Retail industry leaders envision a future where smaller, more efficient stores dominate the landscape, strategically positioned based on customer demand.

Fran Horowitz, CEO of Abercrombie & Fitch, highlights the shift from large, unproductive stores to intimate, experiential spaces driven by consumer preferences.

Michelle Gass, CEO of Levi Strauss, emphasizes the need for stores to offer more than just transactions, becoming experiential hubs and mini distribution centers. Jens Grede of Skims stresses the importance of prime locations, foreseeing a decline in less desirable areas.

Geoffroy van Raemdonck, CEO of Neiman Marcus Group, predicts a rise in immersive, multisensory retail experiences.

Trina Spear, CEO of Figs, emphasizes the shift towards stores as community gathering places rather than mere transactional spaces.

Chris Nicholas, CEO of Sam’s Club, underscores the importance of stores as last-mile fulfillment centers, providing convenience and speed to customers. Kara Trent of Under Armour predicts a blend of experiential and transactional retail, tailored to different consumer needs and locations.

The rise of technology, data, and AI is identified as a major disruptive force in retail. Leaders anticipate using predictive analytics and machine learning to enhance operational efficiency and personalize customer experiences.

Marc Lore, former CEO of Walmart U.S. e-commerce, highlights conversational commerce as a transformative trend enabled by AI and natural language processing.

In the next five years, retailers expect a seamless integration of digital and physical channels, with AI playing a crucial role in personalization and product discovery. Yael Cosset, CIO of Kroger, envisions AI augmenting the capabilities of store associates to provide enhanced customer service.

Dave Kimbell, CEO of Ulta, sees AI driving personalized customer communication and experiences.

As for the future of retail, leaders predict a continued preference for in-store shopping, complemented by digital channels. They emphasize the importance of understanding and meeting evolving consumer expectations.

Retailers that embrace new technologies, offer personalized experiences, and adapt to changing consumer behaviors are expected to thrive. Inclusive sizing, customization, and sustainability are identified as emerging retail standards.

Jens Grede emphasizes the dominance of brands with strong business models, while Trina Spear highlights the importance of community and connection in retail experiences. That includes inclusive sizing, customization, and sustainable practices.

The largest credit card companies in the nation typically impose higher interest rates compared to smaller banks and credit unions, potentially leading to significant savings for the average cardholder, as indicated by an analysis released by the Consumer Financial Protection Bureau on Friday.

However, experts suggest that depending on the specific card and usage patterns, some consumers might derive greater financial benefits by sticking with larger lenders.

During the first half of 2023, the largest U.S. lenders maintained a typical credit card annual percentage rate that stood 8 to 10 percentage points higher than their smaller counterparts, as highlighted by the financial watchdog.

The rise in rates for consumer debt and savings products correlates with the U.S. Federal Reserve’s incremental increase in its benchmark interest rate. Although the CFPB analysis encompasses all but the most recent hike, which occurred with a quarter-point increase in July.

According to the CFPB analysis, consumers carrying a $5,000 balance could potentially save $400 to $500 annually by opting for cards from smaller lenders over larger ones, underscoring the significant stakes involved for cardholders.

TransUnion data suggests that the average individual maintains a balance of $6,360.

“We’re finding many of them would be better off with newer entrants or smaller players in the market,” remarked CFPB Director Rohit Chopra during an appearance on CNBC’s “Squawk Box” on Friday. “For the average household… switching can actually save them hundreds and hundreds of dollars over the course of the year.”

The agency’s findings emerge against the backdrop of record-high average credit card balances and total credit card debt as of the end of 2023.

Federal Reserve data indicates that the average credit card interest rate for all accountholders exceeded 21% in November, marking a new record.

The CFPB’s analysis categorizes large lenders as the nation’s top 25 and small lenders as all others within its sample. It draws upon data from 643 general-purpose credit cards offered across 156 issuers in total, including 84 banks and 72 credit unions.

Notably, the vast majority of the credit card market is dominated by large lenders, with the top 10 holding an 83% market share and the top 30 collectively accounting for approximately 95%, according to another recent CFPB report.

In response to the report, spokespeople from the Consumer Bankers Association and American Bankers Association emphasized the highly competitive nature of the credit card market, offering consumers a diverse array of card options with varying features and pricing.

“The credit card market is highly competitive and gives consumers a broad range of cards from which to choose,” remarked Lindsey Johnson, CEO of the Consumer Bankers Association.

The CFPB’s new interest-rate findings remain consistent irrespective of a consumer’s credit score. For instance, individuals categorized with “poor” credit (a score of 619 or less) faced a median average percentage rate of 20.62% at smaller institutions compared to 28.49% at larger ones.

Ted Rossman, an industry analyst at CreditCards.com, pointed out that while interest rates are a crucial consideration for consumers carrying a balance, they may not matter for those who pay their bills in full each month.

Rossman highlighted that large lenders often offer more robust rewards programs, albeit with higher annual fees on average, potentially offsetting costs for users who responsibly leverage these benefits.

Additionally, while small issuers typically maintain lower ongoing APRs, large lenders may provide promotions such as temporary 0% interest on balance transfers, which could aid users in paying off high-interest card debt.

Nevertheless, Rossman cautioned that individuals carrying a balance might be best served by avoiding credit card usage altogether and focusing on paying down existing balances, possibly with the guidance of a nonprofit credit counselor.

“I’d be hard-pressed to find a case where even an 8%, 10%, or 12% card makes sense for them,” Rossman concluded.

Carl Icahn’s efforts to secure seats on JetBlue Airways’ board of directors have succeeded, as confirmed in a statement from the airline on Friday.

This comes shortly after Icahn disclosed his ownership of nearly 10% of the New York-based airline and his negotiations for board representation.

The two newly appointed directors are Jesse Lynn, serving as general counsel of Icahn Enterprises, and Steven Miller, a portfolio manager at Icahn Capital.

Following the announcement, JetBlue’s shares experienced a roughly 4% increase in after-hours trading.

Icahn’s involvement with JetBlue marks his return to the airline industry. Notably, in one of his past activist campaigns, he took TWA private in the late 1980s, a move that ultimately led to the airline’s struggles and eventual bankruptcy.

In his disclosure of the JetBlue stake, Icahn emphasized his belief in the undervaluation of the company’s shares. JetBlue’s stock has declined by over 19% in the past 12 months, contrasting with the approximately 7% increase in the NYSE Arca Airline Index over the same period.

The recent appointment of Joanna Geraghty as JetBlue’s new CEO signals a fresh direction for the carrier. Geraghty, alongside a pair of experienced airline veterans, aims to steer JetBlue toward profitability and operational stability.

In response to the developments, Geraghty expressed optimism, stating, “Building on our distinct brand and unique value proposition, we are focused on delivering value to our shareholders and all of our stakeholders, and we welcome the contributions of our new board members as we move forward with that common goal.”

JetBlue’s financial performance has been marred by losses since the onset of the Covid-19 pandemic.

To address this, the airline has embarked on cost-cutting measures and endeavors to enhance reliability amid a resurgence in travel demand following the pandemic.

Additionally, JetBlue’s proposed merger with budget carrier Spirit Airlines was recently blocked by a federal judge, citing concerns over diminished competition. Both JetBlue and Spirit are appealing the ruling in hopes of overturning the decision.

In 2017, two cousins lacking any professional baking experience made a bold move to launch a cookie business together.

Today, Crumbl Cookies boasts over 980 stores nationwide, crossing the $1 billion sales mark across all franchises and selling over 300 million cookies in 2022, according to co-founders Jason McGowan and Sawyer Hemsley.

“I never imagined in my wildest dreams that we would do over $1 billion in sales,” remarks McGowan, 43, who estimates investing around $68,000 of his own money to kickstart the venture. (The company opted not to disclose its 2023 sales, citing ongoing auditing.)

The ascent of Crumbl began when McGowan, a former tech executive at Ancestry.com, and i.TV teamed up with his cousin. At the time of their first store opening in Logan, Utah, in 2017, Hemsley was still studying marketing at Utah State University.

“We just thought it was a fun side hustle,” reflects McGowan.

Although neither McGowan nor Hemsley had prior professional baking experience, they rigorously experimented with various cookie recipes, soliciting feedback from friends, family, and strangers. Their confidence grew in Crumbl’s signature chocolate chip cookies, which became the cornerstone of their initial location.

Leveraging their backgrounds in tech and marketing, the co-founders capitalized on social media to cultivate a substantial following from the outset. Employing tactics akin to the fashion industry, they orchestrated weekly “drops,” unveiling new, limited-edition cookie flavors on TikTok.

“It creates that hype. It creates that excitement. And it also creates some scarcity, because you can only have that cookie for that week,” explains McGowan. Individual Crumbl cookies typically range from $4 to $5 each, with prices decreasing for packs of four, six, or 12, as per the company’s website.

Crumbl’s social media presence now exceeds 16 million followers across platforms, with TikTok emerging as a significant platform boasting over 7 million followers and a viral hashtag, “#TasteWeekly.” Users flock to TikTok to post reviews, both favorable and critical, of Crumbl’s latest cookie flavors.

The buzz surrounding Crumbl has attracted considerable interest in franchising, leading to the opening of over 600 new stores between 2022 and 2023. While the expansion rate may decelerate going forward, Crumbl has ambitions for international growth, including in the U.K.

However, Crumbl’s success has also drawn imitators, resulting in two trademark infringement lawsuits in 2022, both resolved through undisclosed settlements. “Just as any company would, Crumbl chose to protect its brand,” notes a company spokesperson.

McGowan acknowledges that one of his key takeaways thus far is the potential simplicity of replicating Crumbl’s success.

“As I get older and as I build this company, I realize more and more that everything that we do is just something that anyone can do,” he reflects. “Whether you don’t have a mixer yet, or you don’t have a recipe for a cookie yet, you just get started.”

As the trading day draws to a close, it’s evident that this week has been quite turbulent. The noteworthy aspect is the market’s resilience in rebounding from early losses, despite a concerning uptick in producer prices and escalating bond yields.

This contrasts with Tuesday’s trading pattern, where a similar surge in consumer prices led to a sharp rise in bond yields and a corresponding plunge in stock prices.

Remarkably, the S&P 500 managed to clinch a record high by the end of Thursday, nudging the index slightly above the breakeven mark for the week.

Should these gains hold, it would mark the S&P 500’s ascent for the fifteenth time in the past sixteen weeks, signifying a remarkable streak of success.

Shifting focus to Friday’s market dynamics, it’s worth noting that the S&P 500 is holding steady without significant contributions from the Magnificent Seven—Alphabet, Apple, Amazon, Meta Platforms, Microsoft, Nvidia, and Tesla.

Most of these stocks are trading lower today, save for Nvidia and Tesla. Notably, Jim Cramer rebranded the group as the Significant Six after excluding Tesla. Within our Club portfolio, we maintain positions in all six of these market leaders.

Noteworthy sectors driving Friday’s market performance include materials, healthcare, and consumer staples.

Among the standout performers this week, Wells Fargo emerged as the top gainer, propelled by a 7% surge on Thursday following regulators’ termination of a consent order.

GE Healthcare followed closely behind, buoyed by a favorable upgrade from UBS on Monday and a bullish initiation from HSBC with a Street-high $100 price target on Thursday.

Despite initial concerns over a 13 million share secondary offering tied to General Electric’s stake in GE Healthcare, the stock reversed early losses on Friday, indicating robust resilience. Other notable winners this week included Eli Lilly, Foot Locker, Danaher, Linde, and Disney.

Conversely, mega-cap tech stocks weighed heavily on our portfolio’s performance this week, with Alphabet, Microsoft, Apple, and Amazon among the notable laggards. Starbucks also struggled, prompting us to increase our position on Wednesday as shares retraced to pre-earnings levels.

While Starbucks faces the challenge of reigniting same-store sales growth, the stock’s resilience post-earnings suggests that much of the downside has already been factored into current valuations.