Hey Snackers,
Most anxiety-inducing collab of 2020: Cole Haan teamed up with Slack for Slack-branded sneakers. Each step triggers the aggro notification sound (in your head).
Stocks shot back up after President Trump tweeted support for airline aid and direct relief checks, a day after he shut down stimulus package talks. Airline and cruise stocks caught the upswell.
Breakfast is back, baby... At least, according to Mickey D’s index. McDonald’s is adding baked goods to its permanent menu for the 1st time in eight years. The star pastries: apple fritter, blueberry muffin and cinnamon roll. This news might sound like empty calories – but it's actually a pretty big deal for McD's, which has focused on trimming its menu during the pandemic:
Breakkie is the most important meal of the day... for fast-food restaurants. Chains from Taco Bell to Shake Shack have dished out big to make it a priority. Starbucks and Dunkin' have been upselling protein-stuffed breakfast sandwiches. Wendy’s breakfast launched nationwide before lockdowns, and it already made up 8% of the chain's sales last quarter.
A donut-shaped recovery?... There are lots of ways you can gauge how the economy is doing, from unemployment numbers to GDP data. Donuts might be worth adding to the list. Rising chain-store breakfast sales suggest people are commuting more and hoarding less. The fact that McDonald's and Taco Bell are investing to revive breakfast could be a sign of sweeter times.
Sapphire and faded jeans... Levi's didn't quite get its dreams last quarter, but it did offset big corona losses with a profit-boosting 52% surge in e-commerce. Digital sales made up 1/4th of the denim icon's revenue (vs. just ~1/10th last year). Total sales still fell 27%, but Levi's stock popped after earnings on the positive momentum. Also:
Jeanius idea... Levi's just launched a "recommerce" site for second-hand jeans/jackets. You drop off your old Levi's at a store in exchange for a gift card. Levi's cleans and sells them, and the lucky buyer doesn’t have to dig through flea market bins for that Insta-perfect pair. While this could threaten demand for new jeans, it's actually a win-win:
Avoid the "discount spiral of death"... By controlling the full “life cycle” of its denim, Levi's can reduce overstocking on pricey new clothes. When inventory piles up, companies discount — that hits profits. Levi's CEO says he's "cautiously optimistic” they won’t tumble into never-ending promotions. With recommerce, Levi's could cash in on the same pair of hip-huggers five times over.
🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here.