What I Wrote Last Week
Key Take-away From Apple’s Q1 FY2024 Earnings – Improving Margin
Business
Dual Mission for Macy’s New Chief: Revive Stores and Fend Off Takeover. Macy’s struggles to attract younger shoppers and such a struggle will persist. Younger customers have options now in Amazon, Teemu, Shein and countless other brands. Some of them are better than Macy’s at delivering an online shopping experience. The question for the brand is: go digital, work hard to overcome the deficit and hope for the best? Or stick to their guns and improve the stores and assortment to the point that shoppers will have to visit?
The Hottest Beer in America Doesn’t Have Alcohol. “Americans are drinking less, and younger Americans are drinking the least. A recent Gallup Poll survey found that 62% of adults under 35 drink, down from 72% two decades ago, and that number is likely to keep dropping since Gen Z drinks the least of any demographic. They increasingly see nursing a nonalcoholic beverage as a socially acceptable, perfectly normal alternative to downing shots and chugging beer. These days, nonalcoholic beer has become the fastest-growing sector of the sluggish beer market, even if it only accounts for a tiny fraction of total sales. As it turns out, 80% of Athletic’s customers still drink, according to the company. Some of them choose Athletic when they don’t feel like raging. Some of them mix in Athletics to pace themselves and keep drinking without getting too drunk.”
Emeth Value Capital has a great writeup on Driven Brands Holdings
The CEO ‘return to office or else’ is having limited success in 2024. I believe that remote working will have a role in the future. The genie is forever out of the bottle and there is nothing that we can do to put it back. With that being said, future generations and a lot of us will go back to the office. Either by carrot or stick. Either because companies mandate it and top leaders lead by example or because companies offer on-site benefits/incentives and employees themselves want to have a career rather than a job.
America’s Biggest Bank Is Growing the Old-Fashioned Way: Branches. “Most customers still use a branch at some point during the year. Even college-age kids and tech-obsessed Gen Z choose their bank based partly on whether they can get to a branch easily, the banks say. Small-business clients are core users and still bring wads of cash to branches weekly. That said, the banks aren’t building for people to come to the teller line for simple tasks that could be done via an app. Instead, they want the branch to be a place where customers come for financial advice or to get a loan. They have turned some branches in lower-income neighborhoods into community centers, where they offer financial-literacy classes and spaces for gathering. “The primary reason for a financial center 10 years ago was transactions,” he said. “Now the primary reason is for guidance.”
How a No-Frills Carrier Became One of America’s Best Airlines. Airlines are a tough business. So it’s great to read about how a small player carves out a little niche for itself and works hard to differentiate from competition. I’ll consider flying with Allegiant in the future!
Other Stuff I Find Interesting
You Don’t Have to Be a Jerk to Succeed. I tend to agree with the thesis in this article. Relationships at work play an important role in one’s success. Obviously, you can’t have great relationships with anyone if you are a jerk. Even if you have to be a bit aggressive and pushy to get things done, if you can avoid upsetting people, I’d suggest you do so. Bosses like doers and problem solvers. But there is a point where a jerk’s productivity and results can’t justify the internal outrage if he or she gets more power.
Are Ultra-Processed Foods Fattening? They Are for Company Profits. “Citric acid is the most common additive found in grocery store goods, according to a Barclays analysis of 17,000 products at Walmart and Albertsons. It is there to extend shelf life and prevent food waste. They also make groceries more affordable. The Barclays analysis found that products containing the most common preservative, emulsifier and sweetener additives were 5% cheaper than their category average.” I really look forward to the upcoming study by the US government and I really hope that it’s not tainted by special interest groups. If the integrity of the report is protected, I expect it to make shockwaves across the food industry and affect the margin of big companies.
What’s Behind a $10 Chicken Over Rice From a Cart? An $18,000 Permit. A very interesting article that covers the difficulty of operating a food cart in New York. I did not know there was a cap on licenses issud every year or that shop owners could rent it from someone else.
How the Funeral Industry Got the FTC to Hide Bad Actors. The agreement struck between the funeral industry and the FTC is a disgrace. Sunlight is the best disinfectant. If we want to overhaul the industry and protect consumers, we have to disclose everything and make prices transparent. It’s distasteful and disgraceful that some people can get rich off of the pain and suffering of others.
Data Industry Primer. A nice overview of the data industry.
Stats
Almost 96% of all dental hygienists are women
Minh Quang Duong 
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