New Flooring

Believe it or not, having new flooring can be very impactful. Now, this doesn’t necessarily mean going all out on something super-pricey. But it might mean pulling up that old carpet and finding a deal on something new. A clean, fresh-feeling flooring can be the start of a new office space.

How About A New Paint Job?

On one front, yes this goes hand-and-hand with getting your floors redone because if you’re going to do one, why not go all out? But really, new wall paint is a lot more than just a pretty new look. In fact, it’s been scientifically proven that different wall colors will alter your mood, which as you may suspect can be a huge contributing factor in your productivity levels. For example, colors like off-white, simple red, light brown and light green are known to be calming without distracting. As far as colors are concerned, it’s something of a case-by-case scenario, so you’ll want to shop around before finding what’s right for you.

Invest In Artwork That Speaks To You

While it might sound a little silly at first, there’s certainly something to be said about decorating your workspace the way you want to. When it comes down to it, being surrounded by things that allow you to express yourself tends to make you more comfortable, therefore able to focus. And they don’t need to be expensive art pieces either, just things you feel represent and maybe even motivate you. Though we do recommend getting some professional framing to really bring the message together.

Look Into Getting A Snack Counter

Employees enjoy a quick snack in the breakroom. It makes them feel appreciated (plus, they see it as a perk) and at a very low cost. It also encourages a few minutes of chatting between employees in a break room, which is a great way to encourage team building. Best of all, the right snacks will energize them and can boost productivity.

Games, Anyone?

No, we’re not talking about turning your office space into an arcade. But getting one or two games in the office can really show your employees that you trust them and care about them. It says “you work hard, so you should enjoy yourself”. Not to mention that they’ll be more inclined to want to spend time in the office. Here are some relatively low-cost ideas:

• Pool Table
• Air Hockey Table
• Ping Pong Table
• Pinball Machine

Even having a small selection of board games can really boost employee morale!

Upgrade Your Desks

With so many options today, choosing a desk is no longer as simple as picking something to throw your papers on. For instance, the standing desk has become something of a phenomenon in today’s modern workspace. I mean, let’s face it – most of us live overly sedentary lifestyles and a standing desk works to combat that while increasing productivity.

Oh, and don’t worry – most of these adjust so you can sit and stand.

Everyone Loves Comfortable Chairs

Bottom line – when your employees are more comfortable, they can get more done. So why not invest in their productivity? A set of new office chairs can make a big difference in supporting their backs and your goals.

Refreshments Are A Big One

As with snacks, having a place like a water cooler or Keurig are nice little spots for employees to take 5 and get to know each other. Besides, the caffeine from a cup of coffee or tea will be a direct contributing factor in productivity alone. Plus, your employees will appreciate the sentiment.

The post 8 Ways To Transform Your Office Space appeared first on Koshka.

Below we provide 4 big trends we’re seeing in-store and 4 on the marketing side. Put these together and watch your foot traffic take off like a rocket!

Experience-Based Shopping

In some ways, this trend isn’t new or exclusive to 2021, but it’s so important that retail is always trying to redefine “experience-based shopping” that it becomes something of a new topic every year.

Here’s the thing, your competitors (other retailers) sell products just like you do. They may be of a different quality, pricepoint, whatever… the point is that consumers know they have options. Hell, they can order something on Amazon with 2 clicks and have it delivered to their home in a matter of days or hours.

While consumers can purchase whatever they like, they can’t purchase experiences and that’s what puts them in demand. You don’t get an experience with Amazon and maybe not with your competitors. So retailers are gathering data and using them to transform their brick-and-mortar stores into experience centers for more customer engagement and sales.

More Flexible Payment Methods

It’s 2021, which means there are a bunch of ways to pay people. Is there anything worse than getting a customer, but not accepting their preferred payment type? You’re putting yourself at risk of losing sales! So retailers are focusing on accepting all forms of currency to maximize sales. Beyond the traditional cash/credit/debit, retailers are experimenting with:

• Prepaid Cards
• Gift Cards
• Mobile Pay
• Scan-And-Go
• App-Based Commerce

Lower Pricing = Being More Competitive

With all things considered, money talks. While it may be difficult to match prices from larger retailers, the small and medium-size guys are finding ways! Even if it means lowering profit margins, retailers are prioritizing customer experience with the intention that more sales will make up for the decrease in profit margins and regain a foothold in their respective markets.

Going Community + Environmentally Friendly

This is another thing any local retailer can provide that the big guys can’t. Community. Doing some work with community relations adds a sense of inclusion that resembles that of a neighbor. Present your retail brand as if it was a person in the community.

Also, going green with solar power and reusable bags are great ways to save money and give people environmentally-friendly ways to shop.

Using Snapchat for Product Highlights

Snapchat is seen as the future for social media marketing because more than half of users are under 34 years old. Targeting young shoppers with engaging posts and ads are great ways to bring in foot traffic, which later utilizes the experience-based marketing that we talked about earlier. See how these things come together?

Managing Killer Newsletters

Loyalty programs are great for not only getting repeat customers but for increasing average order value. Ask for customer email addresses at checkout in exchange for special promotions, then use affordable email marketing software to get started!

Utilizing Google My Business For Reviews

Do you know what people do when they want to buy a product? They check for reviews. Product reviews, experience reviews, comparison shopping, you name it’s there, but we find the most important source to be Google Reviews. Why? Because they’re the reviews that show up when you search for a brand. As a result, retailers are offering incentives to gain positive reviews to get more store traffic.

Getting Exposure With Instagram Stories

Similar to Snapchat. Instagram is a great way to reach younger demographics. Only Instagram has a larger number and a wider range of users. And you know which format tends to get the most reach? Stories. So they’re using stories to market their products and shopping experience and putting an allocated ad spend behind it with geotargeting.

The post 2021 8 Retail Marketing Trends To Watch For appeared first on Koshka.

This article covers corporate and office attire. For those who work in construction and outdoor trades such as landscaping, pest control, and even window washing, we’ll give you sound wardrobing advice in our next update. We’ll address your specific needs relative to fit, fabric, environment, and audience. Next time!

The concept of ‘dressing for success‘ is far from new. Yet many office workers do not know how to begin. Just like your career, start at the bottom and work up. Shoes, women should stick to low heels in neutral colors. Men, two pairs, one black, one brown. One laced, one slip-on. Your choice. Women can get more variation from separates- that means skirts, pants, blouses, and tops. If dresses and jackets are your preference, know that your outfits will be more limited.

As for fabrics, knits are more wrinkle-resistant, which is something to consider if you commute by bus or rail. Poly blends wear well; sadly, moths like to eat wool and silk so limit items in these fibers. Banish acrylic. It is a cheap fiber that does not wear well. Hint: bigger ticket items such as rain and winter coats should be in neutrals. Add pops of color with scarves, gloves, a handbag, and footwear. For men, different color shirts, and ties, even pocket scarves can vary your workday wardrobe. As for color- select two to four colors and only buy those colors. This way you can pull an outfit together quickly as everything will ‘go’ with everything else. Here’s a quick rundown:

Women

Skirts: 4-5 options in the pencil style or modified a-line. Pencil skirts say “I mean business”. Keep the boho looks for when you’re home, not to make an office appearance even on casual Friday.

Pants: 2-3 pairs of dress pants. Cuffs to fall at the midway point of shoes. Buy neutral colors.

Dresses: 2-3 per season. Sleeveless or ¾ sleeve sheaths either below knee or midi-length can be paired with jackets, blazers, or a cascading cardigan. Solids offer more styling options than prints, while knits are easier to keep fresh and wrinkle-free.

Tops/Sweaters: 3-5 tops including tunics. A white button-down, wrinkle-free, shirt is essential. Stick to solids, then consider only classic prints such as dots, pinstripes, and paisleys. Better to err on the side of conservative than to appear too gaudy. Remember you’re there to establish yourself through your work first. Creative industries such as ad agencies may have a more flexible dress code, but get the lay of the land first.

Jackets: 2-3 Fitted suit jackets and a blazer. One must be black. Avoid too trendy wide lapels, etc. These choices can span three seasons and are classic.

Coats: A long coat, a car coat, and a raincoat. Consider a ‘winter’ coat with a zip-out liner to serve double duty as a raincoat when it’s warmer. Again, select a balmacaan or classic trench. Here’s lookin’ at you kid!

Handbag: Totes or leather designer backpacks will hold everything you need including your mobile devices with ease.

Hats: Not currently popular and could obscure vision on crowded sidewalks. For winter, consider ski headbands and wrapped earmuffs with Bluetooth compatibility.

Men

Suits: In a traditional office, there’s no getting around it. Men need suits in navy, black, and gray. No, resist the urge to mix and match. Wear gray trousers with a matching jacket…etc.

Fitted sport jacket and or blazer: Ideal for business events. It can be worn with suit pants or designer chinos as required.

Jeans: 1-2 pairs. Dark denim, the length is slightly longer than suit pants. No rips, tears, fading, or bleach, please. Ideal for creative environments and casual Fridays.

Shirts: 5 minimum. Colors should range from white through pastel blue to black if in creative. Opt for wrinkle-free if you do not send yours out to the cleaners.

Sweaters and Tops: Have 3-5 options. Opt for designer label polos. As for sweaters, if you loved a good shetland in college, you’ll love owning the same style in cashmere.

Ties and Pocket Squares: 3-4 ties, 2-3 squares. Adds polish and professionalism to your appearance. For ties, buy rep silk stripes and solids in neutrals to match your suits- navy and gray. Dots and discreet paisleys are also classic options. If you wear a pocket square wear a solid color tie to avoid a clash of patterns.

Brands

Get to know these icons and see which is the best fit for your work environment: Burberry, Coach, Jones New York, Michael Kors, Talbots, Ralph Lauren, Florsheim, J. Crew, Kate Spade, Tory Burch, Hugo Boss, Dooney & Bourke, Nicole Miller, Stuart Weitzman, and Vince Camuto.

TIP: Shop where the store offers in-house tailoring, or find one near you. No point in wearing ill-fitting investment clothing.

If you are still paying off grad-school, balancing car loans, Johnny’s braces, and a mortgage, there’s no need to despair. You can still have a great working wardrobe. There are several options. Online resale stores such as ThredUp carefully curate submissions and accept only the cream which is then competitively priced. Example: this author just scored a $1,500 Fleurette coat new with tags for only $88! That is not the norm, but there are true bargains to be had as well as solid quality for your spend. There are also numerous online businesses that offer style quizzes, send apparel based upon your answers- just pay for what you select, and return the rest.

One caveat: building your new corporate image is not an excuse for maxing out your credit cards. It is not necessary to buy a Rolex, those Manolos, a Hermes bag, or Louis Vuitton briefcase. Your new position is not a dress rehearsal. You’re expected to shine straight out of the elevator and have been prepping your day on your laptop on your commute. Overdoing it with extravagant daywear calls undesirable attention to your appearance instead of your work ethic. Besides, dressing better than your bosses makes your decisions questionable and you expendable. Congrats on your new position, now get shopping!

The post How to Build a Wardrobe that Works appeared first on Koshka.

After a sluggish first quarter, construction and building starts in 2019 began to pick up. That’s to be expected since most of the country was under a deep freeze until April. According to Dodge Data & Analytics, urban development in the non-building (public works and utilities) and non-residential construction sectors led the climb in building starts which surged 16% at the end of the first quarter, 2019. Here are some of the current major projects.

Utilities

In terms of billions of dollars in construction costs, this sector peaked in 2015. However if viewed by the number of projects, it is a healthy category. In March ground was broken on the $4.4 B natural gas export terminal in Louisiana. This region was especially hard hit by hurricanes over the past decade and was not an economically stable region to begin with. Construction will not likely bring employment opportunities to the surrounding counties since the project requires highly skilled labor and staffing. However, the region should prosper via tax relief and secondary services to support plant workers, etc. once the project is completed.

Highway and Bridge

In recent years the state of our aging highways and bridges has made headlines nationwide. The top five states with the highest project allocation costs this year are: North Carolina, Pennsylvania, California, and Florida. In case anyone was wondering, the infamous border wall (don’t you dare ask ‘what wall?’) falls under this category and received $312M towards its construction.
Non-Residential Projects:

The long-awaited Toyota-Mazda alliance will cost $1.6B and bring welcome jobs and support services opportunities to the Huntsville, AL region. Additional growth is expected through housing starts, lodging, entertainment, dining, gas stations, and other venues. Also slated for Huntsville: a $200M rocket engine manufacturing plant to be completed in 2020.

Possibly the Big Apple’s greatest revenue source is tourism. Currently the theatre district and Times Square are benefitting from a $1.1B cash influx for its redevelopment. Key to the project is the repurposing of a theatre building from Gotham’s Golden Age. The neoclassical Times Square Theatre, which stood vacant for over three decades is receiving a much-needed facelift, and total revitalization

Built in 1920, the historic structure is being converted into a 52,000 upscale retail space. Every possible historic detail that can be salvaged will be re-introduced into the space, although perhaps not in its original position nor function. These include its limestone facade, plaster ceiling dome, and a cast iron gate.

This renovation is the last in a series of Time Square theaters to be saved from demolition and repurposed by the New 42nd Street Coalition, which began the project back in 1990 and has restored six area treasures for future generations to enjoy.

Across the country, sports fans are rejoicing. Key Arena, in Seattle, is undergoing a $850M refresh that includes a new interior, and entrance. Once completed, It will be known as the New Arena at Seattle Center and will host Storm and Redhawks games as well as other sporting events and live concerts for up to 19,200 persons.

Other headline-worthy projects include Facebook’s comparatively small data center project for $750M in Virginia, and CloudHQ’s data center, also in Virginia, at $300M.

Mixed Use

Possibly influenced by restoration, renovation, and repurposing projects in major cities, a number of non-residential site builds actually are multi-use. What we mean is that while hotel starts declined, office/hotel. office/entertainment, and office/housing complexes flourished. Two of the largest construction projects are in Atlanta and include Norfolk Southern’s new headquarters, a $700M project with $470M allocated for mixed-use development.

Residential Building

This metric has essentially flatlined with privately-owned housing units, and multi-family housing units posting slight declines in the number of building starts. With so many options available to homeowners, such as expansion to existing premises, it does not necessarily signal a decline in consumer interest in home ownership, Rather, realtors tell us, homeowners are improving their homes and yards with pools, outdoor kitchens, patios, decks, walkways, water features and more. So while housing starts may be down, building permits, notable for expansion, are up.

In conclusion, urban areas have always been condensed and densely populated. Therefore when commercial and residential buildings are constructed, these population-centric locales attract new businesses to support them. For every new office building there is a need for dry cleaners, parking lots, flower shops, restaurants and caterers, office supplies, HVAC mechanics, emergency plumbers, retailers including grocers, housing, etc. etc. With these construction starts, that same dynamic is evolving in regions that are less populated.

Non-residential projects in economically hard-hit regions can mean improved living conditions regardless if the local citizens work at the new plant/warehouse/office/hotel/data center or not. They can find or create jobs for themselves in support of the new enterprise. That is the long term benefit to every region when a major project is underway. Most who live in parts of the country without a major employer or with many job opportunities will gladly trade temporary construction noise and congestion for an improved quality of life. Who wouldn’t?

The post Going Up! Urban Construction Starts and the Economy appeared first on Koshka.

What is a Tariff?

For those who associate the word with the Sheriff of Nottingham and Robin Hood, yes, that is ballpark. The SoN levied taxes on everyone in the land, except the rich, of course. Enter Robin Hood who stole from those idle rich to supplement the needs of the newly poor due to the SoN’s tariffs. So a tariff is a tax, but in today’s lesson, it is a tax that is levied on goods that are made elsewhere and imported into the United States.

What might be an attempt to make consumers buy American-made goods over imports, could backfire for a number of reasons. Chiefly, there are not all that many big ticket items that are made entirely in the U.S. anymore. Over 60 years ago, Union-worker salaries and other conditions drove the labor prices up, so to remain in business, American factories looked abroad to find cheaper labor. The result was collaboration on an international scale.

Not long ago someone chided me for driving a Subaru. “How can you drive an Asian import when Detroit is closing factories?” To which I responded, “What! When did we sell Oklahoma to foreign interests?” Fact is, Subarus are assembled in the U.S. from parts that are manufactured abroad from raw steel that we export. Got all that? Due to trade agreements, there are many such collaborative efforts and these are not just limited to the automotive industry, either. Which leads us to Lesson 2:
What is a Trade Agreement?

A trade agreement is literally that: when two nations or more agree upon what goods and services they will exchange. At the same time, they decide which duties or tariffs (there’s THAT word again) will be imposed on both what is imported as well as what is exported. International trade, as we know it, is founded on trade agreements. There are several types of trade agreements but the important takeaway here is that with each there are pros and cons. For example, Lower tariffs, those taxes levied on imported goods, mean lower prices for U.S. consumers. However, some American businesses suffer since they can no longer compete for consumer spend against nations with a lower standard of living.

So when we buy a range of products including housewares, vehicles, furniture, even recreational products for boating and RVs do we look to see if the purchase is American made or designed and manufactured in other countries? Coulda, woulda, shoulda is little consolation for American workers who might well be displaced when their local factory closes its doors. And when two world leaders cannot agree on a trade agreement, what happens then?

World Trade Organization as Referee

Keeping the peace or at least trying to is the World Trade Organization (WTO) that mitigates agreements above the regional level. As an international body, its purpose is to remain objective and to both enforce agreements and investigate complaints. A recent example is the failure of an international attempt to lower tariffs worldwide, thereby opening the floodgates to free trade. The problem here is that already beleaguered economic sectors, such as farming, would have been badly impacted by this accord. The U.S. and Europe, two members of WTO, steadfastly refused to comply, citing that to agree would lower farm subsidies and impoverish farmers many of whom were already struggling to survive.

American consumers are particularly naive about where the products and consumer goods we purchase are actually manufactured. Price drives our decisions, and we seldom think about anything else. The point here is not to advocate ‘buy American’ at the expense of imported goods. Instead, let’s all just become more aware of what we own, where it comes from, and, in hindsight, did that purchase prove to be a good one? And, with our very next big ticket item purchase, consider more than just price as criteria.

Does Foreign-Grown Food Taste Better?

Another example is grocery shopping. Do we ever stop to think about where our food comes from? Were those avocados on your breakfast toast grown in California, Florida, or Mexico? It would surely be worth more to me knowing that I participated in maintaining the financial solvency of an American farmer, even if buying their produce cost more. Did I really need to buy that cheese from France or was there a similar option made in Maine or Wisconsin to consider? Next time you shop, be mindful. Ask about or read labels. Try to put more American-made items in your cart. That’s easy with perishables such as dairy, but what about condiments and canned goods?

And when we shop in stores, look around. Where do you think those store display units, mannequins, and price labels are made? American retailers and distributors depend on cheaper foreign-made goods and furnishings to boost their profit margins while maintaining prices that consumers consider fair.

The fact is, we can even regionalize saving money and saving jobs. Did you know that if you purchase an item manufactured out-of-state that a percentage of the proceeds benefit that area and not yours? “Buy local” is not just a nice idea, but it can ensure that more of your hard earned dollars can be earmarked for community improvements such as schools, playgrounds, roadways, and even parks. Think about that next time you need tomatoes. The farmstand up the road will have fresher, much better tasting produce and while it will cost more, you are helping out a neighbor who is trying to improve your life as well.

Find Creative Workarounds

The fact is, tariffs and trade agreements take place on a global scale yet impact our lives through higher costs for consumer goods. Another issue is that trade agreements that lower tariffs on imported goods, mean that a local or regional business might be hard pressed to remain solvent. It helps to be aware of where our necessities come from and why we elect to pay what we do for them. And finding alternative ways to buy. For example, if it will improve the quality of your life to have a foreign-made luxury item, consider buying it secondhand through an American-based online thrift shop that hires displaced American workers.

Striking a balance between buying American made and foreign goods might be easier to achieve and maintain if we just think about the outcome of our decisions. After all, it is not just about our quality of life that we should be thinking about maintaining, but our neighbors’, and fellow Americans’, too. Decisions about the economy may be made by politicians and regulatory agencies in the form of tariffs and trade agreements, but in truth, they are maintained by us as citizens in the choices that we make. Your move.

The post Of Tariffs and Trade Agreements and What They Mean to Your Bottom Line appeared first on Koshka.

What’s that you say? Unless you have awoken from a coma, or have missed today’s news, today Musk unveiled and demonstrated the efficiency of his latest venture: underground transportation technology. Back in 2016 Musk boasted that he planned to start digging tunnels to provide relief from LA’s fabled freeway congestion. Now, hearing of this, most native New Yorkers will scoff. After all, we have had tunnels under Manhattan and a subway system since the late 19th century. Back then, tunnelling was a relatively easy technology to implement as Gotham sits on bedrock. Most every other urban oases do not and, up to now, their citizens could only look eastward towards NYC with envy.

Musk’s Boring Co. is Anything But

In recent years international tragedies have provided an opportunity for Musk to offer aid. As previously mentioned, Elon Musk is the father of six boys. That may have been the reason for his generous offer via Twitter to provide assistance for the 12 boys and their leader trapped in a cave in Thailand this past summer. As numerous rescue attempts were made over a two week period, Musk directed Boring and SpaceX staffers at the site to fashion a kid-sized submarine from a liquid oxygen transfer tube. Later Musk joined his team, but even his presence was not enough to convince the Thai government to abandon standard rescue procedures. However, Musk was allowed to leave the capsule (which had been tested and proven successful) in Thailand for future rescue attempts.

Using Technology to Further Humanitarian Efforts

Also, when disaster struck Puerto Rico a second time, plunging the entire island into darkness, it was Musk who sent Tesla batteries to the battered tropical paradise where they will remain in use until power is fully restored. Granted this is grandstanding to a degree, but it also demonstrates a major humanitarian effort. At a time when little aid or even kind words were coming from the Oval office, the Governor of New York was sending aid,and utility repair crews into the region, and many grassroots and relief organizations were doing whatever they could. By sending needed battery power as part of the rescue and recovery effort a voice who could make a positive contribution to help people in the stricken area to recover was heard: Elon Musk’s.

So we’re established that Musk is both a humanitarian and a trailblazer (there’s enough ink about SpaceX’s mission to Mars so we will not detail that here. Google it.) What does building a tunnel under LA do for his street cred? Is he serious about building a tunnel under LA as a model for other cities across the U.S.? Apparently so. Musk’s 1.14-mile long prototype to relieve traffic congestion is considerably more than just a reinforced hole in the ground. Reporters who braved the inaugural tunnel ride (which did not include Mr. Musk as a passenger), reported a smooth ride not unlike that at an amusement park. Which is fitting because Musk himself refers to the project as “a weird little Disney ride in the middle of LA”. For this weird little ride, Boring company built specialized tunneling equipment but to date, has been prevented by citizen groups from building another tunnel in his “LA network” by a group of citizens who took Musk to court and won.
Washington to NYC in 29 Minutes?!

That’s okay, because what LA is skittish about, drew raves in Chicago and Baltimore (which is looking to implement another commuter route to Washington D.C.) As we go to print, Musk is said to be drafting proposals for those cities, even as he states that his urban tunnels are ‘in the prototype stage’. Nor has he given up on LA just because its well-heeled citizens cannot get behind him. Currently Boring Co. is planning another LA tunnel, this time to connect Los Feliz, East Hollywood and other lower socio-economic regions with Dodger Stadium.

Across the nation, bloggers to seasoned journalists are asking if Musk is serious. After all, he built a castle in LA at the tunnel exit. At the grand opening party, a full-time staffer was hired to be its ‘Watchtower Guard’ and to hurl epithets with a French accent (as in the Monty Python movies). Yet his engineers and technicians are first rate and his ingenious approach to conveying traffic through his tunnel evolved from placing vehicles on an electric skate as propulsion, to self-powered vehicle transit. For the Baltimore-Washington project Musk is currently proposing to whisk passengers between these cites, and even to New York in his Hyperloops, a high-speed capsule inside a vacuum tube. Sound familiar? It should. That was the technology that Musk sent to Thailand to rescue the trapped scouts.

By this time, the light should be beginning to dawn. Everything Musk conceives is meant to dovetail some project at varying stages of its development. And utilizing these inventions as globally and as creatively as possible Musk furthers his branding, and his personal and corporate credibility. With Musk, a man of apparently great heart, it also appears that he believes that one hand washes the other.

The post Elon Musk: Modern Day Buck Rogers or Charlatan? appeared first on Koshka.

It is not the first time a major corporation has been closely associated with one person. There have been many precedents. A decade ago, Howard Schultz returned to Starbucks (the company he had led to major achievement) when his successor took the multinational brand to the brink of extinction. Policies Schultz presumably cast in stone had been discarded as executives eager to create their legacy overextended the brand’s reach. Starbucks exponential growth spawned the observation/joke that there was a Starbucks on every corner. Despite a dismal ROI, Starbucks stores proliferated like bunnies until the economic downturn of 2008 all but shuttered the chain. On the brink of bankruptcy, Starbuck’s board returned to the past to find its future and reinstated Howard Schultz as CEO.

Schultz returned to perform necessary housekeeping. He closed thousands of stores, and reined in the product lines which now included a line of less than popular ice creams (but they were delicious). Schultz refocused the business away from self gain to selflessness. The customer and the grower/suppliers were to be treated like gold, because they were the heart and soul of the Starbucks enterprise. A less dilute product line starring, would you believe, coffee was instituted. In addition, Starbucks initiated the paradigm shift towards providing superior customer service. Slowly, then in legions, customers came back.

Reboot What Worked

Customers returned to environments that were spotless, and ideal for socializing. The stores were now gathering places where everyone would be welcomed and treated as individuals with each and every beverage hand crafted one at a time. And what beverages they were! Exotic coffees were sourced across the globe and their growers were paid fairly. The massive, espresso machines with their precise, chrome-plated gauges cost if not a king’s ransom, then more than anyone’s first car. Attention was paid to the last little detail, and every customer complaint was addressed immediately. Within a year Starbucks stock had recovered, realizing gains of 143% YoY in 2009.

Schultz stayed on through 2017, but shortly after he passed the baton yet again, a racial bias incident once more caused consumers to question the brand’s sincerity. Following the public’s outcry, it was Schultz, not CEO Kevin Johnson, who appeared at a press conference to both apologize and set out steps to remediate bias across the chain. Schultz mandated that all the stores be closed for a day and the staffers ‘retrained’ to become aware of and sensitive to ‘unconscious bias’. He may not punch a clock, but to many Starbucks loyalists, Howard Schultz is Starbucks.

Did you think we were straying off point? The point is that Elon Musk is Tesla, Tesla is Elon Musk. This past week Musk agreed to step down as Tesla’s Chairman, yet is allowed to remain as the Company’s CEO. For those readers who are unaware, Musk was fined $40 million by the Securities and Exchange Commission (SEC) for a Tweet (yes, you heard right) that stated he was taking the company private and had the funding to buy out stockholders at $420 a share. When in fact, there were no plans in place, no investors, and no funding to buy out anybody. Both sides reached an agreement for Tesla/Musk to pay the fine but not admit wrong doing. This move ensured that Tesla stock, which dropped a significant 14% after the announcement, would eventually rally, and in effect, “the farm would be saved”.
Maybe Not Such a Bad Move…

As with Starbucks, Tesla Motors has had to step back from the way it performs daily operations, take a deep breath, and regroup- for now. Also as in the Starbucks scenario, Tesla had been teetering on the edge of the precipice for some time. The firm has not made a dime in 15 years, despite Musk’s repeated insistence that it is on the verge of doing so. This could actually be true in the near future. Across the globe there is keen interest in Musk’s Tesla Model 3 sedan, an electric car for the masses. Unlike Starbucks, however, where Schultz is the mastermind who guides and directs his former enterprise to greater success, Musk’s genius needs to be reined in at times. He is idea, not process-driven, and employs any means to achieve his intended end. Some of his upstart ideas, such as announcing what was essentially a hoax buyout, will not fly with the U.S. government not the SEC. And, for the public to buy the Model 3, first there must be a Model 3 in production. In short, the fines were seen as essentially a move to harness Elon Musk and to save him from himself. Don Quixote-like, the man does appear to tilt at windmills.

What happens next at Tesla Motors? Still in the picture at Tesla (he is the majority stockholder), but moved to the background, Musk is free to settle any stockholder lawsuits resulting from his Tweet. If this allows him any free time, he can continue to commandeer his vast technological empire, dividing his time between Tesla and SpaceX, his San Francisco Bay area enterprise which designs, produces, and launches rockets and spacecraft. Its goal? To enable people to ultimately reach and live on other planets. Clearly, Mr. Musk is not the entrepreneur next door. Back at Tesla, the goal for all concerned is for the Model 3s to roll off the assembly lines sometime in 2019. For a few years now,there have been charging stations at Interstate rest stops bearing the name ‘Tesla”. However this author has not yet observed a line of cars waiting for their turn to recharge.

Tesla always seems to be a company poised on the brink. From electric vehicles, and driverless cars, to SpaceX’s rockets to Mars, Elon Musk’s mind appears so diversified, that his two enterprises suffer. We propose that he continues as the resident genius at both or either, and allows new management to direct ONE project to completion. This way the enterprises associated with Elon Musk would leave the world of Buck Rogers and enter the stratosphere that the rest of us occupy daily: reality. If it takes a staggeringly high fine to mandate him to put on the brakes, then so be it. As for moi, I’m living for the day I can pull off I-95 and recharge my Model 3 -at a Tesla station of course!

The post Will Tesla Survive Elon Musk’s ‘Departure’? appeared first on Koshka.

Up to the midterm, White House reports were grandiose in scale and have claimed responsibility for posting some of the highest employment rates in recent decades, along with the lowest unemployment rates for as long as this author can remember. And if we are doing so well, why has the stock market, granted it is ever volatile, just taken one of the wildest plunges in recent months? What does it all mean? And, most important, what does it mean to most Americans?

For those of us who cannot understand why the value of things are still measured in items such as pork bellies, stocks and bonds are never going to make sense. What real people need to understand is, “Will I have a job tomorrow?” “What is my spending power?” “Will my house sell for top dollar next year?” “My car has 180,000 miles on it. Can I afford to buy a new one or should I look at used cars instead?” And how does the Democratic party holding some semblance of power going to affect these outcomes one way or another?

It is important to assess what the Congress can and cannot do. A gridlocked House and Senate may not impact the economy as they do not control it. The House and Senate do not control economic growth, influence the willingness of consumers and commerce to spend, nor do either the House or Senate make monetary policy decisions. That is the job of the Federal Reserve. The Reserve as well as the U.S.’ chief trading partners, namely Europe and China, and our nation’s ongoing relationship with same influence the U.S.’s economic growth.

That means that increases and decreases in interest rates will eclipse corporate tax cuts to become the leading economic drivers. As the 2020 elections loom, congressmen and women who want to be reelected will shy away from any trickle down legislation that could possibly disrupt the economic cycle. In short, any major actions that affect the U.S. economy will be White House-driven, probably in the form of imposed trade tariffs, and not from the House.

Again, mindful of the the next election, it is unlikely that much legislation that could impact the economy will be passed, other than bills to improve our infrastructure (buildings and highways). This means the tax cuts or increases we enjoyed or bemoaned over the last two years are over. It also means that the current healthcare system will remain in place, and no more sweeping reforms or entitlements allocated to any economic sector.

Watchdog groups warn that an absence of legislation to curb the ever-expanding deficit will come home to roost, likely within the next 10 years. Taxpayers, brace ourselves! Perhaps the worst outcome from a gridlocked House and Senate is the negative impact the daily salvos have upon public confidence. It just makes voter turnout at the polls more difficult as the American public loses faith in their elected officials.

The Pros: Frivolous or ill-conceived legislation, such as allocating up to $25 billion to construct a wall the entire length of the U.S.and Mexican border will be reexamined, and likely highly modified. Also, in light of the recent disclosure that emails of top GOP officials were themselves hacked during the 2018 election, Hillary Clinton’s 2017 email debacle will finally be put to rest.

The Cons: Regardless of their political party, having the upper hand seems to go to the heads of those in power. In the name of Justice, time will be spent to uncover campaign wrongdoings, shots will be fired, most likely toward impeachment proceedings for both the sitting President and recent Supreme Court appointed judge, Brett Kavanaugh. With the term of office more than half over, these actions are pretty much a moot point, since the President, despite his veto, is a lame duck. Therefore efforts aimed at disgracing the 45th President would be a waste of time as well as a waste of taxpayer dollars.

Sadly, nothing can be done to prevent those early morning Presidential Tweets, read rants, that for many, have become ‘must read’ entertainment.

To summarize: The President retains veto power and the senate is notoriously known, regardless of which party controls it, as ‘the place bills go to die”. Therefore the upshot of the Democratic congress, especially for those seeking reelection, is not to forget why they are there: to serve the people. And if they (we) don’t, well, there is another national election in 2020. Stay tuned!

The post What a Democratic Congress Will Mean to the U.S. Economy appeared first on Koshka.

1. Orlando FLA/USA: Nope, exciting new attractions associated with the Disney enterprise are not the reason that Orlando tops our list for economic growth. Once a hotbed for aerospace and technology firms, this region has seen almost 24% industrial job growth since 2012. This surge can be traced to both multinationals like Mitsubishi and Siemens Energy, as well as Lockheed Martin and a wide number of small sub-contractors.
2. What is it with cities that start with the letter O? From Orlando we travel across the nation to Oakland, north of L.A. where factory workers have increased by 22% since 2012 in this smokin’ hot tech center.
3. Dear to Carl Sandburg, the heartland places third overall with the greater Grand Rapids region in Michigan posting a leap of almost 21% in industrial employment due to almost 2,500 manufacturing firms within its footprint. Here the leading employer is metals and plastics, followed by biopharmaceuticals and medical devices, production technology, food processing and lastly, automotive. As in Florida, the big employers such as General Motors, Cargill, Kellogg’s, Bissell, and Amway are reinforced by their much smaller subcontractors leading to an economic boost across firms of every size. Tied for number three is Reno Nevada, which on the strength of one industry, Tesla’s battery manufacturing plant, has seen an increase of 30% employment growth since the plant opened last year.
4. It’s back down to Florida for the 4th and 5th spots on this survey. Miami has posted an almost 23% growth in industrial employment over the past six years.
5. At number 5. West Palm Beach/Boca Raton/Delray Beach is generally associated with an upscale, recreational lifestyle, luxurious homes, boutiques, and dining destinations. Yet this region has posted an almost 28% increase in industrial jobs since 2012 due to a marked increase in executive positions within the aerospace and technology sectors.

Skilled workforces, low cost to work and to live, business-friendly regions that offer lower or no income taxes (which translates to higher wages), reasonable housing prices, and pro-development, low-restriction building policies are among the many reasons these urban areas have seen exponential industrial growth over the past 6 years. However, there are numerous urban areas, once known for their manufacturing companies, that have fallen down the charts. Some have morphed into sectors for other types of businesses such as educational, research, or recreational. Others have been supplanted by areas that offer milder climates, better education systems, and a lower cost of living overall. These tarnished regions include:

1. Los Angeles/Glendale/Long Beach: The garment industry, aerospace, and technology jobs in what was once the nation’s largest industrial center, have left at a rate of 20% over the last decade. It is believed that given an economic retrofit and a major reboot, this once thriving region will again diversify its economy and attract new industries to its cities.
2. Sadly, in recent years, the “city of the broad shoulders”, Sandburg’s Chicago, has not been pulling its weight economically. It has posted less than 1% employment gains since 2012. This means that jobs have been leaving in droves, most likely to the Grand Rapids area where the climate for business has been made as enticing as possible.
3. Another region that has been hemorrhaging jobs is the greater Houston area which includes the upscale semi-suburban towns of Woodlands and Sugar Land. Exponential grown in the early 2000s ended abruptly at the end of that decade, thereby encouraging economic expats. The nationwide energy industry decline caused regions that depended on this sector for its economic welfare post job losses of 12% since 2012. The aerospace industry was also hard hit contributing to this decline.
4. While New Orleans can fall back on its tourism, the state of Oklahoma is not a vacation destination. For decades refining energy from petrochemicals and natural gas had made this industry the state’s top employer. Currently, Oklahoma, and Oklahoma City in particular, is turning to wind power, geothermal, and solar development hoping for a job resurgence via the state’s new diverse energy plan.
5. While New Orleans can fall back on its tourism, the state of Oklahoma is not a vacation destination. For decades refining energy from petrochemicals and natural gas had made this industry the state’s top employer. Currently, Oklahoma, and Oklahoma City in particular, is turning to wind power, geothermal, and solar development hoping for a job resurgence via the state’s new diverse energy plan.

What is called America’s ‘great job resurgence’ is taking place primarily in smaller cities. Thanks to a number of factors it has become increasing possible for these more rural areas to compete for skilled workers with large urban areas. There are many reasons for this. As mentioned above, many municipalities tempt industries and workers to their regions with higher wages, lower taxes, low crime, and generally, an improved quality of life. These are factors that matter to families, and industries seeking the best and brightest workforces are taking heed. Other regions, like the Midwestern “rust belt”, have seen their economies suffer for decades, as older industries lacked the skilled workers or money for technology upgrades to keep pace with more prosperous regions. Here, the government has stepped in, providing incentives for businesses to employ and train local workers, thereby improving their economy and reducing both crime and poverty rates.

Our nation’s industries, long the backbone of our economy, are rallying after what for most, has been a very trying decade. Slow but steady growth is being seen and acceptable employment, taxation, and housing solutions are being implemented. Things are looking good, America. Here’s to continued our economic growth!

The post Is America on the Grow Again? Top 5 Industrial Cities in the U.S. appeared first on Koshka.

At the end of the third quarter 2018, price conscious Walmart began to phase in over 125 luxury brands. You heard right, luxury brands sold at Walmart. While other industry giants such as Toys R Us and Sears folded or shuttered storefronts, Walmart has chosen a very unlikely path to find its way out of the economic quagmire. The chain, known for its low-priced merchandise and lower income clientele, has partnered with Lord and Taylor, a longtime luxury retailer. While each side of this relationship must be regarding the other with suspicion if not hostility, their individual survival might well depend on the reputation held by one another. Walmart is hoping to attract the well-heeled, while Lord and Taylor is seeking new customers for some of its more affordable upscale labels. After all, there is said to be strength in numbers, why not mix up the demographics as well?

Whether this shakey union will succeed long-term is unknown at this point. Upon closer examination, however, it is just crazy enough to work. What is the magic component? As always, compromise. Luxury retailers are losing foot traffic and their demographic, consumers over 55, may not be online shoppers. Also, as their target audience ages, there is less need for evening wear, gold, silver, and precious stone jewelry, and seasonal wardrobing. For retirees who become winter snowbirds, there is little need for warm outerwear. L&T wants to lure more middle-class shoppers to its website and brick and mortars. While their purchases per item may not be high, they still require year-round clothing and that prompts continuous online purchases, brings shoppers into stores, and makes cash registers ring.

Both Walmart and Lord & Taylor are having one hell of a year. In January, Walmart announced massive store closings and layoffs across the country, including at its warehouse, Sam’s Club. In October 2018, it was Lord & Taylor’s turn to eat humble pie. Up to 10 of its store nationwide will close by end of year. The kicker here is that these store closures include L & T’s fabled flagship store on Fifth Avenue in New York City. A Manhattan landmark for over 100 years, many insiders knew the chain was in trouble, but almost no one expected this. For both retailers who cater to consumers at opposite ends of the economic spectrum store closures generally precede filing for Chapter 11 protection.

To avoid bankruptcy and to turn this perilous situation around, decisive action had to be taken. But no one expected the white horse to be a retailer known for its starchy, nose-in-the-air-attitude, Lord & Taylor’s, nor the retailer founded in 1962 by a country hayseed. As for Walmart, Sam Walton might just approve their joint approach. While not a single Walmart standard has been sacrificed, nor a popular product discontinued, the inclusion of ‘something better’ will likely attract a new audience. Depending on how these new buyers rate their shopping experience will determine if they will become repeat customers.

The first stage has been to slowly introduce men’s women’s and kids’ clothing as well as footwear, accessories, and jewelry on Walmart’s website only- just in time for Christmas. Also, as if their quality alone was not enough of a differentiator, all 125 brands will appear under a separate category banner labelled, “Premium Brands” from Lord & Taylor”. Should these items sell briskly, the next step is to introduce some of the top sellers in select Walmart stores across the U.S. Each product description bears the legend, “sold and shipped by Lord & Taylor’s”. As you might expect, Lord and Taylor will receive a portion of each sale made on Walmart’s turf- online and down the road, in-store.
How Will This Alliance Work?

In case you were wondering, no Walmart merchandise will be sold either on the tony retailer’s website nor in any of its stores. While perhaps a small percentage will turn to this high-end retailers’ eponymous website or brick and mortars for special occasion clothing and better quality footwear, that is not the goal. The hope is that many existing Walmart stalwarts will make purchases from L & T’s exclusive category online, so that this category can be further expanded, and that both retailers will reap the rewards.

It is a simple enough theory that dates back centuries. The working classes are said to wonder how the other half (in this case the 1%) lives. By bringing carefully chosen brands such as L & T’s house brand, Vince Camuto, Lucky, Karl Lagerfeld, Democracy, Ivanka Trump, Calvin Klein, Miss Selfridge, Timberland, Brooks Brothers, and others not generally associated with Walmart, the brand is elevated without displacing its existing demographic. While it is not likely that stretch limos and Maserati will share Walmart’s parking lot with late model Hyundais and Ford Escapes, it is very likely that more affluent shoppers will visit the Walmart website and buy from other departments which include groceries, housewares, pet supplies, automotive, cosmetics and nutraceuticals, and even home decor.

Remember, the U.S. economy is not yet back to the level achieved in 2007. How affluence is defined differs now. Even for those who did not have to strictly budget their spending habits, nationwide and with an uncertain future, every household practices some degree of belt-tightening. For example, some households with incomes over $150K annually, now lease their luxury cars rather than buy them as they had previously. For many of us, online shopping has become a daily obsession, and hunting for the best prices is a new indoor sport.

As stated above, it is too soon to tell if this new alliance will succeed. For Black Friday, it was noted, that both Walmart and the Premium brands offered promotional pricing. Premium brands continued for the duration of the week that followed, hoping to influence shoppers’ buying decisions. If this scheme actually works, it could lead to some interesting pairings among retailers. If not, it was a chance, a financial risk well worth taking.

The post What is Going On at Walmart? appeared first on Koshka.