šŸ‹ Self-Checkouts Down Bad

A new study found that self-checkouts rose from 18% in 2018 to 30% last year. And some retailers like Walmart, Kroger, Dollar General, and Albertsonā€™s are jumping on the bandwagon and testing out full self-checkout stores. But some economists say that despite being touted as a way to cut costs, save time, and prevent theft, it seems the machines have done the exact opposite.

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"If January is the month of change, February is the month of lasting change. January is for dreamersā€¦ February is for doers." ā€” Marc Parent

Good Morning! Snapchatā€™s growth tanked last quarter, and the companyā€™s shares fell 15% after hours on the news. Retail investors lost millions of dollars from last weekā€™s NYSE glitch - but experts say they might not get any of it back.

Whole Foods asked suppliers to cut costs, and food inflation is decreasing across the country. Tesla investors apparently lost $12 billion from Elon Muskā€™s ā€˜funding securedā€™ tweet in 2018. LinkedIn says job openings declined in December. And the IMF is still upbeat on the global economy.

With markets in turmoil, Percent has dropped its new report: "Is it time to reconsider the 60/40 portfolio?" Download here.

More bonuses rolled in last week. If you haven't already, please fill out our 2023 compensation survey. We'll be sending out the results as soon as we have enough data points.

1. Story of the Day: Self-Checkouts Down Bad

A new study found that self-checkouts rose from 18% in 2018 to 30% last year. And some retailers like Walmart, Kroger, Dollar General, and Albertsonā€™s are jumping on the bandwagon and testing out full self-checkout stores. But some economists say that despite being touted as a way to cut costs, save time, and prevent theft, it seems the machines have done the exact opposite.

While self-checkouts have increased in popularity, according to the Bureau of Labor Statistics, the number of cashiers employed in the US has barely budged in the last decade. Turns out, the reduction in low-wage workers is simply being compensated for by the high cost of paying technicians to keep these kiosks running. And a single row of self-checkouts can cost a whopping $150,000!

Walmart's CEO recently confessed that theft has actually increased since their implementation, much to the delight of shoplifters everywhere. Self-checkouts are prime targets for fraudsters whoā€™ve figured out how to beat the system. Theyā€™re ringing up king crab legs as apples and trying to buy $1,600 grills for a mere $5.

Takeaway: With the new year comes new cost-cutting strategies for companies, and implementing self-checkouts seems to be at the top of the list. But beware, they may not be the cost-cutting solution they appear to be. And some experts even believe that stores are jumping on the self-checkout bandwagon just to keep pace with their competition, rather than out of a genuine desire to save money.

2. Markets Rundown

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Stocks rallied and the NASDAQ closed out its best January since 2001.

Movers & Shakers

  • (+) General Motors ($GM)Ā +8% after a strong Q4, supply chain issues easing.

  • (+) UPS ($UPS)Ā +5% after releasing Q4 earnings, holiday earnings boost.

  • (ā€“) Phillips 66 ($PSX)Ā -6% because the company missed earnings expectations on falling gas prices.

Private Dealmaking

  • Luxury electric vehicle maker Lotus will go public at a $5.4 billion valuation

  • Flight Centre Travel Group bought Scott Dunn, a London travel agency, for $150 million

  • Raylo, a startup that lets consumers lease phones and laptops, raised $136 million

  • Makeup by Mario, a New York-based cosmetics brand, raised $40 million

  • EarthOptics, a data platform for farmers, raised $27.6 million

  • Alto Neuroscience, a developer of psychiatry drugs, raised $25 million

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3. Top Reads

  • New compensation data shows inflation pressure fading (Axios)

  • Mass tech layoffs donā€™t signal a recession, but this trend could (CNBC)

  • Bed Bath & Beyond could file for bankruptcy this week (Fox)

  • Population drain persists in big cities (Axios)

  • SBF tried regaining control of FTX (Intercept)

  • Where will the laid off tech workers go? (Vox)

  • More oil is coming (YF)

  • Spotify hinting at expanding to social media (TC)

  • PayPal will lay off 2,000 employees (CNBC)

  • The race of the AI labs heats up (Economist)

  • What companies should know before investing in AI (HBR)

4. Book of the Day: Mind Your Mindset

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Our brains are remarkable. They subconsciously translate the events around us into meaningful storylines that inform what we think and how we live. The problem is, the stories our minds feed us as facts aren't always true.

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These limiting beliefs confront us all. But what if you could harness your brain's operating system to tell a new story? Not just any story. A true story that empowers you to overcome limitations and surpass your goals.

Drawing upon the latest insights in performance psychology, neuroscience, and cognitive science, as well as case studies from their own clients, New York Times bestselling author Michael Hyatt and Megan Hyatt Miller outline a framework anyone can follow to test their own assumptions and start living better, truer stories that shape superior outcomes in business and life.

ā€œStop placing limits on yourself.ā€

5. Short Squeez Picks

A Message from DONUT: Howā€™s your news diet?

šŸ¤¦ Do you blissfully have your head in the sand with current events? Hey, we get it. Mainstream news is repetitive, biased, and frankly just unpleasant.

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6. Daily Visual: Population Drain Persists in Big Cities

In-bound moving rate to major US metros 2022

Source: Axios

7. Daily Acumen

People often value and become grateful for others after they are gone because of the phenomenon of loss aversion. This refers to the tendency to strongly prefer avoiding losses to acquiring gains.

When a loved one or valued person is gone, the loss is felt more acutely and the sense of what was lost is magnified. This can lead to feelings of regret and a greater appreciation for the person and what they brought to one's life.

Additionally, death often brings about a new perspective and appreciation for the things that were once taken for granted. People may realize the significance of a person's impact on their life and how much they valued the relationship after it is no longer present.

In short, the loss of a person can trigger feelings of gratitude and appreciation that were not as strongly felt while they were alive, due to the psychological effects of loss and a change in perspective.

8. Memes of the Day

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