US Consumer Spending Drops 📉

Amazon will invest £40 billion ($54 billion) in the U.K. over the next three years, targeting new warehouses, logistics upgrades, and office expansions. The move, hailed by the British government, is expected to generate thousands of jobs and reflects Amazon’s growing commitment to Britain as a key logistics and tech hub.

🏗️ Building Big: The investment will fund four new warehouses, 4,000 new jobs in Hull and Northampton, and major upgrades to Amazon’s East London HQ and transport operations.

🎬 Beyond E-commerce: Amazon is also redeveloping Bray Film Studios in Berkshire and scaling up U.K.-based cloud and media operations—building on a previous £8B data center investment to support AI and streaming growth.

U.S. consumer spending dropped 0.3% in May—the steepest decline of 2025—amid rising uncertainty around tariffs and slowing demand for services.
While wages rose for the second month straight, overall personal income fell, and the savings rate dropped to 4.5%, reflecting pressure on household budgets.

📉 Spending Pullback: Major declines were seen in transportation, dining, travel, and financial services. Vehicle sales also fell 6% after a tariff-driven spike in March–April.

📦 Trade Policy Impact: The slowdown follows weaker Q1 consumption and growing consumer caution as the Trump administration’s tariffs push up import costs. Economists warn that demand could remain weak if inflation rises.

📊 Incomes Fall, Savings Erode: Personal income declined for the first time since 2021, driven by lower government transfers, including Social Security. The personal saving rate fell to just 4.5%.

Unilever is acquiring viral men’s personal care brand Dr. Squatch for $1.5 billion, the Financial Times reported, betting big on its digital-first playbook. The DTC brand is known for its quirky soap ads and recent Sydney Sweeney bathwater stunt.

The move is part of new CEO Fernando Fernandez’s pivot toward personal care and social media-led marketing. Unilever plans to double down on digital spending while trimming its food brands, including the potential spin-off of Ben & Jerry’s by the end of the year.

The deal marks Unilever’s second major shot at men’s grooming after its 2016 Dollar Shave Club buy, which it mostly offloaded in 2023.

Walmart is piloting dark stores—locations that fulfill online orders but remain closed to shoppers—to streamline last-mile logistics. The first site is live in Dallas, with another planned in Bentonville, Arkansas, the retailer’s hometown.

The test comes as Walmart sharpens its delivery edge after reporting its first-ever U.S. e-commerce profit in the first quarter. The retailer reports that delivery times under three hours increased by 91% year-over-year, with coverage reaching nearly 95% of the U.S. population.

Unlike typical stores, dark locations focus solely on speed and density, removing in-store traffic from the equation. This test is part of broader efforts to lower net delivery costs and improve the customer experience.

Lululemon has filed a lawsuit against Costco in a California federal court, accusing the wholesaler of selling “dupe” versions of its popular apparel, including Scuba hoodies, Define jackets, and ABC pants.

Lululemon alleges that Costco’s Kirkland label infringes on its patents and trademarks, misleading consumers into thinking the items are affiliated with Lululemon.

The complaint cites media reports from outlets like The New York Times and The Washington Post that described the Costco versions as lookalikes. Lululemon is seeking monetary damages and a court order to block further sales.

Mars’ planned $36 billion acquisition of Pringles-maker Kellanova has hit a regulatory snag in Europe. The European Commission launched a deeper investigation into the deal, warning it could give Mars excessive bargaining power with retailers, potentially raising consumer prices.

Expected to close in early 2025, the deal is now projected to wrap up by year-end. The Commission cited concerns about Mars adding “must-have” snack brands like Cheez-It and Pringles to its existing portfolio, potentially limiting retail leverage in price negotiation

While the U.S. FTC cleared the merger this week, saying it found no legal violations, the EU remains the lone holdout among 28 global regulators.

Target is piloting a direct-to-consumer shipping model that bypasses warehouses and sends goods directly from factories, mirroring the strategy used by e-commerce players like Shein.

The test, focused on low-cost apparel and home goods, is part of Target’s broader effort to boost sagging sales and regain market share. Target shares are down 28% YTD as store traffic and discretionary demand soften.

While the model could help cut costs, it may face challenges from U.S. efforts to tighten the de minimis rule, which previously allowed similar shipments under $800 to dodge tariffs — a loophole that fueled Temu’s rise and is now under political scrutiny.

Suggested Reading: Why is Target Failing?

Donald Trump says a group of wealthy investors is ready to acquire TikTok and plans to disclose their identities within two weeks. In a Fox News interview, he noted that the deal would likely require approval from Beijing, but expressed confidence that Xi Jinping would allow it to proceed.

The update follows Trump’s decision earlier this month to extend the deadline for ByteDance, TikTok’s Chinese owner, to divest its U.S. operations. It’s the third such delay since the law to ban TikTok was passed.

C&S Wholesale Grocers will acquire SpartanNash in a $1.77 billion all-cash deal, including debt, with closing expected later this year. C&S will pay $26.90 per share — a 53% premium over SpartanNash’s last closing price.

The deal, unanimously approved by both companies’ boards, significantly boosts C&S’s national footprint, combining nearly 60 distribution centers and expanding service to 10,000 independent retail locations.

SpartanNash says the acquisition enhances efficiency, purchasing power, and competitiveness for smaller grocers facing pressure from big-box chains.
The deal marks one of the largest recent consolidations in U.S. food distribution, as regional players combine forces to keep pace with giants like Walmart and Kroger.

Nike reported a sharp drop in profit for the fourth quarter, posting $211 million, or 14 cents a share, compared to $1.5 billion, or 99 cents a share, a year earlier. Revenue fell 12% to $11.1 billion as the company worked to clear aged inventory and ramp up marketing under its new CEO, Elliott Hill.

Despite the decline, earnings beat Wall Street's expectations of 12 cents a share. Gross margins dropped to 40.3% from 44.7%, driven by steeper discounts and shifts in sales channels.

The company saw double-digit sales declines in North America, China, and EMEA, with overall direct revenue down 14% and wholesale revenue falling 9%.

McDonald’s and Krispy Kreme will end their partnership on July 2, shelving plans for a nationwide rollout of Krispy Kreme doughnuts across McDonald’s restaurants by 2026.

The decision comes after the collaboration, which expanded to 2,400 locations, failed to meet profitability expectations for Krispy Kreme. The doughnut chain paused the deal in May and later withdrew its full-year outlook, citing weak demand and economic softness.

Krispy Kreme CEO Josh Charlesworth said efforts to align costs with store-level demand fell short, making the arrangement unsustainable. The company will now focus on expanding through high-volume retail and international franchises. McDonald’s said the partnership made up only a small part of its breakfast sales.

H&M reported second-quarter operating profit of 5.91 billion Swedish kronor ($625 million), narrowly beating estimates, even as revenue slipped to 56.7 billion kronor ($6.00 billion).

The company attributed its performance to stronger margins and a positive customer response to trendier collections. June sales are projected to rise 3% year-over-year, signaling a potential rebound after several quarters of sluggish demand.

CEO Daniel Erver said the company is prioritizing profitability over sales growth and is monitoring U.S. tariffs, which have created a “very turbulent situation.” H&M may raise prices to stay competitive as rivals adjust.

A bipartisan group of U.S. lawmakers has launched a new sustainability caucus aimed at promoting secondhand shopping through platforms like eBay, Depop, and Poshmark.

Led by Reps. Sydney Kamlager-Dove (D-CA) and Nicole Malliotakis (R-NY), the group plans to advance policies that extend product life cycles, reduce textile waste, and support small online sellers. Proposals include tax incentives for circular business models and potential sales tax relief on resale items.

Lawmakers say resale offers both economic and environmental benefits, especially as Gen Z and millennial shoppers increasingly favor affordable, sustainable options.