Category Archives: Economy

Hershey Looks to Halloween to Boost Chocolate Sales

Companies, Consumerism, Economy, Lifestyle

Hershey, the maker of popular candies like Reese’s, Kit Kat, and Twizzlers, is gearing up for Halloween sales. This year, it appears that customers are shopping for trick-or-treat candy closer to the holiday. Last year, due to supply chain and availability concerns, many customers bought their Halloween candy early. Although it’s too early to predict this year’s outcome, so far, Halloween candy sales have been slower than last year.

As Halloween approaches, Hershey is hoping for a strong performance this weekend to meet its sales targets. In recent years, Halloween has become a critical period for the company, accounting for 25-30% of its annual business.

Hershey is experiencing difficulties on several fronts. Cocoa prices are on the rise, supply chain issues have plagued the cocoa industry, and many consumers are now facing budget constraints and are more sensitive to pricing.

To cater to budget-conscious consumers, Hershey is expanding its presence in dollar stores and discount outlets. They are also exploring the option of selling smaller-sized candies at more affordable prices.

But Hershey executives remain positive that Halloween will bring the candy buying boom that the company needs. Last week, CEO Michele Buck said, “With Halloween next Tuesday, we still have several important selling days to go”.

Summer Air Travel is on the Rise

Companies, Economy, News, Transportation Industry

Air travel may finally be recovering from the COVID-19 pandemic. Although some experts predicted that rising inflation would keep vacationers close to home, Delta Airlines reports a 17% increase in demand for flights in the quarter that ends in June.

Despite rising fares, according to Expedia, there has been a 25% increase in flight searches for summer trips, and an even larger increase in searches for international travel to Europe and Asia.

Airlines are also feeling hopeful about the return of corporate travel. Now that offices are reopening after the pandemic, business people are once again willing to fly to meetings. This summer, a high percentage of seats are expected to be filled by people traveling for work.

The next challenge for the airlines will be to ensure they are prepared for this increase in travelers. Throughout the past year, the airline industry was plagued with thousands of cancellations due to bad weather and internal issues. To ensure that passengers arrive at their destinations in a timely manner, Daniel Janki, CFO of Delta, said that Delta has devoted time and energy to “ensuring that we have the right resources in the right places with the right level of training.”

C-Suite Exits Reach Highs in 2022

Companies, Economy, , ,

As 2022 comes to a close, businesses are assessing their ups and downs. It is no secret that Fortune 500 companies have had a very difficult year. The result, though, is somewhat unexpected.

Many top executives are leaving their longtime positions. CEOs have made exits from huge corporations, such as Starbucks, FedEx, Disney, Kohl’s, AMC, Salesforce, and more. The bigger problem is what comes next. It’s become clear that many of these entities have never put a succession plan in place. And, with global markets on the verge of entering a recession, the timing for this unpreparedness is less than ideal.

There were reportedly 774 CEO exits between January and June 2022. This is the highest first half total in 20 years, since the Challenger, Gray, & Christmas outplacement firm started keeping track. By the third quarter of 2022, resignations slowed down, but there was another spike of high-profile exits just this month.

Without a succession plan, companies suddenly find themselves racing to find a replacement CEO. Conducting this type of search under such pressured terms usually doesn’t bode well. Investors are hit with a mixture of surprise and fear, and stocks prices can take a toll. When Salesforce’s co-CEO Bret Taylor resigned last week, share sales shot down.

So, what can be done? A popular solution that companies have implemented is reinstating familiar faces. Both Disney and Starbucks brought back their former CEOs, offering reassurance to shareholders.

The long-term remedy, however, is to plan ahead. Public company board members made their voices heard in a recent survey saying that CEO succession plans need to be improved. Investors are also becoming blatantly aware of the impacts, with a reported $1 trillion per year loss in the S&P 1,500 directly related to C-suite exits.

While companies are busy devising goals for the coming year, it will be interesting to see how many truly internalize this pattern and strategize accordingly.

Record High for Rentals in Manhattan

Economy, Real Estate,

Have you always dreamed of living in the big city? Now may not be the time.

For the sixth month in a row, apartment rental prices in Manhattan have reached a record high. With the median rate last month at $4,150 per month, rentals have climbed 2.5% since June and a whopping 29% from just one year ago. Renters are currently shelling out an average of $5,113 per month.

According to Jonathan Miller, president of Miller Samuel Real Estate Appraisers and Consultants, rent prices are expected to soar even higher this month as August is generally peak season. It is unclear what to expect from September, though. If the Federal Reserve continues to raise interest rates with the hope to curb inflation, the possibility of a recession will become more of a reality. In this situation, layoffs would be expected and demand for Manhattan rentals may decline, which would likely result in an ease on prices. However, Miller expects that rent prices will continue to climb till the year’s end, perhaps at a slower rate.

While rentals are in high demand, the dream of many to become homeowners is being put on hold. Rising mortgage rates are making the possibility of buying now impossible for many. With the current average rate on a 30-year fixed-rate mortgage now at 5.81%, families are opting out. With less buyers, the rental market is seeing extra added pressure, contributing to the increase in rates.

As the economy continues fluctuate in so many areas, the housing market will swing along accordingly. With the end of year gradually approaching, it will be interesting to see what develops. As Miller has asserted, “…it is going to come down to external factors like unemployment and hard landing to see what happens next.”

Travelers Face Soaring Airfares

Economy, News, , ,

With the shining sun and Covid restrictions letting up, Americans are eagerly booking vacations and flights for the upcoming summer months. Tired of regulations and staying at home, people are excited for a newfound freedom they’ve missed. Together with the enthusiasm to travel, experts warn of increasingly hefty airfares.

According to the Associated Press, the expected number of travelers this summer is higher than in pre-pandemic times. Prices of domestic flights are selling at rates 24% higher than during this season in 2019 and 45% more than this time last year. Similarly, international flights are going for 10% more than in 2019.

So, why the drastic increase?

According to airlines, there are a few factors. First and foremost is the rise in jet fuel prices. Additionally, there are fewer flights available for booking and many travelers interested in purchasing tickets. In the words of Hayley Berg, an economist for Hopper, “We have more travelers looking to book fewer seats, and each of those seats is going to be more expensive for airlines to fly this summer because of jet fuel.” Lastly, there is a major decrease in staff numbers in comparison to before the pandemic, and this often results in canceled flights.

Bottom line: If you are eager to make up for missed time during the Covid-19 restrictions, go for it – but be prepared to pay the price!