Verint Experience Index for Retail Report 2022, (ranks the omnichannel experiences of the top 25 largest retailers in the U.S. based on revenue) fewer than 36% of surveyed Gen Z and millennial consumers under 40 prefer to visit stores when interacting with retailers, compared to more than two-thirds of surveyed boomer shoppers 57 and older.

Over 75% of these respondents using at least one other digital resource – ratings websites, influencers, and social media – to inform purchasing decision

Over 51% place high value in ‘click and collect’ at an actual retail location as only 28% make purchased via the retailers website

Jenni Palocsik, VP, marketing insights, experience and enablement for Verint says,  ““Gen Z are by no means the only demographic that brands should focus on to adapt and enhance the customer journey, but since they are most likely to engage digitally, seamless experiences are the biggest drivers of better customer satisfaction, NPS and repeat business.”

Take away: Prioritize the Gen Z experience the standard and everyone else will love it too

According to the Philadelphia Semiconductor Index, which tracks major global chipmakers like Intel Corporation, Qualcomm, ASML Holding, and Nvidia Corporation, as well as TSMC, rose by 1.9%.

Acer CEO Jason Chen says “the situation has changed” regarding the chip shortage and is getting sales calls again, asking him to buy more chips

TSMC reducing capital expenditures and pushing orders for chip manufacturing equipment

Consumer electronic demand is waning, however, demand for cars remains strong

Crypto crash may also be helping the chip situation

Take away: Chip shortage days coming soon to the history books, inventory not far behind, now we’ll get to see who was doing the work in the off season

Second-quarter profit at JPMorgan JPM -3.49%▼ Chase & Co. fell 28% from a year earlier even as the nation’s largest bank said it is seeing few signs that a recession is imminent, underscoring the uncertainty looming over markets and the economy.

JPMorgan’s performance is typically viewed as a barometer on the broader economy given the bank’s insights into consumer and corporate financial health

Take Away: The news should only be a portion of your barometer. Many sources are more level headed about financial futures than mainstream media may be portraying.

Tesla taking top spots in the luxury category

Honda maintaining best brand presence

The awards are crowd sourced from over 12000 opinions and the annual Brand Watch Study by KBB

Take Away: Must feel good to be a Honda dealer right now!

Ulster County, NY held a contest for their new ‘I Voted’ sticker and would have never expected the results they got.

One of six finalists, the drawing by 14 year-old Hudson Rowan obtained over 90% of the popular vote.

The image went viral across the internet, leading to the overwhelming win.

“The county’s election commissioners, Republican John P. Quigley and Democrat Ashley Dittus, acknowledged that they chose Rowan’s design as one of six finalists because they knew it would get attention, especially on the internet, and in turn boost voter turnout.”

Take Away: If you think culture is predictable, you’re not paying attention 

Gap, Bed Bath and Beyond, Dollar General, Under Armor, Home Depot (to name a few) are replacing their CEOs amidst a changing retail landscape

Some companies postponed succession plans during the pandemic however the changes are accelerating due to the necessity of specific skill sets

“The landscape of retailing changed during the Covid era,” said Craig Johnson, the president of consulting firm Customer Growth Partners. “The skills necessary for a CEO to succeed today are much broader.

Take away: Auto Dealers are retailers. There are peacetime generals and war time generals…strap up. 

They have been ramping their position in Occidental Petroleum Corp since February and bought 12 million more shares over two days this month bringing their total stake to 18.7%. The largest shareholder in the company

Once they own 20%, they can report earnings on their P&L, until now, they can just report dividends

This confidence indicates a high value being placed on energy independence as Occidental is an exploratory company

Take away: EV batteries might be sexy, but oil still does the work. Buffett’s got an ok track record of seeing through the hype. 

Growing concerns about energy independence amidst Russian aggression have led to devaluation of the Euro

Currencies tend to rise when the central bank raises interest rates

The dollar has also been strong in recent months, lifted as the US central bank raising interest rates, and investors seeking the safe haven of dollar assets in times of global turmoil

This makes imports based on the USD more expensive…like oil 

Avg gas price from: 7.65 per gallon in Germany to 11.35 in Hong Kong

Take away: Yesterday’s average of 4.63 feels just slightly less stinging

One small step for OEMs, one giant leap for testing what consumers will go along with. BMW is officially selling heated seat subscriptions for $18 a month. The monthly sub-model is not the only option. Customers can pay for a year ($180), 3 years ($300), or even lifetime access for $415.

Microtransactions. BMW has been putting features behind subscriptions since 2020, along with Audi, Cadillac, Porsche, and Tesla. The heated seat option has not been added to the US digital store. We can only wait and see if - or when - that changes.

Take away:Building cars with features that may never be turned on during a chip shortage seems like a really strange plan. What do you think?

"Lucky Lopez is a car dealer who has been in the business for about 20 years. In recent meetings with bankers, where he bids on repossessed vehicles before they go to auction, he has noticed some common characteristics of the defaulted loans. Most of the loans on recently repossessed cars originated during 2020 and 2021, whereas origination dates are normally scattered because people fall on hard times at different times; loan-to-value ratios, or the amount financed relative to the value of the vehicle, are around 140%, versus a more normal 80%; and many of the loans were extended to buyers who had temporary pops in income during the pandemic. Those monthly incomes fell—sometimes by half—as pandemic stimulus programs stopped, and now they look even worse on an inflation-adjusted basis and as the prices of basics in particular are climbing.

Part of the problem is that some consumers’ incomes were temporarily high as the pandemic brought about debt forbearance, pandemic stimulus checks, enhanced unemployment benefits, and, in some cases, forgiven loans from the Paycheck Protection Program.

Pamela Foohey, law professor at Cardozo School of Law at Yeshiva University, warned in 2021 of an auto-loan crisis. She wrote then that heading into the pandemic, auto loans outstanding were at record levels and auto-loan delinquencies were hitting new highs almost every quarter. The bubble was about to burst, it seemed, but government pandemic responses meant the bottom didn’t fall out of the auto-loan market. The measures were temporary, she warned then, and the bubble has since only grown."

Approaching market forces with your team

Brick and mortar with a retail hospitality mindset

Jim Mckelvey will be our featured keynote speaker at ASOTU CON

Our brains are hardwired to assume the negative. 

A survey by the communication platform Loom of more than 3,000 office workers found that 91% have had digital messages misunderstood or misinterpreted at work, and for 20%, the misinterpretation has caused them to get reprimanded, demoted, or even fired.

Research from Grammarly and The Harris Poll found that employees spend nearly half of their workweek on written communication alone.

“The shift to a more fragmented, dispersed workplace has exacerbated these challenges. As we work more asynchronously and across more channels and systems, this creates more opportunities for miscommunication

Rereading or overthinking email and instant messages is taking time and impacting productivity. The same is true of having to resolve confusion after a misunderstanding or miscommunication over a digital platform. In the Grammarly poll, 76% of business leaders agree that they and their teams spend too much time and energy resolving miscommunications.

…”An overreliance on emojis in the place of actual content can come off as unprofessional, disingenuous, or even juvenile. It takes time and careful observation of cultural norms within teams and organizations to find that sweet spot where they’re truly useful.”

Take away: Make calling or video conferencing a much earlier option to save time AND relationships

“This year’s stars have led digital retailing transformations, found new ways to stock vehicles during an inventory crisis and chipped away at recruiting challenges.”

Ashley Cavazos, Director of Digital Performance, Walser Automotive Group

Mike Cavanaugh, VP Operations, Driveway

Jennifer Scarbrough, GM, Swope Hyundai-Genesis of Elizabethtown

Ben St. Ours, Managing Partner, CMAs Valley Honda

Jeff Ramsey, Variable Operations Director, Ourisman Automotive Group

June Monthly payments on new car loans averaged an all-time high of $686, according to Edmunds. Data began in 2005. Up 4% from January and 13% YoY

Record 12.7% of buyers now have a monthly payment of over $1000 (in 2019 it was less than 5%

In addition, avg down pmt up 27% to $6,333

Repayment terms are also being extended w more and more beyond 7 years

Used Car payments also near a record, currently up 12% YoY at $554

Take Away: Take note of the most struggling middle and do everything you can to empathize and help 

In 2012 the sport lost almost 25% of it’s worldwide viewership and sold 1.6 Billion worth of shares at a 9B valuation 

It 2016 F1 needed another cash injection and sold the entire company to Liberty Media for only $8B

Liberty launched a targeted US campaign including the 2019 docuseries “F1: Drive to Survive” which featured all 20 drivers across 10 teams and it was a hit

Avg viewership per race went from 557k in 2018 to 1.4M in 2022 (up 47% from 2021)

Using it’s current deal w ESPN, value has increased 18x in its licencing value (5 - 90M)

Take away: Stories make people care

Strong labor market, high credit availability, and elevated savings point to stability in purchasing power

Limited supply continues to insulate the industry from any drop off in sales

Noted in an ancillary interview that the more consumers hear about a recession the more they are likely to pull back on spending

“My biggest worry from the dealers’ sentiment data is that the outlook is down and lower than the current market,” says Smoke. “Dealers are naturally optimistic and then it's not common to see them less enthused about the future…but such was the case in the second quarter. However, the numbers are still positive. I think the key issue is uncertainty, and especially uncertainty from things that dealers cannot control, namely the economy and new-vehicle production.”

Take away: Don’t believe everything you hear, but be ready anyway

"Finally, I want to address some incorrect information floating around on social media and a few other media outlets, claiming that we have increased the price of our $1.50 hotdog-and-soda combinations sold in our food courts," 

Let me just say the price, when we introduced the hot-dog-soda combo in the mid-'80s, was $1.50. The price today is $1.50, and we have no plans to increase the price at this time."

Some less-famous food court items received a bump. Chicken bake from 2.99 - 3.99 and a fountain soda from .59 to .69

Take away: Costco understands the brand play

Range from a modest 1,398 markup on a Hyundai Palisade to 18,000 on a Ranger XLT, to a 200k on an EV Hummer

Everyone is entitled to their own strategy, but please read the comments that range from free market defenders to questioning the point of MSRP, to both asking for and talking bad about direct sales

Take away: Listening is learning

Offering 2 row VF 8, and 3 Row VF 9 with leases that separate the vehicle lease from the battery lease

$35 for the VF 8 and $44 for the VF 9 for 310 miles 

Additional miles are .11 and .15 respectively

Unlimited miles costs $110 and $160

Take away: ‘conventional’ thinking has officially been beaten and left for dead

According to, Paco Underhill, the founder and CEO of behavioral research and consulting firm Envirosell, “It’s very simple.  If you can get someone's nose and saliva glands working, they become a much less disciplined shopper.”

Other subliminal messaging includes the ability to keep things fresh

Also very high margin items…close to 50%

Take Away: What can you do to set the tone for your showroom and service entrance

Planning began almost 30 years earlier in 1902

21,000 men worked around the clock for five years and finished two years ahead of schedule and millions of dollars under budget

Provides power to over 1 million people and reliable water to many more

Take Away: Every horizon has a ‘now’

What’s driving Dealer valuations and what is likely to happen?

Agency model creep

OEM’s controlling lease end volume

F&I headwinds: Regulation, OEM Control, Online Selling

Benefits of scale

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Main premise: people’s expectations of future inflation directly drive their decisions today, leading to more inflation. Landlords demand higher prices today, workers ask for higher wages.

History lesson: 30 year mortgage rate hit 18.45% in late 1981 SO did CD returns

Take away: Being a great and efficient operator is inflation proof

The NFT, which depicts a lime green Corvette Z06 blasting through a cyberpunk landscape, was created by artist Nick Sullo, who goes by xsullo online. The upcoming auction pairs Sullo’s NFT with a custom-painted 2023 Corvette Z06 color-matched to the art.

Vin is in Binary

Vehicle is the only one made with option code RFT and in color “Minted Green”

Originally held from June 20-24 then relaunched for 24 hours stating some bidders “missed” the bidding window

Trevor Thompkins, a spokesperson for Chevy, shrugged off the disappointment in a statement to Corvette Blogger. “Our first step into Web3 has been educational, and we will continue to explore ways to leverage technology to benefit our customers,” Thompkins said.

At least GM took the Q2 sales win back from Toyota selling 47k more vehicles ;)

Take Away: NFT’s only have value if the bidding community understands both the items AND the technology. And did we mention brand yet?

Primary focus is not potholes, but rather how to adjust suspension dynamically

Take Away: Competitive knowledge is no longer just about bluetooth availability. Make sure your team and customers know horizon tech comparisons to inventory you have.