NEWSWIRE: 7/10/17
- Mall landlords like Time Equities are spending big on property renovations, adding everything from mini-golf courses to rock-climbing gyms. While plunking more money into physical properties may seem counterintuitive in the age of e-commerce, landlords hope to attract shoppers who want to be entertained during their trip to the mall. (Bloomberg Business)
- NH: In your upper-A tier malls (with highest $/sq foot), anchor store closures, while rare, present an opportunity for REIT owner to invest in transforming the mall into a high-end experience. Indeed some owners are buying out the struggling anchors to move in this direction. In lower tier malls, the customer base won't justfiy the capex. Rock climbing in a C or D tier mall? Think more in terms of medical clinics, PT centers, lawyers and insurance, personal care, fast fashion, tattooers (and tattoo removers), and the like. Many of the latter will never recover and are destined to join the growing ranks of greyfields and dead malls.
- Mattel’s new line of Ken dolls come in a range of body types with seven different skin tones and nine hairstyles. After last year’s successful launch of the petite, tall, and curvy Barbie, Mattel knows that Millennial parents buy into inclusivity and body positivity. (The Wall Street Journal)
- NH: After being harrassed for years if not decades by activists for promoting a hurtful and unrealistic body image to girls, Mattel is finally moving this direction to revive its topline. If Barbie doesn't revive, the company may not either. Many activists remain distraught that the new Barbies remain fairly attractive; they don't go all out to renorm beauty to encompass obesity. (Of course, the same may be said of ad campaigns--like Lane Bryant's "plus is equal"--targeting adults.) Whatever educators and parents may want or think, some research suggests that girls even at a very young age find slimmer dolls attractive. Mattel is unlikely to spend much money trying to resolve this nature versus nurture debate.
- Boomers on average have just $263,000 in their employer-sponsored defined contribution plans—less than half the amount they hope to have in retirement. After years of not saving enough, Boomers have more reason than ever to stave off retirement and stay in the workforce. (Legg Mason)
- NH: Wow, if first-wave Boomers (born in the mid-1940s) are in trouble, then late-wave Boomers and first-wave Xers (born 1955-65) are facing retirement catastrophe. Their real median net worth at the same age is lower; their median median household income is lower; their labor force attachment is lower; their disability rate is higher; and their Social Security replacement rate has been reduced. Of necessity, this group will tend to push the personal savings rate higher over the next decade.
- Morgan Stanley is offering nontraditional courses like “Time for a prenup?” and “Show Me the Money! Investing 101” geared toward the Millennial children of its ultra-wealthy clients. For risk-averse Millennials, courses taught by experienced professionals are a great way to get a head start on their financial future. (Fortune)
- NH: Nothing did more to promote prenups among Millennials than the Kanye West song "Gold Digger" ("We want prenups!"). Millennials have a terrific thirst for totally practical, soup-to-nuts Life 101 curricula--since most of them were never taught the basics of "adulting" by their own parents. MassMutual is leveraging this need perfectly.
- Some doctors and surgeons are eschewing opioids in favor of regional anesthesia (like Novocain) and non-medicinal supplements (like meditation). This strategy allows doctors to combat rising drug overdose rates without having to wait for the development of an opioid-free painkiller. (Bloomberg Business)
- NH: The development of better local nonopioid pain blockers presents a big new profit opportunity to drug makers. The quest to tweak opioids to make them safer, on the other hand, is full of shipwrecks. Most of the prescription opioids today drawing so much fire were originally introduced as a "new" and "safer" general painkiller.
- Millennial entrepreneur Beck Bamberger says that her early embrace of financial concepts will enable her to retire at age 40. While few Millennials will be able to afford that particular luxury, their financial savvy certainly puts them in a favorable position for retirement. (USA Today)
- Millennials and Xers each say fast checkout is an important factor in their decision to buy (43% and 40%, respectively), much greater than the share of Boomers (31%) and Silent (28%) who say the same. It’s little surprise that when these time-crunched younger generations go shopping, they want to get in and get out. (AllianceData)
- The Chinese developer behind the popular “Honor of Kings” app introduced new rules limiting users under age 12 to a maximum of one hour of playtime per day. Companies and parents around the world are becoming increasingly wary of the effects of screen exposure on young Homelanders. (CNN)
- NH: Kudos to Tencent Games for figuring out what parents want (their kids to study more and play less) and "co-marketing" this feature directly to them. "Honor of Kings" btw closely resembles "League of Legends," which is the number-one top money maker in e-sports competition. No wonder kids want to get good at this game. If they're good enough, they will be able to put away money while paying full fare at a U.S. university.
- Contributor Stephanie Denning notices more and more of her Millennial friends quitting their jobs—with no backup plan lined up. Rather than a sign of laziness, Denning attributes this trend to stressed-out, unfulfilled Millennials deciding to “step off the treadmill for a bit to recalibrate.” (Forbes)
- More than 600 Baskin-Robbins locations now deliver ice cream through a partnership with DoorDash. While all types of companies seem to be jumping on the U.S. delivery craze, trying to keep sundaes from melting during the summer heat may be more trouble than it’s worth. (Bloomberg Business)
DID YOU KNOW?
School's in for Summer. The summer job may be going out of style for today’s teenagers. That’s according to a Bloomberg analysis of BLS data, which shows that, in July 2016, just 43 percent of 16- to 19-year-olds were in the labor force (either working or looking for work)—10 percentage points lower than in July 2006. Plenty of theories have been floated. Some experts believe that Boomers, who are working longer than previous generations of elders, are crowding kids out of the workforce. Others say that teens today are simply “lazy.” But as we’ve pointed out (see: “Why Are Fewer Workers Returning to Work?”), the likeliest explanation is that kids are stuck in the classroom. In July 2016, more than 40 percent of 16- to 19-year-olds were enrolled in summer school, four times the amount compared to July 1985. Achievement-oriented late-wave Millennials know that extra coursework and college prep classes will pay off when it comes time to apply for college and find a career.
