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Correction: Last week, our segment on David Placek was missing a link to an article. Placek is the man who names global brands like Subaru Outback, Blackberry, Swiffer, Febreze, and Dasani. We mentioned the article but failed to link to it, so here's the "rest of the story." To make up for our error, here's an article from David himself on how to craft the perfect name.
A Tale of Two Summers - A story in 4 parts:
This summer has been a summer of small business optimism and consumer pessimism. Lots of reasons for both. Here's a little bit of where we've been and where we're going.
Part 1: The US economy lost 23,000 jobs in July. Economists had predicted a gain of 95,000. Still, the unemployment rate fell to 4.1% - down from 4.2% in June and 4.3% for the year. The unemployment drop is likely due to a decline in the overall labor force participation rate to 61.4%. According to economist Daniel Zhao, “The decline in labor force participation is a more concerning indicator that workers are giving up on finding a job.” Despite these numbers, there are signs of labor market stability. Looking ahead, small business owners should determine to be resilient and adapt to uncertainty. It's difficult to determine which direction the labor market is going when turnover is slow.
Part 2: Small business optimism is on the rise again after tanking over the last few months. The National Federation of Independent Businesses' Optimism Index reports that confidence is swinging upward. But that optimism isn't universal. Just as business owners are feeling better, the University of Michigan's annual Consumer Sentiment Index shows their customers don't share their sunny disposition. Back-to-school shopping season hasn't made them feel any better. If you bought shoes for your little student, you know! The average sale price of kids’ shoes rose 7% in the first half of 2026, while the number of pairs sold fell 9%. Any bump in price makes a dent in parents’ pockets: Kids ages 7-10 outgrow shoes every 6-9 months.
Part 3: Retailers aren't driving the small business optimism bandwagon. The weak jobs report above and less-than-stellar news about inflation caused retailers to hit some turbulence, suggesting their ride may not be as smooth as other industries. Retail sales fell 0.6% in July when analysts expected a 0.1% gain. This news doesn't mean all retailers are showing decline. "Retail" includes auto dealers and gas stations, two segments that took the biggest blow as high car and fuel prices coupled with continued remote work arrangements and an overall shift in consciousness about fuel consumption combined (and will likely continue to combine) to provide a drag on retail growth. Two other things happened that caused July to show contraction: Amazon held their Prime Day sale earlier this year than in the past, and June was boosted by World Cup tourism, suggesting July's slump might be artificial and temporary.
Part 4: Keeping up with the Joneses has gotten pretty expensive. Some experts believe retail spending may be in for an extended bumpy ride due to Americans' inability to outrun consumer debt forever. According to the Federal Reserve Bank of NY, there's a better chance your neighbor's latest luxury vacation was paid for by a credit card than a bonus or a raise. Americans are up to our eye teeth in debt to the tune of $1.26 TRILLION. The silver lining to this story is that this astronomical amount is slightly less than it was at the end of 2025, so...good for us! Still, there's a certain pessimism living on debt causes, and it's catching up with many.
Conclusion: The crystal ball is foggy. The stock market is booming, gasoline prices are well off their recent highs, and the unemployment rate is low. There is no reason to expect broader consumer spending to experience a meaningful pullback, even if it would be good for families' pocketbooks. But the July retail numbers suggest there's no major acceleration taking place, either.
What would a leaner workforce look like to your business? Not leaner as in fewer employees, but leaner as in lower BMI, lower weight, and lower risk for heart disease and type-2 diabetes. Bank of America is spending the equivalent of a Christopher Nolan blockbuster movie production in a plan to cover GLP-1 medications for its 211,000 employees. The $250 million annual spend equals 13% of BofA's $2+ billion annual healthcare budget at a time when other large firms are cutting back spending on weight loss drugs. This commitment comes at a time when 27% of businesses are tightening GLP-1 spending. Some drug makers see BofA's path as the way forward to expanding the number of users, so they're cutting the price for employer-provided meds.
Going my way? We love writing about the sharing economy, because someone's always introducing a new twist on an old thing. The sharing economy sparked the gig economy, allowing one person to capitalize on an underutilized resource by charging another person who needs it only temporarily. Year ago, we were told, "Don't get into cars with strangers." Uber & Lyft made this okay. As newly licensed drivers, we were told, "Don't pick up strangers." Now, HitchPiggy is making that okay, too. The Portland, OR startup is a little different from established rideshare apps. It lets you post your trip, find out if anyone else needs a ride to the same place, and choose your riders and how much they contribute toward the trip. Passengers can review details like the vehicle, route, pickup spot, timing, and cost before committing.
Entrepreneurs solve problems that others often can't even see. WashWise saw smelled one of these problems and decided it was big enough to solve - and funders agreed. The company's product, Reset Spray, merges wrinkle releasers and fabric spray to refresh those clothing items that have been worn once and are not quite nasty enough to toss into the washing machine, but also not quite fresh enough to wear out of the house. "Clothing purgatory," they call it. Think of Reset Spray as dry shampoo for your clothes.
One young entrepreneur is solving a huge problem in the construction industry. One building project can construct a mountain of paperwork - far too much for one person to read, digest, and make sense of. Her business, Trunk Tools, is an AI agent that can review contracts and drawings, flag inconsistencies, and answer safety questions, making sense of piles of complex data.
The NC Department of Labor recovered $3.7 million in unpaid wages across 89 counties during FY 2026. According to Business North Carolina, investigations included "withheld commissions, unauthorized deductions, and other violations of the N.C. Wage and Hour Act, according to a release. Cases spanned construction, manufacturing, hospitality, retail, health care, transportation and agriculture." In our experience, the DOL is very helpful if you approach them with questions about your labor force, but they're pretty unforgiving if once they open an investigation. Be proactive if you believe you may not be handling everything correctly, and they'll help you sort it out. Wait for a disgruntled employee (or former employee) to file a complaint, and it could cost you much, much more.
Visitors to NC spent a record $37.2 billion last year, a 1.3% increase over 2024. Ten of the state's 11 economic regions experienced growth, including the Great Smoky Mountains and Cherokee. Our area of the mountain region experienced the least amount of damage from Hurricane Helene, and we saw 4.3% growth - the highest gain in the state. Cherokee County was up by 14%, and Macon County was up by 11%. Here are some additional facts, courtesy of the Business North Carolina Daily Digest:
- Domestic travelers spent a record $36.1 billion, up 1.5% from 2024.
- International travelers spending was down 2.8% to $1.1 billion.
- Visitors generated $4.7+ billion in federal, state, and local taxes in 2025, a 2.5% increase from 2024.
- State tax receipts from visitor spending rose 2% to nearly $1.4 billion.
- Local tax receipts grew 2.6% to more than $1.3 billion.
- Direct tourism employment in North Carolina increased 0.3% to 230,997.
- Direct tourism payroll increased 3.5% to $9.8 billion.
- Each North Carolina household saved $605 on average in state and local taxes as a result of visitor spending in the state. Savings per capita averaged $244. (Thanks, visitors!)
Pizza delivery in Australia will likely become more expensive as the country passes a new $22/hour minimum wage law for gig workers. Hourly rates will guarantee workers are paid while stuck in traffic or waiting for a restaurant to complete an order.
Why should we care? Reports of wage victories in the gig economy fuel similar legislation here in the states. While this may mean a win for those who want their Uber gig to feel more like a full-time job, it may feel more like a loss for those who truly want gig work - less structure, no time clock, more flexibility and freedom. If firms are forced to pay workers like employees instead of contractors, it'll be those who desire contract work who lose out. Small businesses will also have some tough choices to make, as this increase may have an effect on demand for delivery, which has become a key revenue stream for food businesses that can't afford to provide it in-house.
Gen Z wants a less "social" social media. 27% of Gen Z Instagram users' engagement happens entirely in DMs. They're also creating "spam accounts." These are secondary accounts they can use exclusively to share posts with close friends. The generations (Z and Alpha) born in the age of social media are going dark as the reject the "look at me!" aspect of platforms designed specifically to garner looks. If teens and young adults are your customer base, you owe it to yourself to dig into this report on how they connect with brands today. Interestingly enough, satire site, The Onion predicted 12 years ago that teens would reject traditional social media for...well...you just have to see it for yourself.
Parents of Gen Z want a more "social" employment experience. Recruiters say parents are increasingly applying for jobs on behalf of their adult children, calling hiring managers, attending interviews, and even lurking off-camera during Zoom calls. A Zety survey found 20% of Gen Z job seekers have brought a parent to an interview, while HR leaders say they've fielded calls about everything from rejected applications to performance reviews, benefits, and even calling in sick. All of us who are charged with hiring your little angels would like you to know you're doing them no favors. Stop it!
Finally, a lesson in employee motivation (Not!). The manager of a Connecticut Comcast store is the subject of a lawsuit over his questionable motivational tactics. The suit alleges underperforming employees were tied down and violently pied in the face every month at the manager’s direction. In case you were thinking about implementing this in your weekly staff meetings, we suggest you hold off at least long enough to see how this case turns out.
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