Inflation ticks back up, consumer sentiment falls

Author

Stephen Babcock
May 30, 2023

Shopify and American Eagle aimed to take on the giants by acquiring logistics companies, and made plans to build new networks that can be accessed by third-party brands. This year, they’ve both reversed course by either selling or scaling back these businesses. It offers a cautionary tale for executives weighing a classic dilemma: Build or buy?

Chinese ecommerce giant Pinduoduo made a splash as it entered the U.S. over the last six months with the launch of Temu. But the discounts offered on the marketplace come at a significant cost, as Wired found the company is losing an average of $30 an order. Nevertheless, this strategy worked in China. Will it spur sustainable growth in the U.S.? – Wired

Core inflation grew slightly in April, turning back a monthslong narrative that it was cooling off. Meanwhile, consumer spending also continued to grow, offering a sign that people are continuing to shop. But there is growing anxiety about the near future, as a drop in consumer sentiment was pegged to dimming outlooks on economic conditions in the year ahead.

Instagram is making more moves to bring ads to search results, as it aims to allow brands to reach the people who are actively seeking out certain kinds of content. So, if a user searches for “skin care,” relevant ads will appear in the results with a Sponsored tag. – TechCrunch

Welcome to a new week. Summer is just beginning, but earnings season is moving into its later stages. This week, Chewy, Lululemon and Macy's highlight the quarterly reports, while Hormel will offer an inside look from CPG. To close out the week, the federal government will release the latest jobs data.

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