18,000 unionized Costco workers ready to strike over failed contract talks
Thousands of unionized Costco workers are warning the company that they could walk off the job in less than two weeks if a new contract isn’t reached. Eighty-five percent of workers in the Costco Teamsters union have voted to strike if the retailer and labor group fail to come to an agreement before the current contract expires at the end of the month.
Teamsters General President Sean M. O’Brien said, “If they refuse, they’ll have no one to blame but themselves when our members go on strike.”
“Our members have spoken loud and clear — Costco must deliver a fair contract, or they’ll be held accountable.”
Statement by Teamsters General President
The union claims Costco rejected its proposal for fair wages and instead presented a deal focused more on company profits than on the needs of employees.
Teamsters point to Costco’s reported net profit of more than $7 billion in 2024 as evidence the company has the financial resources to meet their demands, which include higher pay, better retirement benefits, and changes to holiday and weather policies.
“We drive its success and generate its profits. We hope the company will step up and do right by us, but if they don’t, that’s on them. The company will be striking itself.”
Costco worker in Baltimore, member of Teamsters Local 570
On the other hand, the retailer’s website highlights paid time off, benefits, and rewards as reasons why Costco is a good place to work.
As the contract deadline approaches, unionized employees across the nation are preparing for a potential strike, holding practice rallies from California to New York.
The union said about 18,000 workers are planning to walk out, which could disrupt operations at 56 Costco stores in six states.
Although most Costco employees are not unionized, Teamsters represents about 8% of the company’s 219,000 workforce.
Final contract negotiations between union members and Costco are set to begin Jan. 20.
Luxury market still thriving despite expected shrinkage
While the global luxury market is expected to shrink in 2025, the U.S. remains the second largest, valued at $106 billion. According to AP News, Europe holds the top spot. This highlights the need for advanced technology to combat counterfeit schemes.
The Hollywood Reporter says Cool Kicks, a popular sneaker store in Los Angeles, attracts 200 to 600 customers daily at its Melrose location. Customers bring in shoes for the store to buy and resell.
To reduce the risk of counterfeit goods, Cool Kicks partners with AI company Entrupy. Entrupy uses a system that takes detailed photos of products from multiple angles to analyze their authenticity.
According to Entrupy, its app compares the photos with a database of verified goods, ensuring accuracy in authentication.
Traditional methods still in use
Before the rise of AI, and still today for some companies, physical inspections were –– and are –– used to verify luxury goods. For instance, real UGG boots have security labels with QR codes and holographic logos.
At sneaker resell stores, inspectors look for signs like uneven stitching, poor-quality leather and mismatched logos. Some luxury bag companies have introduced microchips for digital verification.
Counterfeiters continue to evolve despite these measures, making their products harder to detect.
Last November, retailer Lacoste began using AI to identify counterfeit items returned to their stores. According to a press release, the technology delivers over 91% accuracy in real-world scenarios.
Counterfeits fuel organized crime
Buying counterfeit goods may seem harmless, but it poses risks beyond financial losses. The United Nations Office on Drugs and Crime reports that counterfeit goods are part of a multi-billion-dollar global industry linked to transnational organized crime.
The best way to avoid fake luxury goods is to shop from authorized retailers and check for authenticity certificates. If a deal seems too good to be true, it probably is.
Macy’s confirmed it will close 66 stores across the U.S. The department store chain said Thursday that the move is part of its “bold new chapter” strategy, which was announced in February of last year.
The strategy will see the closure of approximately 150 underperforming stores, or about a third of its locations, over three years.
Tony Spring, the retailer’s chairman and CEO, said that while “closing any store is never easy,” this will allow the company to focus its “resources and prioritize investments” in its other locations.
Macy’s told Axios clearance sales will begin this month and run for up to 12 weeks.
At least 10 dead as major wildfires continue to burn in Los Angeles area
The death toll rises as the onslaught of fires continues in Southern California, destroying complete neighborhoods. And President-elect Donald Trump will be sentenced for his conviction in the New York hush money case after the U.S. Supreme Court rejected a bid to stop the proceeding. These stories and more highlight your Unbiased Updates for Friday, Jan. 10, 2025.
Death toll rises as wildfires continue to burn in Los Angeles area
Flames have destroyed entire neighborhoods, obliterating 10,000 homes and buildings between the Palisades and Eaton Fires alone. Firefighters made some progress as the Santa Ana winds weakened, but wind and dry conditions are expected to continue through the weekend. This will make it difficult for crews to battle the flames.
The biggest and most destructive fire in Pacific Palisades now spans nearly 20,000 acres, which is more than 30 square miles and is only 6% contained.
Nearly 180,000 people in Los Angeles County are under evacuation orders and another 200,000 are on standby to leave their homes if necessary. The wildfires and strong winds fueling them have led to mass power outages.
Entire stretches of Pacific Ocean beachfront property along Malibu have been charred, as well as homes and neighborhoods up and down the Pacific Coast Highway.
The latest fire to break out, the Kenneth Fire, sparked Thursday afternoon, Jan. 9, in the Woodland Hills area of Los Angeles, near Calabasas. That fire spans 1,000 acres and is 35% contained, according to CalFire’s last update. Police arrested one man on suspicion of arson in connection with that fire.
It’s not just those in the fires’ paths in danger. Polluted air poses a threat even to those far away.
Supreme Court rejects Trump’s bid to halt sentencing in hush money case
Trump’s sentencing on 34 felony charges of falsifying business records to cover up a payment to porn star Stormy Daniels will proceed as planned.
The judge overseeing the case, Juan Merchan, said earlier this month he would not sentence the president-elect to prison time, saying incarceration is not an option.
Instead, the judge is expected to impose a no-penalty sentence called an unconditional discharge.
Trump vowed to appeal his conviction, claiming evidence and testimony was admitted that implicated his duties as president during his first term. The Supreme Court ruled over the summer presidents are immune from criminal prosecution for some official acts.
Appeals court allows release of election interference case report
The U.S. Court of Appeals for the 11th Circuit rejected a bid to block the release but kept in place the judge’s order for a three-day delay, giving time for additional appeals. That means Trump could seek the Supreme Court’s intervention in the matter.
Trump pleaded not guilty to the charges, and the election interference case was eventually dismissed following his victory in November’s presidential election due to a Justice Department policy that forbids the prosecution of a sitting president.
Attorney General Merrick Garland said he plans to release the report to the public once he is permitted to do so. In response, Trump spokesperson Steven Cheung said Thursday night that it’s time for Garland and President Joe Biden to “do the right thing and put a final stop to the political weaponization of our justice system.”
Supreme Court to hear oral arguments in TikTok ban case
With less than two weeks until a ban on the social media app TikTok is slated to take effect, the U.S. Supreme Court will hear oral arguments against the legislation Friday, Jan. 10. TikTok looks to show the justices that, despite claims from the federal government, it is not a national security threat to the U.S.
It is unclear when the court will deliver its ruling.
TikTok faces a nationwide ban in the U.S. that is expected to go into effect on Jan. 19, impacting roughly 115 million monthly users. That is unless its Chinese parent company ByteDance sells the platform, as required by the law signed by President Joe Biden last year, or SCOTUS rules in favor of TikTok’s position that the law is unconstitutional.
Supporters of the ban believe the app allows China to access vast amounts of data from Americans and possibly influence public opinion in the U.S.
Trump opposes the ban and has met with TikTok’s CEO in recent weeks.
Macy’s to close 66 stores
Macy’s confirmed it will close 66 stores across the U.S. The department store chain said Thursday that the move is part of its “bold new chapter” strategy, which was announced in February of last year. The strategy will see the closure of approximately 150 underperforming stores, or about a third of its locations, over a three-year period.
Tony Spring, the retailer’s chairman and CEO, said that while “closing any store is never easy,” this will allow the company to focus its “resources and prioritize investments” in its other locations.
Macy’s told Axios clearance sales will begin this month and run for up to 12 weeks.
Friends, family remember President Jimmy Carter at state funeral in Washington
Family, friends and fellow lawmakers honored former President Jimmy Carter on Thursday, a National Day of Mourning, during a state funeral in Washington, D.C. All five surviving presidents attended the service at the National Cathedral.
President Joe Biden, who declared Thursday a National Day of Mourning, delivered a eulogy for his late friend.
“Jimmy Carter’s friendship taught me and through his life taught me the strength of character is more than title or the power we hold. It’s a strength to understand that everyone should be treated with dignity. Respect that everyone, and I mean everyone, deserves an even shot, not a guarantee, but just a shot. You know, we have an obligation to give hate no safe harbor. And to stand up to — my dad used to say was the greatest sin of all — the abuse of power. That’s not about being perfect as none of us are perfect. We’re all fallible. But it’s about asking ourselves ‘Are we striving to do things, the right things? What value, what are the values that animate our spirit? Do we operate from fear or hope, ego or generosity? Do we show grace? Do we keep the faith when it’s most tested?’ Or keeping the faith with the best of humankind and the best of America is a story, in my view, from my perspective, of Jimmy Carter’s life.”
Carter’s grandchildren also spoke about their late grandfather.
“They were small-town people who never forgot who they were and where they were from no matter what happened in their lives,” Jason Carter said. “But I recognize that we are not here because he was just a regular guy. As you’ve heard from the other speakers, his political life and his presidency for me was not just ahead of its time, it was prophetic. He had the courage and strength to stick to his principles, even when they were politically unpopular.”
Following a private funeral in his hometown of Plains, Georgia, Carter was laid to rest next to his wife of 77 years, Rosalynn.
Retailers brace for slew of returns as holiday shopping winds down
With the holiday shopping season culminating for many on Christmas, now comes the season of returns for retailers. At the end of the 2024 holiday season, The National Retail Federation estimates there will be $890 billion in merchandise coming back. That amounts to about 17% of sales.
There are so many returns that the month has been coined “Returnuary.” January is known as the busiest month for consumers to send back items they do not want, need or that perhaps don’t fit.
At the end of the 2023 holiday season, about 15% of items, or $743 billion in merchandise, was returned. Experts said as online shopping skyrocketed during the Covid pandemic, more people became accustomed to buying and returning items. According to the software and logistics company Happy Returns, two-thirds of consumers now buy multiple sizes and colors of same item, with the intention of only keeping what they want and returning the others. It’s a practice known as bracketing.
A separate report found that customers are also doing something called wardrobing, in which they buy an item to wear to a specific event, then return it. According to the company Optoro, which helps retailers manage and resell their excess merchandise, wardrobing is up by almost 40% this year.
Processing a return costs retailers about 30% of the item’s original price. As a result, companies are now imposing stricter return policies, including reducing the return time-period and charging re-stocking fees. Many consumers now said they check a company’s return policy before making a purchase.
Alleged shoplifters learn the hard way about new California felony laws: Video
One California police department released video of two shoplifters learning about a new state law the hard way. Proposition 36, a California ballot measure turning some shoplifting crimes into felonies, with nearly 70% of the vote in November 2024.
It reverses a 2014 measure which downgraded some shoplifting offenses to misdemeanors. Supporters pitched the move as a cost-saving measure and an opportunity to focus on treatment instead of sending people to prison.
But since the start of the COVID-19 pandemic, shoplifting rates are rising in California. Statewide, the rate of theft of goods worth up to $950 went up by 28 percent over the past five years, according to research from the Public Policy Institute of California.
Local police departments, including the Seal Beach Police Department who released the shoplifting video, backed restoring the felony punishment for the shoplifting offenses.
However, Democratic state leaders and criminal justice reform advocates aren’t so sure.
Both groups said the laws will mostly imprison poor people and people with substance or mental health issues. They also said that the change will take away resources from targeting the ring-leaders of larger-scale operations aiming to steal goods and resell them online.
The change may also send prison populations upward. The group Californians for Safety and Justice, aiming to reduce spending on prisons and jails, says the law change will add 130,000 more people to California’s jail system each year.
Still not done holiday shopping? You’re in good company.
If you haven’t finished your holiday shopping, you’re not alone. If you’re planning to shop this coming Saturday, Dec. 21, you’re certainly in good company with more than 157 million of your closest friends.
According to a National Retail Federation (NRF) survey, more than 157 million people are estimated to do some last-minute shopping on Saturday. That’s up from nearly 142 million shoppers last year. However, it’ll just miss the record 158 million that turned out in 2022.
They call it “Super Saturday” for a reason. This Saturday will be supersized thanks to a shorter holiday season in 2024, plus Christmas, Hanukkah and Kwanzaa all falling on the same week.
For retailers worried the floodgates may not open this year, the NRF isn’t the only one optimistic about this final stretch. The ICSC (formerly International Council of Shopping Centers), the trade organization serving commercial real estate and retail industries, has different numbers but the same sentiment.
According to the ICSC’s survey, 233 million people, 89% of U.S. adults, plan to shop leading up to Dec. 25. The ICSC said 71% of shoppers will be looking for deals on Super Saturday, 6% more than in 2023.
Research shows many shoppers still need to do a lot of shopping! According to the NRF, at the beginning of December, only 10% of consumers had their holiday shopping lists completed.
The NRF said 44% of shoppers, nearly 70 million people, plan to shop both in-store and online. That’s up 3% from last year.
“Super Saturday is one of the last opportunities during the holiday season for consumers to get the remaining items on their shopping list,” NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a statement. “With a shortened window between Thanksgiving and Christmas this year, consumers will be hitting stores and shopping online to get those final gifts and to take advantage of special promotions and deals.”
Once the holiday season wraps up, the NRF expects this to be a record year, with holiday spending estimated to reach up to $989 billion.
The NRF conducted its Super Saturday survey with 7,861 U.S. consumers between Dec. 2 and 7. ICSC’s survey took place from Dec. 11 to 13 with 1,008 respondents.
The investors say the real estate Macy’s sits on is worth as much as $9 billion, nearly twice the company’s current valuation. They suggest Macy’s create a subsidiary that would charge rent to its parent company. That subsidiary could also sell space to hotel, apartment or office developers.
“They may be the ones in the room that are being the most truthful with Macy’s,” said Doug Stephens, founder and president of Retail Prophet. “Because the fact of the matter is, I don’t really think that Macy’s has had a retail strategy in decades.”
Macy’s real estate has often been a topic of discussion. In 2021, Macy’s unveiled a proposal to build a 900-foot skyscraper on top of its iconic Herald Square location in New York City.
“I think that these activist investors have simply called that out and said, ‘Look, if you guys aren’t a retailer and you have these real estate holdings, then you need to start taking those holdings seriously and begin leveraging that,’” Stephens said. “You can only do so many stock buybacks and leverage your real estate holdings so many times before the floor sort of falls out of that.”
In response to the deck presented by Barington and Thor, Macy’s said it will work with the investors.
“We will continue to act in the best interests of the Company and all Macy’s, Inc. shareholders and we look forward to engaging with our shareholders, including Barington and Thor, as we further advance our initiatives and execute toward our long-term goals,” Macy’s said in a statement Monday, Dec. 10.
Macy’s has 720 stores, including Bloomingdale’s and Bluemercury locations. The department store closed more than 100 locations over the last 10 years, according to data provided by Barington.
According to Barington, department stores have been decimated as e-commerce takes a growing chunk of retail sales. Meanwhile, off-price retailers like TJ Maxx and Ross are also taking a big bite out of business. Since the turn of the millennium, department stores have seen their sales cut roughly in half.
“I still hold onto the belief that there is a place for the department store, but we have to stop calling them department stores,” Stephens said.
Macy’s valuation fell by $15 billion over the last decade while the stock sank by 70%. The struggles have put Macy’s in the crosshairs of four activist investors over the last 10 years, according to CNBC. It also received a buyout offer in December 2023.
Watch the interview in the video above for what Stephens says Macy’s should do with its retail stores.
Major surge in returns expected to increase during holiday season
Holiday shopping is expected to reach record highs this season, but a growing number of those purchases will be sent back, piling on to an already multibillion dollar problem for retailers. According to the National Retail Federation and return management company Happy Returns, returns in 2024 are projected to be 17% of all merchandise sales in the United States, totaling $890 billion.
The projected total is up from a return rate of about 15%, or $743 billion, in 2023.
As shopping peaks in the weeks ahead, stores expect the holiday return rate to be 17% higher than the annual rate.
Impact of online shopping
Retail experts said customers are now more comfortable with buying and returning habits due to the online shopping boom sparked by the pandemic.
Some of these habits include “bracketing,” which is buying multiple sizes or colors of the same clothing items with the intent to return some of those pieces.
In addition, 69% of shoppers admit to doing what’s known as “wardrobing.” That’s when a customer buys an item for a specific event and returns it afterward.
According to returns software company Optoro, wardrobing is up 39% from 2023.
According to data, 46% of shoppers say they return stuff multiple times a month, which is a 29% jump from last year.
Retail industry challenges
The current rate of returns creates major challenges for companies when it comes to lost revenue, environmental impact and managing all the returns.
In 2023, several retailers rolled out stricter return policies like shortening the return window and charging a return or restocking fee.
Some places, including Target, implemented a “keep it” policy in certain cases. That’s when the company offers a refund without taking the product back.
Other brands like J. Crew and Levis Strauss & Co. are trying buy back programs to keep goods in circulation.
Looking ahead
Improving the returns experience tops the list of retailers’ goals going into next year. While returns can cost the company, the vast majority of shoppers are more likely to buy from a place that offers easy returns.
Online-only stores like Shein, Temu changing how people holiday shop
The holiday shopping landscape is changing in the U.S., with online Chinese outlets Shein and Temu offering ultra-low prices and challenging traditional American retailers. For years, people have been turning away from brick-and-mortar stores in favor of fast fashion and online-only shops that offer seemingly endless choices and unbeatable prices.
With the way sites like these gamify the shopping experience –– including spinning prize wheels and countdown clocks –– it’s easy to get lost in the urgency and feel like every day is Cyber Monday, leading consumers to spend money more consistently and putting these Chinese companies solidly in place to challenge retailers in the West this holiday season.
Industry analysts say the allure of being able to buy more but spend less has millions of people looking for the perfect gift turning to these options.