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Bad time to take helm? New retail leaders face extra headaches with tariffs and consumer slowdown
New CEOs at consumer giants like Nike, Starbucks, and Peloton face immense pressure, dealing with tariffs impacting supply chains and rising costs, alongside shifting consumer spending and economic uncertainty. Their "honeymoon period" is virtually non-existent, forcing immediate action to navigate unprecedented volatility and deliver results.
Taking the helm of a well-known consumer company is the pinnacle of an executive's career, but the current environment has left new leaders at companies like Nike, Starbucks and Peloton little time to celebrate.
Settling into the CEO role is always demanding, but those who took the role in the past year have also had to deal with shifting policies around tariffs and a potential downturn in consumer spending.
Brian Niccol just hit the one-year mark at Starbucks and is trying to improve the experience of the coffee chain's customers and workers. But he's also dealing with higher coffee prices that follow double-digit tariffs on Brazil, a key source of coffee beans around the world.
Nike's Elliott Hill is about to hit his first anniversary in a role that entails bringing the sneaker brand back from a yearlong sales decline and getting more people pumped about it in a crowded footwear market. Yet he's forced to devote resources and time to reappraising Nike's supply chains in countries like Vietnam and China that are being hard hit by tariffs.
New leaders at REI and Peloton may relate.
"I joke that I've gotten the full CEO experience in my first nine months-just a few years ahead of schedule," said Peter Stern of Peloton, who started in January. In addition to leading the company's turnaround-sales have fallen more than a third after a boom during the pandemic-Stern must determine how to price its products, made in places like Taiwan, China and Thailand, where President Donald Trump has placed tariffs.
At the same time, every company is trying to grow even as consumers shift their spending habits and become pessimistic about the economy. "What's been so challenging is just the uncertainty, the volatility and things changing all the time," said Mary Beth Laughton, CEO of REI, referring to tariffs. Consultants say CEOs usually have three to six months to learn about the company, identify its biggest problems and publicly lay out their vision.
"You don't get grace," said Christine Greybe, president of DHR Leadership Consulting, which helps consumer brands identify new leaders. "There's a very short honeymoon period." This year, Target, Yum! Brands and Procter & Gamble named new CEOs; when they start, they too will have to contend with outsize issues while trying to please customers and shareholders.
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Source: EconomicTimes
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![New Delhi [India], May 14 (ANI): India, on Wednesday, banned sugar exports with immediate effect until September 30, 2026, or until further orders](http://newsorbit360.com/files/news/en/imgs/india-bans-sugar-exports-with-immediate-effect-until-september-2026.webp?height=520)
New Delhi [India], May 14 (ANI): India, on Wednesday, banned sugar exports with immediate effect until September 30, 2026, or until further orders. The Ministry of Commerce & Industry announced the decision through a formal notification that shifts the export status for various sugar categories
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