars. So I think that's a challenge for everybody, and uncertain consumer means that they're going to be much more careful with, uh, with their money.
Reuters
19-05-2025
- Business
- Reuters
Tepid home improvement sales put Home Depot, Lowe's under microscope
May 19 (Reuters) - As Home Depot (HD.N), opens new tab and Lowe's (LOW.N), opens new tab get set to report earnings this week, April sales data from independent firms have investors gauging the likelihood of recession against the uncertainty of tariff whiplash. With homeowners tending to lawns, gardens and DIY projects as the weather warms, investors are keeping an eye not just on the home retailers' sales, but indicators about the health of the consumer. 'People don't have the savings they did during the pandemic, and they're relying on high employment and wage growth to continue to be able to spend,' said Mark Mathews, executive director of research at the National Retail Federation. Home improvement spending tends to be a bellwether for broader economic health, Mathews said, because it reflects consumers' ability to take on big projects, and can be a leading indicator of activity in the housing market. April credit and debit card sales were not promising. Spending at building and garden supply stores fell 2% year-over-year in April, even as every other retail category saw growth, according to May data from NRF. At Lowe's, April sales tumbled nearly 3% year-over-year after having risen 6.6% in March, debit and credit card purchase data from Affinity Solutions revealed. Home Depot saw just a 0.7% jump after a 4.2% rise in March, according to the data. Consumers' intention to shop at these stores in the future also fell slightly in April, according to HundredX, a company that uses surveys to gauge public sentiment about retailers. Compared to April of 2024, both stores saw about a 1% year-over-year decrease in future purchase intent. Among lower-income shoppers - those more vulnerable to economic instability - the drop was sharper, HundredX found. Home Depot and Lowe's declined to comment. It might indicate that a rebound in the stalled U.S. housing market is a ways off. 'People keep baking in the assumption of a recovery, and then it keeps getting pushed out,' said Courtney Yakavonis, a senior equity analyst at Columbia Threadneedle Investments, which holds stock in both retailers. 'I believe it's going to happen eventually, but the timeline is murky.' Others in the sector have hinted at the specter of a slowdown. Tractor Supply Co. (TSCO.O), opens new tab cut its annual profit forecast in April, citing macroeconomic uncertainty. But experts interviewed by Reuters weren't ready to forecast a recession. Wage and job growth is fairly steady, and there could be plenty of reasons for an April sales slump - including tariffs, said Morningstar analyst Jaime Katz. President Donald Trump on April 2 announced sweeping tariffs on a host of trade partners, only to later pause them for 90 days. He imposed a virtual embargo on Chinese imports on April 9, but earlier this month paused those tariffs as well. The uncertainty has discouraged consumers from buying big items, Katz said, which is why she'll be putting more weight on how Home Depot and Lowe's performed last quarter with professional contractors. Yakavonis said she wants to hear more about how Home Depot and Lowe's will manage tariffs. Though neither company is overly exposed to China, tariff uncertainty makes it hard to assess their financial health. 'It's hard to just do the Excel math without knowing what steps they're taking to offset that,' she said. Home Depot is due to report earnings on Tuesday, while Lowe's is slated to report on Wednesday.
Yahoo
19-05-2025
- Business
- Yahoo
Tepid home improvement sales put Home Depot, Lowe's under microscope
By Nicholas P. Brown (Reuters) - As Home Depot and Lowe's get set to report earnings this week, April sales data from independent firms have investors gauging the likelihood of recession against the uncertainty of tariff whiplash. With homeowners tending to lawns, gardens and DIY projects as the weather warms, investors are keeping an eye not just on the home retailers' sales, but indicators about the health of the consumer. 'People don't have the savings they did during the pandemic, and they're relying on high employment and wage growth to continue to be able to spend,' said Mark Mathews, executive director of research at the National Retail Federation. Home improvement spending tends to be a bellwether for broader economic health, Mathews said, because it reflects consumers' ability to take on big projects, and can be a leading indicator of activity in the housing market. April credit and debit card sales were not promising. Spending at building and garden supply stores fell 2% year-over-year in April, even as every other retail category saw growth, according to May data from NRF. At Lowe's, April sales tumbled nearly 3% year-over-year after having risen 6.6% in March, debit and credit card purchase data from Affinity Solutions revealed. Home Depot saw just a 0.7% jump after a 4.2% rise in March, according to the data. Consumers' intention to shop at these stores in the future also fell slightly in April, according to HundredX, a company that uses surveys to gauge public sentiment about retailers. Compared to April of 2024, both stores saw about a 1% year-over-year decrease in future purchase intent. Among lower-income shoppers - those more vulnerable to economic instability - the drop was sharper, HundredX found. Home Depot and Lowe's declined to comment. It might indicate that a rebound in the stalled U.S. housing market is a ways off. 'People keep baking in the assumption of a recovery, and then it keeps getting pushed out,' said Courtney Yakavonis, a senior equity analyst at Columbia Threadneedle Investments, which holds stock in both retailers. 'I believe it's going to happen eventually, but the timeline is murky.' Others in the sector have hinted at the specter of a slowdown. Tractor Supply Co. cut its annual profit forecast in April, citing macroeconomic uncertainty. But experts interviewed by Reuters weren't ready to forecast a recession. Wage and job growth is fairly steady, and there could be plenty of reasons for an April sales slump - including tariffs, said Morningstar analyst Jaime Katz. President Donald Trump on April 2 announced sweeping tariffs on a host of trade partners, only to later pause them for 90 days. He imposed a virtual embargo on Chinese imports on April 9, but earlier this month paused those tariffs as well. The uncertainty has discouraged consumers from buying big items, Katz said, which is why she'll be putting more weight on how Home Depot and Lowe's performed last quarter with professional contractors. Yakavonis said she wants to hear more about how Home Depot and Lowe's will manage tariffs. Though neither company is overly exposed to China, tariff uncertainty makes it hard to assess their financial health. 'It's hard to just do the Excel math without knowing what steps they're taking to offset that,' she said. Home Depot is due to report earnings on Tuesday, while Lowe's is slated to report on Wednesday. Sign in to access your portfolio
