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Target sales tumble after facing 'headwinds' in wake of DEI rollback

A general view of aΒ TargetΒ store in Adelaide, Friday, May 22, 2020
Target sales fell in its first quarter of the year.

AAP Image/David Mariuz via Reuters

  • Target reported sliding sales in its first quarter to May 3.
  • CEO Brian Cornell said sales "fell short of our expectations" in a "highly challenging environment."
  • Executives did not say if tariffs would lead to price rises.

Target sales fell sharply in the three months to May 3, in a period marked by its decision to roll back DEI initiatives in January.

In an earnings call Wednesday, Target CEO Brian Cornell said the reaction to the DEI changes was one of several "additional headwinds" that had an adverse impact on sales, but the company could not quantify the amount.

Business Insider reported in March that consumer analytics firm Numerator found customer foot traffic and market share had shifted from Target to Costco, particularly among shoppers who value DEI.

On an earlier media call, Target executives declined to comment on DEI-related consumer boycotts or say whether tariffs would mean price rises.

Comparable sales fell by 3.8%, store traffic was down 2.4% and average transaction size decreased 1.4%.

Store-originated sales declined 5.7% and were partially offset by 4.7% growth in digital sales, led by a 36% surge in same-day delivery via Target Circle 360.

Target is "looking at ways to mitigate some of those price changes," Cornell said. Sourcing more products from the US rather than China was a potential solution to absorb tariff-related price increases.

"So there's certainly items that are being reduced. Some will go up," he said.

Target now expects a low-single-digit decline in sales for the full year.

Stock fell more than 4% in premarket trading and was down 28% this year at Tuesday's close.

It also announced an "acceleration office" led by former CFO Michael Fiddelke aimed at speeding up strategic execution and reversing recent declines.

Amy Tu, the chief legal and compliance officer, and the Christina Henningon, chief strategy and growth officer, are both leaving the company.

Net income rose $62 million to $1.04 billion.

Read the original article on Business Insider

Sam Altman says the world isn't ready for the 'humanoid robots moment' — and that it's not far away

Sam Altman

Kim Hong-Ji/REUTERS

  • Sam Altman has said robots will soon take on everyday jobs in the real world.
  • The OpenAI CEO told Bloomberg that society isn't prepared for the coming "humanoid robots moment."
  • He said it will feel "very sci-fi," and that it is coming soon.

Sam Altman has said that, while people worry about AI replacing white-collar jobs, something else will catch them off guard.

In a Bloomberg interview that aired Tuesday, the OpenAI CEO said that "the world isn't ready for" humanoid robots walking down the street.

"I don't think the world has really had the humanoid robots moment yet," he said.

He said people could soon be walking down the street and seeing "like seven robots that walk past you doing things or whatever. It's gonna feel very sci-fi."

And he said that moment isn't "very far away."

"I don't think that's very far away from like a visceral, like, 'Oh man, this is gonna do a lot of things that people used to do,'" he said.

He said this prospect was a marked contrast to people who have "maybe abstractly thought" of AI betting at specific tasks like programming and customer support.

In February, OpenAI signed a deal with Figure AI, a startup developing humanoid robots designed to "help in everyday life." Figure said its robot, Figure-01, is built for manufacturing, logistics, warehousing, and retail jobs.

"AI is, for sure, going to change a lot of jobs, totally take some jobs away, create a bunch of new ones," Altman told Bloomberg.

He said OpenAI has "always tried to be super honest about what we think the impact may be, realizing that we'll be wrong on a lot of details."

"I think I am way too self-aware of my own limitations to sit here and try to say I can, like, tell you what's on the other side of that wormhole," he added.

Read the original article on Business Insider

I stayed at a Four Seasons for the first time on a trip to Mexico. Here are 6 things that surprised me.

The author in her suite at Four Seasons Tamarindo in Mexico.
The reporter in her suite at the Four Seasons Tamarindo in Mexico.

Monica Humphries/Business Insider

  • I spent two nights at the Four Seasons Tamarindo, a luxury resort south of Mexico's Puerto Vallarta.
  • It was my first time staying at a Four Seasons resort.
  • I was surprised by a complimentary cooking class and how the property caters to families.

"This is our 'White Lotus' moment," I whispered to my travel partner as the gates to the Four Seasons Tamarindo opened.

For the next two nights, we searched for our version of Victoria Ratliff and Rick Hatchett as we explored the enormous property on Mexico's Pacific Coast.

By the end of the trip, we feared we were becoming characters ourselves as daily fresh-pressed juices became the expectation, and golf cart rides to our suite were the norm.

I guess that's what happens when you spend too long at a luxury resort, and the Four Seasons Tamarindo in Mexico made it easy to slip into that role.

I've been lucky enough to stay at boutique luxury properties around the world, but I'd yet to cross a Four Seasons off my list.

That changed on a recent trip to Costalegre, Mexico, where I experienced the brand firsthand in a cliffside one-bedroom suite with an infinity pool. The resort's entry-level room starts at about $1,000 a night, and a cliffside suite typically ranges between $1,500 and $3,800, depending on the view and time of year. Business Insider received a media rate for the stay.

During my two-night stay, I gained a better understanding of how Four Seasons earned its reputation for luxury.

I assumed the location would be impressive, yet I was still blown away.
A view of Four Seasons Tamarindo.
A view of the Four Seasons Tamarindo.

Monica Humphries/Business Insider

With 129 properties worldwide, a Four Seasons stay can feature a private island in the Maldives or a luxury safari in the Serengeti.

Impressive locations go hand and hand with the brand, so I figured the Tamarindo property would be beautiful β€” especially considering where the property is situated.

The Four Seasons Tamarindo is a hidden gem on Mexico's Pacific Coast and is not easy to reach. The resort is about four hours south of Puerto Vallarta and one and a half hours northwest of Manzanillo.

When guests arrive, it all starts with a dramatic entrance. I still had a 15-minute drive from the entrance gate to the resort. I navigated winding roads surrounded by thick jungle. There wasn't water in sight as I passed rows of agave and spotted birds singing from nearby trees.

Then, the property came into view. An open-air lobby featured infinity pools that stretched out to a rocky coastline.

For the next two days, I discovered striking ocean views at practically every part of the resort, from the golf course to the on-site restaurants.

It was clear that the location was a highlight of the property.

A calendar of complimentary activities was a welcome surprise.
The author joined a free cooking class.
The reporter joined a free cooking class.

Monica Humphries/Business Insider

It was tempting to jam-pack my day with activities at the Four Seasons. I eyed a morning snorkeling excursion and debated if I could make it back in time for a farm tour. Later in the afternoon, I planned to join a workshop on fermented drinks. The next day, my schedule included a cooking class.

The best part was that all these events were complimentary. While the luxury resort comes with luxury prices, it was refreshing to know that I could fill my day with experiences that wouldn't add to my travel budget.

That seems to be a common theme across a handful of other Four Seasons properties. Four Seasons Resort Hualalai offers ukulele lessons, lei-making classes, and Hawaiian quilting. At Four Seasons Resort and Residences Napa Valley, guests can join vineyard yoga sessions and cocktail-making classes.

Everything is on the property, so you never have to leave.
One of the resort's on-site restaurants.
One of the resort's on-site restaurants.

Monica Humphries/Business Insider

Alba Garcia, the director of rooms at the Four Seasons Tamarindo, and Barbara Cervantes, the property's marketing manager, told me that the resort is designed to offer an authentic Mexican experience without needing to leave the resort.

There are Mexican menus created by award-winning chefs, activities diving into traditional drinks like tepache, a fermented drink made from pineapples, and activities that explore the surrounding nature.

While I'd still argue that an afternoon trip to the seaside town of Barra de Navidad β€” 40 minutes awayβ€” is worth the trek, the Four Seasons made it hard to leave, offering every experience I could have wanted right on the property.

Award-winning chefs behind hotel menus proved to be some of the best bites I had during my trip.
Food from Four Seasons Tamarindo.
Food from Four Seasons Tamarindo.

Monica Humphries/Business Insider

I would typically opt to leave a resort and head into town for local foods, but the Four Seasons' menus surprised me.

Some of the best bites I had during my weeklong trip were at the property. Morning pastries came from the well-known Rosetta restaurant in Mexico City, and the tacos from the casual Nacho restaurant were incredible. I tried foods I'd never seen, like a tuna chorizo, and stuffed myself at the expansive breakfast buffet.

While the property felt ideal for couples, it also had families in mind.
Colorful floaties sat in a family-friendly pool.
Colorful floaties sat in a family-friendly pool.

Monica Humphries/Business Insider

A place with striking infinity pools, pastel sunsets, and private rooms screams romance.

Both Garcia and Cervantes agreed that the ideal vacationer for Four Seasons Tamarindo is likely a couple, but I was surprised by how much thought had also gone into creating an experience for families.

One of the three infinity pools is dedicated to families with giant pool floaties. There's also a daily arts and crafts session and an exclusive event for teens each evening.

Regardless of age, it seemed hard not to enjoy a day at the resort.

The welcoming staff was a highlight as well.
Alan Reyes points to bees at the resort's farm.
Alan Reyes points to bees during a tour of the resort's farm.

Monica Humphries/Business Insider

Alan Reyes pulled over on his golf cart to show me a calabash tree, which grows fruit used for maraca instruments. Twenty minutes later, we were tasting honey from Melipona stingless bees.

As someone who loves the outdoors, it was thrilling to have resort staff eager to answer my pesky questions about the plants and animals living and growing on the 3,000-acre property.

Hours later, it was shocking to watch Garcia share so much joy behind her job as rooms director.

When my rental car's tire was flat, a crowd of workers arrived with an air compressor to get me back on the road.

While I expect hotel staff to be kind and welcoming at a luxury resort, I appreciated how the employees at the Four Seasons went beyond expectations.

Read the original article on Business Insider

FAA imposes Newark flight cuts in a bid to reduce congestion and delays for passengers

A United Airlines plane lands at Newark Liberty International Airport in front of the New York skyline on September 17, 2023 in Newark, New Jersey.
United Airlines planes at Newark Liberty International Airport.

Justin Sullivan/Getty Images

  • The FAA is reducing the number of flights at Newark Liberty International Airport.
  • It comes after runway construction, technology outages, and staffing shortages have caused disruption.
  • There have been four equipment outages in three weeks at Newark.

The number of flights permitted at Newark Liberty International Airport is being reduced amid rising delays, the Federal Aviation Administration announced on Tuesday.

Passengers have experienced delays of up to five hours as the airport struggles with technology outages, air traffic control staffing, and runway construction.

With runway construction continuing daily until June 15, Newark will be limited to 28 departures and 28 arrivals per hour.

After that date, construction will also continue on Saturdays until the end of the year.

Outside the construction period, the FAA ordered a maximum hourly rate of 34 departures and arrivals until October 25.

Newark, one of the three main airports serving New York City, can typically handle 77 movements an hour.

"Our goal is to relieve the substantial inconvenience to the traveling public from excessive flight delays due to construction, staffing challenges, and recent equipment issues, which magnify as they spread through the National Airspace System," said acting FAA administrator Chris Rocheleau.

Tuesday's interim order comes after the FAA spoke with airlines in one-on-one meetings last week.

United Airlines CEO Scott Kirby has called for the FAA to reduce flights at Newark since the chaos began.

The airline operates about 70% of the flights at Newark, which is a key hub for United.

Kirby also backed Transportation Secretary Sean Duffy's plan to invest in technology upgrades for the airspace system and to "supercharge" the hiring of air traffic controllers.

The situation at Newark came to a head on April 28 when there was an equipment outage at Philadelphia TRACON, which guides planes in and out of the New Jersey airport.

Controllers were briefly left unable to see where planes were on the radar or communicate with their pilots.

Several controllers were put on trauma leave as a result, worsening the staff shortage. Earlier this month, there was a day with just three controllers on duty instead of the expected 14.

The target for air traffic controllers for the Newark area is 38 certified professional controllers. There are presently 24 controllers, or 63% of the target, the FAA said.

There were also four communications outages within three weeks.

Read the original article on Business Insider

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