Hey Snackers,
Netflix is doing so well that it's now actively trying to reduce its own subscription revenue. If it doesn't hear back from customers who haven't streamed anything in a year or more, it's going to cancel their subscriptions. Netflix: always doing the most.
Markets took a slight dip on depressing unemployment data — 2.4M Americans filed for unemployment last week, bringing total corona-conomy claims to an eye-popping 38M. Rising trade tensions with China also didn't help.
The Sorting Hat has spoken... We knew the Retail-pocalypse was accelerating during the corona-conomy. Now, we've got more stats to confirm just how much — and results are more varied than you'd expect. Some retailers have thrived, some have survived, and many have taken a big old dive. Let's start with the Divers:
Onto the essential Thrivers... E-savvy — and most importantly, essential — retailers like Walmart, Costco, Amazon (and even Lowe’s) have enjoyed skyrocketing sales and decreased competition from shuttered non-essential retailers.
There's no "one-size-fits-all"... But non-essential big-box department stores are feeling the most pain — especially those that weren't exactly thriving before (looking at you, Macy's and JCPenney). Retail apparel sales for the year are down a whopping 52%. Non-essential retailers like Lulu had WFH-friendly products and e-savvy biz models to prop them up — the unlucky rest didn't.
When the party gets shut down before 9 pm... Detroit's Big Three automakers — Ford, GM, and Chrysler — all reopened plants Monday. Update: it's not going well for Ford.
What would Lear do?... Lear is the "iconic" car seat maker that, early on, issued a 51-page "Safe Work Playbook" for resuming production. In true Lear fashion...
This "start-stop" model isn't sustainable... Shutting down a factory of thousands each time a person tests positive for COVID-19 is not viable long-term. The infected Michigan employees were working a mile away from the main plant — but because parts from their building were brought to the main assembly line, the whole complex had to be shut. As long as COVID-19 is around (or at least until we have a vaccine), this will continue to be an issue.
Even storage can be sexy... with $55M in fresh venture funding packed in. When you think of storage, you probably picture massive orange Public Storage facilities on the side of I-95 that inspire horror-thriller movie plots. MakeSpace wants to be the fun, non-horror version of that — and it just packed up an extra $55M in funding:
The storage industry shouldn't be popping... Home sales dropped 18% in April, so you'd think there'd be less moving/storing happening. But MakeSpace's sales have grown 30% more than expected because it's actually the opposite:
The return of the non-gig startups... A VC-funded storage startup might be inclined to call itself the "Uber for Storage." But MakeSpace employs only full-timers — this no-contractor biz model is becoming increasingly rare in the startup world. This out-of-the-box thinking in a gigi-fied world could be a selling point — Gig icons like Postmates and Lyft struggle with new gig economy laws, tension with workers, and bad PR.
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Disclosure: Authors of this Snacks own shares of Amazon, Lululemon, and Alibaba
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