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    Chick-fil-A is releasing its own entertainment app, with family-friendly shows and podcasts

    Chick-fil-A will launch the Play app, which will host content aimed at families with children aged 12 and under.
    Research and conversations with customers found a connection between consuming content and mealtimes, according to Dustin Britt, Chick-fil-A’s executive director of brand strategy, entertainment and media.
    Chick-fil-A is the third-biggest U.S. restaurant chain by sales, trailing only Starbucks and McDonald’s, and growing rapidly.

    A sign hangs outside of a Chick-fil-A restaurant on May 06, 2021 in Chicago, Illinois. 
    Scott Olson | Getty Images

    Chicken sandwiches, waffle fries, milkshakes – and now TV shows and podcasts?
    Chick-fil-A plans to launch a new app on Nov. 18, with a slate of original animated shows, scripted podcasts, games, recipes and e-books aimed at families.

    While it’s an unusual move for a restaurant company to wade into the crowded media world, Chick-fil-A has been expanding outside of food for years already — with the ultimate goal of directing more people to its over 3,000 restaurants. Since 2019, Chick-fil-A has held the spot of the third-biggest U.S. restaurant chain by sales, trailing only Starbucks and McDonald’s, with many fewer locations than either. Last year, its revenue reached $7.89 billion, according to franchisee disclosure documents.
    As it tries to drive more restaurant sales, the company has sold branded merchandise, like a sleeping bag that resembles its chicken sandwich’s packaging, and created a spinoff brand called Pennycake, which offers family-friendly games and puzzles. And for the last five years, it’s released animated shorts on YouTube during the holiday season as part of its “Stories of Evergreen Hills” series.
    “We’ve been paying attention to some research and conversations we’ve had with families that are our customers, and insights bubbled up that content and games are both adjacent to mealtime,” said Dustin Britt, Chick-fil-A’s executive director of brand strategy, entertainment and media.
    “Our belief is, as we add value to their experience, then we’re giving them a reason to want to enjoy more Chick-fil-A with us,” he added.
    A preview of the app viewed by CNBC included the first 22-minute episode of “Legends of Evergreen Hills,” which continues protagonist Sam’s adventures in the fantasy world of Evergreen Hills; the first installment of “Hidden Island,” a scripted podcast about a family that shipwrecks on a deserted island; and a step-by-step cooking tutorial that uses a Chick-fil-A milkshake as a key ingredient.

    Customers can pre-download the free Chick-fil-A Play app for their iPhones, iPads and Android devices ahead of the launch next month.

    Why Chick-fil-A is betting on content

    People walk past a Chick-fil-A restaurant on 8th Avenue on December 30, 2023, in New York City. 
    Gary Hershorn | Corbis News | Getty Images

    Chick-fil-A decided to create the app following years of discussions with customers and as consumer behavior shifts away from prolonged visits to its restaurants.
    While many of Chick-fil-A’s customers still enjoy its in-restaurant playgrounds, more of its customers are now using its drive-thru lanes and ordering delivery, according to Khalilah Cooper, Chick-fil-A’s vice president of brand strategy, advertising and media. Rival McDonald’s has slowly been erasing its PlayPlaces, a change likely resulting from fewer children using the playgrounds, concerns about health and safety, and a shift away from marketing to children.
    “We’re looking at this app as a way to have a digital playground for the entire family to enjoy, whether they’re in our restaurants, in the drive-thru, driving to soccer practice or even relaxing at home,” Cooper told CNBC. “We want it to be an extension of our in-restaurant signature hospitality and generosity.”
    The content on the app focuses on themes like generosity, friendship, problem-solving, creativity and entrepreneurship, according to Cooper. Chick-fil-A designed the app’s content to appeal to children 12 years old and under and their parents.
    After the initial launch, new episodes of “Legends of Evergreen Hills” will release weekly through the holidays; “Hidden Island” will follow a similar drop schedule. Next year, the Play app will launch “Ice Lions,” another scripted audio series based on the true story of Kenyan teenagers who want to form the country’s first ice hockey team.
    Most of the content that will be available on the app was created with outside partners led by Chick-fil-A’s internal team, but some of it was licensed. The company didn’t disclose the names of its external partners.
    “We’re constantly thinking about what additional elements we can add into the app over time,” Cooper said.
    In August, media publication Deadline reported that Chick-fil-A has been working with outside production companies for content, including unscripted shows, like a family-friendly game show.
    “I’ll say that we’re exploring a variety of different types of content, and everything right now is a potential opportunity for us. We’re going to keep learning and exploring and figuring out what things work,” Britt said.

    Restaurants as media brands

    A Chick-fil-A meal is displayed at a Chick-fil-A restaurant on June 01, 2023 in Novato, California. 
    Justin Sullivan | Getty Images

    As legacy media players like Disney and Warner Bros. Discovery have found out, making content is expensive and attracting viewers is difficult, given the glut of available options on streaming services.
    For brands like Chick-fil-A, the calculus is a bit different. Rather than using content to make money from subscriptions or advertisements, they’re looking to sell more of their own products. That’s been the case since Procter & Gamble first sponsored daytime radio shows to sell its soap – creating the soap opera.
    “There’s a lot of content creation that happens from media houses for brands, and I think that brands want to tap into that because it feels more authentic. It feels more like content and not an ad,” said Stephani Estes, chief media officer for Goodway Group, a digital marketing agency.
    More recent entrants include Starbucks, which announced this summer that it will create original content through a partnership with Sugar23. And in January, Chuck E. Cheese said it’s working with “Top Chef” producer Magical Elves to create its own game show.
    “I think the biggest question I would have, as a marketing professional, is what is the business problem that you’re trying to solve? And is the dollar invested in that content creation or particular initiative going to pay out more than spending that dollar somewhere else in the marketing funnel?” Estes said.
    For Chick-fil-A, the branded content gives it a way to connect with kids – without the same stink as advertising directly to them – and foster goodwill toward the brand from their parents.
    And unlike Disney and Warner Bros. Discovery, Chick-fil-A has some flexibility to figure out if the investment is working. As a family-owned company, it isn’t beholden to shareholders who might push back against an expensive marketing endeavor.
    Chick-fil-A also has cash to burn, especially given its meteoric growth over the last decade. From 2018 to 2023, its systemwide sales nearly doubled. Last year, it raked in net earnings of $1.07 billion. Chair Dan Cathy, who served as CEO from 2013 to 2021 and is father to current CEO Andrew Cathy, has a net worth of $10.6 billion, according to Forbes estimates.
    Coincidentally, Dan Cathy owns Atlanta-based Trilith Studios, whose stages have acted as sets for many Marvel movies and TV shows, plus Francis Ford Coppola’s 2024 mega-flop “Megalopolis.” Tax breaks and cheap labor have helped Atlanta become the “Hollywood of the South” over the last decade. Cathy has previously drawn criticism for remarks he made in 2012 opposing same-sex marriage, and the company’s foundation donated to anti-LGBTQ groups during his time as chief executive.
    Dan Cathy was not directly involved in the development of the Play app or making decisions related to the content, according to Cooper. Chick-fil-A also hasn’t worked with his studio – yet.
    “We’ve not currently done any work directly with Trilith to date, but that’s something that we continue to explore, where it makes the most sense for both our businesses and brands,” she said.

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    Robinhood rolls out high-risk margin trading in the UK after getting regulator nod

    Robinhood launched margin trading in the U.K. Monday, allowing users to leverage their existing asset holdings as collateral to purchase additional securities.
    Margin trading where traders invest using borrowed cash to increase the size of their trades, is a risky investment strategy.
    Robinhood’s U.K. boss Jordan Sinclair said the firm had to get the local regulator “comfortable” with its approach to get the green light on launching margin in the country.

    Tthe Robinhood logo is displayed on a smartphone screen.
    Rafael Henrique | Sopa Images | Lightrocket | Getty Images

    LONDON — Robinhood said Monday that it’s rolling out margin investing — the ability for investors to borrow cash to augment their trades — in the U.K.
    The U.S. online investment platform said that the option would allow users in the U.K. to leverage their existing asset holdings as collateral to purchase additional securities.

    The launch of margin trading follows the recent approval of the product, after Robinhood held conversations with Britain’s financial regulator, the Financial Conduct Authority (FCA).
    Margin trading is a rarity in the U.K., where regulators see it as more controversial because of the risks involved to users. Some platforms in the country limit margin trading for only high-net-worth individuals or businesses. Other firms that offer margin investing in the U.K. include Interactive Brokers, IG and CMC Markets.
    The rollout comes after Robinhood debuted a securities lending product in the U.K. in September, allowing consumers to earn passive income on stocks they own, as part of the company’s latest bid to grow its market share abroad.
    The stock trading app touted “competitive” interest rates with its margin loans offering. Rates offered by the platform range from 6.25% for margin loans of up to $50,000 to 5.2% for loans of $50 million and above.

    Jordan Sinclair, president of Robinhood U.K., said that many customers feel they can’t access more advanced products like margin trading in Britain, as they’re typically reserved for a select few professional traders investing with the likes of heavyweight banks JPMorgan Chase, Goldman Sachs, Morgan Stanley and UBS.

    “There’s so many barriers to entry,” Sinclair told CNBC in an interview. “Ultimately, that’s what we want to break down all those stigmas and barriers to just basic investing tools.”
    He added, “For the right customer this is a great way to diversify and expand their portfolio.”

    A risky business

    Investing on borrowed cash can be a risky trading strategy. In the case of margin trading, investors can use borrowed money to increase the size of their trades.
    Say you wanted to make a $10,000 investment in Tesla. Usually, you’d have to fork out $10,000 of your own cash to buy that stock. But by using a margin account, you can “leverage” your trade. With 10x leverage, you’d only need to have $1,000 upfront to make the trade, instead of $10,000.
    That can be a lucrative strategy for professional traders, who can make even larger returns than on usual trades, if the value of the purchased asset rises significantly.

    It’s a riskier path for retail traders. If the value of the asset you’re buying on borrowed cash drops significantly, your losses will be dramatic, too.
    Robinhood announced it was launching in the U.K last November, opening up its app to Brits in March. At the time of launch, Robinhood was unable to offer U.K. users the option of margin trading, pending discussions with the FCA.
    “I think with the regulator, it was just about getting them comfortable with our approach, giving them a history of our product in the U.S., what we’ve developed, and the eligibility,” Robinhood’s Sinclair told CNBC.
    Sinclair said that Robinhood implemented robust guardrails to ensure that customers don’t invest more cash than they can afford to lose when margin investing.
    The platform requires users seeking to trade on margin to have a minimum of $2,000 of cash deposited in their accounts. Customers also have to opt in to use the product — they’re not just automatically enrolled for a margin account.
    “There are eligibility criteria. There is a way to review appropriateness of this product for the right customer,” Sinclair added. “Fundamentally, that’s a really important part of this product. We recognize it isn’t for the novice investor that’s just getting started on our customer.”
    Robinhood says that its customers’ uninvested cash is protected to the tune of $2.5 million with the U.S.’ Federal Deposit Insurance Corporation, which the firm says adds another layer of protection for users. More

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    Why I paid $95 to recycle a mattress — and you might, too

    Donating my old queen-sized mattress proved difficult. I recycled it and paid nearly $100 for the service in New York.
    More than 75% of mattress materials, like wood, foam, steel and fiber, can be recycled.
    The economics can be challenging for recyclers.
    Some states have enacted mattress recycling laws that make it cheaper for consumers. However, state programs are funded by a fee on mattress purchases.

    The author paid a company, Renewable Recycling, to pick up and recycle his queen-size mattress in New York City.
    Greg Iacurci

    I paid $95 to recycle a mattress.
    It may sound odd, silly even, to pay so much to dispose of a run-of-the-mill household item.

    But the economics of mattress recycling illustrate why it can be difficult — and costly — to be an eco-friendly consumer in the U.S.
    Americans discard about 15 million to 20 million mattresses each year, according to the Mattress Recycling Council. That’s an average of about 50,000 per day.
    Most end up in a landfill, experts said.
    Mattresses are “one of the hardest things to recycle,” said Alicia Marseille, a sustainability and circular economy expert at Arizona State University.
    “It’s a massive waste stream,” she said.

    ‘It’ll probably be there for hundreds of years’

    Mattresses at a garbage dump.
    Robert Brook | Corbis | Getty Images

    My mattress — a queen-sized hand-me-down from family and probably close to two decades old — was in desperate need of replacement. The average mattress has a lifespan of about 14 years, from manufacture to consumer disposal, according to MRC.
    But what to do with it?
    I live in Brooklyn, where residents can dispose of a mattress for free as part of routine trash pickup.
    As someone who meticulously tries to cut waste in everyday life — avoiding single-use plastics, composting food scraps — it was painful to think of mine wasting away in a landfill.

    “If you put your mattress in a landfill, it’ll probably be there for hundreds of years, just sitting there,” said Meg Romero, the recycling and litter control superintendent for Charles County, Maryland.
    Surely, I can find a new home for it instead, I thought.
    Wrong.
    After two weeks of unsuccessful dispatches to local homeless shelters, organizations like The Salvation Army and Goodwill, and community forums like Buy Nothing and The Freecycle Network, I’d exhausted my patience for a free-giveaway option.
    Individuals who donate a mattress to certain groups may be able to claim a tax deduction for its fair market value on their federal tax return. Taxpayers would need to itemize their deductions to benefit.
    Did I neglect to reach out to some interested parties? Probably. Might someone else have different results? Yes. But my personal cost-benefit analysis dictated that it was time to ditch donations.
    I researched some recycling options, and selected Renewable Recycling Inc., based in East Rockaway, New York. There are few other U.S. companies that do such work, experts said. A directory compiled by MRC lists just 55.

    How a mattress is recycled

    Mattresses are picked up and placed into a truck to be hauled to a recycling facility at the Prima Deshecha landfill in San Juan Capistrano, California, on March 10, 2022.
    Mark Rightmire/MediaNews Group/Orange County Register via Getty Images

    More than 75% of a mattress is recyclable, according to MRC. Some companies put it at closer to 90%.
    Recyclers strip them of materials like wood, steel, and various foams and fibers, and sell them into secondary markets.
    The materials are then re-purposed: Shredded foam and fibers as carpet padding, animal beds or insulation; wood as mulch and fuel; and springs as scrap steel, for example.
    “If you can recycle, it will give those materials another life to be used as something else,” said Romero of Charles County, which launched a mattress recycling program for residents on Aug. 1.
    More from Personal Finance:How EVs and gasoline cars compare on total costHere’s how to buy renewable energy from your electric utility8 easy — and cheap — ways to cut your carbon emissions
    That re-use has other environmental benefits. For example, there’s a reduced need to extract or source new materials for manufacturing, which cuts greenhouse gas emissions and water and energy use, experts said.
    Unusually, the Charles County service is largely free for residents. They can bring two items a day — like a mattress and box spring — to the Charles County Landfill for recycling for no charge. Additional items cost $10 per piece.
    Residents recycled more than 900 mattresses in September, over double officials’ estimates, Romero said. The county contracts with a Baltimore-based company, Deco Solutions, to manage the process.

    Charles County’s motivations weren’t purely environmental, though.
    Mattresses are bulky, taking up precious real estate in the county landfill, Romero said.
    “A landfill is a limited, finite space,” said Peter Conway, the president of Spring Back Colorado, a recycler based in Commerce City. “They want to put things that break down, things that are easily compactible.”
    “Mattresses are kind of the antithesis of that,” Conway said. He expects to divert 8 million pounds of waste from Colorado landfills this year.

    Why mattress recycling can be expensive

    Shredded old mattress materials.
    Guillaume Souvant | Afp | Getty Images

    The $95 fee I ultimately paid to Renewable Recycling is “pretty standard” among mattress recyclers, Conway said.
    The expense covered mattress pickup from my Brooklyn apartment and transport to the company’s warehouse in Oceanside, New York. (I could have saved $55 by dropping off the mattress myself, but I don’t own a car.)
    Spring Back Colorado also charges $40 for each mattress and box spring that a consumer drops off. An additional fee of $60 or more applies, depending on the travel distance, if a consumer asks for home pickup.
    Mattresses are harder to recycle than other items like plastic bottles, aluminum cans and cardboard, said Romero, of Charles County.

    “They’re all made completely differently,” Romero said. “There’s no uniform construction, and there are several different types of materials used to make one mattress.”
    The process is more time- and labor-intensive, she said. Often, workers must break them down by hand.
    For example, cotton remnants must be picked off steel mattress springs before it can be shredded or baled for sale to scrap markets, according to the Mattress Recycling Council. Staples also need to be removed from wood frames before going to market, it said. Each coil in a “pocket coil mattress” is individually wrapped in fabric and must be separated, Romero said.

    ‘Razor-thin margins’

    Additionally, mattress materials yield only “modest revenues” when sold, Reid Lifset, a research scholar and resident fellow in industrial ecology at Yale School of the Environment, wrote in an e-mail.
    Those revenues often depend on fluctuating commodity prices.
    “We don’t set the price for a ton of foam or steel,” Conway said. “One day we might get 18 cents a pound and the next week only get 10 cents.”

    If you put your mattress in a landfill, it’ll probably be there for hundreds of years, just sitting there.

    Meg Romero
    recycling and litter control superintendent for Charles County, Maryland

    There must also be a market demand for those commodities — and sometimes those markets aren’t nearby, adding to shipping costs.
    For example, Spring Back Colorado used to send all its foam and ticking to a recycling center in California, Conway said. It cost the company about $2,000 to ship each truck load.
    About a year ago, that California partner stopped accepting shipments: Demand had dried up for material, Conway said. He called companies as far afield as Mexico, Canada, India and Egypt to find alternative placement, but ultimately found a new partner in Texas, he said.
    “It’s pretty razor-thin margins we operate on,” Conway said.
    Spring Back Colorado earns additional revenue from mattress pickups and drop-offs, and from partnerships with businesses and municipalities, he said.
    “Someone has to pay,” said Marseille, of Arizona State University. “It usually falls to consumers.”

    Consumer fees subsidize recycling efforts

    Kosamtu | E+ | Getty Images

    Some states and municipalities are making it more cost-effective for consumers to recycle their mattresses.
    For example, Charles County, Maryland, funds its fledgling mattress program largely with taxpayer money. About $150 of residents’ taxes are allocated to the county’s Environmental Resources division each year, for services like curbside recycling, disposal of yard waste, oil and anti freeze — and now mattress recycling, Romero said.
    Three states — California, Connecticut and Rhode Island — have enacted mattress recycling laws since 2013. A similar program in Oregon is launching Jan. 1, 2025.
    The laws require the mattress industry to develop and administer state programs to collect and recycle discarded mattresses for free.
    The initiative is funded by consumers, though.

    Someone has to pay. It usually falls to consumers.

    Alicia Marseille
    sustainability and circular economy expert at Arizona State University

    Individuals and institutions (like hotels and dormitories) in such states pay a fee each time they buy a mattress: $10.50 in California, $11.75 in Connecticut, $20.50 in Rhode Island and $22.50 in Oregon, said Amanda Wall, a spokesperson for the Mattress Recycling Council. MRC is a nonprofit created by the International Sleep Products Association, a mattress industry trade group, to build and run these state programs.
    Retailers forward those fees to MRC, which funds the consumer recycling efforts. Ultimately, the fees subsidize free mattress drop-off and recycling at any MRC-funded collection site in participating states, Wall said. (Recyclers can still charge a fee for mattress pickup, she said.)
    The mattress industry has pushed for similar legislation in New York, Massachusetts, Maryland and Virginia this year, and plans to keep working with these state legislatures in 2025, Wall said.

    The laws are an example of “extended producer responsibility” policies states have adopted more broadly, forcing companies to bear some end-of-life responsibility for their products, said Marseille.
    Some question whether consumers shoulder too much of the burden right now.
    “Companies aren’t making, for the most part, more easy-to-recycle products,” Conway said. “It’s on the consumer to figure out how to responsibly get rid of their items in a conscious way.”
    He thinks it needs to be easier and more affordable for consumers to recycle to promote that behavior.
    “At the end of the day, if you have two options, and one is throw it in a hole in the ground, and the other is recycle it, 95% of the people will go with that cheaper option,” Conway added. More

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    The West faces new inflation fears

    Central bankers have avoided celebrations and declarations of victory. They know full well that consumers and firms, stung by the highest inflation since the 1970s, would not appreciate them. In private, though, many are elated. The sharpest rise in borrowing costs in decades, dubbed “the great tightening” by the IMF, appears to have worked better than anyone expected. Global inflation has retreated to more comfortable levels. Better still, this has been achieved without a sharp rise in joblessness or a recession. More

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    Why the West faces new inflation fears

    Central bankers have avoided celebrations and declarations of victory. They know full well that consumers and firms, stung by the highest inflation since the 1970s, would not appreciate them. In private, though, many are elated. The sharpest rise in borrowing costs in decades, dubbed “the great tightening” by the IMF, appears to have worked better than anyone expected. Global inflation has retreated to more comfortable levels. Better still, this has been achieved without a sharp rise in joblessness or a recession. More

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    Why a stock picking approach to small caps may boost performance right now

    Stock picking may be the key to getting exposure to small caps.
    Rob Harvey, who’s behind the Dimensional U.S. Small Cap ETF, uses an actively managed approach to buying the group. He’s trying to avoid small caps that are underperforming and dragging down the index.

    “There’s no reason to hold companies that really are scraping the bottom of the barrel in terms of profitability,” the firm’s co-head of product specialists told CNBC’s “ETF Edge” this week. “You remove those from your small cap universe, [and] you can do a lot for boosting returns.”
    The Russell 2000, which tracks small caps, is up more than 12% so far this year. Meanwhile, the broader S&P 500 is up about 23% in the same time frame.
    As of Thursday, the fund’s top holdings were Sprouts Farmers Market, Abercrombie & Fitch, Fabrinet, according to the Dimensional Fund Advisors website. However, its top holding is cash and cash equivalents, which accounts for 1.13% of the fund.
    Ben Slavin, who’s global head of ETFs for BNY Mellon notes investors are looking for more actively managed products to screen out small cap laggards.
    “Investor sentiment has shifted towards small caps, and you see that in the numbers, in terms of where investors are putting their dollars, from a flow standpoint,” said Slavin. “These types of strategies are benefitting.”
    As of Friday’s close, the Dimensional U.S. Small Cap ETF is underperforming the Russell 2000 by more than one percent this year.

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    Elections, hurricane damage and more: Here are four factors that will shape holiday shoppers’ purchases

    A deal-hunting mindset, volatile weather and election distraction will influence shoppers’ purchases this holiday season.
    Holiday spending in November and December is expected to increase by 2.5% to 3.5% compared with 2023 and range between $979.5 billion and $989 billion, according to the National Retail Federation.
    According to a survey by Deloitte, consumers plan to spend more on decorations and experiences than they did during the 2023 holiday season, but slightly less on gifts.

    A Macy’s store is seen at Herald Square on December 11, 2023 in New York City.
    Michael M. Santiago | Getty Images

    Inflation may have cooled, but retailers are still staring down a holiday season with plenty of uncertainty.
    Several hard-to-predict factors will influence consumers’ spending, as they deck the halls and look for the perfect gifts. Volatile weather, election distraction and a deal-hunting mindset may shape the season. And fewer days between Thanksgiving and Christmas than last year will put shoppers on the clock.

    Yet there’s reason for optimism for retailers: Shoppers are feeling more upbeat and plan to spend more compared with last holiday season, according to an annual survey by consulting firm Deloitte and a separate forecast by the National Retail Federation.
    Holiday spending in November and December is expected to increase by 2.5% to 3.5% compared with 2023 and range between $979.5 billion and $989 billion, according to the National Retail Federation. That’s a more modest increase than the 3.9% year-over-year jump from the 2022 to 2023 holiday season, when spending totaled $955.6 billion. The NRF’s figure excludes automobile dealers, gasoline stations and restaurants.
    Shoppers expect to spend an average of $1,778 on the holidays this year, 8% more than last holiday season, according to consulting firm Deloitte’s survey. The survey, which included about 4,000 consumers and was conducted in late August and early September, attributed that spending increase to a more favorable economic outlook, a perception among respondents that prices would be higher and more willingness to spend among higher-earning households with an annual income of between $100,000 and $199,000.
    Low unemployment, a return to more typical inflation levels and a recent Federal Reserve interest rate cut are lifting consumers’ spirits, said Stephen Rogers, managing director of Deloitte’s Consumer Industry Center.
    “People are still in a better frame of mind, despite the political chatter,” he said. “When they look at their bank account and think about what their financial situation is, they feel better.”

    People shop (L) ahead of Black Friday at a Walmart Supercenter on November 14, 2023 in Burbank, California. 
    Mario Tama | Getty Images News | Getty Images

    Deal-hunting mentality

    Weeks before trick-or-treating, shoppers got a taste of their first holiday deals.
    Those early offers set the stage for a season when shoppers are expected to seek out more ways to stretch the budget after costs of living climbed for years.
    Nearly 80% of shoppers surveyed by Deloitte said they would participate in deals events in October and November, up from 61% last year.
    “Our deal seeking muscle has been really exercised the past two years and we are just going to continue to exercise it,” Rogers said.
    NRF CEO Matt Shay echoed that prediction. On a call with reporters this week, he said the retail trade group expects a more promotional environment this holiday season, with deals across more brands and categories than a year ago.
    Another potential challenge for retailers? Catering to customers who are more focused on decorations and experiences than gifts. Consumers plan to spend 16% more year over year on experiences, but spend 3% less on gifts compared with the year-ago holiday period, according to Deloitte’s survey. Non-gift purchases, including spending on decor and party apparel, is also expected to jump 9% year over year.
    The firm’s survey found that spending in retail categories would remain relatively flat with an average of $1,043 in 2024 compared with $1,020 in 2023. Consumers across income groups reported value-seeking habits, including less self-gifting, more trading down to affordable retailers and more seeking out private labels or “dupes” of pricier items.
    That shift could hurt retailers that sell goods, unless they come up with compelling ways to tie their merchandise to experiences, such as suggesting hiking gear, Rogers said.
    For Home Depot, which sells a wide range of holiday decor including Santa-themed throw pillows and a giant animated reindeer for yards, the high demand for decor could be an opportunity. Yet the home improvement retailer said it’s prepared for consumers to seek value, too.
    This holiday season, Home Depot bought more low-priced artificial Christmas trees, such as a prelit tree that sells for $49, said Lance Allen, senior merchant of decorative holiday for the home improvement retailer.

    Signs showing support for both Democratic presidential candidate Vice President Kamala Harris and Republican presidential candidate former President Donald Trump sit along a rural highway on September 26, 2024 near Traverse City, Michigan. 
    Scott Olson | Getty Images News | Getty Images

    Election uncertainty

    As Americans await results of the presidential election, will they also shop for the holidays?
    That’s a question on the minds of retailers and consumer brands, including Walmart and SharkNinja, that are hoping shoppers will browse and buy rather than become glued to the news. The election is on Nov. 5, and it could take days for a winner to be called if the race between Vice President Kamala Harris and former President Donald Trump ends up as close as polls suggest.
    SharkNinja CEO Mark Barrocas described the election as the “biggest unknown” that will shape the holiday season.
    “It may be a blip and it may be nothing, and it may disrupt things for a few weeks if the news cycle is all-consuming,” he said. “Christmas is going to come and there will be a holiday season. It’s just a matter of how many distractions there are.”
    He said the election and the news cycle around it may also influence how consumers feel about the economy.
    Walmart’s internal research suggests “an uptick in positivity” as its shoppers enjoy the fall and get ready for Halloween, said Jen Acerra, vice president of customer insights and strategy at Walmart.
    “The one thing that is still out there and moving is what’s going to happen with the election, and what happens with the election will really determine if this is something that stays positive or not,” she said.
    Already, some companies have blamed the election for taking a bite out of their sales. Amazon chalked up a weak forecast in August to election distraction that would dampen demand for online shopping, a comment some mocked as an excuse.
    Delta Air Lines’ CEO, Ed Bastian, said in a CNBC interview this month that the company expects lower demand before and after the election to hit the carrier’s revenue.
    “Consumers will, I think, take a little bit of pause in making investment decisions, whether it’s discretionary or other things,” he said. “I think you’re going to hear other industries talking about that as well.”

    After Hurricane Milton hit Florida, the city of Clearwater was flooded. Search and rescue operations are ongoing in the area. 
    Lokman Vural Elibol | Anadolu | Getty Images

    Hurricane damage and winter temperatures

    For retailers, cooler and wintery weather is always on the Christmas wish list.
    Weather can tip shoppers into the holiday spirit and get them in the mood to buy thicker sweaters, coats and gifts, said Evan Gold, executive vice president for Planalytics, a Philadelphia-based company that advises retailers on weather-related inventory planning.
    “There’s no external factor that influences consumers’ purchases as directly, frequently and immediately as the weather,” he said.
    This year, the early fall got off to a rockier start. The now unofficial kickoff to the holiday shopping season marked by October sales events coincided with unseasonably warm temperatures in San Francisco and other parts of the country, and severe hurricanes that battered North Carolina and Florida. That makes shoppers less likely to want to buy sweaters, coats and artificial trees.
    Yet the weather this year should eventually help retailers, Gold said, since November and December temperatures are expected to be colder than a year ago. He said the shift in weather, such as a dusting of snow or a cold snap, can help signal shoppers to get ready for the season.
    Many families will just be trying to rebuild from hurricane damage rather than buying holiday gifts, which could redirect money to furniture, clothes or home repairs, Jack Kleinhenz, the NRF’s chief economist, said on a call with reporters.
    “It’ll be just an adjustment in their budget in what they’ll be spending for, but it’s really too early to know the full impact on retail,” he said.
    Home Depot expects that, too. It pulled holiday product out of 124 of its big-box stores to make room for items that hard-hit areas need, such as shingles and drywall, Allen said. Instead, he said, it plans to sell a more limited assortment in those stores of items such as wreaths and its top-selling trees.
    “They’re trying to rebuild and recover their houses,” he said. “So obviously, they’re not going to go buy a nine-foot reindeer and put that out there.”

    A shorter holiday season

    Thanks to the calendar, the holiday rush may be on overdrive.
    Shoppers will have five fewer days between Thanksgiving and Christmas this year compared with last year — which could dampen spending or potentially motivate time-pressured shoppers to seek out rush shipping, curbside pickup or other quicker options to get gifts.
    The pressure will be on retailers to make the most of each day and to deliver on convenience, as shoppers race to get what they need and expect items to arrive within a few hours or at minimum, within a few days, said the NRF’s Shay.
    “A shorter period does have consequences and implications and one of those, of course, is that the shipping season will be shorter,” he said.
    On a recent store tour, Kohl’s Chief Marketing Officer Christie Raymond said the retailer expects it will have to work harder to woo customers, especially lower- and middle-income shoppers, who have felt pinched by the cumulative effect of inflation and crunched for time.
    “We think they’re feeling more squeezed than last year,” Raymond said. And, she added, shoppers have also said they are “feeling time-squeezed.”
    To appeal to those consumers, Kohl’s wants to have more of what they need, Chief Merchandising and Digital Officer Nick Jones said.
    The retailer has bulked up its offering of gift items, added more party dresses and started to sell a wider range of decorations, including Christmas trees, lawn ornaments and wrapping paper.
    “We want to be a holiday destination,” he said. “We haven’t got the food, but we’ve got everything else.” More

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    Drug costs, abortion, Obamacare: How Trump and Harris could change U.S. health care

    Health care in the U.S. has become increasingly costly and complex for Americans to navigate, making it among several issues at the forefront of the presidential election. 
    Kamala Harris and Donald Trump are both pledging to make health care more affordable in the U.S., but they have largely different approaches to doing so if elected.
    Each candidate’s track record provides a glimpse of what drug costs, health care and reproductive rights could look like over the next several years. 

    President Donald Trump talks to the press outside the White House, July 19, 2019, left, and Democratic presidential nominee and U.S. Vice President Kamala Harris speaks to mark the one-year anniversary of the Oct. 7 Hamas attacks on Israel, at the vice president’s residence at the U.S. Naval Observatory in Washington, Oct. 7, 2024.
    Getty Images (L) | Reuters (R)

    Prescription drug costs. Abortion rights. The future of Obamacare. 
    The fast-approaching presidential election between Vice President Kamala Harris and former President Donald Trump could lead to a huge range of outcomes for patients on those issues and others in the sprawling U.S. health system.

    Both candidates are pledging to make care more affordable in the U.S., an outlier in the developed world due to its higher health-care spending, worse patient outcomes and barriers to access. But the candidates appear to have different approaches to doing so if elected. 
    The candidates have not yet released detailed proposals on health policy, which ranks slightly lower than other issues at the top of voters’ minds, such as the economy. But each candidate’s track record provides a glimpse of what drug costs, health care and reproductive rights could look like over the next several years. 
    “A Trump administration will try to slash federal health spending to pay for tax cuts and reduce the role of the federal government in health,” Drew Altman, CEO and president of health policy research organization KFF, told CNBC. He said a Harris administration “will build on existing programs, increasing federal spending to make health care more affordable for people.”
    It wouldn’t be easy for either administration to make sweeping changes: The U.S. has a complicated and entrenched health-care system of doctors, insurers, drug manufacturers and other middlemen, which costs the nation more than $4 trillion a year. Any overhaul of the U.S. health-care system would also depend on which party controls Congress, and on the policies state lawmakers pass.
    Despite spending more on health care than any other high-income country, the U.S. has the lowest life expectancy at birth, the highest rate of people with multiple chronic diseases and the highest maternal and infant death rate among those nations, according to a 2023 report published by The Commonwealth Fund, an independent research group.

    Around half of American adults say it is difficult to afford health care, which can drive some patients into debt or lead them to put off necessary care, according to a May poll conducted by KFF. 
    Here’s how Harris and Trump differ in their approaches to key health-care issues. 

    Prescription drug costs 

    Both candidates have pledged to lower prescription drug costs in the U.S. as many Americans struggle to afford treatments. The nation’s medication costs are nearly three times higher than those in other countries, according to the nonprofit research firm RAND. 
    About 1 in 5 adults say they have not filled a prescription in the last year because of the cost, while roughly 1 in 10 say they have cut pills in half or skipped doses, according to the March KFF survey.

    Activists protest the price of prescription drug costs in front of the U.S. Department of Health and Human Services building in Washington, D.C., on Oct. 6, 2022.
    Anna Moneymaker | Getty Images

    Many of Trump’s efforts to rein in drug prices have either been temporary or not immediately effective, according to some health policy experts. On the campaign trail, the former president has also provided few specifics about his plans for lowering those costs. 
    Some of Harris’ proposals are not fully fleshed out, but if elected she can build on the Biden administration’s efforts to save patients more money, experts said. 
    Harris plans to expand certain provisions of President Joe Biden’s Inflation Reduction Act, part of which aims to lower health-care costs for seniors enrolled in Medicare. In 2022, she cast the tie-breaking Senate vote to pass the legislation. 
    Harris’ campaign says she intends to extend two provisions to all Americans, not just older adults in Medicare: a $35 limit on monthly insulin costs and a $2,000 annual cap on out-of-pocket drug spending. 
    She also plans to expand and speed up the pace of Medicare drug price negotiations with manufacturers to cover more expensive drugs. The landmark policy, passed as part of the IRA, has faced fierce opposition from the pharmaceutical industry, as some companies have challenged its constitutionality in court. 
    Trump has not indicated what he intends to do about IRA provisions.
    Many Republicans have been vocal critics of the drug pricing negotiations, claiming they harm innovation and will lead to fewer cures, according to Dr. Mariana Socal, a health policy professor at the Johns Hopkins Bloomberg School of Public Health. Trump made a similar argument in 2020 when he opposed a separate Democratic bill that would allow Medicare to negotiate drug prices. 
    Still, Socal said a Trump administration wouldn’t have much flexibility to dismantle or scale back the law without change from Congress.
    Some of Trump’s efforts to lower drug prices during his presidency “didn’t really come into fruition,” Socal added. 
    In 2020, he signed an executive order to ensure Medicare didn’t pay more than the lowest price that select other developed countries pay for drugs. But the Biden administration ultimately rescinded that policy following a court order that blocked it. 
    The Trump campaign this month said the former president would not try to renew the plan if reelected.
    Also in 2020, Trump issued a rule setting up a path to import prescription drugs from Canada, where medication prices are 44% of those in the U.S. But it took years for the measure to gain momentum. The Biden administration only in January approved Florida’s plan to import some prescription treatments from Canada. 
    Trump also set a $35-per-month cap on some insulin products for seniors through a temporary program that Medicare prescription drug plans, also known as Part D plans, could choose to join. The program was in effect from 2021 to 2023, and less than half of all Part D plans opted to participate each year, according to KFF. 
    But that measure was much more limited than the Biden administration’s insulin price cap, which requires all Part D plans to charge no more than $35 per month for all covered insulin products. It also limits cost-sharing for insulin covered by Medicare Part B plans. 
    Both administrations would likely continue to scrutinize pharmacy benefit managers, the drug supply chain middlemen who negotiate rebates with manufacturers on behalf of insurance plans, according to Dr. Stephen Patrick, chair of the health policy and management department at Emory University.
    Lawmakers and the Biden administration have recently ramped up pressure on PBMs, accusing them of raking in profits while inflating prescription medication prices and harming U.S. patients and pharmacies. 

    Health-care coverage

    Health-care coverage is a critical and, in some cases, life-or-death issue for many Americans. Harris and Trump would take different approaches to it.
    Harris in her 2020 presidential primary run supported a version of a “Medicare for All” bill, which would put all Americans in Medicare and effectively eliminate private insurance. Her campaign has since indicated she would not back the program as president.
    But Harris has supported the Affordable Care Act, also known as Obamacare, since she was a senator, consistently voting against bills to repeal the plan and reasserting her commitment to strengthen it during the presidential debate on Sept. 10.
    The ACA was designed to extend health coverage to millions of uninsured Americans and implement reforms to the insurance market. The law expanded Medicaid eligibility, mandated that Americans purchase or otherwise obtain health insurance, and prohibited insurance companies from denying coverage due to preexisting conditions, among other provisions.
    The IRA extended enhanced subsidies that made ACA health plans more affordable for millions of households through 2025 — a provision Harris plans to make permanent if elected, her campaign said. 
    Harris may also work with Congress to try to extend Medicaid coverage in the 10 states that haven’t expanded it under the ACA, some experts said. Medicaid provides coverage for 81 million people, or more than 1 in 5 Americans, according to KFF.
    The program is the largest source of federal funding to states. It covers low-income patients and families, as well as those with complex and costly needs, such as people with disabilities and individuals experiencing homelessness.
    But if Republicans control even one branch of Congress, boosting Medicaid coverage will “be much tougher, if not impossible to do,” KFF’s Altman said.
    Democrats face a difficult path to retaining their slim Senate majority, while Republicans are trying to cling to narrow control of the House.

    Vice President Kamala Harris greets guests after speaking at an event celebrating the 13th anniversary of the Affordable Care Act in the East Room of the White House in Washington, D.C., March 23, 2023.
    Nathan Posner | Anadolu | Getty Images

    Meanwhile, Trump led multiple failed crusades to repeal the ACA during his first term. In a campaign video in April, Trump said he was not running on terminating the law and would rather make it “much, much better and far less money,” though he has provided no specific plans. Many Republicans have abandoned their promises to repeal the law after it grew more popular in recent years.
    During the Sept. 10 debate, Trump reiterated his belief that the ACA was “lousy health care.” But he did not offer a replacement for the law when asked, saying only that he has “concepts of a plan.” 
    KFF noted that Trump’s previous replacement proposals would have made the ACA less expensive for the federal government but raise out-of-pocket premiums for patients, lead to more uninsured Americans and increase risks for states. 
    A Trump administration would likely have major implications for Medicaid, Altman said.
    Notably, Trump has said he would not cut spending for Medicare and Social Security. But that makes Medicaid, which costs the federal government more than $600 billion a year, a target for severe cuts, Altman noted.
    He said Trump could make fundamental changes to the program to curtail enrollment, such as lifetime limits on how many years people can get Medicaid coverage. 

    A rally against Medicaid cuts in front of the U.S. Capitol on June 6, 2017.
    Bill Clark | CQ-Roll Call, Inc. | Getty Images

    Trump could also revisit some of his earlier attempts to reduce spending on Medicaid. As president, he approved eligibility restrictions such as work requirements, and proposed changing the way the federal government gives money to states for Medicaid into a “block grant” program. 
    That refers to the government providing states with a fixed amount of money to administer and provide Medicaid services in exchange for more flexibility and less oversight.
    The Biden administration withdrew some of those restrictions and encouraged waivers that would expand Medicaid coverage and reduce health disparities, which Harris would likely pursue if elected, experts said.
    A Democratic House or Senate would likely block any of Trump’s sweeping changes to Medicaid, according to Altman. 
    “My theory is that if the Democrats hold even one house in Congress, all of that will fail,” he said. “There’ll be a big debate, but it will fail. Medicaid is too big.”

    Reproductive rights

    Abortion is a pivotal issue that could drive many voters’ decisions in this election. The number of voters in swing states who name abortion as their top election issue has grown since the spring, according to a late August poll by The New York Times and Siena College. 
    This is the first presidential election held since the Supreme Court overturned Roe v. Wade, the landmark ruling that established the constitutional right to abortion in the U.S. in 1973.
    Abortion access in the U.S. has been in a state of flux in the roughly two years since the court’s decision, which has given conservative governors and legislatures the power to limit the procedure in their states. As of last year, more than 25 million women ages 15 to 44 lived in states where there are more restrictions on abortion than before the court’s ruling in 2022, PBS reported.

    Vice President Kamala Harris speaks about Florida’s new 6-week abortion ban during an event at the Prime Osborn Convention Center in Jacksonville, Florida, May 1, 2024.
    Joe Raedle | Getty Images

    The future of abortion rights could look starkly different depending on which candidate holds office, according to Stacey Lee, professor of health law and ethics at the Johns Hopkins Carey Business School. That leaves the reproductive well-being of many women, especially lower-income people and people of color, hanging in the balance.
    Harris has long been a staunch advocate of abortion access and has seized the opportunity to highlight what some health policy experts and voters consider the extreme and often inconsistent views of Trump and the broader Republican Party. 
    She has blamed Trump, who appointed three members of the Supreme Court’s conservative majority, for the reversal of Roe v. Wade, and urged Congress to pass a national law codifying abortion rights. Democrats have not had enough votes in Congress to pass such protections under Biden.
    Last month, Harris also said she supports eliminating the filibuster in the U.S. Senate to restore federal abortion protections as they existed under Roe v. Wade. The filibuster rule requires a 60-vote threshold for most legislation to pass, which makes it difficult for lawmakers to approve bills in a closely divided Senate.
    Harris has also “been a firm proponent” of defending the availability of the abortion pill mifepristone, Lee said. Anti-abortion physicians squared off with the Food and Drug Administration in 2023 in an unprecedented legal battle over the agency’s more than two-decade-old approval of the medication. 
    In June, the Supreme Court unanimously dismissed the challenge to mifepristone and sided with the Biden administration, meaning the commonly used medication could remain widely available. The administration’s FDA also revised restrictions on medication abortion, allowing certain certified retail pharmacies to dispense the pills. 
    Meanwhile, Trump vaguely suggested in August that he would not rule out directing the FDA to revoke access to mifepristone. Just days later, his running mate, Sen. JD Vance, of Ohio, attempted to walk back those remarks. 
    Trump’s comments appear to be a shift from his stance in June, when the former president said during a CNN debate that he “will not block” access to mifepristone.
    During his time in office, Trump introduced several anti-abortion measures. That includes a “gag rule” that would have made clinics, such as Planned Parenthood, ineligible for federal health funds if they provided abortions or referrals for them. 
    Vance this month also said a future Trump administration would defund Planned Parenthood.
    But Trump has also waffled over the last few years on abortion policy, appearing to soften his stance on the issue to appeal to more moderate and independent voters.
    He takes credit for Roe v. Wade’s demise since he reshaped the court, and his latest stance is that abortion policy should be set by the states. Earlier this year, however, Trump lamented that certain state laws go “too far.”
    During a radio interview in March, Trump said he would consider a national ban on abortions around 15 weeks of pregnancy. 
    But earlier this month, he said he would not support a federal abortion ban, writing in a post on X he would veto one. He added that he supports exceptions in cases of rape and incest and to save the life of a pregnant woman.
    “It is difficult to find consistency within his policies, but that lack of consistency should amplify that perhaps anything is possible in terms of a more restrictive stance to abortion and reproductive rights,” Lee said. 

    President Donald Trump arrives to speak at the 47th annual anti-abortion “March for Life” in Washington, D.C., Jan. 24, 2020.
    Nicholas Kamm | Afp | Getty Images

    Meanwhile, both Harris and Trump have recently expressed their support for in vitro fertilization, a type of fertility treatment performed outside of the body in a lab. It accounts for roughly 2% of births in the U.S. but is extremely costly for many low- and middle-income people who need the technology to start families. 
    It became a campaign issue after the Alabama Supreme Court ruled in February that frozen embryos created during the IVF process could be considered children, which threatened the availability of those services in the state. 
    Trump has called for the government or private insurers to pay for IVF treatment. Harris has said she would defend the right to both IVF and contraception, but has not specified how she would do so. More