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      Companies Counter Pushback on Price Increases With Promotions

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      “The consumer was a fat pig — now there’s nothing left, and they need to feed the pig again,” one banker told DealBook.The president of McDonald’s USA, Joe Erlinger, pushed back on “inaccurate” reports this week that said the chain had more than doubled its prices on some items over the last decade. But his retort wasn’t exactly reassuring: The average price of a Big Mac is up 21 percent from 2019.Erlinger’s rebuttal underlines the heat that some companies are facing as the news media, politicians and consumers focus on steadily rising prices. Whether persistent price increases reflect price gouging, or simply companies’ own rising costs, is a matter of fierce debate. Either way, one thing is clear: Consumers are becoming fed up.McDonald’s first-quarter earnings fell short of analyst expectations on sales, as “consumers continue to be even more discriminating” with their dollars, the chain’s chief executive, Chris Kempczinski said. Starbucks, Target and Yum Brands, the parent company of Pizza Hut and KFC, also reported earnings misses, each acknowledging increasingly cautious customers among other factors like the war in the Middle East.Consumer spending remained surprisingly resilient in the face of stubbornly fast inflation, but now savings from the coronavirus pandemic have dried up, economic growth has slowed and many companies are working to counteract the belief that their prices have gotten out of control.As one banker told DealBook: “The consumer was a fat pig — now there’s nothing left, and they need to feed the pig again.”The message: Consumers have hit their limit. During periods of rapid inflation, companies tend to push to see how far they can raise prices. “We’re taking smaller, more frequent price increases because it gives us the flexibility to be able to see how consumers are reacting and then adjust if or when necessary,” Kevin Ozan, the chief financial officer of McDonald’s, told analysts in 2022.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Who Was Bruce Nordstrom? The Force Behind the Multibillion-dollar Empire

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      Bruce Nordstrom was both the force behind his family’s multibillion-dollar retail dynasty and a stealth godfather to the fashion trade.“Nice” tends to be dirty word in business. The cliché holding that nice guys finish last has seldom seemed more true than in the landscape of contemporary retailing, where business is dominated by corporate consolidation, monopolistic practices and shareholder returns as the ultimate value.Yet nice, as it turns out, may not be altogether pejorative — at least judging by the career of Bruce Nordstrom, who died May 18 at age 90. It may even be a key to success.For decades, Mr. Nordstrom helped lead the Nordstrom retail empire, which was founded in Seattle in 1901 by his grandfather, an immigrant from Sweden. The fashion retail colossus began as a shoe store, and ultimately expanded to include 150 locations worldwide.Publicly traded since the 1970s and still family-run, the Nordstrom chain was predicated on an ethos of decency and niceness, Robert Spector wrote in “The Nordstrom Way,” his 1996 book about the company’s vaunted reputation for customer service.“I came at the reputation with skepticism,” Mr. Spector said by telephone from his home outside Seattle. “I wish it were more complicated, but they are who they say they are, decent and humble and focused on the customer first.”The Nordstrom culture of customer care is not only real, it originated from a family tradition of bottom-up managerial training. Bruce Nordstrom may have run a multibillion-dollar company, but he never forgot his beginnings sweeping floors and breaking down boxes for 25 cents an hour. “It may be the biggest competitive advantage they have,” Mr. Spector said of Nordstrom’s unusual company structure.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Bruce Nordstrom, Who Helped Lead His Family’s Retail Empire, Dies at 90

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      Though he was the company’s president, he opted for joint leadership with family members as they made Nordstrom, starting as a string of shoe stores, into an international fashion retail brand.Bruce Nordstrom, who along with three other members of the Nordstrom family transformed a small chain of Pacific Northwest shoe stores into an international fashion retail giant with more than 150 locations worldwide, died on Saturday at his home in Seattle. He was 90.His death was confirmed by a company spokeswoman.As a grandson of John W. Nordstrom, the company’s Swedish immigrant founder, Mr. Nordstrom was part of the third generation of the family to run the company jointly, sharing power and making decisions by consensus, an unusual but successful Nordstrom tradition that continues to this day.He shared leadership with his cousins John N. Nordstrom and Jim Nordstrom, who were brothers, and Jack McMillan, who was married to their cousin Loyal Nordstrom.Management by committee is considered a business school formula for disaster, but the Nordstrom family, starting with Bruce’s father, Everett, and Everett’s brothers Elmer and Lloyd, decided that they could be more effective as co-leaders of the company, which was founded in 1901 in Seattle.When Lloyd Nordstrom called 30-year-old Bruce into his office in 1963 and named him president of the company, the younger Mr. Nordstrom accepted the post but soon decided that he would emulate his father’s generation and share leadership with his three relatives.“Obviously, the arrangement worked out great,” Bruce Nordstrom wrote in a 2007 autobiography, “Leave It Better Than You Found It.” “It was marvelous for them and it was marvelous for me because it felt like a weight had been taken off my shoulders.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Walmart Is Shutting Health Centers After Plan to Expand

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      The 51 locations, next to Supercenters, proved too costly to be profitable, the retailer said.Walmart, the world’s largest retailer, said Tuesday that it was shutting down its health care centers, a network that only last year it said it planned to expand.The retailer said in a blog post that its 51 health centers across five states would close. The centers were next to Supercenter locations. The plans won’t affect the more than 4,600 pharmacies and more than 3,000 vision centers within Walmart stores.Walmart started the health-care clinic initiative in 2019 in Dallas, Ga., with centers providing primary care, labs, X-rays and electrocardiograms, counseling, and dental, optical and hearing services. Many were in smaller towns where customers might lack access to quality care, and the company had said it was focused on affordability. In 2021, Walmart started offering a virtual option when it acquired MeMD, a telehealth provider.“This is a difficult decision, and like others, the challenging reimbursement environment and escalating operating costs create a lack of profitability that make the care business unsustainable for us at this time,” the company said Tuesday.Walmart said it was still deciding when it would close each center. In addition to Georgia, centers are in Arkansas, Florida, Illinois and Texas. Workers within the centers will be paid for 90 days and will be eligible to transfer to other Walmart or Sam’s Club locations, the company said.Offering health care is more difficult than selling consumer goods like laundry detergent and car parts, said David Silverman, a retail analyst at Fitch Ratings, noting the layers of government and insurance providers involved.“The attempts to enter these spaces and some of the failures of doing so really underscore the challenges and complexities of operating in the U.S. health care space,” Mr. Silverman said.In March 2023, Walmart said it planned to double its health center locations. It said that by the end of 2024, it expected to have more than 75 Walmart Health Centers and expand to states like Missouri and Arizona.In 2021, Amazon, Berkshire Hathaway and JPMorgan Chase ended their high-profile joint health care venture, which sought to explore new ways to deliver health care to their employees. In March, Walgreens said it had closed 140 of its VillageMD clinics and planned to close 20 more. More

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      One in Five Milk Samples Nationwide Shows Genetic Traces of Bird Flu

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      There is no evidence that the milk is unsafe to drink, scientists say. But the survey result strongly hints that the outbreak may be widespread.Federal regulators have discovered fragments of bird flu virus in roughly 20 percent of retail milk samples tested in a nationally representative study, the Food and Drug Administration said in an online update on Thursday.Samples from parts of the country that are known to have dairy herds infected with the virus were more likely to test positive, the agency said. Regulators said that there is no evidence that this milk poses a danger to consumers or that live virus is present in the milk on store shelves, an assessment public health experts have agreed with.But finding traces of the virus in such a high share of samples from around the country is the strongest signal yet that the bird flu outbreak in dairy cows is more extensive than the official tally of 33 infected herds across eight states.“It suggests that there is a whole lot of this virus out there,” said Richard Webby, a virologist and influenza expert at St. Jude Children’s Research Hospital.Dr. Webby said that he believed it was still possible to eradicate the virus, which is known as H5N1, from the nation’s dairy farms. But it will be difficult to design effective control measures without knowing the scope of the outbreak, he said.The findings also raise questions about how the virus has evaded detection and where else it might be silently spreading. Some scientists have criticized the federal testing strategy as too limited to reveal the true extent of viral spread.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Three London Fashion Brands Coming to the U.S.: Hunza G, Rixo and Me + Em

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      Three beloved London brands are making their way across the Atlantic to stake a bricks and mortar presence in the United States.Looks, left to right, from Rixo, Hunza G and Me+Em, three British brands that are coming to the United States.RIXO, Hunza G, Me + EmBritain’s fashion brands have long looked to the United States for a chance to supersize sales — with varying degrees of success. For every Boden, there is a Topshop, Ted Baker or Hunter Boots that failed to successfully crack the market. After all, the United States is much larger, more diverse and already has plenty of fashion labels to choose from. Garments with an appealing English eccentricity or appeal in their home market may feel out of touch in major American shopping hubs.But the pandemic led many Americans to spend more time online seeking out new brands, including ones from across the Atlantic. Now, three cultish London brands that experienced new popularity during that time have decided to set up shop on the East and West Coasts.What can they bring to the market that no one else has? The founders of Hunza G, Rixo and Me+Em explain their rationale for planting their flags on American soil.Hunza swimwear is made in a knitted seersucker fabric that molds to fit women who are different sizes on top and bottom.Sydney KrantzHunza GYou may not have heard of Hunza G, but chances are you’ve seen the label’s signature wrinkly-crinkly, super-stretchy Lycra swimsuits on the likes of Rihanna or Hailey Bieber or Kim Kardashian.Established in 1984 by the designer Peter Meadows, Hunza was known for tight and bright dresses that were a fixture on the 1980s club scene. Whitney Houston wore a lilac tank style for the “I Wanna Dance With Somebody” video, and Julia Roberts wore a blue and white cutout version for her first scenes in “Pretty Woman.” Almost 30 years later, in 2015, and after a period out of fashion favor, the label was revived under a new co-founder and creative director, Georgiana Huddart.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      ‘Brandy Hellville & the Cult of Fast Fashion’: 5 Takeaways

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      Former employees of the brand, a Gen Z fashion favorite, recount race and size discrimination in a new documentary on HBO.The clothing store Brandy Melville is known for selling diminutive, single-size pieces popular among Gen Z: linen short shorts, heart-print camisoles and sweatshirts printed with the word “Malibu.”Behind its Cali-girl aesthetic is a business that mistreats teenage employees and cashes in on young women’s insecurities, according to “Brandy Hellville & the Cult of Fast Fashion,” a documentary released on Tuesday on HBO.The documentary intersperses former employees’ accounts of racism and size discrimination while working in its stores with a broader look at the labor and environmental costs of the fast-fashion industry. The filmmakers said Stephan Marsan, the company’s mysterious chief executive, did not respond to several requests for comment.Eva Orner, the documentary’s director, said in an interview last week that it was a challenge to get former employees on camera because so many were fearful of the company. Those who were included were identified by only their first names. “I’ve done a lot of stuff in war zones, and with refugees and really life-or-death situations, and people have been more comfortable being on camera,” she said.Eva Orner, the director of “Brandy Hellville & the Cult of Fast Fashion,” said many former employees feared retaliation from the company if they participated in the documentary.Lucas Allen/HBOMs. Orner, an Australian who won an Academy Award for the documentary “Taxi to the Dark Side,” had not heard of Brandy Melville before producers mentioned the company to her in 2022 as a potential subject of investigation. The more she learned, the more she was disturbed by the brand’s cultlike following among teenage girls, who see it flaunted by celebrities like Kaia Gerber and Kendall Jenner.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Has the Luxury E-Commerce Bubble Burst?

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      After implosions by Farfetch and MatchesFashion — and with other blowouts possible — the future for online fashion retailers looks uncertain.Rosh Mahtani, the founder of the jewelry brand Alighieri, is celebrating the 10th anniversary of her company this year. Her handmade gold-plated pieces, inspired by Dante’s “Divine Comedy,” made her a winner of the Queen Elizabeth II Award for British Design and a mainstay of luxury e-commerce vendors.During Paris Fashion Week last month, buyers came to her showroom to select stock for the upcoming season, including MatchesFashion, a leading multibrand fashion retailer that is responsible for about half a million pounds, or $630,000, of Alighieri’s projected revenues. But there was a problem.“They had owed me 70,000 pounds [about $88,000] in unpaid invoices since October and had been asking for discounts on those bills,” Ms. Mahtani said last week. It made her uneasy, even if such bargaining was increasingly commonplace for independent brands like hers. Still, she said, she wasn’t quaking in her boots.“The team made a selection, and we talked about a capsule collection for the summer,” she said. “I don’t think any of us had a sense of what would come next.”Days later, MatchesFashion was put into administration (the British term for bankruptcy). Its owner, Frasers Group, which bought the company in December for about 52 million pounds, or $66 million, now said the operation was not commercially viable. Overnight, almost half of the staff was fired from a company that had been valued at $1 billion when it was sold to Apax Partners in 2017. Today, 200 brands are owed money and cannot access unsold inventory, and a furious customer base rages online about accessing orders or making returns.Rosh Mahtani, founder of cult jewelry label Alighieri, was owed substantial sums by MatchesFashion when the retailer was put into administration earlier this month.via Alighieri JewelryWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More