News Briefs

The University of Michigan’s Index of Consumer Sentiment rose to 67.8 in a preliminary August reading, up from 66.4 in the prior month, marking the first increase since June. 

Consumers’ views on current economic conditions fell to 60.9 in August from 62.7 in the prior month. But the index on expectations about the future rose to 72.1 — the highest level since April — from 68.8.

Presidential election developments were a major driver of the August survey, according to Joanne Hsu, director, Surveys of Consumers. Sentiment for Democrats rose 6% as Vice President Kamala Harris gained ground in the wake of replacing Joe Biden as the Democratic nominee for president.  Sentiment for Republicans fell 5%. 

“Overall, expectations strengthened for both personal finances and the five-year economic outlook, which reached its highest reading in four months, consistent with the fact that election developments can influence future expectations but are unlikely to alter current assessments,” Hsu said. 

Year-ahead inflation expectations came in at 2.9% for the second straight month. These expectations ranged between 2.3 to 3.0% in the two years prior to the pandemic. 

Long-run inflation expectations came in at 3.0%, unchanged from the last five months. These expectations remain somewhat elevated relative to the 2.2-2.6% range seen in the two years pre-pandemic. 

The survey showed that 41% of consumers believe Harris is the better candidate for the economy, while 38% said Trump is better.

“Survey responses generally incorporate who, at the moment, consumers expect the next president will be,” said Hue, who noted that consumer expectations are subject to change as the presidential campaign comes into greater focus, even as consumers expect that inflation-still their top concern-will continue stabilizing.

Abercrombie & Fitch Co. is partnering to expand the global distribution and product range of its Abercrombie Kids brand.

The retailer has entered into a partnership with Haddad Brands, which specializes in licensed children’s clothing and accessories with a portfolio of brands that include Nike, Ralph Lauren, Jordan, Converse, Levi's and more, and a network of retail partners around the world. It will be the first time that Abercrombie Kids items will be sold at non-Abercrombie stores.

Under the terms of the agreement, A&F Co. will continue to design, produce and sell Abercrombie Kids in its owned-and-operated retail channels as it does today. The company’s partnership with Haddad Brands will focus on creating new distribution channels for the brand and growing the product line by adding infant and toddler categories to the existing assortment, which is currently for 5-to 14-year-olds.

“As we work to diversify A&F Co.’s channel mix and drive sustainable, profitable growth, we are thrilled to partner with Haddad Brands to build on our success and create an opportunity to grow the brand in the years ahead by engaging with new customers globally,” said CEO Fran Horowitz.

[READ MORE: Abercrombie & Fitch posts record quarter as profit soars, sales top $1B]

The Abercrombie Kids’ fall/back to school 2025 line will be available in Haddad Brands’ showrooms globally in September.

“Haddad is honored, humbled, and proud to partner with Abercrombie Kids and, more importantly, Abercrombie & Fitch Co.’s exceptionally talented team, from their leadership down through the entire organization,” stated Jack Haddad, president Haddad Brands. Combined with our incredible team, our seamless collaboration gives us great confidence that the Abercrombie Kids product will continue to resonate with consumers globally. We look forward to extending the Abercrombie Kids brand, making the product available to more consumers in the United States and worldwide.”

 Rite Aid continues to shrink its portfolio.

The drug store chain is closing all 186 stores in Michigan, reported The Detroit News. The newest list of store closures in Michigan submitted in bankruptcy court in recent days marks Rite Aid’s complete exit from the state. Some of the locations have already closed, with the rest to go dark by the end of September.

In addition, Rite Aid is closing its distribution center in Michigan’s Waterford Township, effective Aug. 16.

Rite Aid filed for Chapter 11 bankruptcy protection in October. Since the filing, the company has closed hundreds of stores. As of Feb. 29, Rite Aid operated 1,704 stores across the United States, according to its website. It is expected to emerge from bankruptcy with about 1,300 locations. 

In July, a U.S. bankruptcy judge has approved the chain’s restructuring plan, which cut its debt by about $2 billion and turn over control to its key creditors. 

[READ MORE: Rite Aid restructuring plan approved, slashes debt]

In July, Rite Aid acknowledged that an unauthorized intruder gained access to some of its corporate systems in June 2024. The company said no social security numbers, financial information or patient information were exposed in the breach.

Amazon will implement peak season fees for third-party sellers that use its mix of fulfillment services for the third consecutive year.

The holiday increase will go into effect on Oct. 15 and last until Jan. 14, 2025. The seasonal fee increase is similar to those charged by other major carriers, and covers increased fulfillment and transportation operating costs during the buy holiday season, Amazon said in a post on its Seller Central platform.

“The average holiday peak fulfillment fee will remain the same as last year, except for products priced under $10 in U.S. FBA, for which the peak fee is new in 2024,” the company said. “Amazon’s average FBA fulfillment fees continue to be 70% less expensive than comparable two-day shipping methods offered by other major third-party logistics providers.”

The fees will apply to sellers using the following services: Fulfillment by Amazon (FBA) in the U.S. and Canada, North America Remote Fulfillment, U.S. Multi-Channel Fulfillment and Buy with Prime.

Amazon calculates and charges the fees when shipments leave its fulfillment centers, so products shipped on or after Oct. 15 will have the higher peak season charge — even if the orders were made before the active date, the company said.

The CFO of ODP Corp. is stepping down after about four years on the job.

The company, whose portfolio includes Office Depot, OfficeMax and other offerings, said that D. Anthony Scaglione, who has served as executive VP and CFO since 2020, is stepping down from his role to pursue another career opportunity. His last day will be Sept. 13. 

ODP said Scaglione will continue to work closely with ODP chief executive Gerry Smith until his departure date as the “company formulates its plans to fill the chief financial officer role.” 

"On behalf of ODP, I want to thank Anthony for his significant contributions to ODP over the past four years,” said Smith, chief executive officer of the company. “Under his financial leadership, ODP has made great strides in its transformation and has strengthened its foundation to be able to deliver profitable growth in the future. Anthony is supported by a talented finance team that will continue to serve the company and its shareholders.”

ODP provides products, services, and technology solutions to businesses and consumers through an integrated business-to-business (B2B) distribution platform and omni-channel presence.

Ten bills targeting retail theft and property-related offenses have been sent to Gov. Gavin Newsom for sign-off after being passed by the California Legislature. 

The bills cover a wide array of issues. The legislation is centered around  the California Retail Theft Reduction Act, which was introduced in February, according to a report by WWD. The law solidifies a new crime classification for possessing stolen merchandise worth over $950 with the intent to resell, with a prison sentence of up to three years, the report said. It also stipulates that the value of thefts from different retailers can be tallied up and prosecuted as grand theft — a felony charge.

The bill package, which operates under the header of “Californians Against Retail Theft,” also includes AB 1779, which allows California district attorneys to prosecute theft cases across multiple jurisdictions at once, the report said.

To read the full report, click here.