US GDP growth slows to 1.1% in Q1 | Lowe's, IKEA look to loyalty to win business customers | Weyerhaeuser turns in better-than-expected Q1 profit of $151M
The US economy grew by 1.1% in the first quarter, well below economists' expectation of 2% and the previous quarter's 2.6% growth rate. The slowdown comes as the Federal Reserve continued its interest-rate hike cycle and banking sector turmoil tightened lending conditions. Despite the slowdown, the economy has exhibited strength in some areas, such as a 3.7% increase in consumer spending.
IKEA and Lowe's are stepping up efforts to court business customers with loyalty programs and perks. The IKEA Business Network offers in-store savings, training and discounts for members' employees on such things as dining, travel and insurance and Lowe's has beefed up its year-old program with reordering tools.
Social Commerce: Back to basics US consumers have shifted their buying habits, making social media a key part of the sales process. Join experts from SmartBrief and Square as they discuss how to take advantage of consumers' new shopping habits and tap into social media. Watch now.
Wholesale distributors can create a more strategic procurement process by investing in technology-enabled approaches that help reduce costs, create a proactive materials planning process, improve inventory management and supply chain visibility, and boost profit and agility, writes Magnus Meier, SAP's global vice president for wholesale distribution. "Today's systems can provide visibility into the variables at play and help buyers make the right decisions for their companies," Meier writes.
Canadian National has joined with Union Pacific and Ferromex owner Grupo Mexico Transportes to launch a cross-border intermodal service that's competitive with newly-formed Canadian Pacific Kansas City. The Falcon Premium service spans from Canada to Mexico with a Chicago connection and will initially serve automotive parts, food and temperature-controlled freight.
Procurement managers tasked with cutting the budget should avoid wholesale slashing and ensure money still flows to critical revenue and return on investment functions, Brian Tarble of Tealbook writes. Strategic, agile- and visibility-oriented strategies and solutions can extend procurement's "operational runway and provide proof points for departmental wins," Tarble adds.
Providing educational resources to customers can help overcome obstacles in the buying process and create a sense of community, writes Christie Horsman, vice president of marketing at software platform Thinkific. However, "[d]on't waste time and effort creating content you feel customers should want instead of discovering what they do want," Horsman writes.
New studies have found pay transparency in the workplace can motivate employees and improve engagement and productivity, but a compensation consultant points out salary disclosure only has this effect if people think they're paid fairly and the employer is open about how it determines pay. "If an employee perceives their pay to be unfair, it can reduce employee morale, and they will be more likely to look at opportunities outside of their company where they feel they can achieve more fair pay and where they perceive it will be a more equitable exchange of the contributions they are making to the company," says Muriel Taing, senior compensation consultant at Mercer.
When managers feel stressed out, it can affect not just their work, but that of their reports, writes Garen Staglin, co-founder and chairman of One Mind at Work, who recommends managers build a support network, investigate the root cause of their mental frustrations and become an advocate for mental health. Former Massachusetts first lady Diane Patrick relates her struggles with mental health as a leader which led to anxiety attacks and therapy to help her sort through her issues. "It's important to us that we all take care of each other, especially now when so many people are suffering," Patrick notes.
