Kraft Heinz to Split Into Two Companies

Postal shipments to the United States have collapsed following the suspension of the “de minimis” exemption, which previously allowed duty-free entry for packages under $800. The U.N.’s Universal Postal Union (UPU) reported an 81% drop in postal traffic to the United States, calling the situation a “near halt.”

📉 Free Fall: The UPU said postal data showed traffic to the U.S. plunged 81% on Aug. 29 compared with the previous week.

⏳ Waiting Time: Eighty-eight postal operators have informed the UPU that they have halted some or all services to the United States until a resolution is found for parcels valued at $800 or less.

🌀 Unclear Process: The agency stated that “major operational disruptions” occurred due to airlines and other carriers' unwillingness or inability to collect duties, as well as foreign postal operators' lack of connections to CBP-authorized firms.

Kraft Heinz will split into two publicly traded companies in 2026, unwinding the $45 billion merger that brought the two food giants together in 2015. The Chicago-based group said the move aims to cut complexity and revive growth after years of falling sales and a 75% share price slump since the merger engineered by Warren Buffett’s Berkshire Hathaway and 3G Capital.

2️⃣ Entities: One unit, tentatively called Global Taste Elevation Co., will focus on sauces, spreads, and seasonings with brands like Heinz, Philadelphia, and Kraft Mac & Cheese. The second, North American Grocery Co., led by CEO Carlos Abrams-Rivera, will handle grocery staples such as Oscar Mayer, Lunchables, and Kraft Singles, with sales topping $10 billion.

❌ Legendary Regret: Warren Buffett told CNBC he is “disappointed” with Kraft Heinz’s decision to split into two companies, saying the move effectively unwinds the 2015 merger he backed — a deal he now regards as one of his biggest investment missteps.

📉 More Problems: The split comes as Kraft Heinz faces inflation-weary consumers trading down to generics and regulatory pressure from the U.S. Health Secretary Robert F. Kennedy Jr. The company pledged in June to remove all artificial colors from its brands.

A U.S. judge has certified a nationwide class action against Amazon covering 288 million consumers and billions of transactions involving third-party sales. The lawsuit, filed in 2021, alleges the company violated antitrust laws by barring sellers from offering lower prices on rival platforms while listing the same products on Amazon.

U.S. District Judge John Chun in Seattle ruled that the class, which includes U.S. buyers of five or more new goods from third-party sellers since May 2017, was not overly broad. Amazon has denied wrongdoing and appealed the decision, which was first issued under seal on Aug. 6.

The plaintiffs argue Amazon’s policies allowed it to impose inflated fees on sellers, leading to higher prices for consumers. Amazon countered that the class is unmanageable and that it ended the challenged pricing program in 2019.

Lululemon topped second-quarter earnings expectations but warned that tariffs would slash profits by $240 million this year, sending its stock tumbling 20%. The company reported Q2 earnings of $3.10 per share, above estimates, on revenue of $2.53 billion, slightly below forecasts. Net income fell to $370.9 million from $392.9 million a year earlier, while margins narrowed under tariff pressure.

The outlook was far weaker than Wall Street expected, with annual earnings now forecast at $12.77 to $12.97 per share on revenue of up to $11 billion. CFO Meghan Frank said tariff costs alone will drive a 2.2 percentage-point drop in profit, with the end of the de minimis exemption accounting for most of the decline.

The company also flagged problems in its key U.S. market, where same-store sales in the Americas fell 4%. CEO Calvin McDonald acknowledged that Lululemon’s lounge and social offerings had grown “stale,” missing opportunities to spark new trends.

Freddy’s Frozen Custard & Steakburgers has been acquired by Rhône, a global private equity firm, from Thompson Street Capital Partners. The fast-casual chain now operates more than 550 locations across the U.S. and Canada, generating over $1 billion in systemwide sales in the past year.

CEO Chris Dull said the partnership with Rhône marks a “pivotal moment” for Freddy’s as it looks to expand its footprint and strengthen its franchise network. Rhône executives said they plan to leverage their experience with consumer brands to boost Freddy’s global reach and guest experience.

According to reports, the leadership team — including Dull, CFO Bill Valentas, COO Brian Wise, CMO Erin Walter, and CDO/CLO Andrew Thengvall — will remain in place.

UPS will impose higher surcharges during the 2025 holiday season, with new fees kicking in as early as Sept. 28 and lasting until Jan. 17, 2026. The surcharges, which mirror FedEx’s recent increases, apply to bulky, oversized, and high-volume shipments, and climb to peak levels between Nov. 23 and Dec. 27, when package volumes are highest.

Fees include $8.25–$10.80 for additional handling, $90.50–$107 for large packages, and $485–$540 for shipments exceeding maximum limits. A demand surcharge ranging from $0.40 to $8.75 per package will also apply, depending on customer volumes and service type.

Analysts noted the late announcement left some shippers scrambling to renegotiate. UPS said demand uncertainty from major customers has delayed peak planning. With holiday imports frontloaded due to tariff concerns, experts warn retailers will need to closely manage delivery costs and consider alternative carriers or incentives to offset the seasonal surcharges.

American Eagle Outfitters reported second-quarter earnings that beat expectations, sending its shares up more than 20% in after-hours trading. The company credited much of the momentum to its campaign with actress Sydney Sweeney, which it called its “best” to date.

Despite criticism over the ads, the campaign drove 700,000 new customer acquisitions, double-digit traffic growth, and denim sellouts. A collaboration with NFL star Travis Kelce also boosted sales.

For the quarter ended Aug. 2, American Eagle posted net income of $77.6 million, or $0.45 per share, versus $0.39 a year earlier. Revenue came in at $1.28 billion, slightly down from $1.29 billion last year but above analyst expectations of $1.24 billion. Earnings per share of $0.45 also far exceeded Wall Street’s $0.21 forecast.

The retailer reaffirmed its full-year guidance but cut operating income projections to $255–$265 million, down from $360–$375 million, as tariffs weigh heavily on margins. Same-store sales in the Americas fell 4%, highlighting ongoing challenges in its U.S. business, though comparable sales overall improved modestly.

French data regulator CNIL has fined Shein’s Irish subsidiary €150 million for breaching cookie consent rules on its website. The penalty, announced September 1, followed a 2023 inspection that found cookies were being placed on user devices without consent, even after visitors clicked “Refuse all.”

The regulator cited multiple violations, including incomplete cookie banners, a lack of disclosure about advertising purposes, and failure to identify third parties placing cookies. CNIL also noted inadequate mechanisms for refusing or withdrawing consent, as cookies continued to be placed or read despite user rejection.

With around 12 million monthly visitors in France, CNIL said the scale of the breaches significantly influenced the size of the fine. The decision adds to a series of high-profile sanctions since 2020 targeting companies for improper cookie practices.

Holiday spending in the U.S. is projected to drop 5% this year, according to a PwC survey, with Gen Z driving much of the decline. According to the survey, the group, aged 13 to 29, plans to spend 23% less than last year — a sharp reversal from 2024 when they expected to boost spending by 37%.

Their pullback comes as younger shoppers juggle lower incomes, rising debt, and a preference for experiences like travel and concerts, which have become more expensive.

Overall, Americans expect to spend an average of $1,552 on gifts, travel, and entertainment this season. Baby boomers are the only group planning to spend more, with a 5% increase. Tariff uncertainty and concerns over rising costs are also weighing on sentiment, pushing consumers to pay closer attention to prices and shop earlier for deals.

Gap Inc. announced that it will launch beauty and personal-care products at 150 Old Navy stores later this year, marking a strategic push into one of retail’s most resilient categories. The move reflects the apparel retailer’s effort to diversify amid tariff pressures and shifting consumer demand.

The company said the initiative will include dedicated beauty associates and shop-in-shops, with a broader rollout planned across its portfolio in 2026.

The decision comes as Gap works to build on two years of regained momentum. In its second quarter, the retailer reported $9.4 billion in revenue, up 1.6% year over year, with comparable sales rising 1.1%.

Beauty, meanwhile, has proven resilient across the U.S. retail landscape. Citing Euromonitor, Gap said the U.S. beauty and personal-care market is expected to exceed $100 billion in 2025, making it one of the fastest-growing categories despite high inflation.

Amazon is under fire from delivery service partners (DSPs) over van repair bills, with some contractors reporting charges exceeding $20,000, according to a Bloomberg report.

Many of these small contractors argue the bills are far higher than estimates from Amazon’s own damage-assessment app, Pave.

The company has acknowledged errors, including charges for decal removal and a $569 “VIN fee,” and has set a September deadline for partners to dispute questionable bills. Some contractors are revoking payment permissions to shield their accounts from unexpected withdrawals.

Delivery partners typically lease Ford Transit vans for about $500 a month, but Amazon can recall, reassign, or retire vehicles at any time, triggering costly inspections. Several owners told Bloomberg the bills threaten to bankrupt their businesses. The issue comes as Amazon looks to refresh its heavily used fleet, which expanded rapidly during the pandemic.

Best Buy has partnered with Uber Eats to offer same-day delivery and scheduled drop-offs from more than 800 stores across the U.S. Shoppers can now order electronics, gaming gear, appliances, and other items through the Uber Eats app. Uber One subscribers will get delivery fee waivers on eligible orders.

The partnership is part of Uber’s broader push beyond food, following similar deals with Home Depot and Dollar General. Best Buy says the move makes it easier for customers to get tech products quickly, in line with on-demand delivery expectations.

The retailer is also expanding its digital marketplace, doubling its assortment with brands like Martha Stewart and Beach Camera, and will soon add licensed Fanatics sports gear. Best Buy reported Q2 revenue of $9.4 billion, up 1.6% year over year, with growth in computing, gaming, and mobile phones.