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Tag: American consumers

  • American households cut holiday budgets, still prioritize gifts | Long Island Business News

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    THE BLUEPRINT:

    • U.S. holiday budgets fall over 10% amid inflation concerns, survey finds

    • , toys, and games remain top gift picks

    • 83% of shoppers plan to visit physical stores

    • and in-store perks drive engagement

    Holiday budgets are expected to shrink by more than 10 percent this year, as elevated costs weigh on consumers. Still gift-giving remains a priority, with gift cards, and toys and games popular selections.

    That’s according to JLL’s U.S. Survey. Released in September, the report features the sentiments of 1,001 consumers, who were surveyed online. The survey reveals a sense of caution over spending on costly technology items, and a preference for gift cards, allowing recipients the flexibility to select their own presents.

    According to the survey, shoppers are trimming spending habits from $1,261 to $1,133 on food, decor and entertainment, but gift budgets remain unchanged. Still, higher-income shoppers from households that bring in more than $150,000 annually, expect to increase spending to $1,963, up from $1,599 last year.

    The survey also found that shoppers who linger more than 90 minutes spend $1,416, while those who visit stores quickly, in under 30 minutes, spend $792, showing that “dwell” time drives revenue. To encourage longer visits, JLL suggests offering such amenities as seating, charging stations, Wi-Fi, holiday music and warm drinks. JLL also recommends tracking time spent in stores through app check-ins or parking validation, and offering incentives such as loyalty points, extended parking or bundled discounts with nearby food partners and entertainment venues.

    And while 16.3 percent plan to shop exclusively online, 83 percent expect to visit physical retailers. Mass merchandisers are slated to attract more than 62 percent of consumers, signaling that many prefer “value-focused, one-stop shopping destinations.”

    With concerns about inflation, 60.6 percent said they are actively seeking more deals this year, with 71 percent prioritizing low prices.  More than 46 percent, up from over 44 percent last year, plan to scope deals during Black Friday and . And more than 37 percent plan to purchase less expensive gifts, while nearly 25 percent said they plan to  shop for fewer people. Still, shoppers report that they would also seek out deals throughout the season. To create awareness about deals, Jll suggests making promotions highly visible with digital signage, mobile alerts and cross-store savings . Also recommended is placing deals front and center online and in store, and offering flash sales to create urgency.

    Meantime, 25 percent plan to skip personal purchases, up from 17.3 percent last year.

    Social media continues to play a pivotal role in holiday shopping, with 79% of consumers using it for inspiration, down slightly from 81% in 2024. Gen Z consumers show a strong preference for TikTok, with 46.2% using the platform for its engaging, video-driven content. Millennials are turning to Facebook, Instagram and X for their holiday planning, reflecting a preference for varied content. Meanwhile, of those 60 and older, 57.9% avoid social media entirely for holiday inspiration, but those who do engage prefer Facebook and Instagram, highlighting these platforms’ ability to connect across generations. JLL suggests that retailers can create content-friendly spaces with photo backdrops, festive lighting and influencer events. Contests for posts or check-ins can drive engagement and visibility.

    Shoppers at open-air centers value festive décor and music that create a holiday atmosphere. Mall shoppers seek perks like gift-wrapping and visits with Santa, while online shoppers prioritize efficiency and avoiding mall crowds.

    Meanwhile, , Walmart and Target are a favorite among consumers, while Costco and Macy’s are also popular, but less so. Shoppers are also drawn to Etsy and Temu.

    Those earning more than $150,000 are drawn to entertainment and holiday-related experiences, including performances, dining and travel.

    Food and beverage also play a role among shoppers, with 84.6 percent saying they plan to indulge at least occasionally, with 51 percent seeking beverages. Younger shoppers prefer fast-casual spots. Older generations who combine food and shopping are more likely to want a full meal, rather than just a snack or drink, suggesting that they seek memorable experiences. JLL recommends adding seasonal drink specials, appealing hot chocolate stations and grab-and-go snacks near checkouts. And sampling stations for holiday treats can turn food into a destination, not just a convenience.

    The survey also found that nearly half of shoppers visit just three to five stores. JLL suggests that concierge-style gift stations can streamline the experience by offering recommendations, store maps and quick help, keeping visits focused and efficient for shoppers.


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    Adina Genn

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  • Exxon to Close Pioneer Deal as FTC Forces Out Sheffield

    Exxon to Close Pioneer Deal as FTC Forces Out Sheffield

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    (Bloomberg) — The US Federal Trade Commission declined to challenge Exxon Mobil Corp.’s $60 billion purchase of Pioneer Natural Resources Co. but asserted that Scott Sheffield, Pioneer’s co-founder, must not take a seat on the supermajor’s board.

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    The decision, announced Thursday in a filing, will ease concern the Biden administration will seek to block a series of oil and gas mega-mergers, but it came at a hefty price. The antitrust agency says it found evidence Sheffield sought to communicate with OPEC and fellow US producers about oil pricing and output, potentially driving up costs for consumers.

    “Mr. Sheffield’s past conduct makes it crystal clear that he should be nowhere near Exxon’s boardroom. American consumers shouldn’t pay unfair prices at the pump simply to pad a corporate executive’s pocketbook,” Deputy Director of the FTC’s Bureau of Competition Kyle Mach said in a statement.

    The FTC says its order will prevent Sheffield from engaging in “collusive activity” that would could drive up crude prices and force US consumers to pay higher fuel prices. The agency says he exchanged hundreds of text messages with OPEC representatives and officials about the oil market.

    Exxon shares rose 0.3% before the start of regular trading in New York. Pioneer shares were unchanged.

    The proposed consent order also bars Sheffield from serving in any advisory capacity at Exxon and prohibits the oil giant from appointing any Pioneer employee or director to its board for five years.

    Exxon said in a statement that the company learned of the FTC’s allegations regarding Sheffield from the agency and that they are “entirely inconsistent with how we do business.” Exxon has agreed to the terms of the consent decree and plans to close its acquisition of Pioneer on May 3, the company said.

    Pioneer said it was surprised by the FTC’s allegations and disagrees with the agency’s conclusions.

    “Mr. Sheffield and Pioneer believe that the FTC’s complaint reflects a fundamental misunderstanding of the US and global oil markets and misreads the nature and intent of Mr. Sheffield’s actions,” the company said in a statement.

    Selling his company to Exxon and landing a seat on the board were a career capstone for Sheffield, who led Pioneer for more than 20 years and was one of the earliest proponents of fracking in the Permian Basin. After closing the merger, Exxon will be far and away the biggest producer in the Permian Basin of Texas and New Mexico, which now pumps more oil per day than Iraq, the second-largest OPEC-member.

    More than 50 lawmakers urged the FTC in March to increase scrutiny over fears a $230 billion wave of consolidation in the past year would increase energy prices for consumers, squeeze suppliers and suppress wages. Investors had feared the agency, which has become more aggressive under Chair Lina Khan, would stand in the way of several large deals, especially in an election year when the Biden administration is seeking to prove its climate credentials and contain gasoline prices.

    Chevron Corp., Occidental Petroleum Corp. and Chesapeake Energy Corp. are among companies with large pending takeover deals that are undergoing in-depth reviews before the FTC.

    Oil executives claim the deals will benefit shareholders, consumers and the environment. Exxon Chief Executive Officer Darren Woods has said the Pioneer deal would lower its cost of production, making US barrels more competitive in the global market and provide a strong platform for growth, which would ultimately benefit consumers. Exxon also pledged to make Pioneer’s operations net zero by 2035, accelerating the prior target by 15 years.

    Sheffield is a rare outspoken leader in the US shale patch, frequently appearing in media interviews and industry conferences. He was an early advocate of the industry’s push for capital discipline rather than ramping up production at all costs, and was one of the first CEOs to call on his company and others to reducing flaring.

    But it was Sheffield’s public and private communications with OPEC and other industry executives that caught the attention of the FTC. He was a leading advocate of government-mandated rationing of Texas oil production during the early-2020 crude market collapse that saw prices plunge below zero. His efforts to convince the Texas Railroad Commission that oversees that state’s oil industry to impose output caps for the first time in decades was ultimately unsuccessful.

    The Biden administration has frequently been at odds with the industry, but easing through what many executives see as the necessary consolidation of the oil patch is likely to improve relations. With crude prices up more than 10% this year and tensions rising the Middle East, the administration is vulnerable to Republican attacks on measures that hurt the oil industry and raise gas prices.

    The Pioneer deal will combine two fast-growing Permian operations, lifting Exxon’s production in the basin to about 2 million barrels of oil equivalent a day by 2027, up from about 600,000 last year.

    –With assistance from Joe Carroll, Joe Ryan and Mitchell Ferman.

    (Adds statements from Exxon and Pioneer.)

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    ©2024 Bloomberg L.P.

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  • America May Be Missing Out on a Better COVID Treatment

    America May Be Missing Out on a Better COVID Treatment

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    Japan is home to an untold number of conveniences and delights that American consumers regularly go without: Faster public transit! Better sunscreen! Lychee KitKats! But as we head into sick season, one Japanese invention would be especially welcome on the U.S. market: an antiviral pill that appears to shorten COVID symptoms, might protect against chronic disease, and doesn’t taste like soapy grapefruit.

    Ensitrelvir, a drug made by the Osaka-based pharmaceutical company Shionogi, was conditionally approved in Japan last November. Like Paxlovid, ensitrelvir works by blocking an enzyme that the SARS-CoV-2 virus uses to clone itself inside the human body. But for the millions of Americans who will likely get COVID in the coming months, the new drug is almost certain to be out of reach. In 2021, Pfizer waited just five weeks for Paxlovid to receive its emergency use authorization. But ensitrelvir is still sitting in the approval pipeline, stuck in another round of clinical trials that may run well into 2024.

    Existing data (not all of which have been peer-reviewed) show that people with COVID who promptly take ensitrelvir, marketed as Xocova in Japan, test negative about 36 hours faster than people who take a placebo. Fever, congestion, sore throat, cough, and fatigue disappear about a day earlier too. Even smell and taste loss appear to resolve more quickly. The company also has some tentative evidence suggesting that the drug can help protect patients from developing long COVID.

    These findings were not enough for the FDA, but they are extremely encouraging, says Michael Lin, a bioengineering professor at Stanford University who works on drugs for treating coronavirus infections. Xocova “looked as good or a little bit better than Paxlovid,” he says. For instance, Pfizer’s clinical trials failed to show that Paxlovid clears symptoms any faster than a placebo in people who aren’t at high risk of developing severe COVID. Shionogi’s did just that.

    Reshma Ramachandran, a family physician at Yale, told me that if the early Xocova results hold up in additional trials, she’d be inclined to prescribe it to her vaccinated patients in place of Paxlovid, simply because the evidence supporting its use is more direct. She said she’d be especially keen to give Xocova if the long-COVID finding can be reproduced.

    No lab or pharmaceutical company has yet published a study that pits Xocova against Paxlovid head-to-head in treating COVID, so it’s impossible to say with certainty which one is better. You can’t draw conclusions just by comparing Pfizer’s clinical-trial results with Shionogi’s: Their drugs were tested in different populations with different levels of immunity at different points in the pandemic when different variants were circulating. Shionogi also required clinical-trial participants to start taking Xocova within three days of feeling sick, whereas patients in the Paxlovid trials began their treatment up to five days after symptoms started. Daniel Griffin, an infectious-disease specialist at Columbia University, told me that timing is everything when it comes to antivirals: In general, the sooner a patient starts taking a drug, the better it works.

    A Pfizer spokesperson told me that the efficacy and adverse-event rates of Paxlovid and Xocova cannot directly be compared, and emphasized Paxlovid’s power to stave off hospitalization and death. (Xocova’s clinical trials were not able to provide meaningful data on those outcomes, which are now much rarer than they were in 2021.) “Since the beginning of the pandemic, we’ve known it will take multiple treatment options and preventative measures for the world to overcome the challenges of COVID-19,” he said in an email.

    Even if Xocova turns out to be no more effective than Paxlovid, it still has several practical advantages. For one thing, it is literally easier to swallow. Paxlovid must be taken twice a day for five days, and each time you have to gulp down three pills: two containing nirmatrelvir (which actively combats the virus), plus one containing ritonavir (which slows the metabolism of nirmatrelvir, keeping it in your system longer). Xocova is taken just once a day for five days, and after the first three-pill dose, it’s one pill at a time. Paxlovid can also cause dysgeusia, a.k.a. Paxlovid mouth—a sour, metallic, taste that may last for hours after swallowing. Xocova seems to taste just fine.

    Experts hope that Xocova will be more widely accessible than Paxlovid, too. Pfizer announced last week that the price of Paxlovid will soon rise from $529 to $1,390 when the drug enters the commercial market. Shionogi hasn’t decided on Xocova’s price in the U.S. market, but there’s reason to think it will be cheaper. In Japan, the only market where both drugs are currently available, a course of Xocova costs 51,851 yen (about $346), and Paxlovid is nearly double the price, at 99,027 yen (about $661). And whereas Japanese health authorities—like those in the U.S.—have recommended Paxlovid for use by patients at high risk of severe COVID, Xocova has been shown to benefit people with infections regardless of their risk status. Finally, whereas Paxlovid’s reach is limited by its many harmful interactions with other drugs, Xocova might pose fewer problems because it doesn’t contain ritonavir, Lin told me. The newer drug’s interaction profile is still being ironed out, but a company spokesperson pointed me to a running list from the University of Liverpool. (According to that source, you should avoid taking Paxlovid and Adderall at the same time—but going on Xocova is fine.)

    Xocova may also sidestep one of patients’ most commonly voiced concerns about Paxlovid: that it will make their COVID go away and then return. One recent observational study of COVID patients found that symptoms rebounded among 19 percent of Paxlovid takers, versus 7 percent of nontakers. By contrast, Shionogi has reported that symptom rebound was vanishingly rare in its clinical trials of Xocova.

    Neither Shionogi nor the FDA would give me an estimate of Xocova’s approval timeline in the U.S., but earlier this year, the company’s CEO estimated that it might get the nod in late 2024. This past spring, the FDA gave the drug “fast track” status, which means Xocova will be eligible for an expedited review process once the company submits its application. (The FDA declined to comment on Xocova’s prospects for approval, citing federal disclosure laws.) Until then, it’s running more clinical trials in the U.S. and abroad. One of them, conducted in partnership with the National Institutes of Health, will evaluate the drug’s performance in hospitalized patients. Another will evaluate its efficacy against long COVID, among other things.

    To some experts, Xocova’s track is not nearly fast enough. David Boulware, an infectious-disease specialist at the University of Minnesota, told me that the FDA appears to be “slow walking” the approval process. Lin, too, would like to see more action. But it’s not clear how, exactly, that would happen. “I think the FDA is doing all that they can,” Ramachandran said; an emergency use authorization for Xocova isn’t a realistic option, given that the COVID public-health emergency has expired. Plus, Griffin said, caution is prudent when dealing with new drugs. “We want to make sure it’s safe. We want to make sure it’s effective,” he told me. “We also don’t want to fall into the trap we fell in with molnupiravir,” an earlier antiviral that looked promising at first, but ultimately offered disappointing benefits to COVID patients (though a surprising utility for cats).

    If the FDA were to approve Xocova tomorrow, demand for Paxlovid likely wouldn’t disappear, experts told me. Lin said the two drugs might compete for users, like Motrin and Aleve. People who are in danger of being hospitalized or dying from COVID could still opt for Paxlovid. “But there’s a much larger group of people who just feel crummy, and they just want to feel better,” Griffin told me. For them, Xocova could make more sense. They just won’t have a choice until the FDA approves it.

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    Rachel Gutman-Wei

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