Page 24 - ARUBA TODAY

Friday 1 September 2017 BUSINESS
A24

US consumer spending up 0.3 percent in July Campbell expecting
sales drop as people
what tax reform proposals shun packaged food
make it through Congress.”
Rupkey said he was ex- CAMDEN, N.J. (AP) —
pecting consumer spend- Campbell Soup Co. said
ing to support overall eco- Thursday that it expects
nomic growth of around sales to keep falling over
2.8 percent in the current the next year as more peo-
July-September quarter. ple skip its canned soups
A key inflation gauge fa- and bottled juices in favor
vored by the Federal Re- of fresher foods.
serve posted a tiny 0.1 per- “The operating environ-
cent increase in July. Over ment for the packaged
the past 12 months, it is up foods industry remains
just 1.4 percent, still well challenging,” CEO Denise
below the Fed’s 2 percent Morrison said.
target. The company’s stock fell
Inflation has been running to a two-year-low Thursday
below the Fed’s target for morning.
five years and has fallen Campbell Soup and other
Edward Calixto places a purchased LED TV in the back of his pickup truck, in Hialeah, Fla. On farther from the 2 percent
Thursday, Aug. 31, 2017, the Commerce Department issued its July report on consumer spending, packaged food compa-
which accounts for roughly 70 percent of U.S. economic activity. mark since early this year. nies have been hurting as
(AP Photo/Alan Diaz) Fed Chair Janet Yellen has consumer tastes change.
By MARTIN CRUTSINGER ment reported Thursday. It to boost their spending, blamed the slowdown on Morrison said more people
AP Economics Writer followed 0.2 percent ad- which accounts for 70 per- temporary factors, but min- are shopping in the pro-
WASHINGTON (AP) — Con- vances in both May and cent of the country’s eco- utes of the Fed’s July meet- duce sections of supermar-
sumer spending increased June. Incomes in June nomic activity. ing showed a growing con- kets and not picking up its
in July at the fastest pace grew 0.4 percent, the best “Consumer spending looks cern that the slowdown unrefrigerated V8 juices
in three months, while in- showing since February. rock solid,” said Chris Rup- in price increases might and cans of Campbell
comes grew by the larg- The strength came from key, chief financial econo- reflect developments that Soup. She also blamed fall-
est amount since February, a strong 0.5 percent rise mist at MUFG Union Bank in are more long-lasting. ing sales on the increased
both encouraging signs for in wages and salaries, re- New York. “The consumer The Fed raised a key in- number of stores with pri-
future economic growth. flecting the healthy 209,000 continues to do the heavy terest rate in March and vate food brands and the
Consumer spending rose gain in employment in July. lifting when it comes to June of this year and sig- growth of ready-to-cook
0.3 percent in July, the Economists said the report economic growth as cor- naled that it expected to meal delivery companies.
best showing since April, showed that Americans are porations hold back invest- hike rates one more time in At its soup and juice di-
the Commerce Depart- feeling confident enough ment plans until they see 2017. q vision, Campbell Soup’s
biggest business, sales
fell 3 percent in the three
Macy’s, Best Buy expand same-day delivery service months that ended July
30 from the same period a
By A. D’INNOCENZIO delivery game, having said year ago. Sales at its bis-
AP Retail Writer it’s expanding its grocery cuits and snacks business
NEW YORK (AP) — Macy’s delivery service with ride- unit, which includes Pep-
and Best Buy are expand- hailing service Uber to two peridge Farm cookies and
ing their same-day delivery more markets — Dallas and Goldfish crackers, were
offers as they try to be more Orlando, Florida. flat from a year ago. And
competitive with online The world’s largest retailer sales at its fresh food unit,
leader Amazon. had launched a pilot gro- which makes Bolthouse
The nation’s largest con- cery service with Uber last Farms carrots, salad dress-
sumer electronics chain, year in Phoenix and then ings and cold drinks, rose 1
Best Buy, says it will expand Tampa, Florida, earlier this percent.
to 27 metropolitan markets year. The delivery charge Overall, the company re-
from 13 starting next week. is $9.95. It’s also testing ported fiscal fourth-quarter
That number should reach same-day delivery service net income of $318 million,
nearly 40 cities by the win- with Deliv at Sam’s Club in $1.04 per share, after re-
ter holidays. In a separate Miami. With Deliv services, porting a loss in the same
announcement, Macy’s This Monday, May 22, 2017, photo shows a Best Buy sign at a customers choose a deliv- period a year earlier. Earn-
store in Hialeah, Fla. Macy’s and Best Buy are expanding their
Inc. says it will offer same- same-day delivery as they aim to become more competitive ery window directly from ings adjusted for non-re-
day delivery in 15 addition- with online leader Amazon. the retailer’s website or mo- curring gains were 52 cents
al markets for a total of 33 (AP Photo/Alan Diaz) bile app. The stores charge per share, missing Wall
areas. while Best Buy has cut its gram same-day and faster their own fees; for same- Street expectations by 3
Macy’s is working with Men- fee to $5.99 per order from shipping options. It says day delivery those range cents, according to Zacks
lo Park, California-based $14.99. members in more than from $5 to $8. Investment Research.
startup Deliv, backed by “We have always wanted 5,000 cities and towns can In May, Deliv unveiled Deliv The Camden, New Jersey-
United Parcel Service, while to help our customers get get their orders the same Fresh, a service for grocers, based company said rev-
Best Buy is now working with their purchases from Best day or the next, depending meal services and e-com- enue fell 1.4 percent to
two companies including Buy how and when they on the item and location. merce companies that sell $1.66 billion, falling short
its original partner Deliv to want them,” said Allison Through Prime Now, mem- perishable items. of the $1.69 billion analysts
handle the deliveries. Best Peterson, president of best- bers in more than 30 major The company announced expected. For the year, the
Buy declined to name the buy.com, in a company cities can get tens of thou- then that it would offer company reported profit
new partner since it’s still blog post. sands of items in an hour same-day, scheduled ser- of $887 million, or $2.89 per
finalizing the deal. Macy’s Amazon offers members or two. Walmart has also vice for beer, wine, and share. Revenue was re-
fee for the service is $8, of its $99-a-year Prime pro- jumped into the same-day spirits in June.q ported as $7.89 billion. q