newzflow.com

Target still facing boycott from pro-DEI activists: ‘Leadership change doesn’t mean anything without a culture change’

Organizers of a Target boycott that began in January are pointing to their tactics as a hopeful sign that actions against corporate retailers can still make a deep impact.Recommended VideoWhen Target announced its current chief executive officer will be stepping down in February 2026 and an insider was taking the helm, those organizers saw it as a move in the right direction and stress more than ever that boycotts will continue as long as previous promises made to the public go unfulfilled.“It’s been now nearly 200 days and what all the statistics and economics are showing that since that boycott was announced on that Monday — every single week since then — Target foot traffic in nearly 2,000 stores has declined sharply and continues to decline,” said organizer Jaylani Hussein, at a news conference of the National Target Boycott movement outside Target’s Minneapolis headquarters late last week.Boycott organizers in Minnesota were among some of the first to galvanize when Target opted in January to follow other companies like Amazon and Walmart and forego diversity, equity and inclusion initiatives. High-profile civil rights activists like the Rev. Al Sharpton and the Rev. Jamal Bryant also made similar calls for what they deemed a betrayal of previous DEI promises.Social justice advocates say this shows boycotting is a key tactic not to be taken for granted.Retail analysts say it’s difficult to gauge the exact impact of the boycott, since Target has faced a slump the last few years and a leadership change was in the cards. Still, groups like Washington-based DC Boycott Target Coalition insist falling foot traffic is “due in no small part” to a boycott that spans coast to coast.“The leadership change doesn’t mean anything without a culture change,” the group said in a statement, vowing to continue pressuring Target until the corporation sees its diversity goals as “more important than bowing to an administration that is filled with racism, failure and hatred.”Opponents began the national boycott in February, during Black History Month. Their strategy left some Black-owned brands with merchandise on Target shelves conflicted or scrambling.By April, Sharpton actually met with Target’s CEO Brian Cornell, who had been at the helm for 11 years. But, nothing concrete came of it.Target CEO change was long plannedCornell’s departure from the role had been in the works for several years.In September 2022, the board extended Cornell’s contract for three more years and eliminated a policy requiring its chief executives to retire at age 65. When Target’s chief operating officer Michael Fiddelke takes over, Cornell will transition to be executive chair of the board.In a call with reporters, Fiddelke attributed the sales malaise to many issues like focusing too much on basics and not enough trendy items, particularly in home goods.Data shows Target sales were already slidingStacey Widlitz, president of investment research firm SW Retail Advisors, said she believes that Target’s sales malaise has more to do with its operational issues — messy stores and poorly stocked shelves — not from its pullback from DEI initiatives.Unraveling them did not affect Target “exponentially compared to somebody else,” she said. “The consumer has a very short memory. If you have great, compelling product at value prices, they’ll forgive you.”The number of Americans who say they regularly shop at Target has gone down 19% since 2021, according to GWI, a behavioral attitudinal data provider. The number of Americans who say they do not shop at Target has risen 17%.The same analysis also looked at trends along party lines. Since last year, the number of regular Target shoppers who identify as Democrat has declined 13%. Inversely, the number of Republican customers has risen 13%. It’s not clear if that is due to Target’s $1 million donation to Trump’s inauguration or some other factors.Organizers are sticking to boycott strategyThe strategy of racial justice boycotts stretches back over 160 years, from Reconstruction era “Buy Black” campaigns stressing the Black American economic influence to the Montgomery Bus Boycott of the Civil Rights Movement. There have been more modern campaigns like the NAACP’s 15-year economic boycott of the state of South Carolina over its display of the confederate battle flag widely regarded as a symbol of hatred and slavery. The civil rights group ended its boycott in 2015 after the state removed the flag from its statehouse grounds, following the massacre of nine Black parishioners at a historic African Methodist Episcopal church in Charleston.Some Black creators on the social media platform TikTok rejoiced on the platform at the CEO leaving and credited the boycotts. Others cautioned that Cornell was essentially promoted but that the boycott is still needed.Black Americans’ buying power has climbed over the last 25 years and is now an estimated $2.1 trillion annually, according to Nielsen research.Part of the reason organizers say they have zeroed in on Target is because the company had heavily touted a commitment to DEI back in 2020 after protests erupted across the nation over the murder of George Floyd. That year, Target announced it would increase representation of Black staff by 20% over three years and invest $10 million in social justice organizations. In 2021, the company pledged to dedicate more than $2 billion toward Black-owned businesses before the end of 2025.In January, however, Target said it would conclude the hiring and advancement goals it had set.For boycott organizers, a reversal of those decisions is the only way to rectify the situation.“We’re expecting that Target is making good on the promises that it made. Otherwise there’s no point of discussion regarding calling off this boycott,” said Nekima Levy Armstrong, a civil rights attorney and past president of the Minneapolis chapter of the NAACP. “We’re asking people to join us, get involved and hold Target accountable for its actions.___AP Retail Writer Anne D’Innocenzio in New York contributed to this report.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Cracker Barrel’s first rebrand in nearly 50 years backfired. The company’s stock lost nearly $100 million after introducing a more minimalist look

Cracker Barrel’s new logo refresh, has sparked major backlash from critics who view it as a loss of tradition and a “woke” move, even briefly wiping nearly $100 million off the company’s market value. While some argue the change erases the brand’s Americana identity and nostalgia, branding experts say the modest update is part of a broader modernization strategy and reflects the tension between preserving tradition and staying relevant.One Americana brand isn’t getting the barrel-of-monkeys response they were hoping for when launching their new logo this week. Recommended VideoCracker Barrel—one of the most iconic restaurant chains in America, deeply rooted in Southern food and hospitality—this week revealed a new look. A tweak to the logo removes the man sitting on a chair and leaning on a barrel, and the font appears to have slightly changed. Photo courtesy Cracker BarrelAnd some people are absolutely outraged, with many going as far to say its new, simplified logo is a signal of Cracker Barrel going woke. “Cracker Barrel didn’t just lose its logo. It lost its soul,” wrote an X user called @DesireeAmerica4, whose bio section reads: “Unapologetically America First. Igniting debate. Standing tall for the everyday American.”“This isn’t modernization. It’s extermination of Americana, of warmth, of memory,” she continued. “Congratulations, Cracker Barrel. You’re now Woke Barrel. Nobody asked for this.”Cracker Barrel lost nearly $100 million in value in trading on Thursday. The stock slightly rebounded Friday, up about 0.25% in the late afternoon.Cracker Barrel didn’t immediately respond toFortune’s request for comment. The new logo is all part of CEO Julie Felss Masino’s turnaround plan for the restaurant. She said last year the chain wasn’t “as relevant as we once were,” and announced plans to update its menu and eateries. The new logo is “now rooted even more closely to the iconic barrel shape and word mark that started it all,” according to the company. “On the surface, it’s a modest refresh. But when a brand is built on tradition, even a small design change can feel like a cultural shift,” Evan Nierman, founder and CEO at crisis communications firm Red Banyan, toldFortune. “It touched a nerve because it challenged what some customers felt was sacred about Cracker Barrel.”Is the Cracker Barrel rebrand really that big of a deal?Cracker Barrel’s rebrand has really struck a chord with some people, particularly those who subscribe to a MAGA-leaning lifestyle. They argue it rids the brand of its deep Southern heritage and that the brand has become too sterile. One TikTok user satirically said in regards to the new Cracker Barrel logo: “I don’t want this woke crap. What DEI hire made this logo?”Steak N’ Shake even chimed in on the logo change and reshared the X post from @DesireeAmerica4 with a comment in a style mimicking President Donald Trump’s Truth Social posts: “Fire the CEO! Thank you for your attention to this matter!” While Cracker Barrel “took a stab at modernizing and showing cultural relevance,” Mary Delano, chief marketing officer at ad agency Moosylvania, toldFortune, it lost its old-fashioned identity. “This could potentially offend the restaurant’s core fans, who see the chain’s rocking chairs, comfort food and nostalgia as the elements that make Cracker Barrel feel like that home away from home,” said Delano, who’s helped bring iconic brands like Pink Whitney to market.Although the new logo was “more of a tweak than a total overhaul,” said Tenyse Williams, digital marketing adjunct instructor at George Washington University and the University of Central Florida, it feels bigger because of the political climate we’re in.“Cracker Barrel is nostalgia for many, especially customers in the South and Midwest who feel ownership and pride over the brand,” Williams toldFortune. “For a brand that hasn’t changed its logo since 1977, even small changes to a symbol so tied to Americana can feel magnified.”Nierman argued, however, Cracker Barrel’s new logo doesn’t erase its legacy. Rather it softens its image. “Cracker Barrel has long leaned into a version of Americana that felt frozen in time,” he said. “This update suggests the brand is finally acknowledging that the world around it is changing, and it wants to be part of that future.”Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

The end of cheap cheesesteaks? Philly shop owner hoping ‘crazy’ beef prices settle after ‘grilling season and all the rest’

Ken Silver knows beef because he knows Philly cheesesteak. He hopes that a summer spike in how much he pays for his restaurant’s main product doesn’t cause heartburn for him or his customers.Recommended VideoSilver, president of Jim’s South St. in Philadelphia, said he might have to raise prices for his popular sandwiches to offset the rising cost of beef or even declare a market price, which is commonly associated with seafood.“I really hate to do that,” said Silver, whose father started the business in 1976.U.S. beef prices have been steadily rising over the past 20 years because the supply of cattle remains tight while beef remains popular.Silver said the price of beef from his supplier now is about $1 more per pound than it was a year ago. And that is on top of a roughly 50% increase when he reopened in 2024 after a fire — “crazy,” as he put it.“Our strategy right now is just absorbing the price and hoping that we see a reduction after the summer months are over, the grilling season and all the rest,” Silver said Wednesday.He said a cheesesteak sandwich at Jim’s South St. costs $13.49, up from $11.49 in 2022, when the restaurant was forced to close for nearly two years due to fire. Cheesesteaks typically are made with thinly sliced beef, cheese and onions, though other toppings are possible, too.For consumers, the average price of a pound of ground beef rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound.“We’ve taken a hit, profitability-wise, just to maintain what our customers would expect to get when they come to us: a reasonably priced cheesesteak of the best quality they can find,” Silver said.A customer, Bryan Williams, suggested a price hike wouldn’t discourage him from placing an order.“That’s just how things are going lately,” he said. “There’s really nothing that they can do about it.”___White reported from Detroit.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Target and Ulta just broke up: Employees raised red flags about shoplifting, understaffing, and foot-traffic cannibalization

After employees exposed cracks in their partnership earlier this year, Target and Ulta Beauty are officially pulling the plug on their shop-in-shop deal.Recommended VideoThe two retailers announced today they’ve “mutually agreed” to end the partnership when their current agreement expires in August 2026, but will continue operating online and in stores until then.Rick Gomez, Target’s EVP and chief commercial officer, said in a statement that the retailer is “proud of our shared success” with Ulta, and that it “remains committed to offering the beauty experience consumers have come to expect from Target.”The partnership’s end comes after Ulta’s president and CEO, Kecia Steelman, said at a conference in April that the two would “pause” the shop-in-shops’ expansion, looking to “leverage the learnings” and create “even greater value” for the partnership.Weeks before that announcement, Target employees had taken to Reddit to share red flags with the tie-up—pointing to shoplifting, understaffing, foot traffic cannibalization, and an underwhelming customer experience. Following today’s news, Redditors in r/Ulta and r/Target, many claiming to be former and current employees, echoed similar sentiments. One poster who said they’d worked at a shop-in-shop for three years said they were “not surprised at all” the partnership was ending.Target has opened 610 Ulta shop-in-shops since the partnership was announced in 2021 as a way to grow Ulta’s reach and expand Target’s merchandise into prestige cosmetics.Target has been focused on growing its beauty assortment beyond its Ulta shops, launching 2,000 products and 50 new brands in February. It also added beauty items to its front-of-store Bullseye’s Playground this summer, Gomez said in May.But the partnership’s end appears to be yet another blow to Target, which has seen six straight months of foot traffic declines since backtracking on DEI efforts in January. Ulta, meanwhile, has seen a sales boost since initiating its turnaround plan this year.This report was originally published byRetail Brew.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Yves Saint Laurent was the hottest luxury brand this year, beating Coach, Prada, and Bottega Veneta: It’s a clear ‘signal of the shifting landscape’

With the luxury industry in turmoil and challenges like tariffs and rising costs facing most fashion retailers, it hasn’t been easy determining which brands are resonating with consumers this year.Recommended VideoBut Lyst’s Q3 2025 Index offers some perspective on the “hottest brands and products” over the last three months. The index, which analyzes shopper behavior from “more than 160 million annual users across thousands of brands and stores,” featured French luxury retailer Yves Saint Laurent emerging at the top of the list for the first time.In second, third, and fourth place were Miu Miu, COS, and The Row, respectively. Coach, Prada, and Bottega Veneta followed closely, snagging the fifth, sixth, and seventh spots. Rounding out the top 10 were Loewe, Ralph Lauren, and Chloé.Though Kim Kardashian’s Skims ranked lower at No. 15, the brand saw a 271% YoY increase in demand.As for Saint Laurent, its iconic Le Loafer was a standout among shoppers searching for loafers. Other products making waves this season included Havaianas’s flip-flops and COS’s chunky cashmere sweater, both of which landed among Lyst’s “hottest products.”According to Lyst, the current landscape “rewards clear creative direction and consistent execution.”“The top brands this quarter reflect what we’re seeing across the Lyst platform: Shoppers want to feel confident in their choices,” Emma McFerran, CEO of Lyst, said in a statement. “Customers are shopping with intention, wishlisting versatile pieces that work across seasons, and gravitating towards brands with a clear identity.”Although the rankings shifted since the previous quarter, retailers like Saint Laurent, COS, Coach, The Row, and Miu Miu continue to dominate, remaining in the top 10 of Lyst’s quarterly index.“Fashion fans appreciate a clear, consistent vision that is powerfully articulated by a great, recognizable product,” Katy Lubin, VP of brand and communications at Lyst, previously told Retail Brew. “Customers also increasingly care about value, and the inclusion of brands like Coach and COS alongside the luxury players who have dominated the index for years, is a signal of the shifting landscape.”This report was originally published byRetail Brew.

New Jersey town sues American Dream Mall for selling clothes on Sunday under ‘blue law’ that dates back centuries

On any given Sunday, the massive American Dream mall in New Jersey allows visitors to hit an indoor ski slope, surf an artificial wave, ride roller coasters — or shop for a new outfit at dozens of big-name retail stores.Recommended VideoOne of those things is a problem, argues a new lawsuit against the massive entertainment and retail complex in East Rutherford – and it isn’t the thrillseekers.American Dream, the suit from officials in nearby Paramus contends, is running afoul of a county law that has long prohibited the sale of nonessential items such as clothing, appliances and furniture on Sundays.Such “blue laws” date back centuries in New Jersey and were originally rooted in religion. But modern proponents say they offer a welcome break for locals from traffic and noise in a region near New York City that’s teeming with shoppers throughout the week.Officials in Paramus, a major shopping hub that boasts three large malls and miles of strip malls, say nearly every other retail store in the county is closed to shoppers on Sundays.That was originally the plan for American Dream when it opened in 2019, adjacent to MetLife Stadium, where the NFL’s Jets and Giants play. Retail stores would close on Sunday, while the theme parks in the mall would remain open — but a report by NorthJersey.com in January says retailers there had also been opening their doors the extra day for nearly a year.“These businesses, with the encouragement and support of the mall’s ownership and the acquiescence of the other defendants here, have violated the law hundreds if not thousands of times since January,” argues the lawsuit filed in state Superior Court.A statement from American Dream argued that Bergen County’s blue laws don’t apply to the complex, because it sits on state-owned property.“The lawsuit is a meritless political stunt driven by private competitors’ interests,” the statement says.But Paramus Mayor Christopher DiPiazza said that American Dream had “promised on record” that it would follow the county’s blue laws once it opened.A transcript from a 2011 public hearing shows Tony Armlin, then the vice president of development and construction for mall owner Triple Five, saying the laws “prohibit our ability to have retail activities on Sundays,” which he said would restrict the impact of traffic.Jim Tedesco, the executive of Bergen County — which is also named in the suit — said in a statement American Dream’s operators had “personally assured” him that they would keep retailers shut on Sunday before the mall opened.“They broke that promise,” he said. “Their decision to operate retail on Sundays not only violates state statute, it gives them an unfair advantage over every other business in Bergen County that is following the law.”The suit also names East Rutherford, whose mayor did not return a request for comment, and the New Jersey Sports and Exposition Authority. The NJSEA and the state attorney general’s office declined comment because they don’t discuss pending litigation.New Jersey’s blue laws initially were far stricter and enforced statewide. They banned not just business operations but also leisure activities and nonessential travel, with proponents arguing the state and the nation had a moral obligation to protect the Sabbath from commerce and recreation.While most New Jersey counties no longer have them, leaders in Bergen County have repeatedly resisted attempts to repeal them, and the measures — which do exempt some services, including grocery and drug stores — have been upheld by county voters.___Philip Marcelo in New York contributed to this report.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Walmart and Target are allegedly forcing employees to remove tags on apparel to make it easier to jack up prices based on tariffs

Walmart and Target have allegedly been directing employees to remove prices from tags on many in-store apparel items for several months, according to social media posts.Recommended VideoPosts across TikTok, Reddit, and Facebook from people claiming to be the retailers’ workers, as well as consumers, show workers removing the bottom portion of tags with prices and consumers discovering ripped tags in stores. Posts show whole displays of clothing for brands like Walmart’s Wonder Nation and Target’s Auden at stores across the country with altered tags.Social media posts accusing both retailers of the practice began appearing online around the same time. These posters claim that removing price tags can allow the retailers to raise prices more easily, possibly in response to tariffs, and the moves have garnered criticism both from workers who say their shifts have been dedicated to the task and confused consumers who believe the retailers are attempting to conceal price increases.Rag tag: In one TikTok from July 25, a poster claiming to be a Target employee bemoans “having to rip off EVERY individual price,” noting she spent “almost a whole 8-hour shift” performing the task. Another August 8 TikTok by someone saying they are a Target worker shows her tearing off the price tags on stacks of jeans, claiming that the retailer “can’t keep up with constant price changes.” Some Reddit users made similar assertions in a July 20 r/Target thread—claiming employees had to work past closing or come in at 4am to remove prices on tags.A July 29 TikTok shows someone claiming to be a Walmart employee removing prices from apparel tagged with the Walmart-exclusive Child of Mine by Carter’s brand. “Processing/working freight takes longer just because of the tariffs and prices going up…I’m over it,” she said in the caption. Another post this week showed an apparent Walmart worker with a handful of ripped-off price tags.Consumers have taken notice, posting their own videos, threads, and Facebook discussions questioning the torn-off price tags and whether they indicated inflated pricing, noting removed pricing deterred them from buying.Retail Brew visited a New York City Target location on August 21 and 22 and found a significant number of removed prices across its private-label brands Auden, All in Motion, and A New Day. Many items weren’t re-stickered and had no indication of price. One item was not recognized by Target’s app when Retail Brew scanned its barcode.At an Auden underwear display with most price tags removed, Retail Brew identified a handful of untouched tags whose scanned barcodes revealed prices $1–$2 higher than printed on the tag. Some products had been re-stickered with higher prices, with increases of $2–$5. Similarly, one TikTok filmed in a Walmart location shows stray unaltered tags with prices conflicting with higher on-rack pricing signs.The price isn’t right: The tag changes at Walmart have come after the retailer enacted a new labeling process across all brands in its fashion department in May that led it to direct employees to remove select perforated price tags, using signs or stickers on the clothing displays to indicate the price, Walmart’s director of media relations, Jaeme Laczkowski, told Retail Brew. Some, not all, prices were changed as a result, but the company would not confirm if any were tariff-related changes. However, Walmart CEO Doug McMillon said last week in the retailer’s Q2 earnings call that “as we replenish inventory at post-tariff price levels, we’ve continued to see our costs increase each week.”Walmart tags that differ from prices on the signs, as seen in TikToks, are a result of incorrect placement or a sign representing the highest price of items in the display, per Laczkowski. Walmart does not have in-store price check scanners, so consumers must use the Walmart app, ask an associate to scan the tags, or bring the tag to checkout to confirm the price for tags whose price has been removed.Target did not respond to questions Retail Brew sent regarding the price tag removals.When asked about tariff-related price increases on its Q2 earnings call last week, Richard H. Gomez, Target’s EVP and chief commercial officer, said the retailer will “take price as a last resort.” He noted the retailer will be “leaning into” its private-label brands to deliver value to customers.The move by Target also comes just after the retailer ended its 10-year price-matching initiative in July that allowed consumers to receive a price match for items sold by Walmart and Amazon.Ripped off: Jeff Sward, founding partner of retail merchandising consultancy Merchandising Metrics, and Liza Amlani, principal and founder of Retail Strategy Group, both told Retail Brew that price removal from tagged products is not a common practice.Since retailers pay to label and price products, their subsequent removal is a “wasteful strategy,” Amlani wrote in an email, and Sward said doing so at such a high volume is a “highly inefficient, highly expensive process.”The sole use of signs to indicate price for apparel at big box retailers can get “messy,” Sward said, and when there’s multiple styles on one fixture at different prices, or when products are moved to the wrong spot, it gets “messier and messier.”“It’s just hard to believe that the big guys like Walmart and Target didn’t have a better mechanism for making this all happen,” he said. “Of course customers are going to get frustrated and maybe not buy stuff, [especially] if they think they’re in the process of being ripped off.”This report was originally published byRetail Brew.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Americans are the most optimistic about the economy since just after Trump’s inauguration

There’s one survey to rule them all, when it comes to getting a gut feeling for the health of the American consumer. Running monthly since 1946, the University of Michigan’s consumer sentiment survey offers an uninterrupted, long-term record of American consumers’ mood across wars, booms, recessions, and technological change.Recommended VideoThe July edition shows renewed optimism, according to the University of Michigan’s preliminary results, as the Consumer Sentiment Index climbed to 61.8 from 60.7 in June. This slightly surpasses analyst expectations and marks the index’s highest point in five months—February, just after President Donald Trump took office again but months before he shocked markets and allies with his “Liberation Day” tariffs in April. Still, it’s only cause for a muted celebration.Surveys of Consumers Director Joanne Hsu characterized the results as “little changed” from June, “inching up about one index point.” She acknowledged that it’s a five-month high, but “it remains a substantial 16% below December 2024 and is well below its historical average.” A closer look at the data shows that high-wealth consumers don’t share in the generally improving outlook, either.The glum high-wealth AmericanThe Current Economic Conditions Index rose 3.1 points to 66.8, indicating growing confidence in near-term business and job prospects. However, the Consumer Expectations Index—reflecting expectations for the coming six months—rose only slightly to 58.6 and remains down 14.8% from last year. Notably, respondents’ outlook on their own finances fell by about 4%, signaling continued individual financial concerns despite the broader improvements. And despite a recent uptick, the surveyors highlight that feelings among high-wealth consumers are still down 17% from December 2024.High-wealth consumers are down in the dumps, even though ticking up.University of MichiganShort-run business conditions improved about 8%, whereas expected personal finances fell back about 4%. Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future. At this time, the interviews reveal little evidence that other policy developments, including the recent passage of the tax and spending bill, moved the needle much on consumer sentiment. But there has been a movement on expectations around inflation.Inflation expectations drop sharplyOne of the most pronounced shifts in sentiment concerns inflation. Year-ahead inflation expectations dropped for the second straight month to 4.4%, down from 5.0% in June and from a peak of 6.6% in May, marking the lowest reading since February 2025.Long-run inflation expectations also receded, falling for a third consecutive month to 3.6% (from 4.0% in June). While these are the most moderate readings in months, both remain higher than levels seen in late 2024, highlighting ongoing wariness about longer-term inflation risk.Hsu noted that inflation remains top of mind for many Americans, with renewed optimism tempered by concerns that price increases could reignite, especially in the context of recent trade policy moves. “Consumers are unlikely to regain their confidence in the economy unless they feel assured that inflation is unlikely to worsen, for example if trade policy stabilizes for the foreseeable future,” Hsu explained.Respondents reported that legislative developments such as recently enacted tax and spending bills had little discernible effect on their overall sentiment.The uptick in consumer confidence comes even as recent economic data show robust retail sales and resilient labor markets, suggesting a disconnect between consumer perceptions and macroeconomic trends.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Do you want some high-protein cold foam in your coffee? Starbucks backs new products to battle sagging same-store sales

Starbucks said Tuesday it’s confident that improved store operations and new products — including a cold foam protein drink — will soon help turn around the company’s lagging U.S. sales.Recommended VideoIn the meantime, slow U.S. demand continues to be a drag on the company’s results.Starbucks reported that its revenue rose 4% to $9.5 billion in its fiscal third quarter. That was better than the $9.3 billion Wall Street expected, according to analysts polled by FactSet.But same-store sales, or sales at locations open at least a year, fell 2% in the April-June period. That was a bigger decline than Wall Street expected, and it was the sixth straight quarter that the Seattle-based company reported lower same-store sales.Same-store sales were up in China, Starbucks’ second-largest market. Starbucks has been looking for a partner that can help it expand in China, particularly in smaller cities. Chairman and CEO Brian Niccol said Starbucks was evaluating around 20 offers.“We remain committed to our China business and want to retain a meaningful stake,” Niccol told investors during a conference call on Tuesday. “The intense interest in partnering with us is a testament to the great team, strong brand and long-term opportunity for Starbucks in China. It really is a vote of confidence.”But even as its sales picked up in China, Starbucks’ same-store sales in the U.S. fell 2% in in the April-June period. U.S. customers spent more per order, but transactions fell 4%, the company reported.Niccol expressed optimism about a new program setting hospitality standards and staffing levels to better handle peak hours. The “Green Apron Service” model showed so much promise in an eight-week test at 1,500 stores that Starbucks plans to roll it out across the U.S. starting in mid-August, the company said.New software is also helping stores sequence orders, cutting down on wait times. Niccol said 80% of in-store orders are now made in four minutes or less, a target he set last fall.“I think we’ll become famous for Green Apron Service and be the defining customer service company that I think Starbucks should be,” Niccol said.Niccol said improving store operations and paring back Starbucks’ menu was necessary before layering in new products. In addition to protein drinks, Starbucks plans to introduce new baked goods and a new dark roast coffee next year. It will also test beverages made with coconut water, customizable energy drinks, and gluten-free and high-protein foods.Niccol said Starbucks has been working closely with employees to develop new food and drink items that can be prepared quickly and consistently. In the past, he said, the company would often develop new menu items at its headquarters and then hope baristas figured out how to make them.“Those days are over,” Niccol said.Niccol said Starbucks is also trying to encourage customers to linger in its stores. It’s closing or modifying some of its approximately 90 mobile order-only storefronts and it is developing a store prototype with 32 seats and a drive-thru window that costs 30% less than the company’s current store design.Starbucks is spending heavily to turn itself around. One big expense in the third quarter was a two-day meeting in Las Vegas where the company hosted 14,000 store managers and regional leaders.The company said its net income fell 47% to $558 million in the April-June period. Adjusted for one-time items, its earnings fell 46% to 50 cents per share for the quarter. That was lower than the 65 cents analysts had forecast.Starbucks shares rose 3% in after-hours trading.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Starbucks hops on the health craze with protein coffee weight-loss influencers had been concocting in its drive thru for months

Starbucks is rolling out a protein-richproduct line starting Sept. 29. Its new protein cold foam and protein lattes aim to capitalize on the growing cohort of health-conscious consumers, from Gen Z TikTokers to GLP1 users, experts tellFortune. The products also may substitute a viral trend that had customers act as their own mixologists in the coffee chain’s drive thru.Everything is being protein-ified. Now it’s Starbucks’ turn.Recommended VideoConsumer and retail brands have ventured beyond powder in an attempt to capture health-conscious customers who might search for their protein fix in every day bites like cereal or popcorn. Now the coffee chain, known for its sugary speciality drinks, wants in.Starbucks announced a new product line of protein-packed lattes and protein cold foam, saying a grande 16-ounce order could have as much as 36 grams of protein. The new product lines will roll out in U.S. and Canada stores on Sept. 29.Experts tellFortunethe move follows a wave of health-conscious consumers craving high-protein, low-calorie food options—but it’s also an opportunity to capitalize on a viral DIY protein coffee trend first created by TikTok health influencers.Starbucks will offer sugar-free and unsweetened iterations of its protein cold foams and lattes, per the company’s Tuesday announcement. The new product line is a push to modernize its menu with “hype-worthy products,” said Tressie Lieberman, Starbucks global chief brand officer.“Our new protein beverages tap into the growing consumer demand for protein in an innovative, premium and delicious way that only Starbucks can deliver,” Lieberman added.Starbucks declined to provide additional comment toFortune.The demand for protein coffeeStarbucks protein coffee isn’t anything new—at least not to creators who have been acting as in-car baristas, ordering a double shot of espresso over ice in a venti cup and mixing in Koia vanilla bean protein shakes, which are also sold at the coffee chain. Some customers take it even further, bringing their protein shakes of choice from home. The trend has even pushed protein powder companies to market their product as a perfect mix-in for the viral trend. Now Starbucks is trying to reclaim its business and boost a healthier image to increasingly protein-obsessed customers.“Historically, many of the Starbucks specialty drinks have had connotations of being more sugary or higher-calorie,” Michael Della Penna, chief strategy officer at InMarket, toldFortune. “This introduction of protein cold foams marks a shift towards re-engaging those health-conscious consumers who might’ve switched to another shop or started making protein coffees at home.”The global chain is the first major coffeehouse to introduce protein-packed espresso drinks to its menu, but the trend is industry-wide.“Protein is certainly having a macronutrient moment,” Matt Bachmann, CEO of Wandering Bear Coffee, a New York-based cold brew company, toldFortune. Bachmann’s company is releasing a protein-based cold brew coffee later this month, using nutrition as a “north star.” Internal research showed that among iced coffee drinkers, “high protein” is the most common general diet guideline followed, Bachmann said.“I believe for many credible reasons protein has staying power,” Bachmann said. “But the bigger trend here is about general wellness and nourishment from the foods we eat.”Functional drink crazeHalf of Gen Z adults said they consider “high protein” an important part of a healthy eating regimen, according to a recent report by Morning Consult. The same report found social media is 72% of the age group’s primary source for wellness information. For all U.S. adults, 59% reported explicitly following a high-protein diet.Food scientist Bryan Quoc Le toldFortunethe strong trend for consumers seeking to increase their protein intake is a part of a wide movement as consumers are realizing that high protein consumption is correlated to losing weight and gaining muscle. “Additionally, many consumers… hope to gain functional benefits from their coffee consumption,” said Quoc, who has a Ph.D. in food science from the University of Wisconsin.The functional beverage market (beverages that are manufactured and marketed to highlight a specific ingredient, connoting wellness) have grown in popularity over recent years. The global functional beverages market size reached $175.5 billion in 2022 and is expected to hit $339.6 billion by 2030, according to a report by Zion Market Research.Linda Orr, marketing and sales consultant at Orr Consulting, toldFortuneStarbucks’ new drinks will cater to two important consumer bases: Gen Zers and the GLP-1 cohort by introducing a health-marketed product into a product many people can’t go without for a day. “Starbucks is transforming a treat-based ritual into a functional habit,” Orr said. “Framed well, it lets customers feel virtuous about a daily coffee while simplifying morning decisions. It adds options beyond the 390-calorie pumpkin spiced latte.”Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Elon Musk’s Tesla Diner is a next step in the beleaguered EV-maker’s plan to create an ‘all-encompassing brand,’ analyst Dan Ives says

Tesla is making its foray into the restaurant business,opening its first Tesla Diner on Monday. The concept is serving french fries and burgers, but also features charging stations, movie screens, and Optimus robots. As the EV maker continues to limp, Wedbush analyst Dan Ives said the diner is a way for Tesla to revive its battered brand.A tuna melt served in a cardboard Cybertruck box is just all part of Tesla’s recovery plan. Recommended VideoThe EV maker has ventured into the hospitality industry, opening the first Tesla Diner in Los Angeles on Monday. The retro-futuristic restaurant, complete with movie screens and 80 Tesla charging stations, will also serve up diner classics, from $12 “epic bacon” to $4 tallow-fried french fries to $13 hot dogs. The restaurant has enlisted the help of Tesla’s Optimus robots to serve popcorn to patrons. The Tesla Diner also sells a line of merchandise. Early reviews on social media have praised the food, despite waiting an hour and a half in line for apple pie and hash browns.CEO Elon Musk has already eyed expansion for the open-24/7 concept, which he called an “island of good food, good vibes & entertainment.”“If our retro-futuristic diner turns out well, which I think it will, @Tesla will establish these in major cities around the world, as well as at Supercharger sites on long distance routes,” Musk wrote on social media. Tesla electric vehicles charge as people wait in line outside the Tesla Diner in Los Angeles on July 21. The diner, located along the Historic Route 66, is located at the site of a former Shakey’s Pizza Parlor.I RYU—VCG/Getty ImagesA Tesla Optimus robot serves popcorn to a patron at the opening of the Tesla Diner in Los Angeles on July 19. The diner is complete with movie screens and 80 Tesla charging stations.Carlin Stiehl—Los Angeles Times/Getty ImagesAs other brands jump on the nostalgia-based dining concept—Cheez-It last year opened a Woodstock, New York, diner with Cheez-It milkshakes on the menu—Tesla’s foray into the restaurant business is an opportunity to build hype for a brand that’s taken a beating, according to Tesla bull and Wedbush Securities managing director Dan Ives.“It’s all about brand, and that’s everything that Musk is building in his next phase,” Ives toldFortune. “It fits very well with what they’re trying to do: They’re trying to lay out an all-encompassing brand that eventually goes from the car to the house to a restaurant to other areas of AI.”Tesla continues to struggle in California, where sales have declined for seven straight quarters, including an 18.3% crater in registrations in the state year-to-date. After launching its robotaxi pilot in Austin last month, Tesla has stoked concern for the product’s growth as the service has not yet scaled and has been subject to safety concerns following a near-accident. Musk has rested the fate of the company on the highly anticipated robotaxi, which has not yet created the returns needed to expand the company’s production of its Optimus robot.The restaurant concept, according to Ives, is “Musk building out the next leg of the Tesla growth story.” With a “cult-like following,” Tesla—a company that does not invest in advertising—can begin to incrementally attract customers.Tesla did not respond toFortune’s request for comment.Some food items at the newly opened Tesla Diner in Los Angeles are served in cardboard Cybertruck boxes.Carlin Stiehl / Los Angeles Times—Getty ImagesElon Musk: ‘War-time CEO‘Musk’s renewed focus on Tesla’s brand is what Ives had hoped for after months of pleading for the CEO to distance himself from President Donald Trump, for whom he served as “First Buddy” and ringleader of the Department of Government Efficiency (DOGE) tasked with uprooting bureaucracy and culling billions of dollars in federal spending.But Musk’s controversial role in the Trump administration alienated his eco-conscious customer base, stoking protests against Tesla and drawing ire from investors worried the CEO was taking his attention away from his flailing company. All said, in Musk’s 130-day stint as a special government employee that ended in May, he lost and gained $100 billion of his net worth, ultimately ending his tenure with $27 billion less in wealth than he had before Trump’s inauguration.In March, following Tesla recording its worst single-day sell off, losing $127 billion in market value, Ives called Musk’s proximity to the Trump administration a “brand tornado crisis moment” for Tesla. Now, Ives said the brand damage to Tesla is “contained,” albeit still here.The newly opened Tesla Diner in Los Angeles draws on a retro-futuristic look.PATRICK T. FALLON/AFP—Getty Images“Musk is now more of a wartime CEO,” Ives said. “And it’s about looking forward, not behind.”Earlier this month, Ives outlined in a note to investors how Tesla’s board can help Musk right the ship. He suggested creating an incentive-driven pay package that would give Musk a bigger stake in the company and more voting power in order to keep Musk focused, particularly on a framework to merge Tesla with xAI—a move Musk opposes. Ives also indicated the board should limit Musk’s political pursuits by setting up a committee to oversee his political ambitions, including donations.“Tesla is heading into one of the most important stages of its growth cycle with the autonomous and robotics future now on the doorstep and cannot have Musk spending more and more time creating a political party, which will require countless time, energy, and political capital,” Ives wrote.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Krispy Kreme, McDonald’s call off partnership, citing ‘unsustainable operating costs’ of $28.9 million

Krispy Kreme has officially terminated its much-hyped national partnership with McDonald’s, as Krispy Kreme CEO Josh Charlesworth said it had created “unsustainable operating costs,” leading to lease impairment and termination costs of $28.9 million. In other words, not enough doughnuts made enough dough. The fallout from the failed partnership was laid bare in Krispy Kreme’s latest earnings report, a sharp contrast from McDonald’s own resilient financial showing amid sector headwinds.Recommended VideoKrispy Kreme and McDonald’s mutually agreed to end their partnership, effective July 2, 2025, after an attempt to distribute Krispy Kreme doughnuts in approximately 2,400 U.S. McDonald’s locations. Initially hailed as a major growth opportunity, the collaboration floundered under operational pressure and insufficient returns.“Our two companies partnered very closely, each supporting execution, marketing, and training, delivering a great consumer experience,” Charlesworth said in a public statement. “Ultimately, efforts to bring our costs in line with unit demand were unsuccessful, making the partnership unsustainable for us.”Krispy Kreme’s Q2 2025 earnings statement details $28.9 million in lease impairment and termination costs directly attributed to the McDonald’s tie-up, on top of $22.1 million in asset charges. The company’s leadership made clear these losses forced a strategic retrenchment, ending what was once projected to be a coast-to-coast doughnut blitz by the end of 2026.Krispy Kreme’s cringey earningsThe financial repercussions were a contributor to Krispy Kreme’s disappointing second-quarter earnings, which detailed a revenue decline and significant net loss for the period ended June 29, 2025. Revenue came in at $379.8 million, down 13.5% year over year and missing analyst projections. Adjusted earnings per share were -$0.15, below the estimated -$0.03. Organic revenue saw a slight dip of 0.8%, while the company took noncash charges totaling $406.9 million, the overwhelming portion of a $441 million net loss.Charlesworth said the poor results primarily reflect the McDonald’s deal. “We are quickly removing our costs related to the McDonald’s partnership and growing fresh delivery through profitable, high-volume doors with major customers,” he added, saying the company expects to begin recouping profitability in the third quarter.Krispy Kreme is now accelerating plans to exit unprofitable partnerships, refocus on profitable channels (including supermarket and convenience partnerships), and pursue international franchise expansion. It’s also selling its remaining stake in Insomnia Cookies and refranchising further markets, including in Australia, New Zealand, Mexico, and the U.K., with the aim of lightening its balance sheet and unlocking cash for future investments.McDonald’s sees stability and growthFor McDonald’s, the Krispy Kreme partnership was a small experiment compared with the size of its regular business. The doughnut sales represented only a minor part of the breakfast menu, and their removal has not dented McDonald’s financial performance.According to McDonald’s second-quarter earnings, the company has weathered economic uncertainty and changing consumer habits with surprising strength. Global comparable sales rose 3.8%, with U.S. same-store sales up 2.5%. Consolidated revenues came to $6.84 billion, up 5% year over year and beating analyst expectations. Net income increased 11% to $2.25 billion and adjusted earnings per share came in at $3.19.CEO Chris Kempczinski emphasized that McDonald’s remains committed to delivering “delicious, affordable, and convenient options” and will continue to drive growth through digital investment and menu innovation, recently announcing the return of popular items and new promotions.McDonald’s referredFortuneto a joint announcement with Krispy Kreme about the canceled partnership. Charlesworth noted in the announcement that the two companies had “partnered very closely” on the venture in roughly 2,400 McDonald’s restaurants, but that it was unsustainable. The announcement also stated that Krispy Kreme represented a small, nonmaterial part of McDonald’s breakfast business, and that breakfast remains a core pillar of McDonald’s business strategy. Krispy Kreme declined to comment.The road ahead for Krispy KremeWith the McDonald’s arrangement behind it, Krispy Kreme’s turnaround blueprint involves shifting focus toward higher-margin retail channels, franchise growth, and operational cost reduction. The company’s leadership has suspended dividends and renegotiated credit agreements, raising fresh capital to stabilize operations.Charlesworth acknowledged the hit but remains optimistic: “We are now moving decisively to eliminate costs tied to this partnership and expect to return to profitability by the third quarter, focusing on sustainable, profitable growth going forward.”Krispy Kreme’s market reaction, however, was muted: The stock has fallen nearly 70% since January—benchmarking profound investor skepticism regarding the path to recovery. McDonald’s has gained slightly more than 5% over the same period.This failed partnership highlights the risk and complexity of scaling niche products in the hypercompetitive world of fast food, especially as American consumers remain price- and convenience-driven. For McDonald’s, meanwhile, it’s business as usual—the golden arches shine on, doughnuts or not.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Nike’s ‘Why do it?’ campaign has a Gen Z twist—but branding experts are skeptical, saying it messes with one of the most iconic taglines in history

Nike just added to its legendary “Just do it” campaignwith a Gen Z twist, launching “Why do it?” to resonate with young athletes’ tendency to question tradition and seek authenticity and purpose. Experts are split: Some say the refresh smartly connects with a questioning generation, while others warn it risks diluting one of the most valuable and timeless brand assets in marketing history.Nearly 40 years ago, Nike introduced its iconic “Just do it” slogan, which ultimately fueled one of the most successful and influential marketing campaigns in U.S. history. It launched with a series of TV ads featuring athletes of all ages and abilities, and resonated with customers for its simplicity and authenticity. Since then, it’s been one of the most recognizable slogans for an American business. Recommended VideoBut on Thursday, the athletic-wear company “reintroduced” its “Just do it” campaign to “today’s generation.” The “Why do it?” campaign is designed to “connect with young athletes where they are,” according to Nike, and “reframes greatness as a choice, not an outcome.”The 60-second ad from Wieden + Kennedy features a roster of international sports stars including Spanish tennis champ Carlos Alcaraz, Philadelphia Eagles running back Saquon Barkley, WNBA star Caitlin Clark, and NBA icon LeBron James.“‘Just do it’ isn’t just a slogan—it’s a spirit that lives in every heartbeat of sport. It’s the belief that, together, we can inspire, unite, and elevate ourselves beyond what we thought possible,” Nicole Graham, Nike EVP and chief marketing officer, said in a statement. “With ‘Why do it?’ we’re igniting that spark for a new generation, daring them to step forward with courage, trust in their own potential, and discover the greatness that unfolds the moment they decide to begin.”Why Gen Z asks whyWhile Nike didn’t specify a particular target generation, the campaign’s tone speaks to Gen Z’s less accepting stance on the status quo.In fact, there is support for the idea that Gen Z is especially prone to a questioning attitude. Stanford research scholar Roberta Katz argued in 2022 that the younger generation is truly internet-native and developed an “early facility with powerful digital tools” that allowed them to fact-check their situation on a rolling basis. This yielded a “pragmatic” outlook and a set of values that emphasize direct communication, authenticity, and relevance.Other studies of Gen Z found similar results, with EY dubbing them the “pragmatic generation” in a worldwide survey of 10,000 young adults across 10 countries. Authors Marcie Merriman and Zak Dychtwald wrote earlier this year that Gen Z has a “reasoned skepticism” around “life’s traditional milestones.”Some educators are seeing this attitude at public schools. Marlo Loria, director of career and technical education at Mesa Public Schools in Arizona, toldFortunethat “our youth want to know why. Why do I need to go to college? Why do I want to get in debt? Why do I want to do these things?”When she begins answering these many questions, she finds, “They want to know why: How is it connected to my purpose, what I’m interested in? How is it going to help me get to [my career goals]?”Critics ask whyLike almost any major campaign, Nike’s new slogan got mixed reviews from marketing and branding experts as well as customers. Some say Nike “nailed it” and that it’s “the perfect rebrand for a generation that no longer follows commands [and] is looking for something more.”Katya Varbanova, brand marketing expert and CEO of Viral Marketing Stars, toldFortuneit’s likely Nike felt the need to make a change owing to data, trends, and internal conversations. She said her initial reaction is that is Nike moving from being a “hero archetype” brand, meaning all about excellence through adversity, to representing an “explorer archetype,” meaning it’s appealing to people seeking self-knowledge and meaning.“But the shift is definitely not as extreme,” Varbanova said. “But it’s bold enough that it will create conversations without destroying the brand.”Others haven’t been as impressed. Oana Leonte, founder of global brand strategy company Unmtchd, wrote on LinkedIn that while the new campaign is “cool, fresh, and culturally aligned,” the “Just do it” campaign is more than a tagline: “It’s one of the most valuable brand assets in history.“When you’ve got an asset that transcends campaigns, generations, and even entire industries … you don’t dilute it. You protect it,” Leonte wrote. “Nike didn’t become Nike because of new slogans every five years. They became Nike because ‘Just do it’ is timeless, universal, and instantly recognizable. It’s the brand’s North Star.”Critics argue Nike’s new campaign might confuse the brand’s identity for older consumers who have a strong attachment to “Just do it.” But Varbanova said the original slogan is still part of the brand’s identity. “To me, Nike believes that gaining relevancy with the younger generation, which is afraid of failure, will bring more brand equity in the long run with the right people,” she said. “Nike’s new slogan feels like a balance between history and the modern days.”Plus, Varbanova pointed out, all the conversation the new slogan has sparked is the “biggest sign of relevancy there is.”Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Campbell’s gets a Gen X makeover — 42-year-old fashion exec joins her family at $9 billion canned-soup-and-snacks giant

The great-granddaughter of the inventor of condensed soup has joined the famat Campbell’s, the company announced this week. The daughter of late billionaire Campbell’s heiress Mary Alice Dorrance Malone will serve on the board following her mother’s death last month. The Campbell’s Company on Friday announced it had elected 42-year-old luxury fashion entrepreneur Mary Alice Dorrance Malone Jr. to its board, continuing a family legacy that has spanned more than a century. Recommended VideoMalone Jr. is filling a board seat at the Fortune 500 company that her mother, with whom she shares the name Mary Alice Dorrance Malone, held for 35 years before passing away in June 2025 at the age of 75. The billionaire was Campbell’s largest shareholder and the longest-tenured member of the board, at one point even fending off an activist attack from Daniel Loeb’s hedge fund. Malone Jr. is also the great-granddaughter of Dr. John T. Dorrance, who invented condensed soup and served as president of the company from 1914 to 1930. Her grandfather, John T. Dorrance Jr., chaired Campbell’s from 1962 to 1984. Other members of Malone Jr.’s family including Bennett Dorrance Jr. and Archbold D. van Beuren also serve on the board. Collectively, the Dorrance family holds more than 23% of the company, andForbescounts the family as among America’s richest, with a net worth valued at $17 billion. However, Malone Jr.’s appointment comes at a pivotal time for Campbell’s. The company’s stock price has dropped more than 25% year to date. It renamed itself from “Campbell Soup Company” to The Campbell’s Company in November 2024 to better reflect its other standout brands which include Cape Cod, Goldfish, Kettle Brand, Pepperidge Farm, Swanson, and V8. In recent years, the company has shifted its portfolio mix with total sales focused more on revenues from snacks and brands such as Rao’s rather than core soup operations.The board executed a CEO transition at the start of the year. Mick Beekhuizen, another Gen Xer at age 48, took the role effective in February. Malone Jr. brings with her nearly 20 years in the fashion business, having founded luxury shoe line Malone Souliers in 2014, where she serves as chief brand director. The line’s iconic “Maurene” leather mule retails for more than $600 and is handcrafted in Italy. The company has also partnered with Netflix seriesEmily in Parisand Bridgerton, according to its website. In a statement, Campbell’s board chair Keith McLoughlin welcomed her to the team.“Mary Alice’s unique blend of creative, analytical and entrepreneurial experience and deep appreciation of Campbell’s history will be an asset to the Board and the company,” said McLouglin. Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

McDonald’s slashes prices to win back lower-income customers, offering Extra Value Meals at 15% discounts

McDonald’s is cutting prices on some combo meals to woo back customers who’ve been turned off by the rising costs of grabbing a fast food meal.Recommended VideoThe price drop may induce its rivals, who have run into some of the same pricing issues, to follow.Starting Sept. 8, McDonald’s will offer Extra Value Meals, which combine select entrées like a Big Mac, an Egg McMuffin or a McCrispy sandwich with medium fries or hash browns and a drink. Prices will vary by location, but McDonald’s said Extra Value Meals will cost 15% less than ordering each of those items separately.To kick off the promotion, McDonald’s will offer an $8 Big Mac meal or a $5 Sausage McMuffin meal for a limited time in most of the country. Customers in California, Alaska, Hawaii and Guam will have to pay $1 more for those meals.McDonald’s for years has seen a steady decline in visits from customers in the U.S. who have household incomes of less than $45,000 per year. CEO Chris Kempczinski said those consumers, and others, no longer see McDonald’s as a good value.At a McDonald’s near the company’s Chicago headquarters, for example, a 10-piece Chicken McNugget meal costs $10.39.Higher prices have been been a drag on sales. McDonald’s same-store sales – or sales at stores open at least a year – grew 2.5% in the April-June period, but that was mostly because of higher prices. Fast food visits by lower-income consumers dropped by double-digit percentages industrywide in the second quarter, McDonald’s said.“Today, too often, if you’re that consumer, you’re driving up to the restaurant and you’re seeing combo meals priced over $10,” Kempczinski said during a conference call with investors in August. “That absolutely is shaping value perceptions in a negative way. So we’ve got to get that fixed.”McDonald’s job has been made harder by prices that can vary widely around the country. In May 2024, after a post on X about a Big Mac meal in Connecticut that cost $18 went viral, McDonald’s called it an “exception” and noted that franchisees set prices for nearly all U.S. restaurants.The company also blames higher costs. The average price of its menu items rose 40% between 2019 and 2024, McDonald’s said, to account for a 40% increase in the cost of labor, packaging and food.But within a month, McDonald’s introduced a $5 Meal Deal, which combined a McDouble burger or a McChicken sandwich with small fries and a small drink. That deal proved so popular it was extended through this summer.In January, McDonald’s added another promotion, letting customers buy a limited number of items for $1 if they bought one full-priced item. Those deals will remain alongside the Extra Value Menu for now, McDonald’s said.Other chains are also seeking to grab the attention of potential customers. In late August, Domino’s launched its Best Deal Ever promotion, offering any pizza with any toppings for $9.99.Overall U.S. fast food customer traffic fell nearly 1% in the second quarter, according to Revenue Management Solutions, a consulting company. The company said price increases were sharply lower than previous quarters, suggesting that chains are already offering more deals.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

General Motors’ EV sales rose 111%, reflecting an industry-wide push to beat Trump’s tax credit deadline

General Motors Q2 earnings beat economists’ expectations,in part due to the company’s electric-vehicle sales more than doubling. The automaker’s Chevrolet took the No. 2 spot in the U.S. EV market, behind Elon Musk’s Tesla. Experts tellFortunea surge in EV sales come as EV makers push to offload their inventory ahead of the Trump administration’s end to clean vehicle tax credits.General Motors beat economists’ Q2 earnings estimates, in part due to a 111% surge in EV sales.Recommended VideoThe automaker recorded $3.04 billion in adjusted earnings before interest and taxes on Tuesday, a marked 31.6% decrease from last year’s Q2 $4.43 billion. Yet, GM beat StreetAccount estimates of $2.89 billion as the company’s electric-vehicle sales more than doubled in the second quarter, according to its earnings release. Chevrolet took the No. 2 spot in the U.S. EV market in Q2, behind Elon Musk’s Tesla.On an investor call Tuesday, CEO Mary Barra attributed the EV sales growth to the company’s “very strategic EV portfolio,” which includes luxury EV leader Cadillac. But, experts tellFortunea broader push by EV makers to offload inventory before consumer tax credits expire at the end of September has helped inflate EV sales for the past couple months.“EV incentives were absolutely crazy” in the months leading up to the EV tax credit deadline, Aharon Horwitz, CEO of Fullpath, a customer data and experience platform for car dealerships, toldFortune.The Inflation Reduction Act of 2022 gives EV buyers the chance to qualify for a clean vehicle tax credit of up to $7,500 for new EVs and $4,000 for used EVs purchased from 2023 to 2032. Eligibility depends on the buyers’ gross income and the tax credit amount depends on critical minerals and battery components requirements. But, the Trump-approved One Big Beautiful Bill Act nixes tax incentives for buying EVs—and these consumer credits expire Sept. 30.In response, car sellers are willing to be “very aggressive to get EVs off the lot before all the credits expire,” Horwitz said.For instance, one California dealership offers a $99 per month lease on Volkswagen’s 2025 ID.4 for 24 months and a $2,995 downpayment. According to the dealer, the offer includes a $5,000 cash back bonus. Similarly, a Michigan dealership offers a Chevrolet 2025 Equinox EV LT lease for $101 per month with a $1,999 downpayment, or $189 per month lease for 24 months with a $0 downpayment.“Incentives as a percentage of average transaction price were more than two percentage points below the industry average,” GM CEO Barra said during Tuesday’s earnings call.Still, Chevrolet’s website urges potential EV buyers to “Don’t Wait — Act Now” before the tax credit deadline.GM’s EV business outlookGM captured 16% of the U.S. EV market in Q2. Still a far cry from Tesla’s estimated 45.2% market share in the first two months of this year, the company announced record EV sales in the first half driven by Hummer and Sierra EV sales up 134%.GM aims to pioneer a new “groundbreaking” EV battery technology the automaker says will reduce costs and boost profitability of its largest electric SUVs and trucks by 2028,CNBCreported in May.In a Q4 letter to shareholders in January, Barra described GM’s EV business as “variable profit positive” for the first time—meaning revenues from its EVs exceeded the fixed costs of manufacturing the vehicles, including labor and building materials. Barra said Tuesday she expects an EV sales “pull ahead” before the September tax credit deadline, telling investors once 2026 comes along, the automaker will “start to understand what real EV demand is.”“What we’re investing going forward is largely focused on improving our EV profitability,” Barra said.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Krispy Kreme will give you a free doughnut in August—if you’re wearing the right shoes

Krispy Kreme and Crocs are teaming up to introduce a doughnut-inspired pair of shoes.The owners of that footwear will get a free doughnut on Aug. 9.It’s pretty easy, if you’re patient, to get a free doughnut from Krispy Kreme. The company lures in customers regularly with promotions for holidays and special events. But if you need a mouthful of that glorious glazed fried dough now, there’s another way to get a freebie: Buy some Crocs.The doughnut chain and the footwear company have teamed up to offer a limited-edition pair of Crocs inspired by the company’s glazed offering. They’ll go on sale Aug. 5 (packaged in a Krispy Kreme box). And if you strut into any Krispy Kreme location wearing them on Aug. 9, you’ll get a free doughnut.The Crocs come equipped with interchangeable chocolate and strawberry icing dipped toe caps. Also available will be a five pack of Jibbitz charms, which include the Krispy Kreme sign, a hat with the company logo, and several doughnut varieties.To get your hands on a pair, head to participating Krispy Kreme locations on Aug. 4 and place an order or scan the Crocs QR code that will be on display. (You can learn if your local store is participating in the sale at this website.)“At Crocs, we’ve always believed in comfort you can customize—and now, with Krispy Kreme, we’re serving up style that’s glazed with personality and sprinkled with style,” Terence Reilly, chief brand officer for Crocs, said in a statement. “Because when it comes to self-expression, we ‘doughnut’ hold back.”It’s not just a shoe deal. To mark the occasion, Krispy Kreme will offer a special dozen made up of the company’s original glazed, chocolate iced with sprinkles, and strawberry iced with sprinkles. That collection of treats will be available from Aug. 4 to 10.So how much will the Krispy Kreme Crocs cost? Good question. The companies did not announce a price.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Trump keeps touting a Thanksgiving meal basket from Walmart that’s 25% cheaper. But it has half as many items as last year

With Thanksgiving less than three weeks away, the question of how much this year’s turkey and trimmings will cost looms large, especially with grocery prices 2.7% higher than they were in 2024.Recommended VideoPresident Donald Trump has claimed over the past two days that costs for the Thanksgiving meal are down 25% this year, citing a prepackaged Thanksgiving meal basket from Walmart.“I just saw that Walmart came out with a statement last night, they’ve done it for many years, that Thanksgiving this year will cost 25% less than Thanksgiving last year,” he said during a news conference on Friday with Hungarian Prime Minister Viktor Orbán.But Trump’s numbers are off. Here’s a closer look at the facts.CLAIM: Walmart prices show that the cost of Thanksgiving dinner is 25% lower in 2025 than in 2024.THE FACTS: This is misleading. While Walmart’s 2025 meal basket costs about 25% less than the one from 2024, that’s because it offers fewer items and different products that make it more affordable.“It’s not apples to apples, right?” said David Anderson, a livestock economist at Texas A&M University. “What this does highlight is individual retailers’ strategies for getting customers in the door.”The 2025 basket costs less than $40 and feeds 10 people, about $4 a head, according to Walmart. In 2024, a basket for eight cost approximately $56, less than $7 per person. That’s about a 25% decrease, possibly more depending on price fluctuations. John Furner, president and CEO of Walmart U.S., touted the savings in a LinkedIn post last month.But the baskets differ significantly. For example, this year’s includes just 15 items compared to last year’s 29. It is missing many dessert items, including a pecan pie, mini marshmallows and muffin mix, as well as savory items such as sweet potatoes, yellow onions and celery stalks.The superstore retailer has also substituted some products. Instead of 12 sweet Hawaiian rolls, the 2025 deal includes 12 dinner rolls. Both are from Walmart’s store brand. It also offers Kinder’s crispy fried onions as opposed to French’s.Plus, the amount of each item varies. Customers were promised a 10-16 pound turkey in 2024, but a 13.5 pound one this year. And they’ll get one can of cream of mushroom soup instead of two.“They’re marketing it that ‘hey, this is a more affordable way,’ yet that implies that ‘man, stuff’s a lot more expensive,’” Anderson said. “I guess it’s good marketing.”A Thursday press release from the White House also cited cheaper Thanksgiving deals at Lidl’s, Aldi’s, Target and Schnucks.Target’s four-person meal costs less than $20, about the same as in 2024, but substitutes green beans and cream of mushroom soup for French bread and frozen corn — also not an apples-to-apples comparison.Schnucks provided The Associated Press with a press release saying the retailer is offering consumers its lowest price on a frozen store-brand turkey in over 15 years. It declined further comment. Lidl US said it is offering its Thanksgiving meal at the lowest ever price and Aldi said its price was lower than 2024. Target and Walmart did not comment.According to a recent report from Wells Fargo, the cost of a 10-person Thanksgiving meal has fallen 2% to 3% since 2024, depending in part on whether customers go for national name brands or cheaper store labels. The White House press release also cited this report.Some economists have concerns about the price of turkey. Purdue University’s College of Agriculture reported at the end of October that wholesale prices are up 75% since October 2024, while retail prices are 25% higher than a year ago.An earlier analysis from the American Farm Bureau Federation found that wholesale turkey prices were up about 40%.And yet, that doesn’t mean every bird will be pricier in 2025. Anderson explained that because certain retailers, such as Walmart, contract their turkeys well in advance, the price for customers might be much lower than the market currently indicates.“That gives them the flexibility to run those types of specials,” he said.

Hermès CEO says the booming Birkin resale market prevents the luxury brand from serving its ‘real customers’: ‘It doesn’t make me feel in a good mood’

There should be only one true place to buy a Birkin bag,according to Hermès CEO Axel Dumas. The chief executive told investors this week the luxury handbag’s secondhand marketplace was a “real cause for concern,” as many customers were purchasing the item just to resell it for exponentially higher than its retail price.Hermès CEO Axel Dumas wants to make one thing clear: There’s only one Birkin bag and one place to get it.Recommended VideoThe luxury brand boss expressed his frustration with the resale market that has emerged for the collectible handbag, telling investors during a second-quarter earnings call on Wednesday buyers purchasing the arm candy just to hike up its price for a secondhand sale are diluting Hermès’ true consumer base.“Sometimes we have false customers come to our stores to buy them, to resell them, and they prevent us from serving our real customers, and that is a real cause for concern for us,” Dumas said.“So, I’m not at all happy to see this development of new bags that are sold in the secondhand market,” he added. “I pull a face, and I’m not happy, and it doesn’t make me feel in a good mood.”The Birkin bag, which can run buyers at least $12,000 and up to six figures, has been worn by a litany of celebrities like Cardi B and Victoria Beckham, with its exclusivity making the accessory a status symbol. In Q2 2025, Hermès reported a 9% sales bump, largely due to the continued popularity of its Birkin, Kelly, and Constance bags, which have helped it weather the luxury slowdown.While the bag’s coveted status has buoyed Hermès’ sales, it’s also encouraged an active secondhand market for the bag. Because of the bag’s limited production and Hermès’ elusive criteria to even be allowed to purchase the item, resellers have jumped at the opportunity to auction off the bags. The Birkin’s resale cost can exponentially appreciate beyond its sticker price, comfortably doubling in cost and, by some measures, outpacing the S&P 500 and the price of gold.The original Birkin bag, once owned by late British actress and singer Jane Birkin, sold earlier this month at Sotheby’s Paris for a cool $10 million.Hermès did not immediately respond toFortune’s request for comment.Imitation is the sincerest form of flatteryThe behavior of buying to sell may be viewed by Dumas as taking “opportunistic advantage” of the brand, according to Marie Driscoll, an equity analyst focused on luxury retail.“He looks at the product and the brand as something more than a commodity,” Driscoll toldFortune. “Intrinsically, he thinks these are artistic pieces that are a product of someone’s imagination and someone’s hard work and labor and some of the best that Hermès can do. I think some of it has taken on a life of its own.”Dumas has long been an advocate for the sustained exclusivity of the Birkin. Last year, Walmartlaunched a lookalike—or “dupe” of the bag for $78, which quickly  emptied off the discount retailer’s shelves. The Hermès CEO told investors in February he was “irritated” by the copy-cat’s popularity, though he said he understood consumers weren’t buying the “Wirkin” believing it was the real deal.“Making a copy like this is quite detestable—it’s stealing the creative ideas of others,” Dumas said.Still, the luxury brand’s exclusivity has drawn the ire of some shoppers, including two California customers who sued Hermès in 2024, claiming the company engaged in “anti-competitive” practices by requiring prospective Birkin buyers to establish themselves as “worthy” customers by purchasing ancillary Hermès products.While some luxury brands like Gucci and Balenciaga have engaged more with the certified resale market to attract new customers, Hermès likely won’t, Driscoll said. There’s still sustained demand for the bag and, therefore, little reason for Hermès to disturb the mystique it has worked so hard to create.“You’re going to have to have a longer engagement, which is kind of, in a very romantic sense, like being engaged to someone before the culmination of the wedding night,” she said. “You’re just going to have to postpone gratification.”Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Chipotle CEO says there’s ‘no smoking gun’ for burrito sales dip—but he wants customers to give the chain more ‘credit’ for affordable prices

Chipotle CEO Scott Boatwright said the burrito chainneeds to work on selling itself as a bargain brand for jittery, budget-strapped consumers. The company reported on Wednesday a 4% same-store quarterly sales decline and cut its guidance for the rest of the year, citing poor consumer sentiment and economic uncertainty. As more Americans grow anxious about the economy and start pulling back on eating out, CEO Scott Boatwright wants consumers to give Chipotle some more credit for its low prices.Recommended VideoThe Newport Beach, California-based burrito-bowl chain reported sagging earnings Wednesday, including a 4% same-store sales decline and 4.9% dip in quarterly traffic. While Chipotle saw a 3% total revenue increase to $3.1 billion, the company cut its guidance, now expecting flat same-store sales growth for the year compared to its previous prediction of a low single-digit increase.Chipotle CEO Scott Boatwright attributed the rough quarter—Chipotle’s second consecutive sales decline—in part to rocky economic conditions leading consumers to pull back. Chipotle’s same-store sales improved in June, and that’s likely to be the case for July as well, according to the company, but lackluster sales in April and May correlated with “consumer sentiment bottoming around that time.” Boatwright added consumers have seemingly forgotten that Chipotle, compared to its fast-casual rivals, is a bargain.“I don’t think we’re getting credit with the consumer today,” Boatwright told investors on Wednesday. “So what I talked to the team about internally is, How do we better communicate our value proposition and center around the core equities of the brand?”“I think we’ve got to figure out a way we can communicate value for the consumer and showcase the value we are to [quick-service restaurants] and fast-casual,” he added.Boatwright claimed in the earnings presentation Chipotle is 20% to 30% cheaper than comparable fast-casual restaurants. He toldFortunein April the chain wouldn’t increase prices due to tariffs because “it’s unfair to the consumer to pass those costs off…because pricing is permanent.”Changing perceptions of valueThe CEO was firm in attributing Chipotle’s sales slump to external macroeconomic factors, telling investors, “There’s no smoking gun here that says we’ve had a misstep.” However, he said low-income consumers in particular are looking for value when choosing where to dine.“Look no further than what’s going on with our competitors with snack occasions or five-dollar meals, and that’s where the consumer is drifting towards…because of low consumer sentiment.”Indeed, fast-food giants like McDonald’s are continuing to offer meal deals amid softening sales, particularly as these restaurants have seen more traffic from high-income consumers while those on a budget pull away. As Chipotle similarly tries to compete in an environment of cautious consumers, it will need to focus on its public perception and sell itself as an affordable option, according to Raymond James restaurant analyst Brian Vaccaro.“Over the last two years, the industry has gotten more aggressive on value promotions and messaging,” Vaccaro toldFortune. “There are certain brands that have a strong value proposition in the mind of the average consumer. But they didn’t effectively message that, and it caused them to lose some mind share.”Olive Garden suffered this fate in 2024, Vaccaro said, when the fast-casual Italian chain’s parent company Darden Restaurants reported a pull back from customers making less than $75,000. “That could be something that’s happened to Chipotle, where their value almost gets taken for granted a little bit,” Vaccaro said.In March, Olive Garden announced the return of its “buy one, take one” promotion—essentially a buy one, get one free deal—for the first time in five years. The restaurant group attributed a modest earnings beat in June in part to the return of the offer.“Everyone knows Olive Garden is a good value,” Vaccaro said. “But if you’re not reminding the guests of that, they could get distracted and wooed away by all of these value promotions that are floating around.”Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Taylor Swift’s ‘amazing’ 8-carat engagement ring set Travis Kelce back $550,000, jewelry expert estimates

Taylor Swift once sang she’d get married with paper rings, but this one is anything but paper. Recommended VideoSwift announced her engagement to football star Travis Kelce in an Instagram post on Tuesday, where she showed off her new ring. According toVogue,Kelce worked with Kindred Lubeck of Artifex Fine Jewelry to design the ring, which is a “brilliant-cut old mine diamond bezel-set” in yellow gold.Benjamin Khordipour, a jewelry expert at New York City–based Estate Diamond Jewelry, added the stone is an “antique elongated cushion” that weighs in at about eight carats. He estimated the diamond likely cost around $550,000. “You can see antique style, yellow-gold mounting, needlepoint prongs with some diamonds on the shoulder, and engravings on the shoulder,” Khordipour said. “It’s really something amazing.”For Khordipour, the rarity of the stone is what makes it stand out as his “favorite” ring he’s seen so far this year. “It’s very unique. It’s not something you’ll see on anyone else’s hand,” he said, noting that antique cushions of that size and shape are difficult to source.The choice also fits Swift’s personality, he added. “She’s very unique, very alternative, so this makes complete sense. I would never think of her getting something standard.”Antique and vintage styles have surged in popularity in recent years, and Khordipour said Swift’s choice is on-trend. “For antique jewelers, it’s really something amazing…the trend is vintage and antique, so I’m happy she went with it.”Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Dollar General builds a rural delivery edge over Walmart and Amazon—and it’s taking their higher-income shoppers, too

Dollar General’s Q2 earnings make one thing evident—the discounter is no longer just competitive on price. It’s quietly building a delivery and digital ecosystem that could give it an edge in the one place big-box retailers still struggle: rural America.Recommended VideoDollar Generalturned in a stronger than expected second quarter, showing it can grow both sales and profitability in a retail backdrop where incumbents like Target are flailing. Revenue rose 5.1% to $10.7 billion, fueled by continuous same-store sales growth and new store openings, and earnings per share climbed 9.4% to $1.86. Operating profit increased 8.3% as tighter inventory control and lower shrink boosted margins, highlighting how the discounter’s multiple initiatives allow it to expand margins while pulling in more shoppers across income levels.The company’s rapidly scaled delivery partnerships, with DoorDash and Uber Eats, along with its own same-day delivery offering, are key elements in the story of its expanded operating profit. These new partnerships allow Dollar General to bring convenience into towns that have traditionally been beyond the reach of one-hour delivery promises, CEO Todd Vasos told analysts on an Aug. 28 earnings call.“We saw a 60% year-over-year increase on [DoorDash’s] platform … and we just signed a deal with Uber Eats. By the end of the third quarter, we’ll have 14,000 stores up and running on that platform,” Vasos said.Even more striking, Dollar General said more than 75% of orders are delivered in one hour or less, even in rural America.“That is the fastest that we’ve seen out there across the spectrum so far, especially in rural America, where it is hard to reach many, many customers. So we believe that’s a competitive advantage for us, and will continue to be as we move forward,” Vasos added.The scale-up has been swift and thorough. Dollar General now offers same-day delivery through DoorDash at over 17,000 stores, has created and expanded its own generic DG Delivery to nearly 6,000 locations, and expects to reach 16,000 by year-end, well ahead of earlier expectations. Its Uber Eats partnership, still in its early stages, has already launched in 4,000 stores.More than convenienceRural delivery isn’t just a play for convenience; for Dollar General it’s also drawing in wealthier customers. “We’re seeing trade-in accelerating … Not only our core customer but also mid- and high-income customers—all seeking value,” Vasos said.Larger delivery baskets, often north of $20, point to incremental spending by those households, Kelly Dilts, Dollar General’s chief financial officer, said during the call.The trade-down effect that Dollar General is capitalizing on is visible across other categories. Consumables remain strong, but what’s striking is growth in discretionary spending, which is often the first casualty of inflation.“Not only a strong 2.8% comparable sales number that we posted, but … sales were very balanced, as consumables and non-consumables contributed very nicely,” Vasos said.In Q2, he added, Dollar General reported positive same-store sales across each of its three non-consumable categories, with increases of at least 2.5%, while its home products category logged its biggest quarterly same-store sales gain in more than four years.The digital expansion is also reinforced by the DG Media Network, the company’s retail media arm, Vasos said. By leveraging unique data on rural shoppers, customers whom national CPG (consumer packaged goods) brands often struggle to reach, Dollar General is creating a digital revenue stream to complement its store growth. Taken together, these initiatives suggest Dollar General is carving out a defensible position in small-town America that Walmart or even Amazon can’t easily match. “Value to me, and I believe as our consumers look at it, is multipronged here at Dollar General, and is very sustainable,” Vasos said. “Our value proposition is as strong as ever, and customers resonate with that very nicely.” Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Italy just hit Shein with a $1.15 million greenwashing fine over misleading claims

Italy’s competition watchdog said Monday it has fined the company responsible for Shein’s websites in Europe one million euros ($1.15 million) for false and confusing claims about the e-commerce giant’s efforts to be environmentally “green”.Recommended VideoThe AGCM watchdog accuses the China-founded fast-fashion colossal of having “adopted a misleading communication strategy regarding the characteristics and environmental impact of its clothing products”.The fine was imposed on Infinite Styles Services Co. Ltd, the company responsible for managing Shein’s product trading websites in Europe, the watchdog said in a statement.The AGCM accused it of “misleading and/or deceptive environmental messages and claims… in the promotion and sale of Shein-branded clothing products”.These were “in some instances, vague, generic, and/or overly emphatic, and in others, misleading or omissive”.In particular, claims about the recyclability of products “were found to be either false or at least confusing”, it said.Consumers could easily be led to believe Shein products were made exclusively from sustainable materials and fully recyclable, “a statement which, given the fibres used and current recycling systems, does not reflect reality”.The AGCM also took issue with the retailer’s claims it would reduce greenhouse gas emissions by 25 percent by 2030 and reach zero emissions by 2050.These “vague” pledges by a company which has seen phenomenal growth in recent years were “contradicted by an actual increase in Shein’s greenhouse gas emissions in 2023 and 2024”, it said.Environmentalists have long warned of the damage wreaked by the fast-fashion sector’s wasteful trend of mass producing low-cost clothes that are quickly thrown away.Fast fashion uses up massive amounts of water, produces hazardous chemicals and clogs up landfills in poor countries with textile waste, while also generating greenhouse gases in production, transport and disposal.Shein did not immediately respond to a request for comment.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Giorgio Armani dies at 91: How the legendary designer’s handcrafted succession plan will shape the future of his empire

Giorgio Armani, the legendary Italian fashion designer and founder of the Armani Group, has died at the age of 91, leaving behind a meticulously planned blueprint for the future of his fashion empire.Recommended VideoArmani’s passing and immediate reactionsArmani died peacefully, surrounded by his family, after ongoing health issues that earlier forced him to miss his brand’s Milan runway shows for the first time in five decades. Tributes are pouring in from across the fashion world, and the Armani Group will host a memorial in Milan, the city he helped turn into a fashion capital.Born in Piacenza, Italy, Armani originally aspired to become a doctor before leaving medical school and finding his calling in fashion, first working as a window dresser and buyer at a Milan department store. He soon began designing menswear for Nino Cerruti, gaining a reputation for innovation and quality. In 1975, with his partner Sergio Galeotti, Armani founded his eponymous label in Milan, initially launching a men’s clothing line and rapidly expanding into womenswear, accessories, fragrances, and home interiors.Armani’s understated style revolutionized modern fashion, introducing the world to the power suit and pioneering the concept of the lifestyle brand; he dressed celebrities from Richard Gere inAmerican Gigoloto countless Hollywood stars on the red carpet. Over his five-decade career, Armani built one of the most successful privately held fashion empires, leaving a lasting imprint on both the industry and global culture.Succession and control of the empireUnlike many family-run luxury houses, Armani had no children and thus spent years crafting a robust succession plan. According to company and media reports, control of the Armani Group will be divided among six carefully chosen heirs: his sister Rosanna, his two nieces, one nephew, his longtime collaborator Pantaleo (Leo) Dell’Orco, and a charitable foundation. All of these successors already serve on the company’s board and will receive shares according to the bylaws Armani established in 2016.Preserving Armani’s visionArmani’s bylaws go beyond mere financial matters. He gave explicit instructions that the brand must continuously pursue an “essential, modern, elegant and unostentatious style with attention to detail and wearability.” The succession documents also detail the process for appointing future women’s and men’s style directors, ensuring the label’s creative direction remains true to his vision.Financial and business directivesArmani’s plan includes specific finance-related provisions. Major moves, such as an IPO or mergers and acquisitions, are not permitted until five years after his death, providing a period of stability. The company remains privately held, with estimated annual revenues exceeding $2.68 billion, and a potential future valuation of over $5.8 billion should it go public.The path forwardThe new leadership—a blend of family and trusted collaborators—has pledged to honor Armani’s values and sustain both the brand’s independence and its high standards. A charitable foundation created by Armani will also play a role, helping direct some of the company’s future profits to philanthropic efforts. Armani’s detailed succession planning aims to preserve his legacy, ensuring that his company’s creative, operational, and ethical principles endure well into the future.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Kim Kardashian’s Skims is now worth $5 billion after a massive $225 million funding round led by Goldman Sachs

Kim Kardashian may not have passed the bar, but her shapewear line, Skims, is certainly raising the bar—and eyebrows—in the apparel industry. The company just announced it’s secured $225 million in fresh funding led by Goldman Sachs Alternatives, valuing the six-year-old company at $5 billion. Lauren Hirsch fromThe New York Timeswas first to report the news. The investment round marks a significant milestone for Skims, which was co-founded by the 45-year-old socialite and Jens Grede, its CEO, in 2019.Skims was previously valued at $4 billion in July 2023 when it raised a $270 million Series C round led by Wellington Management. Before that, the company was valued at $3.2 billion in January 2022.Skims has demonstrated remarkable revenue growth since its founding. The company generated about $750 million in sales in 2023, up from $500 million in 2022. The company became profitable in 2023, reporting nearly $713 million in net sales. Revenue has more than quintupled over three years, up from about $145 million in 2020.Founded initially as a shapewear brand emphasizing body positivity and inclusive sizing from XXS to 5XL, Skims has since expanded into loungewear, swimwear, and menswear. The brand has also formed high-profile partnerships, including becoming the official underwear partner for the NBA, WNBA, and USA Basketball. In February, Skims announced a collaboration with Nike to launch NikeSKIMS, a women’s activewear line combining Nike’s technical expertise with Skims’ focus on fit and inclusivity.Skims has pursued aggressive retail expansion after operating primarily as a direct-to-consumer e-commerce business. The company opened its first permanent store in Georgetown in 2024, followed by locations in Miami, Austin, and a flagship on Fifth Avenue in New York. In April, Skims launched a 4,546-square-foot flagship on the Sunset Strip in Los Angeles. The brand plans to open 16 new U.S. stores this year, bringing its domestic footprint to 22 locations.Internationally, Skims is expanding into Europe and the Middle East. The company appointed Robin Gendron, a former Michael Kors executive, as its first president for the region in August. Standalone stores are planned for London’s Regent Street and Dubai by mid-2026. The brand also announced plans to open 15 stores in Israel by 2026.Kardashian retains the largest ownership stake in Skims, with Forbes estimating her net worth at $1.7 billion, largely driven by her 35% stake in the company. Nearly 70% of Skims customers are millennials or Gen Z consumers.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.

Gen Alpha has surpassed $100 billion in spending power from side hustles and bankrolling parents—and Roblox and Nike are among the big winners

The youngest generation, born between 2010 and now,is now generating $100 billion in direct spending power annually, according to a new report. Gen Alpha, made up of digital natives, is spending money from readily accessible e-commerce sites, but also making money by selling and reselling items on digital platforms.Members of Gen Alpha are too young to drive themselves to a store or open up a credit card in their own names—but that hasn’t stopped them from spending nearly as much as the gross domestic product of Bulgaria.Recommended VideoThe youngest generation, born between 2010 and now, has eclipsed $100 billion in direct spending power annually, according to a new report from public-relations firm DKC—and they’re driving even more spending by having an outsized influence on household purchases.The survey of about 1,000 U.S. parents of kids between 8- and 14-years-old found 42% of household spending was influenced by Gen Alpha’s opinions, a figure swelling to 49% for households earning more than $100,000 per year. This influence can range from what’s put on the dinner table to what clothes to buy and where to travel.“This generation has more spending money than you’d think,” DKC President Matthew Traub toldFortune. “Their economic influence is enormous.”Projected to be the largest generation—one day reaching 2 billion people—Gen Alpha is making early economic waves not only due to its sheer size, but also because its tech-native status opens doors to countless frictionless e-commerce opportunities. Research-based advisory firm McCrindle—founded by social researcher Mark McCrindle, credited for popularizing the term “Gen Alpha”—reported the youngsters would have $5.46 trillion in spending power by 2029.The entrepreneurial generationSo where is Gen Alpha getting all this money to spend? Like tweens of every generation, Gen Alpha kids are doing chores and mowing laws in exchange for their parents’ pocket change. While 83% of surveyed parents said they give their children an allowance, 91% of the generation is working or earning money on their own in some form, including 40% who get paid for doing “odd jobs” outside the house.Their earnings aren’t chump change. This generation of budding entrepreneurs has an average $67 to spend each week, totalling $3,484 per year. But what separates this generation from yesteryear’s latchkey kids and millennials is their “entrepreneurialism” spurred by easy access to technology, according to Traub. It’s no wonder why. The rise of TikTok and YouTube stars have led Gen Alpha to see content creators as career role models, with more than 60% of the generation looking to these social-media creators for inspirational ideas, and more than a quarter making money from their own social-media activity, according to a November 2023 report from Visa. “Digital tools allow a level of entrepreneurialism that replaces the old lemonade stand and gives you instant access to a much larger audience,” Traub said.Where Gen Alpha is spending their moneyDigital platforms aren’t just a way for today’s kids to make money; they’re a principal way in which they spend it. Gen Alpha is spending an average of more than two hours each week online shopping, according to a 2024 report from content-moderation consultancy WebPurify, with the sites frequented by the young generation transforming into de facto online shopping malls.According to DKC, Roblox and Nike are the companies Gen Alpha invoke most when talking to their parents. Amazon, Shein, Temu, and TikTok also broke into the top 10. Beyond the e-commerce giants, these brands have taken it upon themselves to vie for Gen Alpha’s money (or at least their parents’ credit cards). Roblox—with more than 25 million daily concurrent users—announced in May the ability for users to buy physical products from Roblox experiences, with their in-game avatars likewise getting items as part of their purchases. Nike has partnered with Roblox on its Nikeland experience since 2021, where users can not only play virtual dodgeball, but buy digital shoes for their avatars.“Even in these gaming platforms that have traditionally been reserved for children, e-commerce is becoming a really monetizable form,” Alex Popken, vice president of trust and safety at WebPurify, previously toldFortune. “We’re just seeing kids being inundated with this content more often.”Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Keurig Dr Pepper, parent of Peet’s Coffee in $18 billion merger that essentially unwinds the marriage of hot and cold beverages from 2018

Keurig Dr Pepper will buy the owner of Peet’s Coffee in an $18 billion (15.7 billion euro) deal, then break itself in two, with one company selling coffee and the other selling cold beverages like Snapple, Dr Pepper, 7UP and energy drinks.Recommended VideoThe agreement anounced Monday will essentially unwind the 2018 merger of Keurig and Dr. Pepper and it arrives at a time when consumers are pulling back and the trade wars under President Donald Trump threaten to send coffee prices soaring.Trump imposed a 50% tariff this summer on most imports from Brazil — the world’s leading coffee producer — for its investigation of its former president, Jair Bolsonaro, a Trump ally.Yet Keurig Dr Pepper sees both coffee and cold beverages as areas of growth that would be better navigated by independently operating companies. CEO Tim Cofer called it a “transformational moment” for the sector.“By creating two sharply focused beverage companies with attractive and tailored growth propositions and capital allocation strategies, we are poised to generate significant shareholder value in both the near and long term,” Cofer write in prepared remarks.But large chains like Starbucks are suffering. Same-store sales, a key barometer of a retailer’s health, has fallen for six straight quarters at the Seattle coffee giant and its shares have tumbled 23% since early March.Dr Pepper Keurig is offsetting some declines with higher prices. In its last quarter, the company reported a 0.2% decline in coffee sales.For Keurig Dr Pepper, the soon-to-be separated coffee business will have about $16 billion in combined sales and the beverage business about $11 billion, the companies said.The companies expect to save about $400 million over three years because of the merger.The company that Keurig Dr Peppper is buying, Peet’s parent JDE Peet’s based in Amsterdam, also owns the brands L’OR, Jacobs, Douwe Egberts, Kenco, Pilao, OldTown, Super and Moccona.Once the two companies are separated, Cofer will become CEO of the cold beverage business, which will be based in Frisco, Texas. Keurig Dr Pepper’s chief financial officer, Sudhanshu Priyadarshi, will lead the coffee business, which will be located in Burlington, Mass. Its international headquarters is in Amsterdam.Shares of Keurig Dr Pepper slumped 9% before the opening bell Monday.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Big Tech wants AI to help with your holiday shopping. The tech has flashes of magic, but it won’t replace Santa—yet

Looking for the perfect holiday gift? AI wants to help you.In the past few weeks, OpenAI, Perplexity, Google, Amazon, and Walmart have launched a flurry of AI-powered shopping features, hoping this year’s holiday rush will flow—at least in part—through their new tools. Recommended VideoBetween 15% and 30% of online shoppers are expected use generative AI to shop for holiday gifts this year, according to a new survey from Bain. ButFortune’s testing of some of the platforms suggest that Santa doesn’t need to look for another job quite yet. While the offerings show flashes of magic, they may need a little more time before shoppers can rely on them for the real heavy lifting. OpenAI’s Shopping Research is sleek, if not seamlessLast week, in a penthouse venue overlooking lower Manhattan, more than a dozen journalists clustered around rows of monitors as OpenAI unveiled its latest offering, called Shopping Research. Powered by a new ChatGPT-5 mini model and available across ChatGPT plans, it does deep product reconnaissance for you across the web.Just describe what you want—“a gift for my four-year-old niece who loves art,” “Black Friday deals for these sneakers,” “a petite red holiday dress that’s festive but not over-the-top”—and within minutes, it produces a personalized interactive shopping guide.The user interface is genuinely beautiful—a big step up from ChatGPT’s bare-bones text responses. You get quick quizzes, modern and sleek product cards you can thumbs-up or thumbs-down, and a much more guided experience overall. But the model needs a few minutes to think, which means it’s not ideal for quick-hit shopping. Courtesy of OpenAIOpenAI warned that Shopping Research can still make mistakes, and you can’t buy directly through ChatGPT. The new interface is not connected to the company’s Instant Checkout, the one-click buying feature OpenAI announced earlier this year—which only works with a small number of participating brands, and is not yet a seamless, universal checkout experience. Josh McGrath, a researcher on the OpenAI team that developed Shopping Research, told me he has seen the best results for products with lots of options for specifications that serve specific niches—things like backpacks, camping gear, or musical equipment. Perplexity’s Instant Buy doesn’t live up to the hypeMeanwhile, Perplexity is touting its own AI personal shopper, which it rolled out this week as a one-click Instant Buy feature with PayPal. The pitch is tantalizing: Perplexity says the chatbot will remember past interactions to personalize recommendations, and that the PayPal tie-in keeps merchants in the retail loop—but the release doesn’t live up to the hype. When I tested it, Instant Buy wasn’t available on my Enterprise account, and on a free personal account only a handful of brands—and just a few products within those brands—actually offered the Instant Buy option. A Perplexity spokesperson said the feature would roll out to many more products and brands over the next few weeks, adding that merchants select which items to display from their catalogs.Michelle Gill, PayPal’s general manager for small business and financial services, said the tool isn’t yet intended to replace all other forms of holiday shopping. “It would be nice to roll out to everyone at the same time, but at the same time, if you had a random, delightful experience [with Instant Buy], you might share it with friends,” she said. For now, she added, it can be used more purposefully: For example, Instant Buy is currently available for some Abercrombie & Fitch, Ashley Furniture and Fabletics products, with Gap and Reebok on the way. “We’re not yet at the point where more than 50% of experiences are going to happen this way,” Gill said. Google’s AI Mode has clear limitsAs for Google’s latest AI shopping updates, available in the Gemini app and through Search’s AI Mode, there are also clear limitations for now. AI Mode’s offering, announced two weeks ago, allows users to visit retailer sites, see historic pricing data, and track price changes. Its agentic checkout feature allows you to track the price of a product and give Google permission to buy it for you on the retailer’s site, but only a few merchants are currently participating, including Wayfair, Chewy, Quince, and select Shopify merchants. Many of the most unique features of the new interface won’t be fully rolled out this holiday season, including the option to ask Google to call stores automatically on your behalf. That feature is currently “available for select regions and languages and may not be available for all users,” according to the site.There is also a major gap in the options from OpenAI, Perplexity, and Google: Amazon prevents all three from scraping its site, blocking them from offering options from or comparison shopping against Amazon’s massive product catalog—a significant blind spot.Amazon, Walmart and Target are also on the hunt for your AI shopping dollarsBut Amazon, as well as Big Box behemoths Walmart and Target, are also rolling out AI options, if you’re looking to experiment.Amazon’s AI assistant Rufus, built into its app and website, got a big upgrade last week. It now offers to search for products based on activity, event, purpose. It can automatically add items to your cart, tell you if you’re getting the best price, find top deals every day of the year, auto-buy items at a set price, or even take a handwritten shopping list and add the items to your cart. It remains to be seen whether the company has responded to complaints around accuracy and generic answers. Walmart recently launched Sparky, its own AI shopping assistant, which offers conversational assistance: For example, you can tell Sparky you’re planning an event (a party or a holiday dinner, for example) and it will suggest a cart filled with items you need, including food and decorations.However, Sparky has also struggled with accuracy problems, buggy behavior and limits within Walmart’s product catalog. Walmart also recently partnered with OpenAI, which means Walmart products can be bought directly through a chat interface within ChatGPT, using Instant Checkout. Two weeks ago, Target also rolled out improvements to its AI-powered gift finder, along with integrations that let shoppers browse or buy Target products directly inside ChatGPT, with curated suggestions based on themes, budgets, or recipient profiles. If you’re trying out AI this holiday season, it’s wise to keep your expectations low and just experiment. All of these retailers and tech companies are moving fast—and the tools are improving—but you will likely still need to go directly to many websites or hit the stores in person this year.Next year, AI might give Santa a run for his money. 

McDonald’s is launching an adult Happy Meal—and a new shake designed to go viral

McDonald’s is reaching into its past to appeal to younger customers.The company will resurrect the characters of McDonaldland, including Birdie, Hamburglar, and Mayor McCheese, starting Aug. 12. A grownup version of the Happy Meal will also be offered.Grimace’s return to McDonald’s was a viral hit. Now the company is bringing back a gaggle of characters from its past.For the first time in 20 years, McDonald’s plans to incorporate Ronald McDonald, Grimace, Birdie, Hamburglar, Mayor McCheese, and the Fry Friends (a.k.a. the Fry Guys) into its marketing. Still MIA are Officer Big Mac, Captain Crook (basically a Hamburglar for the Filet-O-Fish), and Ronald’s Dog Sundae.Starting Aug. 12, the chain will launch the McDonaldland Meal, an adult Happy Meal of sorts featuring either a Quarter Pounder with Cheese or 10-piece Chicken McNuggets, fries, a collectible souvenir, and the new Mt. McDonaldland Shake, which features a mystery flavor the company is encouraging diners to figure out.It’s a marketing push that could appeal to both Gen Z and Gen X.“Over the past few years we’ve seen how fans flock to our characters, everyone from Grimace to the Hamburglar. But many, especially the new generation, don’t know that’s just the tip of the iceberg,” said Jennifer “JJ” Healan, McDonald’s vice president of U.S. marketing, brand, content & culture. “It’s a chance for us to give fans a new, modern way to experience this magical world.”The meals will include one of six collectible tins that include postcards, stickers, and more, each inspired by the different characters.The McDonaldland ad campaign dates back to 1971 and featured everything from Apple Pie Trees to Hamburger Bushes. The ads for it were…well, pure 1970s.(Intrigued and or horrified? Here’s almost 10 minutes of the ads in a row.)McDonald’s isn’t stopping with the meals. It’s also launching a line of McDonaldland merchandise, ranging from luggage tags to shirts and hats. The line is made in collaboration with Pacsun and will be available on Aug. 12. Another line with Away goes on sale Aug. 18.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Gen Z dreams of a ‘Ralph Lauren Christmas’ in a dollar store American economy

This holiday season, a new obsession is sweeping through American homes: the “Ralph Lauren Christmas.” But it’s not just luxury shoppers and Manhattan brownstones getting swept up in visions of tartan, velvet, and brass candlesticks. Instead, millions of budget-minded Americans are piecing together their own versions of ‘90s holiday opulence, raiding their local dollar stores and thrift shops to capture just a hint of Ralph Lauren’s famed festive glamour.Recommended VideoOn TikTok and Instagram, the phrase “Ralph Lauren Christmas” has surged by over 600% compared with last year, while Etsy searches for related decor are up more than 180%, and Google Trends shows the phrase soaring to unprecedented heights. “This search trajectory suggests the trend has moved beyond niche interest into mainstream holiday planning behavior,” said Chase Varga, director of marketing at ListenFirst, a marketing analysis firm founded in 2012.Scrolling social feeds reveals a relentless parade of fireplace mantels draped in plaid and velvet, clusters of vintage nutcrackers beneath dark-wood shelves, and tablescapes positively roaring with holiday maximalism. Much of the aesthetic is rooted in nostalgia for the 1990s—a time when American opulence and the heirloom “good Christmas” felt accessible and aspirational at the same time.Opulence, on a shoestringYet what’s striking about the trend’s viral run is not a rush on luxury home retailers, but the sheer number of creators frank about finding “the look” at thrift stores, chain discounters, or dollar stores. Faux brass candlesticks, plastic nutcrackers, and off-brand plaid blankets are hauled out as budget stand-ins for the designer’s signature style. Where original pieces can easily cost hundreds, the challenge—and the thrill—is achieving the aura of a Ralph Lauren Christmas at a fraction of the price.This isn’t just driven by aesthetic longing—it’s economic necessity. Inflation and rising costs have pounded the holiday budgets of most Americans, with many stretching their dollars further and starting their holiday planning earlier. Retailers themselves are leaning into the trend: Even premium guides to replicating the “heritage” style pair aspirational items with affordable alternatives from mass-market stores.Consumers chase traditional cues—tartan throws, velvet ribbons, gold baubles—sourced wherever they can be found. Social media groups and YouTube channels brim with tips for “dupes” and convincing DIYs that evoke the comfort and warmth of the Ralph Lauren look, minus the price tag. For many, assembling these elements isn’t aspirational irony but an earnest desire to conjure the cozy, elegant holidays they remember from childhood or Hollywood movies.Nostalgia, or something more?Some critics online question whether this “trend” repackages basic Christmas traditions under a new label. Yet for others—especially millennials and Gen Z creators who grew up yearning for catalog holidays—“Ralph Lauren Christmas” describes a mood as much as a collection of objects: a longing for warmth, security, and family gatherings in uncertain times.The style’s core motifs—a roaring fire, deep jewel tones, layers of texture—evoke not just designer luxury, but memories of grandparents’ houses and TV holiday specials. In a jittery economy, the comfort found in ritual, tradition, and a whiff of elegance conjuring “old money” (another breakout search term) feels especially magnetic.No matter where it’s sourced, the Ralph Lauren Christmas is less about brand names and more about atmosphere. The Ralph Lauren Christmas of 2025 owes as much to nostalgia and the ingenuity of ordinary Americans as it does to Madison Avenue—proof that with enough fairy lights, brass-look candlesticks, and dollar-store tartan ribbon, anyone can conjure up a bit of ‘90s opulent holiday magic.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

Target foot traffic is still suffering 6 months post-boycott. An industry veteran says the retailer’s problems are bigger than curtailing DEI

Foot traffic at Target fell year over year for the sixth consecutive month in July, and while the slump began the week after the retailer backtracked on its diversity, equity, and inclusion (DEI) efforts, some analysts say the real culprit is that Target is slipping on retail basics.Recommended VideoIn July, foot traffic at Target fell 3.8%, according to Placer.ai. Since announcing it was curtailing DEI on January 24, foot traffic has been down YoY for 25 of the last 27 weeks.While mediaoutlets (including thisone) have linked Target’s traffic losses to it eliminating some DEI initiatives (and the ensuing backlash and a boycott led by Black clergy), Walter Holbrook, an industry veteran whose resume includes 28 years as an executive at Kmart, believes that a bigger issue is Target struggling with the basics.Holbrook makes regular visits to a Target store in Jacksonville, Florida, and said that twice while shopping there on Sundays after church in the last two months, the store’s shopping cart corral was completely empty, something he documented once in a LinkedIn post. For the average consumer, the not-OK corral might have been just an inconvenience, but for Holbrook, a retail standard-bearer, “I could have exploded,” he told Retail Brew.“That’s the fundamentals,” Holbrook said. “If you can’t get that right, you can’t get anything right. If you don’t know that carts need to be kept filled on a Sunday afternoon, you’re in the wrong business.”Over the Fourth of July weekend, Neil Saunders, retail analyst and managing director at GlobalData, visited a Target and posted 15 photos on LinkedIn that documented shelves that were understocked (or completely empty), soiled, and in disarray.Target is “still not getting the basics right,” Saunders wrote in the post. “Fixture after fixture, including lucrative endcaps, are devoid of product. Essentials like kitchen paper are completely out of stock.”While there were “some nice ideas,” including a display with sundae toppings, “these things fall flat if you can’t get the basics right,” Saunders wrote. “Target is still training customers to ask: Why bother coming to the store?”Target did not respond to Retail Brew’s requests for comment about the foot traffic data and reports of issues like poorly stocked shelves.On August 10, the Wall Street Journal reported that about 40% of 260,000 Target employees who completed an internal company survey said they were not confident in the company’s future, a reported decline from a year ago.“While we recognize the hard work and progress under way, we’re not where we want to be,” Target CEO Brian Cornell told the WSJ.Middle ground: Ethan Chernofsky, CMO of Placer.ai, told Retail Brew that one of Target’s strengths is how it has found footing in what he calls the “bifurcation of retail” between luxury and value. Locating mini-stores within Target stores from retailers including Disney, Apple, and Casper creates a shopping environment that serves shoppers who don’t fit neatly in the luxury or value category but rather in the “middle” of both, Chernofsky said.“The ‘middle’ is, ‘I will spend more on the Disney toy for my kid, I will spend more on my iPhone, but I want to save money on socks,” Chernofsky said. “[Target] nailed that for so long, and that was what set them apart and made their growth so unique and special.”But in doing so, Chernofsky added, Target has raised expectations among consumers that they’ll have a more elevated experience than in a typical discount store, and he said his own experience is that the service at Target in the last year has not been as high as before, which he partly attributed to labor shortages faced by all retailers.“Labor shortages are more significant for someone who’s trying to nail that middle area,” Chernofsky said. “For someone who’s super value-oriented”—as opposed to being in that value-luxury middle—“if you’re not getting great service at Five Below, you’re not like, ‘Oh my God, nobody said hi to me.’”Ironically, perhaps, since his company’s data has been widelycited in documenting Target’s foot traffic declines over the last six months, Chernofsky believes the company’s ability to straddle discount and luxury is why it will rebound.“I’m weirdly more bullish about [Target] than I’ve ever been because I think the issues are very fixable,” Chernofsky said. “They live in this place where no one else is existing today, and that’s a really good place to be.”The cart of the deal: Cornell is expected to retire after his contract ends later this year and its board to choose a successor.“This decision by the board for new leadership is the most important decision in years for Target,” Holbrook said, adding that he also admires the retailer even as he’s found the shopping experience there wanting over the last couple years.“The retail industry is better off if we have a strong Target,” Holbrook said. “We need them to counterbalance everything else that’s going on, whether it’s Walmart or Amazon. We need that Target influence of fashion and style in the middle class that they can bring and capturing that aspirational shopper.”A few days ago, on Saturday, August 9, Holbrook sent us a photo he’d snapped at about 11 am at his local Target. The photo was of the store’s shopping cart corral.It contained a single cart.This report was originally published byRetail Brew.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

BofA cites ‘favorable protein economics’ in the chicken restaurant segment with the race afoot to corner the $67 billion market

The restaurant industry is facing “softer demand,” prompting a renewed focus on both value and customer experience, according to key takeaways from the 2025 Restaurant Finance and Development Conference reviewed by BofA Securities. Amidst these competitive pressures, a new report highlights chicken and beverages as the two most attractive segments for investment and growth.Recommended VideoBofA Securities, which attended the conference and met with franchisees and executives from coverage companies, was particularly impressed with one theme: “The chicken segment benefits from favorable protein economics.”Analysts Sara Senatore and Isaiah Austin also highlighted “menu versatility” for chicken, which lends itself to both quick-service restaurants (QSR) and fast casual. Restaurants are “leveraging chicken’s premium positioning relative to beef,” which has seen ongoing price volatility and higher input costs. Chicken food costs have been acceptable, franchisees and current and former executives told the bank in Las Vegas.Industry insiders and executives also told BofA the “broad demographic reach” of chicken is driving brand expansion and new menu offerings. Chain operators are leaning into both value and quality messaging, especially as consumers respond well to combo deals, limited-time offers, and customizable meals. Chicken can provide a platform for culinary creativity while keeping food costs in check, the bank argued—a key advantage as the restaurant sector continues to adapt to the post-pandemic landscape.A parallel revolution is happening in the packaged food aisle. Major brands like Kellanova (formerly part of Kellogg’s) and PepsiCo have been ramping up their investments in protein-fortified snacks, capitalizing on the rising demand from health-focused Gen Z consumers and others who use products like Ozempic and want to maintain muscle mass during weight loss. Kellanova has introduced Pop-Tarts Protein, with pastries that deliver 10 grams of protein per serving in classic flavors, aiming to satisfy consumers’ desire for both indulgence and nutrition.PepsiCo, too, has teased upcoming launches such as protein-packed Doritos, while Starbucks and Kroger have rolled out high-protein lattes and French toast sticks, respectively. With the fortified-protein product segment expected to grow from $67 billion in 2023 to more than $100 billion by 2030, there’s a consensus among industry leaders that “it’s going to keep coming.”A July survey by the International Food Information Council also found 70% of Americans are now seeking more protein in their diets, up from 59% just three years prior, although some dietitians say people don’t actually need as much protein as they’re consuming amid this food craze, and some studies show protein powders actually contain toxic heavy metals. Senatore and Austin noted beverages were on investors’ mind in Las Vegas, too, especially Starbucks.Value and experience define the landscapeMeanwhile, BofA noted the beverage category continues to attract robust investor interest. This growth is largely supercharged by the evolving preferences of younger consumers. While rapidly expanding concepts like Dutch Bros and others are effectively making inroads, operators acknowledged the market remains distinct enough to support “more coffee-forward concepts” like Starbucks, which appeal to a different customer base with a unique product mix and operation style.The bullish outlook on chicken and beverages comes as the overall industry grapples with the need to generate demand in a challenging environment. With demand softer, operators across the spectrum are zeroing in on customer value and experience.In the QSR space, companies are leaning heavily into value platforms, using combo meals and limited-time offers (LTOs) to drive traffic among increasingly price-sensitive consumers. Fast casual concepts are counterbalancing this by emphasizing quality messaging, enhanced digital experiences, and product customization.Casual dining operators, recognizing the industry may have lost its focus on hospitality during the immediate aftermath of COVID disruption, are now strategically emphasizing service quality, ambiance, and creating experiential occasions. Across all segments, restaurants are developing new strategies to stimulate demand during non-peak periods, including the introduction of smaller portions and employing dynamic pricing models, such as discounts during off-peak times.What stands out in 2025 isn’t just that protein sells—it’s that it now underpins both restaurant and retail food strategy. From the operational efficiency and menu adaptability of chicken restaurants to the innovative new launches in protein-packed snacks and drinks, the industry is seeing tangible economics favoring the protein trend on multiple fronts. Both restaurants and consumer packaged goods companies are betting on the stickiness of increased protein demand, even as inflation and shifting health priorities influence purchasing decisions. “Protein economics” look likely to be a key consideration, at least until Americans decided they’ve had enough of it.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. 

A Family Dollar store’s roof collapsed and killed a 68-year-old man two days after someone reported the building ‘slowly tilting’

KANSAS CITY, Mo. (AP) — Part of the roof and front facade of a Family Dollar store in Kansas City, Missouri, collapsed Sunday, killing a 68-year-old man and seriously injuring a 50-year-old woman, authorities said.The building’s partial collapse occurred about 2:45 p.m. Sunday, the Kansas City Fire Department said. Two other people also were injured outside the building but were treated at the scene and refused further medical care, according to local television news reports.Those television reports showed part of the roof and front facade missing at what appeared to be the main entrance of the store, with brick, stone and wood debris on the ground.Fire Department Battalion Chief Mike Hopkins said the man who died may have been walking by the building at the time. The woman who was seriously injured remained hospitalized.KMBC-TV reported that a public inspection record said that someone reported Friday that the building had begun “slowly tilting.” Authorities did not yet have an explanation for the collapse.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Fortune Archives: The war on Big Food

“Big Food is under attack from Startup Granola,” Fortune’s Beth Kowitt declared in 2015. She explained: “While consumers have long associated the stuff on the labels they can’t pronounce with Big Food’s products—the endless strip of cans and boxes that primarily populate the center aisles of the grocery store—they now have somewhere else to turn… And that has brought the entire colossal, $1-trillion-a-year food retail business to a tipping point.”Recommended VideoKowitt’s fascinating deep dive explores how America’s biggest food companies—including Campbell’s, Nestlé, Hershey, and General Mills—were evolving to cater to this shift in consumer tastes. They had become eager to go beyond the kind of vague gestures toward “natural” food that Stonyfield Farm cofounder and chairman Gary Hirshberg aptly dismissed as “the barn on the package.”Today, amid the ascendance of the “Make America Healthy Again” campaign championed by the Trump administration and Health and Human Services Secretary Robert F. Kennedy, Jr., food companies face a new set of cultural headwinds around what we eat and why. But as the New York Timesreported recently in a feature about the Amazon-owned Whole Foods, the ideological fault lines are far from clear. The natural food chain that helped “elevate the organic movement from niche lifestyle to booming product category” now faces criticism from both sides of the political aisle on issues like whether to ban seed oils from its shelves. Kowitt’s reporting is a useful reminder that the “paradigm shift” in Americans’ food consumption was never a simple adjustment for companies. Take the polarizing issue of labeling for genetically modified foods (GMOs), for instance. As Kowitt wrote, “Polls show that the vast majority of consumers say they support labeling products that contain GMOs, even though regulators—and established scientific organizations—have declared such modifications safe. Big food companies, however, have poured millions of dollars into overturning state initiatives that require labeling.” There are no easy solutions. But “the smartest thing you can do as a CEO right now is to side with the consumer,” Stonyfield’s Hirshberg told Kowitt in 2015. That’s probably still good advice.

Starbucks CEO says the company is doubling down on protein and gluten-free options: ‘I believe our food needs to match the craft of our coffee’

Starbucks is betting big on the health-conscious consumer movement with plans to dramatically expand its protein and gluten-free offerings, marking a significant shift in the coffee giant’s food strategy as CEO Brian Niccol seeks to revitalize the brand since taking the reins last year.Speaking at Fast Company’s Innovation Festival on Tuesday, the 51-year-old coffee-chain boss outlined ambitious plans to “reimagine all of our baked items” and create “much more artisanal” food options that complement the company’s premium coffee offerings.“I do believe our food needs to match the craft of our coffee,” Niccol said, signaling a fundamental shift in how Starbucks approaches its food menu. The company is preparing to launch protein cold foam later this year and is developing ways to “combine more protein with gluten-free options.”Riding the protein waveStarbucks’ embrace of protein reflects a broader industry trend that shows no signs of slowing. The global high-protein food market is projected to grow by $50.2 billion by 2028, according to research firm Technavio, driven by increasing health consciousness and of fitness culture’s popularity. Consumer interest in protein has surged, with protein mentions on social media platforms increasing by more than 10% year-over-year.Starbucks’ new protein cold foam, which will contain 15-18 grams of protein, represents the company’s attempt to capitalize on what has become one of its most popular beverage modifiers. Cold foam sales grew 23% year-over-year, the company reported during its Q3 earnings call in July, making it a natural vehicle for protein enhancement.“I was watching people coming to our stores, they would get three shots of espresso over ice,” Niccol toldAxios. “And in some cases, they pull their own protein powder out of their bag, or in other cases, they have a protein drink, like a Fair Life, and they’d pour that into their drink.”The protein push also aligns with changing consumer habits driven by the rise of appetite-suppressing injectable treatments like Ozempic and Wegovy. Nearly 18 million Americans are expected to be taking versions of GLP-1 drugs by 2029,Axiospreviously reported, creating demand for high-protein foods that help maintain muscle mass.Gluten-free growthStarbucks’ commitment to expanding gluten-free options comes as the global gluten-free food market experiences explosive growth. The market was valued at approximately $7.4 billion in 2024 and is projected to more than double that—$15.4 billion—by 2032.The trend extends far beyond those with celiac disease or gluten intolerance. In a recent poll, 11% of millennials and nearly as many from Gen Z reported following a gluten-free diet, despite only 1% of Americans being diagnosed with celiac disease.Balancing innovation with simplificationThese menu innovations form part of Niccol’s “Back to Starbucks” initiative, which aims to restore the company’s identity as a community coffeehouse while addressing operational challenges that have plagued the chain. Since taking over as CEO in September 2024, Niccol has implemented sweeping changes designed to improve the customer experience and reverse declining sales.Fortunepreviously reported Starbucks has been struggling with six straight quarters of declining same-store sales as of its most recent earnings report. However, there are encouraging signs of progress. Starbucks recently recorded its best-ever sales week for company-owned stores with the return of seasonal favorites like the pumpkin spice latte, according toCNBC.Niccol’s strategy includes bringing back self-serve condiment bars, eliminating upcharges for non-dairy milk alternatives, and investing $500-600 million in additional labor to improve service. The company is also renovating up to 1,000 stores to create more welcoming spaces with comfortable seating, ceramic mugs, and locally inspired design elements.And while Starbucks is streamlining its menu by cutting 30% of offerings by the end of the year, it’s still testing new items through its “Starting Five” program at select locations before national rollout, including the aforementioned protein cold foam, freshly baked croissants, and layered Frappuccinos. The company hopes these moves—pruning some items, while expanding in other areas—will help it rebuild its reputation as a “third place” between home and work.You can watch Niccol’s full interview from the Fast Company Innovation Festival below:For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Walmart, once ordered to ‘eat the tariffs,’ is giving employees a year-round 10% discount to help them eat

In its largest employee perk rollout in years, Walmart is extending its 10% grocery discount to cover nearly all food categories for its 1.6 million U.S. workers—marking a significant boost to benefits at the nation’s largest private employer. Announced in a LinkedIn video by Kieran Shanahan, executive vice president and chief operating officer at Walmart U.S., the change is effective immediately and applies both in-store and online, signaling Walmart’s bid to support its workforce amid rising food prices and retention challenges.Recommended VideoIn a separate LinkedIn post, JD Mahaffey, group director and global head of executive total rewards, expanded on the new benefit: Previously, Walmart’s 10% discount for employees was limited to fresh produce and select general merchandise, and most grocery items were excluded except during the November to December holiday season. With the new policy, nearly every food category is covered year-round, including staples such as dairy, frozen foods, dry groceries, meat, and seafood. In total, approximately 95% of regularly priced items in-store are now eligible for the discount.All employees and eligible corporate staff receive a discount card after 90 days of employment. The move was prompted by persistent worker feedback that called for more comprehensive and accessible perks, particularly as food inflation has squeezed household budgets. “We’ve heard your feedback that these savings make a real difference for you and your families,” chief people officer Donna Morris wrote in a staff memo shared withFortune. In fact, she described it as “one of our most requested benefits.”Why is Walmart doing this now?The expansion comes as economic pressures weigh on households nationwide. Recent government data shows food prices for staples such as eggs and meat have jumped sharply year over year. The move also coincides with heightened concerns over new tariffs that threaten to further raise prices across major retailers, Walmart included. More than half of grocery shoppers surveyed in August cited tariffs as their top worry about food costs.By ramping up employee benefits, Walmart is responding to both external market forces and internal demand. It’s a strategic step designed to bolster recruitment and retention at a time when competition for retail talent is fierce. Analysts note the company’s efforts to improve its work culture, including earlier expansions of training programs, wage hikes for hourly staff, and the introduction of bonus programs for frontline workers.COO Shanahan explained in the company video: “We know the impact this discount has for so many associates and their families, and one consistent piece of feedback we hear is to look at how we can make our associate discount program even better.”How does Walmart compare with other retailers?With the new perk, Walmart’s benefits now align more closely with those of leading competitors. Target offers a similar 10% discount on most merchandise plus 20% off select food items, while Kroger gives staff 10% off house-brand products and other categories. Hy-Vee (a Midwest grocer) and Trader Joe’s have even more generous policies, with discounts of up to 20% for employees.The timing of the announcement is crucial, coming just days before Walmart’s quarterly earnings release and as the company grapples with both supply-chain challenges and inflation pressures. As economic uncertainty continues to roil the retail sector, Walmart’s expanded grocery discount stands out as both a smart business maneuver and a measure aimed at fostering goodwill among its massive employee base.In May, Walmart issued a warning along with its earnings report that it may have to raise prices because of the anticipated impact of President Donald Trump’s tariffs. “We’re wired to keep prices low, but there’s a limit to what we can bear, or any retailer for that matter,” chief financial officer John David Rainey told the AP at the time.Trump responded by ordering Walmart to “EAT THE TARIFFS.” This move by Walmart appears to confirm that Walmart can’t eat all of them, and it will at least be helping its employees take home something to eat for the pre-tariff prices they used to see.Walmart did not immediately respond to a request for comment.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Starbucks ends 6-year Gen Z experiment after finding proof that human connection is better

Starbucks CEO Brian Niccol is closing a convenience that was explicitly targeted toward Gen Z’s taste for “frictionless” experiences: their mobile-only “pickup” stores. The move signals a deliberate shift away from the high-speed, tech-driven model that defined much of the chain’s recent expansion. The coffee giant will convert or close approximately 80 to 90 of these mobile order-only locations nationwide by the end of 2026, Niccol said on Tuesday’s earnings call with analysts, marking the end of a six-year experiment that catered to on-the-go customers who seemed to prefer mobile ordering to lingering over a latte.Recommended VideoAnnouncing the closures, Niccol was direct about the rationale on Starbucks’ Tuesday call with analysts. “We found this format to be overly transactional and lacking the warmth and human connection that defines our brand,” he said.Built primarily in urban centers, airports, and hospitals, these stores were designed to maximize convenience—no cash registers, limited or zero seating, and an efficient grab-and-go experience orchestrated through the Starbucks app. Starbucks wants to bring back the warm coffeehouse.The move comes amid a period of challenge and transition for Starbucks. Sales at stores that have been open for at least one year have declined for six straight quarters, with North American sales have dropped by 2% most recently. Analysts point to customer fatigue with impersonal, tech-centric transactions and “soulless” atmospheres, especially as competitors offer new forms of hospitality and engagement. It’s also a tricky needle to thread, as Starbucks disclosed in its earnings that 31% of all transactions are mobile, making it a critical part of the business.The company remains committed, according to Niccol, to enhancing digital and mobile experiences through technical upgrades to the Starbucks app and its Rewards program, set for rollout in 2026. But Starbucks’ other actions are suggesting that these experiences shouldn’tfeelmobile.Niccol, who took over as CEO in September 2024, has staked his turnaround strategy on restoring the brand’s emotional resonance, echoing former CEO Howard Schultz’s recognition that consumers needed a “third space” that wasn’t home or work. Niccol argued on the call that customer-value perceptions are near two-year highs, and they’re driven by gains among Gen Z and millennials, who make up over half of Starbucks’ customer base. It shows that younger consumers wanted more warmth than previously thought.Uplift through green apronsStarbucks has a program under way to “uplift” its coffee houses, which involves investing $150,000 per store to upgrade seating, lighting, and atmosphere in more standard locations. The chain’s new prototype stores—already being piloted in New York City—reintroduce cozy chairs, power outlets, and large tables, fostering a more communal and linger-friendly environment. Niccol said some mobile-only stores will get converted to this new setup, where it makes sense.“We plan to complete an evaluation of our North American portfolio by the end of this fiscal year to ensure we have the right coffee houses in the right locations to drive profitability and deliver the Starbucks experience,” Niccol said on the earnings call.Starbucks is also piloting smaller-format stores with limited seating to blend convenience with a sense of place—another sign the brand isn’t abandoning quick service, but is instead recalibrating its approach. As the company prepares to sunset its transactional pickup model, Starbucks is doubling down on its legacy: coffee shops as community anchors, not just efficiency engines. The era of the “app-only” Starbucks is ending, as the company bets that its future lies in connection, not just convenience.These investments are part of Niccol’s $500 million “Green Apron Service” initiative, intended to restore “hospitality” to the center of its business. It involves a revamped barista dress code featuring, yes, the green apron, but also emphasizes personalized service. Starbucks believes this is what Gen Z really wants, not a frictionless mobile order that barely involves interacting with a human. There is other evidence that Gen Z craves more human connection, with 91% telling the Harris Poll they want more of a balance between remote and office work.Starbucks COO Mike Grams spoke withCNBC earlier this week and also offered thoughts on how the company views Gen Z. He argued in favor of an approach the company describes as “hospitality” and, when asked about evolving “social cues,” he described how Starbucks is working to lean into a more subjective experience. “Connection is different things to different people,” he said, arguing that Starbucks baristas are well positioned “to understand what each individual customer wants in that moment in time.” In other words, Starbucks is risking a collision with the “Gen Z stare,” because it’s working to make sure that the human connection is front and center in its business.When reached for comment, Starbucks referredFortuneto the earnings report and Niccol’s comments on the analyst call.For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Former Food Network star Paula Deen suddenly closes flagship Savannah restaurant

Former Food Network star Paula Deen announced Friday the abrupt closure of the Savannah restaurant that launched her to fame with its menu of fried chicken, banana pudding and other indulgent Southern dishes.Recommended VideoDeen ran The Lady & Sons restaurant with her two sons, Jamie and Bobby Deen, for nearly three decades. Loyal fans visiting Savannah continued to line up for Deen’s buffet long after the Food Network canceled her show, “Paula’s Home Cooking,” in 2013.But 78-year-old Deen said Friday that The Lady & Sons closed for good along with The Chicken Box, which sold takeout lunches behind the main restaurant. A statement posted on Deen’s website and social media accounts didn’t say why the restaurants had shut down.“Hey, y’all, my sons and I made the heartfelt decision that Thursday, July 31st, was the last day of service for The Lady & Sons and The Chicken Box,” Deen’s statement said.“Thank you for all the great memories and for your loyalty over the past 36 years,” she said. “We have endless love and gratitude for every customer who has walked through our doors.”Deen said her four restaurants outside Savannah will remain open. They’re located in Nashville and Pigeon Forge, Tennessee; Myrtle Beach, South Carolina; and Branson, Missouri.Windows at The Lady & Sons were covered with brown paper Friday. Signs posted at the front entrance read: “It is with heavy hearts and tremendous gratitude that we announce that we have retired and closed.”Deen’s restaurant seemed `packed’ until it closedAdrienne Morton and her family, visiting Savannah from Cincinatti, had made dinner reservations at Deen’s restaurant for 5:45 p.m. Friday.Morton said she received a text message Friday morning saying her reservation had been canceled.“I thought this must be a mistake or maybe they planned to close and we don’t live here and just weren’t up to speed, but no,” Morton said. “We wish them the best. Hopefully everything turns out.”Martin Rowe works in a downtown office across the street from Deen’s restaurant. He said business seemed to be going strong up until it closed.“Nobody knew anything was wrong,” Rowe said. “I walk by there two or three times a week at lunch, and it was always packed.”Deen went from nearly broke to Food Network fame in SavannahDeen was divorced and nearly broke when she moved to Savannah with her boys in 1989 and started a catering business called The Bag Lady. She opened her first restaurant a few years later at a local Best Western hotel, then started The Lady & Sons in downtown Savannah in 1996.The restaurant soon had lines out the door and served roughly 1,100 diners per day at the height of Deen’s popularity. A USA Today food critic awarded The Lady & Sons his “meal of the year” in 1999.Deen moved her Savannah restaurant to a larger building nearby the year after The Food Network debuted “Paula’s Home Cooking” in 2002. Filmed mostly in her home kitchen, Deen taped more than 200 episodes over the next decade.The Food Network canceled Deen’s show in 2013 amid fallout from a lawsuit by a former employee. A transcript of Deen answering questions under oath in a legal deposition became public that included Deen’s awkward responses to questions about race.Asked if she had ever used the N-word, Deen said, “Yes, of course,” though she added: “It’s been a very long time.”Deen returned to television on ABC’s “Dancing With the Stars,” on chef Gordon Ramsay’s Fox show “MasterChef: Legends,” and on Fox Nation, which began streaming “At Home With Paula Deen” in 2020. She also posts cooking videos to a YouTube channel that has more than 520,000 subscribers.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

The 99-cent AriZona iced tea could be the next victim of Trump’s tariffs

For more than two decades, AriZona’s iconic 99-cent iced tea has shrugged off pandemics, recessions, and supply shocks. Now, President Donald Trump’s new 50% aluminum tariffs could finally crack its unshakable price tag. AriZona Iced Tea uses about 100 million pounds of aluminum for its signature cans, about 20% of which comes from Canada. Founder and chairman Don Vultaggio told theNew York Timesthat unless Trump strikes a deal to lower the new aluminum levy with Canada, the company may be forced to raise prices. “I hate even the thought of it,” Vultaggio toldThe Times.  “It would be a hell of a shame after 30-plus years.”The founder has made headlines for refusing to hike the price of his tea, even as inflation drives the prices of all other goods up. If Vultaggio adjusted the price of AriZona iced tea to match rising input costs, the tea would cost $1.99 today. Yet, the billionaire didn’t see a point. “We’re successful. We’re debt-free. We own everything. Why?,” Vultaggio said in an interview withTodayin June. “Why have people who are having a hard time paying their rent have to pay more for our drink?” Vultaggio has tried other workarounds to save money on aluminum, including downsizing the can from 23 ounces to 22 ounces. Even that decision weighed on him. Now, the founder worries the price of aluminum, which he said has “dramatically bumped up” because of the tariffs, might be the final blow to the 99-cent cans. A test case for U.S. manufacturingAriZona’s predicament could be a test case for what happens when a domestic manufacturer—one that’s nearly fully vertically integrated, even owning the railroad tracks its trains use to ship sugar daily—gets punished for importing some of its materials. PNC’s Chief Economist Augustine Faucher toldFortunehe thought the aluminum tariffs were unnecessary and inefficient. Canada, which has access to abundant and inexpensive hydroelectric power, is one of the world’s leaders in aluminum production. Given the higher input costs of making aluminum in the U.S., importing it will always be cheaper than producing it domestically, he said.“It’s going to be difficult to completely avoid tariffs, and that’s likely to contribute to higher consumer inflation in the near term as these companies pass along some of their higher input prices,” he said. Faucher said companies like AriZona have few ways to blunt the impact. Unlike industries with slow turnover, which can stock up on inventory before the tariffs hit, beverage makers move product quickly. That means the aluminum tariffs will immediately hit the company’s bottom line.All the price pain comes with very little gain, Faucher noted. Companies like AriZona, which imports some aluminum but produces the rest of the product domestically, might decide to just package the product overseas to avoid the duty. “The idea is to help American manufacturers, but this hurts American manufacturers who use these types of imported inputs,” Faucher said. The economist said he doesn’t see a need for the United States to have a strong domestic aluminum industry at all. “It makes sense over the long-run to specialize in areas where the United States does well,” Faucher said. “But given the energy costs associated with aluminum production and getting bauxite and all that kind of stuff, it just doesn’t make sense for the industry to be located in the United States.” Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Panera’s CEO unveiled a comeback plan—and it includes better ingredients like lettuce: ‘No one likes iceberg’

With sales stagnating, Panera Brands CEO Paul Carbone unveiled a bold plan yesterday to win back customers: make everything better.Panera, once considered the gold standard in American fast-casual dining, has fallen behind competitors like Chipotle and Panda Express, with its sales dropping 5% to $6.1 billion last year. Carbone says the goal is to reach $7 billion in annual sales by 2028 behind “Panera RISE,” a new strategy intended to undo the chain’s cost-cutting measures, which he dubbed “death by a thousand paper cuts.”The overhaul includes:Lettuce: Salads will be fully romaine again and no longer include iceberg. “No one likes iceberg,” said Carbone, who also may have been delivering a four-word review of Titanic. Salads will also have eight ingredients instead of the current five.Tomatoes: Starting next year, salads will contain sliced cherry tomatoes (rather than whole ones that were used to save money).Drinks: Frescas and “energy refresher” drinks (which have less caffeine than the ones that resulted in two wrongful death lawsuits) are in the offing.Portions: The WSJ reports that Panera is “beefing up portions” after shrinking its sandwiches.Labor: There will be more workers on hand, and the company is reinvesting in the self-ordering kiosks that haven’t been upgraded in nearly a decade.Zoom out: Panera is also looking to mimic the value offerings at establishments like Chili’s, but lacks appetizer options. “We haven’t cracked the code yet,” Carbone said.—DLThis report was originally published byMorning Brew.

Starbucks asks customers in South Korea to stop bringing printers and desktop computers into stores as workers transform cafés into remote offices

Starbucks patrons in South Korea are setting up de facto officesat the coffee chain, bringing along their desktop computers and printers. The company implemented a new policy banning bulky items from store locations. In South Korea, where office space is scant, remote workers are using cafés as a cheap place to work.There’s getting cozy at a Starbucks to sip a latte and catch up on emails, and then there’s lugging your printer and desktop to the coffee chain to clock into work.Recommended VideoStarbucks South Korea is experiencing this exact phenomenon and is now barring patrons from bringing in large pieces of work equipment, treating the cafés like their own amenity-stuffed office space.“Starbucks Korea has updated its policy so all customers can have a pleasant and accessible store experience. While laptops and smaller personal devices are welcome, customers are asked to refrain from bringing desktop computers, printers, or other bulky items that may limit seating and impact the shared space,” a Starbucks spokesperson toldFortunein a statement.The company said it will continue to be a “welcoming third space.” The store policy change was first reported by theKorea Herald.Starbucks has been a fixture in Korea since opening its first store there, in the Edae neighborhood of Seoul, in 1999. South Korea has surpassed Japan in the number of Starbucks stores, boasting 2,050 to Japan’s 2,040 locations, despite having less than half its population.But the coffee chain’s crackdown oncagongjok, a term referring to individuals spending prolonged periods of time working at cafés, may indicate a changing attitude toward customers who may be loyal but taking Starbucks’ burgeoning efforts to become a cozy third space for granted. Starbucks South Korea is majority owned by retail giant E-Mart Inc. as of 2021. Starbucks continues to oversee its licensed business.For years, there have been pockets ofcagongjokas a result of the COVID-induced remote-work boom, as well as the rise of temporary-contract jobs following the 1997 Asian financial crisis, according to Jo Elfving-Hwang, an associate professor of Korean society and culture at Curtin University in Australia.“It’s quite a cheap way to work really,” Elfving-Hwang toldFortune. “You can just go and have a cup of coffee, work there—but people are taking it a little bit to the extreme nowadays.”Rising visibility ofcagongjokKorea has a strong tearoom culture, Young-Key Kim-Renaud, professor emeritus of Korean language and culture and international affairs at George Washington University, toldFortune.“Even when they were dirt-poor, people gathered in the tearooms to discuss things [like] literature, art, politics, or whatever, and felt that they were civilized,” she said.Butcagongjok—a portmanteau of the Korean words for café, study, and a word for a tribe that has taken on a pejorative meaning—has gained public awareness as a result of South Korea’s labor market and remote-work shift. The pandemic caused an influx of employees needing to work remotely, but as many Koreans returned to the office, government redevelopment restrictions limited how much space was available for businesses to set up their employees in office spaces—especially in South Korea’s capital of Seoul, where rent prices are skyrocketing as businesses fight over office spaces. Office vacancies in Seoul remained low last quarter at around 2.6%, according to April data from commercial real estate service CBRE, while rent for the offices increased on average 1.5% from the quarter before. Korean companies failing to find or afford office spaces has led some to let employees work in third-party co-working spaces or remotely, Elfving-Hwang said, leaving many to flock to cafés.“People just started working from home more, and [businesses] discovered that they didn’t necessarily need a space in the same way,” she said. “Part of the reason is that it’s become more of a practice that just a lot of companies discovered that they didn’t necessarily need an office of their own.”However, not all café owners are so sympathetic to changing labor culture, calling cagongjok “electricity thieves” and claiming patrons stay working at their businesses for hours while nursing just a single cup of coffee in that time.While the rise of remote workers in cafés marks the shift of coffee shops from a place of leisure to a place of work, Elfving-Hwang said, she said she believed it was only a matter of time before coffee shops itched to shift the balance back toward reputations of relaxation.“I was surprised it took so long,” she said.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Shoppers are underwhelmed by deals and crowds on Black Friday

Underwhelmed and unimpressed are how shoppers are feeling about Black Friday deals so far.  The Repasky family makes a tradition of coming out to Tysons Corner Center shopping mall in Virginia on Black Friday. One change they noticed this year: fewer doorbuster deals and freebies.Jennifer Schmuck reported the same from Westfield Montgomery Mall in Maryland Friday morning. “I don’t think the deals were as good,” the 50-year-old banker said. Last year Macy’s Inc. gave her a $10 coupon for being among the first in line, but didn’t this year.Near Philadelphia, Melissa Ritzius, a 50-year-old homemaker, was similarly unimpressed with the sales at the Polo Ralph Lauren Factory Store. Even though the deals looked comparable to last year, with higher listed price they didn’t amount to much of a discount.One Polo sweater she was eyeing went from $125 last year to $170 this year. “It’s a big change,” she said. Ritzius didn’t end up buying it.Many shoppers said they came out for the experience of big crowds, yet that too was disappointing for some. Some malls and shopping centers across the US today, like Patrick Henry Mall in Virginia, were empty this morning. Others had lines at a few stores, like Macy’s, Old Navy, Target and Edikted. “It feels like less than a normal Saturday,” said Nicole Slaughter from the Mall of Georgia in the Atlanta area. Deontay Phillips, a 26-year-old who serves in the military, who came out for his first Black Friday was underwhelmed by the lack of deals and festivities. “It’s not really what I expected,” said Phillips from a Best Buy Co. store in Newport News, Virginia. “I probably won’t do this again.”US consumers are heading into the official start of the holiday shopping season Friday with a host of economic concerns, including a cooling job market, stagnant wages, persistent inflation and the looming fallout from tariffs. Black Friday will be a litmus test: Will American shoppers push through growing economic headwinds or will the consumer-powered US economy start to fizzle?Signs point to a less indulgent holiday season. “We are not expecting it to be an overzealous, exciting holiday,” said Marshal Cohen, chief retail adviser at research firm Circana. While overall spending is estimated to be on par with last year, according to Circana, unit sales could fall as much as 2.5%. In other words: People will spend more to buy less stuff. “The tree is not going to be jammed this year,” Cohen said.US retailers generate 20% of their annual sales in November and December. This year, companies are competing for an increasingly price-sensitive and anxious consumer. While people are still willing to spend — particularly those in the top 10% of earners — they’re being picky about where they put their dollars. Some shoppers say they’re planning on taking advantage of Black Friday sales not to splurge, but to stock up on essentials. Tariffs, meanwhile, are making it harder for some brands to offer the big discounts usually associated with Black Friday. And shoppers who venture to stores may encounter longer lines and less help. Seasonal retail hiring is expected to fall to its lowest level since 2009.“Nothing is discounted enough that it moves the needle where I’m like, ‘oh I don’t need it, but I need to get it now,’” said Jennifer Greenberg, a 29-year-old who lives in New York City, while shopping for a menorah at Bloomingdale’s. Still, the day won’t be entirely devoid of promotions. Walmart Inc. is offering discounts on a range of items including 50% off Vizio TVs and a puffer jacket for just $10. Amazon.com Inc. has discounts of up to 50% on beauty products from Lancôme and luxury fragrances from other brands. Target Corp. is offering nearly half off SodaStream machines and up to $200 off on Apple products, in addition to $1 bow ornaments, $5 Barbie fashionista dolls and $10 throws. At Home Depot Inc., some power tools and refrigerators will be 50% off. Kohl’s plans to be “highly” promotional this holiday season to win over stressed shoppers. Best Buy is predicting a stronger Black Friday than in years past.Stores are also hoping to draw shoppers in other ways. Target was planning to give away free gift bags to the first 100 customers at every store on Black Friday and will offer exclusive Wicked-themed items and frozen peppermint hot chocolates at the Starbucks locations in its stores. Abercrombie & Fitch Inc.’s Hollister is teaming up with Taco Bell to sell limited-edition merch that will debut on Cyber Monday. Walmart and Target are rolling out a new AI-driven shopping tools to help customers find deals and make purchases more easily.Consumer spending has held relatively steady this year despite macroeconomic turbulence. Earlier in the year, some shoppers fueled sales with big ticket items they purchased to avoid impending tariffs. Since then, a buoyant stock market has kept people in the top income brackets spending. Many retailers have said that people’s purchasing habits remain consistent and that tariffs haven’t affected prices as much as initially expected. More recently, however, gloomy signals have started to emerge. Lower-income consumers are pulling back their spending, while US consumer confidence slid in November by the most in seven months. Retail sales growth slowed in September.Shoppers are likely to gravitate to items that could be hit by tariffs next year, said Jessica Ramírez, managing director at the Consumer Collective consulting firm. People are also purchasing things that bring them joy during an otherwise stressful time, she said. That includes keychains and other accessories to spruce up their handbags and home decor items to brighten up their living space.In recent years, Black Friday has become less of an event as more shoppers take advantage of fall and online sales, like Amazon’s Prime Day, to get an early start on holiday shopping. That trend is even more pronounced this year, due to tariff fears, said Michael Brown, the Americas retail leader at strategy firm Kearney. That could weigh on overall spending during the next two months, he said. 

Bad weather and disease in West Africa are making your chocolate bar 10% more expensive—at least

Here’s the good news: The Hershey Co. says it’s not raising prices for Halloween candy this year.Recommended VideoBut here’s the bad news: Hershey and other chocolate makers are continuing to hike prices, saying a volatile cocoa market gives them no choice.Hershey, the maker of Reese’s, Whoppers, barkThins and other chocolate candies, said Wednesday that it will be raising U.S. retail prices later this fall. In some cases, pack sizes will get smaller; in others, list prices will rise. The average price increase will be in the low double-digit percentages.“This change is not related to tariffs or trade policies. It reflects the reality of rising ingredient costs including the unprecedented cost of cocoa,” Hershey said in a statement.Hershey stressed that the price increases won’t apply to products specially packaged for Halloween.On Tuesday, Swiss chocolatier Lindt said it raised prices by 15.8% in the first half of this year. The company said it was able to offset some of the higher cost of cocoa with long-term contracts but had to pass much of it on to consumers.“The development of the global chocolate market in the first half of 2025 was a continuation of what we saw in 2024, with cocoa prices remaining close to record highs,” said Adalbert Lechner, Lindt’s CEO, in a conference call with investors.Cloetta, a Swedish confectionary company, told investors last week that it raised chocolate prices in the second quarter. And Nestle raised U.S. prices for products like Toll House chocolate chips in the spring.Cocoa prices have more than doubled over the past two years due to poor weather and disease in West Africa, which supplies more than 70% of the world’s cocoa.Cocoa futures, which are binding contracts for a specific quantity of cocoa, stood at $7,380 per metric ton on Wednesday, according to the International Cocoa Organization, which releases a daily average of prices in London and New York.That’s down from December’s peak of $11,984, but it’s still 121% higher than two years ago.And the situation remains volatile. According to the International Cocoa Organization, prices surged in early June on concerns about production in Ivory Coast but eased on optimistic forecasts for production in Ghana and Latin America. They rose again in late June after heavy rains in West Africa, which could worsen the outbreak of diseases that harm crops.“It’s almost a bit dangerous to comment on this because it’s changing so fast,” Cloetta Chief Financial Officer Frans Ryden said last week in a conference call with investors. “This is something that’s moving hugely up and down all the time.”Meanwhile, prices have been rising on store shelves. The average unit price of a chocolate bar in the U.S. in July 2021 was $2.43, according to Nielsen IQ, a market research company. As of last week, it was $3.45, a 41% increase.That’s hurting customer demand. Nielsen said unit sales of chocolate fell 1.2% in the year ending July 12.Tariffs could also impact U.S. prices. President Donald Trump threatened a 21% tariff on cocoa and other products from Ivory Coast in April, for example, but then paused the tariffs’ implementation.The National Confectioners Association is asking the Trump administration to protect cocoa from tariffs. The group says the U.S. imports nearly $4.4 billion in chocolate, cocoa and candies each year, and the association’s members export nearly $2 billion in American-made chocolates and candy annually.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Starbucks apologizes for $29.95 ‘Bearista’ chaos after many fans miss out and merch resells for up to $50,000 online

Consumers may be rattled by inflation and fears about the economy, but that hasn’t stopped them from flocking to Starbucks for the coffee chain’s latest limited offering: a 20-ounce cup shaped like a teddy bear.Recommended VideoStarbucks unveiled on Wednesday its “Bearista Cold Cup,” selling for $29.95. The item sold out within hours, with some customers complaining of people in line shoving one another to stake a claim over the product. Others claimed they waited in store lines for an hour, only to see employees take two cups off the shelf and buy them themselves.Some able to buy the Bearista cup have taken to reselling it online, with many cups going for more than $300—even up to an eye-popping $50,000.Starbucks offered an apology for the limited run of the cup, saying it did not expect it to become so popular.“The excitement for our merchandise exceeded even our biggest expectations and despite shipping more Bearista cups to coffeehouses than almost any other merchandise item this holiday season, the Bearista cup and some other items sold out fast,” a Starbucks spokesperson said in a statement toFortune. “We understand many customers were excited about the Bearista cup and apologize for the disappointment this may have caused.”Last month, the coffee chain reported its first same-store sales growth in two years, turning the corner on a yearlong turnaround plan implemented by CEO Brian Niccol to turn Starbucks back into a cozy “third space.” Company changes included adding more comfortable store seating, and slashing menu items, as well as leveraging AI, taking the pressure off baristas so they can fulfill orders more efficiently.Defying a cautious consumerRetailers have long promoted holiday decorations and goods months ahead of schedule, as spending on special seasonal products tends to remain robust, even as other discretionary purchases take a hit. Look no further than Starbucks’ perennially popular Pumpkin Spice Latte, which it rolls out in August—a month before the autumn equinox.Ravi Sawhney, founder and CEO of product design firm RKS Design, toldFortunethatStarbucks’ success with the Bearista cup goes beyond just seasonal flair. It pulls at the feeling of status that consumers desire, even in challenging economic times.“In tough times, people look for any level of being unique, special,” Sawhney said. “They need those little tokens, and if it’s rare, that makes it that much more special.”The designer, interested in the psychology behind why people purchase what they do, said consumers want to feel like they are on a hero’s journey when they go after an affordable trinket: They identify something they want, go through trials and tribulations to attain it, and then are positively viewed by other individuals who covet the item they just obtained.“What is the low-cost way to be a hero to yourself and to others?” Sawhney said.In less poetic terms, the Bearista cup is simply an extension of the little treats culture favored by Gen Z to justify small purchases after a challenging day. According to Sawhney, Starbucks is the embodiment of this little treats psychology—People may not be able to afford much, but they still splurge on a cup of coffee. It’s no surprise, then, why the Bearista cup was such a hit. “It’s the essence of Starbucks,” he said.

Cola lovers: PepsiCo has a prebiotic soda in the works for you—and it’s not Poppi

With the buzz around healthy sodas far from fizzling, Pepsi is doubling down on the emerging segment just months after acquiring one of its pioneers, Poppi, by launching a new innovation: Pepsi Prebiotic Cola.Recommended VideoThe product is “one of the largest new innovations in the cola category,” Mark Kirkham, CMO of PepsiCo Beverages US, told Retail Brew. Containing 5 grams of cane sugar, 30 calories, and 3 grams of prebiotic fiber, the new soda is aimed at giving consumers more soda choices, he said, as Pepsi tries to meet demand for more healthy options. It’ll be sold first online in Original Cola and Cherry Vanilla flavors for Black Friday and Cyber Monday, followed by a retail debut in February, priced at a premium to traditional Pepsi, Kirkham said.Poppi, whose acquisition was completed in May, also offers Classic Cola and Cherry Cola flavors with a nearly identical nutritional profile, but Kirkham sees the two as complementary, selling in two separate soda segments that reach different consumer sets.Kirkham broke down the new product, and how it fits into its portfolio alongside Poppi and aligns with Pepsi’s larger beverage innovation strategy.This interview has been lightly edited for length and clarity.Why did Pepsi decide to develop this product?One of the things we wanted to do is address two opportunities. One is the declining cola category. Particularly, we’ve seen occasions drop over time in the core, but especially in diet [soda], and also to look for new ways to deliver more, better-for-you functional ingredients into our core. And obviously this was early days in what has become the modern soda business, and we started working on this well over a year ago.We found…we could get to an amazing-tasting product that is no artificial sweeteners, that’s 5 grams of cane sugar, that’s got the taste of Pepsi…But also it’s got prebiotic fiber…And it’s the kind of ingredient that we’ve seen bringing new consumers into the category. The reality is, no one has that in cola, and obviously super complimentary to Poppi, who do have two cola SKUs, but that’s only 8% of their mix. We feel this is a great opportunity to: one; bring innovation to the traditional cola category; two, compliment this amazing new family member in Poppi—they are the leader in developing the modern soda category; and then three, offer choice. Offering choice to our consumers is the ultimate goal of these innovations…It’s a win-win for the consumer, and it’s a win-win for us.What are your thoughts about how similar those products are?A lot of what makes Poppi so special is it’s been built from the ground up. It always was clean label, natural ingredients. One of the biggest drivers there was always the apple cider vinegar. When you taste their cola, particularly their cherry and their regular cola, it’s a very different flavor profile than, let’s say, traditional cola, like we offer with Pepsi. We felt there are a lot of cola lovers out there that have this certain expectation of a cola flavor, particularly of Pepsi, but they also want alternatives in terms of different sweetener systems, or added benefits, or having lower sugar. Being able to address that part of the market that may not be being addressed through the cola segment within modern soda—that’s where the real opportunity is for us.The prebiotic soda space has been popping off for several years. What instigated the development of this product now?We were just listening to the consumer, and we were seeing the emergence of different segments in the category.This is about Pepsi, and Pepsi delivering a new product to address the consumers of cola, or, in the case of maybe some of the younger consumers who maybe didn’t grow up with cola like I did, right?…We’re bringing them in through the fact that this is only 5 grams of sugar, no artificial sweeteners, that it’s only 30 calories, and the prebiotic fiber gives it a new way to bring in a different audience and a new consumer.We actually think it’s a great opportunity for, let’s say, Gen X female diet cola drinkers. There’s an opportunity to really source from a broader range of consumers. This is not just a pure Gen Z play, which is very much what’s built modern soda. This is a broader play for cola lovers.How are you balancing innovating on the core versus bringing on acquisitions like Poppi?The reality is you have to do both…I like to say “core and more.” The only way you’re really going to drive growth in some of our categories is to really ensure that your core is healthy and that you’re continuing to innovate your core, but at the same time, you cannot miss out on these new and emerging categories, like what we saw in modern soda and Poppi. It’s a balanced approach that you need to take with innovation, but you must make sure that you’re doing both core and more, because we built this amazing brand for over 125 years. We’’ve helped create amazing products through our Diets, through our Zeros, but this next generation of consumer and as the category evolves, there’s opportunities to offer new innovation within the core, and that’s what we’re doing.This report was originally published byRetail Brew.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Your Christmas tree may be pricier this year—but there are ways to get a deal

Artificial Christmas tree sellers in the U.S. were thrown into turmoil earlier this year when the Trump administration announced punishing tariffs on Chinese imports, including threats of 145% duties.About 85% of the 20 million or so Christmas trees being sold in the U.S. annually are artificial, and of those, about 90% are made in China. So any such tariffs threatened to send Christmas tree prices much higher in a year in which American consumers have shown themselves to be cautious and frugal.Initially, some distributors temporarily halted production in China,while others scrambled to move production to other countries as they waited to see whether the threatened tariff rates would fall. (They have, back down to a more manageable 20%.) The upshot, after those months of uncertainty, has been upward pressure of about 10% to 15% on what Americans are shelling out this year for their Christmas trees, according to leaders in the industry. “We have raised prices and I think most companies have raised prices,” National Tree Company CEO Chris Butler toldFortune. At the same time, Butler said, expectations that customers are going to be more scarce this year may create opportunities for some deals. The average owner of an artificial tree gets a new one every five years, and higher prices could convince some to hold out for one more year. Some 80% of trees are sold after Nov. 1. And the bulk of artificial trees are in the $100 to $300 range, so those tariffs are translating into real dollars in what is already a stressful holiday season for those dealing with job losses or market volatility.“We’re seeing a bit of softness early in the season for Christmas trees, and we may have to give back some of those price increases and promotions to get back to where we need to be,” says Butler, whose company sells about a million trees a year and is part of a group of 10 larger distributors that act as a de facto trade organization for artificial trees. Even before the Trump tariffs, Butler said, National Tree had already been working to diversify its supplier base to reduce dependence on China, turning to factories in Cambodia, Vietnam, and Thailand. Butler says that roughly 50% of his production is now outside China, giving him some flexibility. And large sellers like Walmart and Home Depot have already placed some orders for 2026.Butler said that his Christmas tree group has been trying to explain to lawmakers that the tariff uncertainty could cause chaos in the 2025 Christmas season and also next year’s—meeting with the U.S. Trade Representative Jamieson Greer, with faith-based organizations at the White House, and with five senators. “We’re trying to work with the administration to make Christmas affordable,” says Butler. As for the natural Christmas tree market, so far it appears to be largely unaffected by the trade wars. It consists primarily of American trees, with the bulk of imports coming from Canada. Trees from Canada are exempt from tariffs under an agreement that covers the majority of trade between the two countries. Tree farmers say business is brisk as usual, says Rick Dungey, executive director of the National Christmas Tree Association, which represents natural tree sellers in the U.S. Even in tough or uncertain economic times, few people are going to sacrifice the tradition of getting a tree, he said.“It’s about memories,” said Dungey. “It’s about feelings. And it’s once a year, right?” 

Over 750,000 pressure washers recalled nationwide for tendency to create projectile hazards

About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.Recommended VideoAccording to a Thursday recall notice published by the U.S. Consumer Product Safety Commission, TTI Outdoor Power Equipment is recalling certain models of its Ryobi-branded electric pressure washers because the products’ capacitor can overheat and burst, “causing parts to be forcefully ejected.”That poses serious impact risks to users or bystanders. To date, the CPSC notes, the power tool and equipment company has received 135 reports of capacitors overheating in the U.S. — including 41 reports of explosions that resulted in 32 injuries and/or fractures to consumers’ fingers, hands, face and eyes. A corresponding notice from Health Canada noted that no additional incidents were reported in Canada.Consumers in possession of the now-recalled pressure washers are urged to stop using them immediately and visit Ryobi’s recall website to learn about how to receive a free repair kit, which includes a replacement capacitor.The Ryobi washers under recall have model numbers RY142300 and RY142711VNM. About 764,000 were sold in the U.S., in addition to 16,000 in Canada.In the U.S. these products were sold at Home Depot and Direct Tools Factory Outlet between July 2017 and June 2024, the CPSC notes, for about $300 to $400 in stores and online.TTI Outdoor Power Equipment is a subsidary of Techtronic Industries (TTI). The Associated Press reached out to the company for further comments on Thursday.Beyond Thursday’s pressure washer recall, TTI also recalled Ryobi-branded mowers and hedge trimmers earlier this year — due to fire and laceration hazards, respectively.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Toy shortages this holiday shopping season are an ‘absolute inevitability’ thanks to tariffs, manufacturing CEO says

This holiday season, toy shortages are an “absolute inevitability,” according to Jay Foreman, CEO of Florida-based toy manufacturer Basic Fun.Recommended VideoA combination of tariff-induced production cuts earlier this year and cautious purchasing behavior from retailers could create a scenario where the most sought-after toys are unavailable, Foreman told Retail Brew.“The consumer is going to see empty shelves,” he said. “People are going to be chasing merchandise, at least the merchandise they want.”That last word is key: want. Unlike toilet paper and baby formula, which experienced shortages during the height of the Covid-19 pandemic, toys are a discretionary purchase subject to the whims of trend-seeking consumers. And when it comes to keeping shelves stocked, ordering the right item is as important as ordering the right amount.“It’s not like there won’t be toys on the shelves, but I think those toys are going to be a much lower selection and assortment,” Greg Ahearn, CEO of The Toy Association and former chief marketing officer at Toys ‘R’ Us, said. “And I think the quantity of toys backing up those products on the shelves are going to be low.”This could mean a holiday season with less variety overall and shortages of the most in-demand products—a lethal combo for toy manufacturers that even in a regular year have to make a bet on what consumers are going to want come Q4.“You don’t really know what the sales velocities are going to be until you get into late September, early October, where you’re getting early reads on things, but if you’re going to chase it, you’ve got to make the decision now, literally in July–August, to get that ramped up last bit of inventory,” Ahearn said. “It’s all future betting.”Ripple effects: But future betting is even more difficult when the global trade environment is changing month to month.Ahearn said the current difficulties go back to April, when President Donald Trump announced a 145% tariff on Chinese imports. While that number has since settled on 30%, pending further trade negotiations, the spike in import costs caused many toy manufacturers to power down their production lines.“The entire industry was on pause for 60 days of prime manufacturing,” he said. “There’s only a certain amount of product that you could force through a supply chain when you’ve missed about 60 days of manufacturing.”Now manufacturers are playing catch-up, but they’re doing so in a highly uncertain economic climate, making it so many small to mid-sized companies are hesitant to experiment with new product lines, according to Ahearn.No extras: Unlike many toymakers though, Basic Fun kept its production lines rolling. “I’d rather go out of business with a warehouse full of merchandise or a factory full of merchandise than go out of business because I have nothing to sell,” Foreman said.The challenge for Basic Fun is instead hesitancy on the part of retailers, who Foreman predicts are not going to “gamble on extra inventory,” in part because “they’re not feeling overly excited about where the consumer is right now.”In Ahearn’s view, “If you’re a mass retailer, you don’t want to have a significant overhang of inventory within the toy category when you get to December 26.”Instead of ordering ahead of time, Foreman added, retailers could wait to see how the season plays out, then put pressure on vendors to replenish their inventory if consumers surprise them on the upside. This usually wouldn’t be a problem, but pricier imports means manufacturers aren’t in a position to keep extra inventory for this just-in-case scenario.“There’s always going to be stuff to buy, even if the shelves are half empty,” he said. “It’s just, is it going to be anything you really want?”Deconstructing the product: This puts manufacturers in a bind for which there are few easy solutions. One option Basic Fun is considering is what Foreman calls “deconstructing the product to reduce costs where possible.” What that means specifically is cutting back on add-ons like extra packaging or free batteries, which lowers costs but then has the downside of reducing the shelf appeal of the product.What about substituting imports for US-made goods? After all, that is the stated goal of Trump’s trade policy.“There’s really no value in moving out of China,” Foreman said. “They have things that we want and need. We have things that they want and need, and this concept of decoupling is pretty much off the table.”The cost of domestic labor is simply too high, he explained. “There’s no way to be able to set up some of these light industrial manufacturing facilities here in the States, because…if you did, you would have to pay [workers], which would double or triple the cost of the product here,” he said.This report was originally published byRetail Brew.Join us at the Fortune Workplace Innovation SummitMay 19–20, 2026, in Atlanta. The next era of workplace innovation is here—and the old playbook is being rewritten. At this exclusive, high-energy event, the world’s most innovative leaders will convene to explore how AI, humanity, and strategy converge to redefine, again, the future of work. Register now.

Kraft Heinz to split in 2 after 10 years as one of the largest food companies in history

Kraft Heinz is splitting into two a decade after a merger of the brands created one of the biggest food companies on the planet.Recommended VideoOne of the companies, currently called Global Taste Elevation Co., will include shelf stable meals and include brands such as Heinz, Philadelphia cream cheese and Kraft Mac & Cheese, Kraft Heinz said Tuesday. The other, currently called North American Grocery Co., will include brands such as Oscar Mayer, Kraft Singles and Lunchables. The official names of the two companies will be released later.Kraft Heinz said in May that it was conducting a strategic review of the company, signaling a potential split.The company in 2015 wanted to capitalize on its massive scale, but shifting tastes complicated those plans, with households seeking to introduce healthier options at the table. Kraft Heinz and other food producers have shifted offerings to follow that trend.“Kraft Heinz’s brands are iconic and beloved, but the complexity of our current structure makes it challenging to allocate capital effectively, prioritize initiatives and drive scale in our most promising areas,” Executive Chair Miguel Patricio said in a statement.The path to the merger of Kraft and Heinz began in 2013, when billionaire investor Warren Buffett teamed up with Brazilian investment firm 3G Capital to buy H.J. Heinz Co. At the time, the $23 billion deal was the most expensive ever in the food industry.3G was also behind the formation of Restaurant Brands International — a merger of Burger King, Tim Hortons and Popeyes — and Anheuser-Busch InBev. It’s known for strict cost controls and so-called zero-based budgeting, which requires all expenses to be justified each quarter.The deal was intended to help Heinz, which was founded in 1869 in Pittsburgh, expand sales of its condiments and sauces on grocery store shelves. Heinz’s new owners also set about cutting costs, laying off hundreds of workers within months.At the same time Kraft, based in Chicago, sought for a partner after a 2011 split from its snack division, which became Mondelez International.In 2015, Buffett and 3G decided to merge Heinz with Kraft. The merger created the 5th largest food and beverage company in the world, with annual revenue of $28 billion. Buffett and 3G each contributed $5 billion for a special dividend for Kraft shareholders.But the combined company struggled, despite layoffs of thousands of employees and other cost-cutting measures. Even at the time of the merger, many consumers were shifting away from the kinds of highly processed packaged foods that Kraft sells, like Velveeta cheese and Kool-Aid.Kraft Heinz also had trouble distinguishing its products from cheaper store brands. At Walmart, a 14-ounce bottle of Heinz ketchup costs $2.98; the same size bottle of Walmart’s Great Value brand is 98 cents.In 2019, Kraft Heinz slashed the value of its Oscar Meyer and Kraft brands by $15.4 billion, citing operational costs and supply chain problems. But many investors blamed the company’s leadership, saying its zeal for cost-cutting was hurting brand innovation.In 2021, Kraft Heinz sold both its Planters nut business and its natural cheese business, vowing to reinvest the money into higher-growth brands like P3 protein snacks and Lunchables.But the company’s net revenue has fallen every year since 2020, when it saw a pandemic-related bump in sales. In April, Kraft Heinz lowered its full-year sales and earnings guidance, citing weaker customer spending in the U.S. and the impact of President Donald Trump’s tariffs.Carlos Abrams-Rivera will continue to serve as CEO of Kraft Heinz and will become CEO of North American Grocery Co. once the separation is complete. Kraft Heinz said that its board is working with an executive search firm to identify potential CEO candidates for Global Taste Elevation Co.Kraft Heinz has no plans to change its current headquarter locations in Chicago and Pittsburgh. It currently expects the transaction to close in the second half of 2026.Shares of the company rose slightly before the market open.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Beyond the scroll: how visual search is redefining the future of retail

For all its speed and convenience, e-commerce has long risked losing something essential: the sense of discovery that makes shopping joyful. Transactions and next-day deliveries have been perfected, but has it been at the expense of inspiration? Now, as AI-powered search transforms how people find products online, retail is entering a new phase – one in which shopping can start with an image, an idea, or a feeling, in place of a keyword.Recommended VideoBy 2028, digital sales are set to top $8 trillion.¹ Yet, according to Criteo, three out of four consumers still say online shopping is the least exciting way to shop.² This tension between efficiency and inspiration now defines retail’s next frontier. I believe that the future isn’t just about faster checkouts; it’s about helping people envision the life they desire – and making that vision shoppable.As shopping journeys evolve, inspiration – not information – is fast becoming the new starting point. But this shift also raises a crucial question: if AI accelerates discovery, can it preserve what makes inspiration feel human? The challenge for platforms and retailers alike is to ensure technology doesn’t flatten creativity. The best is actually yet to come. Technology has the power to amplify it.The rise of AI-powered discoveryVisual search sits at the center of this shift. For generations, beautiful visuals have been at the heart of shopping – a well-dressed window, the glint of new leather, the joy of stumbling upon an unforgettable dress or a book you never set out to buy. Now, that same instinct is being replicated online through AI-powered visual search. It lets people find products based on images rather than text, bringing the physical experience of “seeing and wanting” into digital environments.The AI technology behind visual search is increasingly capable of interpreting visual cues and emotional context – not just matching shapes or colours, but understanding aesthetic intent. Pinterest uniquely pairs AI with evolving human preference signals through a sophisticated “taste graph” that maps its billions of user signals: searches, saves, Pins and clicks.³ This enables the platform to recognise not only what images contain, but what someone hopes to create from them. That balance matters: when AI becomes too prescriptive, discovery feels generic; but when guided by human taste, it sparks creativity.Gen Z and the new shopping mindsetNowhere is this shift clearer than with Gen Z, who are reshaping online discovery. Representing over half of Pinterest’s users,⁴ they approach shopping as an act of self-expression. According to PowerReviews, they’re 68% more likely than previous generations to start a shopping journey with an image or video,⁵ showing how inspiration now precedes intent.What this generation values the most: Authenticity and personalisation. The industry’s challenge is to meet that appetite for expression in a digitally native way. Today’s retail heroes don’t dictate taste – they champion unique identities, letting individuals browse by vibe, body type, or style. They use AI to celebrate differences, not just push products. For Gen Z in particular, there is little patience for algorithms that feel intrusive. The opportunity and risk lie in using AI to broaden possibilities, not narrow them. Customisable wishlists, personal filters, and mood boards aren’t just features – they help every shopper see their own preferences reflected and explored.As the line between inspiration and intent blurs, retailers are rethinking how they connect emotionally with consumers. In visual-first environments, brands no longer have to choose between storytelling and sales – both can happen at once. When discovery feels organic and relevant, even promoted content can serve as inspiration, not interruption.Retail’s next chapterShopping began as a sensory experience – about colour, texture, and imagination. Now, technology has the opportunity to replicate magic online. On platforms, where people arrive with an open mind and a creative goal, AI-driven visual search is transforming a text bar into a digital shop window of discovery. We’re on the cusp of the next evolution of retail, merging possibility with practicality, fusing the reach of e-commerce with the emotion of visual discovery. I’m excited for it.The high street has set the standard for immersive shopping, with spaces like Selfridges in London or Le Bon Marché in Paris turning retail into theatre. Today, technology offers the chance to reimagine and define that sense of wonder for the digital age. The key to success is whether  AI can preserve the emotional nuance of discovery – the spark of seeing something new and feeling understood – versus reducing inspiration to a set of predictions. Retail’s future belongs to those who can unite inspiration and intent through visual search, helping shoppers not only find what they want and most importantly imagine what’s possible.Footnotes – all publicly available1 – Shopify (October 2024), Global Ecommerce Sales Growth Report2 – Criteo & Havard PR (February 2025), “The Spark of Discovery: Reigniting The Emotion of Ecommerce”. Study conducted among 6,000 consumers and 600 brand leaders across six markets (UK, US, France, Germany, Japan and South Korea). 3 – Pinterest Q3 Earnings Report, Global 20244 –  Pinterest Q2 Earnings Report, Global 20255 – PowerReviews (2024) “Consumers’ Growing Reliance on Visual Content”The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.