Consumer spending increased 0.7% in December to cap off a strong holiday season buoyed by a 0.3% rise in incomes and a resilient jobs market. "The strong gain in spending in December shows that consumer spending entered 2024 with momentum and suggests that consumption growth is on track for another strong gain in the first quarter," said Michael Pearce from Oxford Economics. Some economists, however, warn the strong data masks the struggle facing lower earners, leaving consumer spending dependent on wealthier Americans.
Global shipping costs have spiked, driven by Houthi attacks on ships in waters approaching the Suez Canal, Russia's assault on Ukraine, rising geopolitical tensions and drought that has reduced the number and size of ships that can transit the Panama Canal, the UN Conference on Trade and Development warns. The spike is affecting the price of food and energy and increasing the risk of inflation, the agency says.
Health care and dental distributor Henry Schein is pushing further into the home care segment with its acquisition of home medical supplier Shield Healthcare, which closed in the final quarter of last year and followed a similar 2021 deal for Prism Medical. Combined with Henry Schein's strong position in the home dialysis space, the acquisitions set the company up to take advantage of the growing home care industry.
A customer-centric approach to reshaping retail A comprehensive e-commerce CX strategy that addresses loyalty, efficiency and retention, reduces costs and incorporates AI through the pre- and post-sale periods is vital to success in today's retail climate. This whitepaper explores the challenges retailers face to create optimal shopping experiences and how to overcome them. Download the whitepaper.
Only one-third of businesses prioritize diversifying supply chains to multiple sources and regions amid disruptions caused by situations in the Red Sea, the Panama and Suez canals and the Ukraine war, with only 25% consolidating suppliers or improving their connections, per Dun & Bradstreet. Companies can prepare by anticipating risk, using technology and planning alternative actions in case of disruption, says Neeraj Sahai, president of Dun & Bradstreet International.
Distributors today must combine superior customer service with developing long-term relationships, understanding and anticipating customer needs and personalizing recommendations for products and services, writes Brian Hopkins. AI tools, including advanced analytics and customer segmentation, can help distributors analyze customer interactions, purchases, feedback and other data points to provide a holistic view of the customer, Hopkins writes.
Business-to-business experts share their thoughts on what aspects of business-to-consumer marketing are effective for B2B campaigns. "[B]y going beyond features and benefits and leveraging human emotion, you can connect at a level that conveys trust and assurance," says Media Frenzy Global's Sarah Tourville, while Napier Partnership Limited's Mike Maynard warns, "If you go 'all in' on emotion and forget the logic, the customer simply won't buy."
The decline of inflation has pushed up real interest rates, raising pressure on US Federal Reserve policymakers to pivot away from their tightening posture. While the central bank is not expected to announce any rate cuts after this week's policy meeting, officials could abandon the so-called tightening bias, which signals rates are more likely to rise than fall.
HVAC distributor Mingledorff's, which includes 41 locations in the Southeast, struggled with challenges such as suboptimal mobile app barcode scanning and a lack of a functional native mobile app for dealers and users. Working with Moblico, the company was able to implement a native mobile app that overcame those challenges and boosted mobile engagement. Read more about the transformation here.
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