 |
|
|
|||||
Threads, Meta’s X and Bluesky rival, is testing ads with certain brands in the United States and Japan, the company said Friday. “We know there will be plenty of feedback about how we should approach ads, and we are making sure they feel like Threads posts youd find relevant and interesting,” Instagram head Adam Mosseri said in a post. He added that the team will be monitoring the test “before scaling it more broadly.” The ads will show a “Sponsored” label as they appear in users’ feeds. Meta launched Threads in 2023 and has been focusing on growing its user base and keeping people logged on. Now that it has more than 300 million monthly active users (with more than 100 million of those using it daily), better monetization efforts appear to be the next step. After all, social media is just one big way to turn eyeballs into revenue. Meta Platforms, parent company of Facebook, Instagram, and WhatsApp, is likely to share an update about Threads when it reports fourth-quarter 2024 earnings next week. Its stock on Friday afternoon was trading at near record highs. Responses to Mosseri’s post announcing the test revealed frustration from some users. “You put in ads, there will be no reason to stay….” One user wrote. “Ill leave the minute the ads start rolling by. Guaranteed.”
Category:
E-Commerce
With a swath of anti-DEI and other executive orders spilling out of the White House during the first week of Trumps second term, many companies are likewise changing or rolling back their own DEI programs or policies. That list includes Amazon, Boeing, Lowes, McDonalds, and Meta, many in the wake of a 2023 Supreme Court decision striking down certain affirmative action programs (which can be somewhat related to DEI efforts). However, one big companys shareholders are bucking the trend. Costcos shareholders rejected a proposal from a conservative think tank on Thursday, which aimed to persuade the company to roll back or nix its DEI hiring practices. Its a notable rejection, given that many other large companies have been more or less giving in to similar requests or proposals, and that Costco is the worlds third-largest retailer. In effect, its a sizable win for DEI adherents. The proposal was floated by the National Center for Public Policy Research (NCPPR), and argued that Costcos DEI policies were harmful to the company and could open it up to lawsuits. With 310,000 employees, Costco likely has at least 200,000 employees who are potentially victims of this type of illegal discrimination because they are white, Asian, male or straight,” reads a statement in support of the change, presented to shareholders prior to the vote. “Accordingly, even if only a fraction of those employees were to file suit, and only some of those prove successful, the cost to Costco could be tens of billions of dollars.” Costcos Board of Directors had recommended that shareholders vote against the proposal, and shareholders agreedthe proposal was voted down by 98% of them. While that was a win for DEI proponents, an uphill battle remains. This week, Trump issued an executive order aimed at terminating DEI policies. Illegal DEI and DEIA policies not only violate the text and spirit of our longstanding Federal civil-rights laws, they also undermine our national unity, as they deny, discredit, and undermine the traditional American values of hard work, excellence, and individual achievement in favor of an unlawful, corrosive, and pernicious identity-based spoils system, the executive order reads. Hardworking Americans who deserve a shot at the American Dream should not be stigmatized, demeaned, or shut out of opportunities because of their race or sex. So while Costco shareholders may have chalked up a win for DEI proponents in this case, the larger war is still ongoing.
Category:
E-Commerce
Its no secret that 2024 was a tough year for many retailers. From home goods stores like LL Flooring, to pharmacy chains like Walgreens, to automotive parts providers like Advance Auto Parts, numerous retailers announced store closures last year. Yet as bad as 2024 was when it came to retailer closures, 2025 is expected to be much, much worse, according to a report out from Coresight Research. How bad, you ask? Last year saw the most U.S. retail store closures7,325 of themsince the first year of the pandemic. In 2025, the number of closures is expected to double. Retail store closures could reach 15,000 in 2025 According to a January 22 report from Coresight Research that tracks the openings and closings of U.S. retail stores in 2024 and 2025, this year could see as many as 15,000 U.S. retail locations close. In the first 10 days of the new year, retail store closures announcements have already hit almost two thousand, at 1,925 stores announced to be closing. Nearly 30 retailers have announced store closures for 2025. Many of those, including Nordstrom, Kohls, Anthropologie, and Best Buy, have announced just one store closure, and others, including Foot Locker and Joann, fewer than 10. But five retail giants have announced dozens or hundreds of closures, which account for a majority of the 1,925 announced closures in 2025. Those retailers include: Party City: 738 closures Big Lots: 601 closures Walgreens Boots Alliance: 333 closures 7-Eleven (Seven & i Holdings Co., Ltd.): 148 closures Macys: 51 closures The report’s total 15,000 expected closures represents a 50% increase from the 10,000 retail store closures experienced in 2020, when the pandemic wreaked havoc on retail foot traffic as worried consumers opted to shift their spending to online retailers. 2024 was the worst year for retail store closures since the pandemic While Coresights 2025 numbers are estimates, firm figures are in for the calendar year 2024. It was a year that saw the highest number of U.S. retail store closures since the pandemic. In total, in 2024, major retailers closed 7,325 locations across the country, reducing their retail footprint by a staggering 120 million square feet. In 2024, discount store retailers were the overwhelming contributor to U.S. retail store closures, accounting for 23.9% of all store closures. Three retailers accounted for the majority of that slice of the pie, including Family Dollar at 718 stores closed, Big Lots at 517 stores closed, and 99 Cents Only Stores at 371 stores closed. Overall, the list of top U.S. retailers with closures in 2024 includes: Family Dollar: 718 closures CVS Health: 586 closures Conns: 553 closures rue21: 543 closures Big Lots: 517 closures Other major retail chains also saw a significant number of store closures in 2024, including 7-Eleven (492), Rite Aid (408), American Freight (353), and Walgreens Boots Alliance (259). Shein and Temu represent an increasing threat to U.S. retailers So, whats behind the high number of store closures in 2024 and expected closures in 2025? There are several factors, according to Coresight Research CEO Deborah Weinswig. Inflation and a growing preference among consumers to shop online to find the cheapest deals took a toll on brick-and-mortar retailers in 2024, Weinswig said. Last year we saw the highest number of closures since the pandemic. Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted, and we continue to see a trend of consumers opting for the path of least resistance. Not only do they want the best prices, but they also have no patience for stores that are constantly disorganized, out of stock, and that deliver poor customer service. Yet its not just inflation-weary consumers looking for the best deals for their discretionary spending, or a displeasure with the brick-and-mortar shopping experience. Coresight says that retailers are also experiencing pressure from new online entrantsnot just e-commerce giant Amazon. The firm sees Shein and Temu (combined) as a $100+ billion juggernaut pressuring incumbent retailers and marketplaces across a number of global markets, including the US, the report states. We expect general-merchandise retailers across a wide range of categories, from automotive to home and pet, to be threatened by the further growth of Temu and the scaling of Sheins non-clothing offering. It should be noted, however, that while 2024 saw the most store closures since the pandemic, it also saw a number of openings. In 2024, major U.S. retailers opened 5,970 locations, dropping the net loss of stores to 1,355 locations. The bad news for 2025 is that store closures are not only expected to double, but store openings are expected to come in lower than they did in 2024. For 2025, Coresight Research expects approximately 5,800 major retail locations to open. That’s fewer than the number of locations that opened last year, and leaves an expected 2025 net loss of approximately 9,200 retail locations. That being said, Coresight expects a 3.3% rise in retail sales in America for 2025 (excluding automobiles and gasoline). However, that growth pales in comparison to online retail sales, which are expected to grow at almost triple that rate at 8.3%. Additionally, the report notes, we expect competition from e-commerce players to be Shein and Temu, as well as alternative channels such as TikTok (should it continue to operate in the US) and social commerce more widely.
Category:
E-Commerce
All news |
||||||||||||||||||
|
||||||||||||||||||