Value was in vogue in 2024.
Shoppers and restaurant patrons in the U.S. were choosy about where and how to spend their money as they wrestled with high housing and food prices.
Well-heeled customers traded down to Walmart and Aldi. Diners opted for fast food or home cooking instead of sit-down restaurants. Department stores struggled as buyers shopped online or at cheaper chains like H&M.
Residents also moved away from buying furniture or investing in expensive renovations, opting to refresh their homes with inexpensive items like frames and candles.
Those shifts changed the buying and eating landscape in 2024. As of Dec. 20, Coresight Research tracked 48 retail bankruptcies in the U.S., compared with 25 during the same period a year ago. And at least 22 restaurant chains filed for bankruptcy this year, the highest number since 2020, according to BankruptcyData, a company that tracks filings.
Here are some of the trends – and dead ends – that The Associated Press tracked in 2024:
WALMART
The nation’s largest retailer typically shines during tough times as shoppers turn to the discounter for groceries, which account for 60% of Walmart's total business. And just like during the 2008 Great Recession, Walmart saw households with incomes of $100,000 or above making up more of its clientele. But this time around, company executives think they can keep those customers because they’ve expanded online services and added more stylish clothes and mannequins.
AMAZON
Online juggernaut Amazon leaned into its reputation as a destination for deals to appeal to bargain-hungry buyers. In November it launched Amazon Haul, a new low-cost storefront featuring electronics, apparel and other products priced under $20. And the company said its Prime Day event in July resulted in record sales. But Amazon could face headwinds in the coming year with threatened tariffs on products from China and labor unrest in the U.S.
FAST CASUAL CHAINS
It was a good year for restaurant chains like Shake Shack that are a step up from fast food but still offer good value. Cava, which specializes in fresh Mediterranean food, said its revenue surged more than 33% in the first nine months of this year as it rapidly built new restaurants. Chipotle got some heat from value-conscious diners about smaller portions, but drew customers back after retraining workers to ensure “consistent and generous” portions.
JEANS SELLERS
The wide-leg jeans silhouette – the “it” style that rapidly replaced boot-cut and skinny jeans – drove sales across many different retailers this year. Macy’s, Abercrombie & Fitch, Levi Strauss, Gap and Stitch Fix were among those citing the trend as a big sales booster in recent months. Value-conscious buyers could snap them up at Walmart for $29. At the high end, Gucci had wide-leg versions for $1,200.
MCDONALD’S
The year didn’t begin well for McDonald’s. The company’s sales slumped as inflation-weary customers chose to eat at home instead of grabbing fast food. But a $5 meal deal introduced in June helped draw lower-income customers back into stores. McDonald’s extended the deal through the end of this year and said more value is coming in 2025. The fast food giant is working to get customers back after a fall E. coli outbreak linked to raw onions in Quarter Pounder hamburgers sickened at least 104 people in 14 states.
TARGET
Target’s cheap chic fashions and home decor have long been a big attraction, but the chain faced challenges in 2024. Unlike Walmart, Target is more reliant on discretionary items like clothing because less than a quarter of its sales come from food and beverages. It has always battled a perception of being more expensive, and analysts say its merchandise has lately been in disarray. Still, Target drew crowds on Black Friday with exclusive Taylor Swift products.
STARBUCKS
Starbucks had a tough year. Orders are getting increasingly complex, with thousands of ways to customize drinks. That’s leading to long lines and incorrect pickup times on the mobile app. New offerings like olive oil-infused coffee didn’t attract customers, who also grew tired of Starbucks’ high prices. Starbucks hired a new CEO, Brian Niccol, in the fall to help turn things around. But labor strife, which led to strikes in December, could continue to hurt the company in 2025.
LEGACY RESTAURANTS
Several decades-old chains threw in the towel in 2024, succumbing to rising competition, changing dining patterns and big portfolios of outdated restaurants. Red Lobster, TGI Fridays and Buca di Beppo all filed for Chapter 11 bankruptcy protection and shuttered dozens of locations. A leaner Red Lobster later exited bankruptcy under new ownership, but it remains to be seen whether older chains can turn around years of declining sales.
BIG TICKET ITEMS
At the height of the coronavirus pandemic, U.S. consumers took advantage of low interest rates and stimulus benefits to remodel their homes and make other big purchases. But last year, they pulled back. That’s been a challenge for retailers like Best Buy, the nation’s largest consumer electronics chain, which noted lower sales of appliances, home theaters and gaming equipment. Home Depot and Lowe’s also reported lower sales of big-ticket items, particularly discretionary kitchen and bathroom remodeling projects.
DEPARTMENT STORES
Department stores, particularly those catering to middle income shoppers, have struggled to hold onto customers as many turn to online shopping or to fast-fashion retailers. Among the worst performers: Menomonee Falls, Wisconsin-based Kohl’s, which reported its 11th consecutive quarter of sales declines this year. Outgoing CEO Tom Kingsbury recently owned up to merchandising mistakes, including scaling back fine jewelry, popular store label brands and petite sizes. Customers will see those categories return in the coming year.
Macy’s said it would close 150 namesake stores over three years and open 15 higher-end Bloomingdale’s. Upscale Nordstrom, on the other hand, had a better than expected fiscal year due largely to soaring sales at its off-price Nordstrom Rack stores. Last week, the department store chain agreed to be acquired and taken private by Nordstrom family members and a Mexican retail group. As a private company, Nordstrom may have more leeway and less scrutiny of its efforts to reinvigorate sales.
This combination image shows signage of Chipotle restaurant Feb. 8, 2016, Walmart store, in Walpole, Mass., Sept. 3, 2019, McDonald's restaurant on April 29, 2024, in Albany, Ore., a Target store sign is shown in Amherst, N.Y., Aug. 18, 2009. (AP Photo)
BLACKSBURG, Va. & MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan 2, 2025--
Aeva ® (NYSE: AEVA), a leader in next-generation sensing and perception systems, and Torc, an independent subsidiary of Daimler Truck and a pioneer in commercializing self-driving vehicle technology, today announced an expansion of their collaboration to advance the development of a new safety architecture for truck applications – enabling autonomous trucks to make safer, more intelligent decisions.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20250102222120/en/
Under the expanded collaboration, Torc and Aeva will work together on technology advancements in service of L4 autonomous trucking to benefit the development of Torc’s Virtual Driver vehicle software. The companies will share 4D LiDAR sensing data and share a Freightliner Cascadia vehicle platform for use in long-range sensing applications. The data captured will support deeper collaboration between global engineering teams at both companies.
“Aeva is pioneering the next generation of 4D LiDAR technology and we’re excited to enter a new phase of our collaboration to continue to position us as industry leaders in autonomous driving technology for production deployment at scale,” commented Peter Vaughan Schmidt, Torc CEO.
The collaboration builds on the production agreement signed last year when Daimler Truck selected Aeva as its supplier of long and ultra-long range LiDAR for its series production autonomous commercial vehicle program. The multi-year production agreement is targeting commercializing Daimler Truck autonomous trucks by 2027.
“Torc Robotics is a leader in commercializing autonomous truck technology and this expansion of our collaboration is a testament to the capabilities of our talented team and the strength of our production partnership with Torc and Daimler Truck,” said Soroush Salehian, Co-Founder and CEO at Aeva. “Now our global teams will work even closer together with joint sharing of sensing data from Aeva sensors on North America’s top trucking platform. We look forward to advancing our multi-year production collaboration to commercialize safe autonomous trucks on the road.”
About Torc Robotics
Torc Robotics, headquartered in Blacksburg, Virginia, is an independent subsidiary of Daimler Truck AG, a global leader and pioneer in trucking. Founded in 2005 at the birth of the self-driving vehicle revolution, Torc has nearly 20 years of experience in pioneering safety-critical, self-driving applications. Torc offers a complete self-driving vehicle software and integration solution and is currently focusing on commercializing autonomous trucks for long-haul applications in the U.S. In addition to its Blacksburg headquarters and engineering offices in Austin, Texas, and Montreal, Canada, Torc has a fleet operations facility in the Dallas-Fort Worth area in Texas, to support the company’s productization and commercialization efforts, as well as a presence in Ann Arbor, MI, to take advantage of the autonomous and automotive talent base in that region. Torc’s purpose is driving the future of freight with autonomous technology. As the world’s leading autonomous trucking solution, we empower exceptional employees, deliver a focused, hub-to-hub autonomous truck product, and provide our customers with the safest, most reliable, and cost-efficient solution to the market.
About Aeva Technologies, Inc. (NYSE: AEVA)
Aeva’s mission is to bring the next wave of perception to a broad range of applications from automated driving to industrial robotics, consumer electronics, consumer health, security and beyond. Aeva is transforming autonomy with its groundbreaking sensing and perception technology that integrates all key LiDAR components onto a silicon photonics chip in a compact module. Aeva 4D LiDAR sensors uniquely detect instant velocity in addition to 3D position, allowing autonomous devices like vehicles and robots to make more intelligent and safe decisions. For more information, visit www.aeva.com, or connect with us on X or LinkedIn.
Aeva, the Aeva logo, Aeva 4D LiDAR, Aeries, Aeva Ultra Resolution, 4D Perception, and 4D Localization are trademarks/registered trademarks of Aeva, Inc. All rights reserved. Third-party trademarks are the property of their respective owners.
Forward-looking statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements include, but are not limited to expectations about our product features, performance and our relationship with Torc and Daimler Truck. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including, but not limited to: (i) the fact that Aeva is an early stage company with a history of operating losses and may never achieve profitability, (ii) Aeva’s limited operating history, (iii) the ability to implement business plans, forecasts, and other expectations and to identify and realize additional opportunities, (iv) the ability for Aeva to have its products selected for inclusion in OEM products, (v) the fact that Aeva is operating in an emerging market and there can be no assurance that LiDAR sensors will achieve commercial success in sufficient volume in the automotive or other markets (vi) ability to commercialize and market acceptance of autonomous vehicles, (vii) whether the OEMs continue pursuing their autonomous vehicle programs, and (viii) other material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC, including our most recent Form 10-Q and Form 10-K. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Aeva assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Aeva does not give any assurance that it will achieve its expectations.
(Photo: Torc Robotics)
