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Hey Friends,
I’ll admit this is a strange time of the year. It becomes difficult between Christmas and New Years Day to stick to the same rigorous schedule I try to keep with this newsletter - there’s football on every day - the kids are out of school - and most working days are spent navigating a skeleton crew. That said, I’ve got your weekly dose below……
Netflix debuted their Christmas Day NFL doubleheader and quickly set records as the most-streamed NFL games in U.S. history, with preliminary Nielsen data showing an average of 24 million viewers per game. The NFL expects final numbers to reach 30 million viewers per game, marking a major milestone for Netflix's live sports ambitions.
Massive viewership: The Kansas City Chiefs vs. Pittsburgh Steelers and Houston Texans vs. Baltimore Ravens games drew 24.1 million and 24.3 million average viewers, respectively. The Texans-Ravens game set a record for Christmas Day games among 18-34-year-olds, peaking at over 27 million viewers during Beyoncé's halftime performance.
Global reach: Netflix reported viewers from nearly all 190 countries where it operates, underscoring the NFL's potential for international expansion through streaming platforms.
Total impact: Including pre-game shows and Beyoncé’s performance, the games reached at least 65 million viewers globally.
Netflix invested heavily—reportedly $150 million—to ensure a polished broadcast, including Beyoncé's halftime show. While there were minor glitches, the success highlights the platform's potential to attract massive live sports audiences.
Netflix plans to expand its live programming, with upcoming exclusivity deals for WWE and FIFA Women's World Cup broadcasts. Final global ratings for the Christmas games will be released Dec. 31.
Some huge news out of Saks Global as they have completed the $2.7 billion acquisition of Neiman Marcus Group, uniting luxury retailers Saks Fifth Avenue, Saks OFF 5TH, Neiman Marcus, and Bergdorf Goodman under one parent company. Each brand will continue operating independently while leveraging shared resources to enhance customer experiences through cutting-edge personalization, technology partnerships, and strategic innovation.
The acquisition includes flagship properties with a gross asset value of $7 billion, now part of Saks Global Properties & Investments. Key investors and partners, including Amazon, Authentic Brands Group, Salesforce, and G-III Apparel Group, will collaborate on optimizing luxury brands, enhancing supply chains, and creating customized shopping experiences.
Saks Global aims to redefine luxury retail with a focus on data-driven innovation and technology-powered operations, marking a broader trend in the industry toward strategic partnerships to drive growth and resilience.
The U.S. retail real estate market is experiencing a significant boom, defying predictions of an e-commerce-driven decline. Outdoor shopping center space availability is at a 6.2% low, the lowest since tracking began in 2006, while enclosed mall vacancies continue to rise. Retailers like Burlington Stores, Ross Stores, TJX, and Walmart are driving expansion, with over 339 new stores opened by discount chains in the past year and Walmart planning 150 new locations over the next five years.
Rents for outdoor shopping centers have reached record highs, averaging nearly $18 per square foot, now surpassing enclosed mall rents by $3.52 per square foot. New leases are commanding rents up to 32% higher than expired ones. Experts suggest rents in top markets must rise by 65% on average to make new construction viable. This scarcity and growth reflect the resilience of brick-and-mortar retail.
Taylor Swift’s Eras Tour has officially set a new benchmark in the music industry, grossing $2.08 billion from ticket sales across 149 shows over 21 months. The tour, which concluded in Vancouver, Canada, is now the highest-grossing concert tour in history, doubling the revenue of its closest competitor. Ticket demand was so high during the initial presale that it crashed Ticketmaster’s system. Financial details, confirmed for the first time by Taylor Swift’s production company, reveal the unprecedented scale of the tour's success.
Big Lots, which filed for bankruptcy in September, has secured a deal with Gordon Brothers Retail Partners to keep hundreds of stores open and save thousands of jobs. Variety Wholesalers plans to purchase 200–400 Big Lots stores, along with up to two distribution centers, and will continue using the Big Lots brand for these locations. The agreement also facilitates the transfer of assets to other retailers, giving Big Lots a chance to survive in a restructured form.
Kim Kardashian is stepping back from her role in SKKY Partners, the private equity firm she co-founded in 2022 with former Carlyle Group executive Jay Sammons. Despite Kardashian's fame and the success of her Skims brand, the firm struggled to meet its $1 billion fundraising goal, securing only $121 million by April and completing just one acquisition, hot sauce maker Truff.
Recent regulatory filings reveal that Kardashian is no longer an executive officer, now listed as a co-founder and senior operating advisor. Her mother, Kris Jenner, who was previously listed as a senior advisor on SKKY's website, has been removed entirely.
Food recalls are on the rise as the year ends, highlighting ongoing food safety concerns. The CDC estimates that 48 million Americans get sick from foodborne diseases annually, averaging 91 cases per minute.
The FDA recently elevated its recall of some Costco eggs from New York-based Handsome Brook Farms to Class I, its highest risk level, citing possible salmonella contamination. Class I recalls indicate a reasonable probability of serious health consequences or death. Increasing demand for ready-to-eat and prepackaged foods, along with the globalization of food production, has heightened the risk of contamination at multiple supply chain points. Food safety experts warns of growing "blind spots" in global food production, contributing to the rise in recalls.
A Starbucks barista strike, organized by the Service Employees International Union and Starbucks Workers United, has expanded to 5,000 workers across 300 stores in 45 states, coinciding with the company’s busy holiday season. The strike, representing about 3% of U.S. locations, highlights allegations of unfair labor practices and stalled contract negotiations.
Workers are demanding an immediate hourly wage increase of up to 64% and a 77% increase over a three-year contract. Despite the strike, Starbucks reported that 98% of its 10,000 company-operated stores continued normal operations, with only 170 stores unable to open as planned.
Lets talk about a success story……Despite declining global toy sales, Lego has achieved a 13% revenue increase in the first half of the year, gaining market share and outpacing competitors. The company’s transformation since its early 2000s financial struggles has driven six consecutive years of revenue growth. Key strategies include licensing agreements, targeting adult consumers, and expanding into digital platforms.
Lego’s success bolsters Denmark’s toy exports, which reached $272.6 million in 2023, with top destinations including Sweden, Germany, and France. Innovative collaborations, such as "Star Wars" and Formula 1-themed sets, help Lego attract diverse audiences while maintaining consumer interest.
The Consumer Financial Protection Bureau (CFPB) has sued Walmart and fintech company Branch Messenger, accusing them of forcing over a million Spark Drivers to use costly deposit accounts to access their paychecks. According to the complaint, Walmart opened accounts using drivers' personal information without their consent and required their pay to be deposited exclusively into these accounts, threatening job loss for noncompliance.
The CFPB alleges that accessing wages involved a complicated process with delays lasting weeks, despite promises of instant access. Drivers also incurred $10 million in "junk fees" to transfer earnings to other accounts. CFPB Director Rohit Chopra criticized the practice, stating companies cannot drain workers' earnings with fees. The lawsuit highlights that many Spark Drivers are low-income women with children and limited educational attainment.
Soho House is preparing to go private after receiving a $1.75 billion buyout offer from a consortium led by its largest shareholder, Ron Burkle. The offer, representing an 83% premium over its pre-announcement share price, is well below the company’s $2.8 billion IPO valuation in 2021. Shares surged 47% following the news.
Rebranded as "Membership Collective Group" in 2021, Soho House attempted to position itself as a subscription-based business but struggled to attract investor confidence. Efforts to expand its membership base compromised its exclusivity, leading to overcrowding and service complaints, forcing a pause on new memberships in key markets.
With $650 million in debt, high interest rates, and declining shares—down 65% from its IPO price—the company recently posted its first-ever profit of $200,000. The move to go private reflects its inability to balance exclusivity, profitability, and growth expectations.
Amazon and the Occupational Safety and Health Administration (OSHA) have reached a corporate-wide settlement resolving cases alleging ergonomic risks at Amazon facilities. This agreement concludes OSHA’s first major multi-site investigation in over a decade, avoiding trials for 10 cases initially set for next year.
Amazon stated that OSHA has withdrawn all but one of the ergonomic citations, effectively ending nearly two years of litigation by the Department of Labor's solicitor’s office. As part of the settlement, Amazon has agreed to pay over 90% of the penalties associated with all 10 citations, including the withdrawn ones. Additionally, the company will allow OSHA to conduct monitoring inspections at the facilities involved, according to a spokesperson.
McDonald's is introducing new innovations in the U.S., including McDelivery lockers to streamline delivery pickups by eliminating worker-driver interactions, and a fully on-the-go location in Los Angeles focused on digital and drive-thru orders without seating or a lobby. These efforts build on previous tests, such as a drive-thru-only concept in Fort Worth, Texas.
As the world’s largest fast-food chain with over 40,000 locations globally, McDonald's is leveraging smaller restaurant formats to expand into higher-cost real estate areas. The company has also heavily invested in technology to boost efficiency, enhance employee workflows, and improve customer service through digital ordering and advanced in-app capabilities.
That’s all folks……..Have a great week and a Happy New Year!