Current Events in June 2020

If you’re still hesitant to visit a brick-and-mortar retailer for fear of coming in contact with someone who has COVID-19, consider yourself in the majority.

While some consumers might think it’s business as usual, the newest Consumer Health & Safety Index by global research firm Ipsos shows just the opposite -- that 61 percent of consumers are holding off visiting physical storefronts until they’re convinced the all-clear is for real.

“The ability to deliver on health and safety efforts is now the most important aspect of the customer experience, and it will be for some time”, said Nick Mercurio, executive vice president and service line head of U.S. Channel Performance at Ipsos. 

The overall takeaway

Ispos evaluated how retailers across seven industries are operating amid the COVID-19 pandemic. It wasn’t a simple little poll, either. Ipsos Mystery Shoppers conducted in-store visits of more than 5,700 retailers across the U.S. and took a hard look at which brands are successfully implementing health and safety measures and which ones are not.

The overall takeaway is that when deciding whether or not to return to a particular store, American consumers take a hard and fast line on certain health and safety practices. 

Those practices include the constant use of company-issued face coverings, having 6-foot social distancing markers in place at checkout, employees visibly wiping down high-traffic areas, and plexiglass dividers at checkout areas. Shoppers also looked at how retailers managed the number of customers entering stores.

The glaring gaps

Ipsos uncovered several blatant mistakes between consumer expectations and what its secret shoppers actually observed inside the stores. Those include:

• Store employees at 25 percent of the stores visited wore face coverings either improperly or not at all.

• Employees at 51 percent of stores visited were not wearing gloves.

• A hard-to-believe 77 percent of the stores visited failed to provide either hand sanitizing or handwashing solutions inside the entrance.

• An even harder-to-believe 82 percent of the stores visited did not provide any hand sanitizing or handwashing solutions at the checkout counter.

• Sixty-four percent of the stores visited had no staff actively cleaning interior high traffic areas, like shopping carts, counters, credit card readers, and doors.

• Thirty-one percent of the stores visited did not have plexiglass dividers at the checkout stand.

• Fifty-eight percent of the stores visited were not observed to be managing the number of customers entering stores.

The winners

While Ipsos’ study shows great room for improvement across the entire retail spectrum, there are three brands that surpassed the norm and did a great job implementing the health and safety measures of the post-pandemic world.

Taking home the first-place trophy is Whole Foods. To Ipsos evaluators, it demonstrated near-universal compliance with associates wearing face coverings inside (98 percent), respecting 6-foot boundaries in customer interactions inside (91 percent), providing plexiglass barriers at checkout (95 percent), and offering contactless payment (87 percent) at the stores visited.

Costco came in a close second. Visits to Costco stores found that employees at 83 percent of visited locations wore face coverings properly outside the store. Employees at 95 percent of the stores visited also wore face coverings properly inside the store. Costco topped Whole Foods in the social distancing department, with 94 percent of the stores visited having social distancing markers present. 

Big-box retailers like Costco performed better at cleaning interior locations (51 percent) than any industry other than grocery and lagged just behind grocery and drug stores when it came to providing barriers at checkout (83 percent).

In a respectable third place was Trader Joe’s. Ipsos’ team said the retailer had both consistency and attention toward the most important health and safety factors that consumers are looking for. Trader Joe’s far surpasses all the other grocery retailers in this area, with 94 percent of stores visited actively managing this process at the entrance.

A new study conducted by researchers from The Endocrine Society found that a good number of patients in the ICU with COVID-19 are also struggling with diabetes. 

According to the study, over 20 percent of patients in the ICU have both coronavirus and diabetes. One of the biggest concerns is ensuring that health care workers are administering all treatments safely and are taking all the precautions necessary to reduce the spread of infection. 

“This manuscript provides guidance for healthcare providers caring for patients hospitalized for COVID-19 who also have a prior history of diabetes or who have high blood sugar levels at the time of hospitalization,” said researcher Dr. Mary T. Korytkowski. “These healthcare providers are at risk for contracting COVID-19, and while glycemic management in the hospital improves patient outcomes, it also intensifies the amount of time with direct patient contact.” 

Managing infection risk

The researchers became interested in this topic after learning how frequently diabetes patients were being admitted into the ICU with COVID-19. They discovered that patients with diabetes made up anywhere from 25 to 34 percent of ICUs nationwide. 

Nurses and doctors are already at an increased risk of exposure to coronavirus, and that risk of infection is intensified because of how extensive diabetes treatment protocols typically are. Moreover, protective equipment for frontline workers has been in short supply, so it’s important that those administering medical care take as many precautions as possible. 

The researchers’ goal was to establish protocols that would help keep health care professionals safe and healthy while still offering patients the treatment and care that they need. 

For starters, they noted that popular medications used to treat COVID-19 can create fluctuations with glucose levels. Previous studies have highlighted the side effects associated with hydroxychloroquine, so it’s important that health care providers are aware of potential interactions. 

They also explained that many patients are capable of monitoring their diabetes without assistance. While every patient’s condition -- both diabetes and COVID-19 -- are different, when it’s possible, health care providers can ask their patients what their typical diabetes maintenance entails and have those patients stick to their regular routine. 

Using technology to provide treatment

The researchers recommend that health care professionals take advantage of technology. 

Glucose can be monitored with wearable, remote devices that those in the hospital can access without having to be face-to-face with patients. This will cut down on the number of IV infusions while still giving nurses and doctors the data they need on their patients. 

The researchers hope that this work is beneficial for health care providers. By adopting some of these strategies, the team thinks workers can reduce their risk of infection. 

As the world gets back outside and looking for someplace to go, Airbnb’s business is reaping the benefits.

Only about a month ago, the company laid off 1,900 employees, but things are quickly changing. In an interview with Bloomberg News, Airbnb CEO Brian Chesky said the company saw more nights booked for U.S. listings between May 17 and June 3 than the same period a year ago. 

Chesky says that while global and domestic bookings aren’t on the same pace, they’re getting close in places like Germany, New Zealand, Portugal, and South Korea. 

Airbnb isn’t the only company enjoying the fruits of the pandemic slowdown. Other accommodation sites such as Vrbo and Booking Holdings Inc. (Booking.com, Priceline.com, et al.) are also seeing a jump in domestic vacation-rental reservations. 

It’s none too late, either. For Bookings, nights booked in the 1st quarter decreased 43 percent over a year ago, and revenues were down 19 percent from the prior year.

Airbnb put the downtime to good use

The vacation rental industry got squeezed pretty hard by the pandemic. The companies at the top of the funnel lost money, but the people who offered their places for rent also took a beating. 

Officials at Airbnb and Vrbo sensed very quickly that travelers concerned about safety would go somewhere else if they didn’t tackle the cleanliness of their rentals and get the buy-in from their hosts to match.

“Although it may not have felt like it, we are partners,” Chesky wrote in an email to its network of hosts. “When your business suffers, our business suffers. We know that right now many of you are struggling, and what you need are actions from us to help, not just words.”

And action they got. 

The first thing Airbnb did was establish a new cleaning protocol for its hosts. It went as far as hiring former U.S. Surgeon General Dr. Vivek Murthy as a consultant, and it launched its “Enhanced Cleaning Initiative” -- a program described as “the first overarching standardized protocol for cleaning and sanitization in the home sharing industry…[and] informed by the U.S. Centers for Disease Control and Prevention (CDC).”

Hosts who commit to following the new guidelines will receive a special call-out on their listing so guests know they are committed to an enhanced cleaning and sanitization routine.

Vrbo follows suit

Not to be outdone, Vrbo also hired a well-heeled medical consultant -- Dr. Daniel Lucey, an infectious diseases expert who consulted with Vrbo on behalf of the Infectious Diseases Society of America. 

The company also joined forces with government, travel industry, and medical experts to ensure that homeowners and travelers alike were receiving aligned, clear, cleanliness recommendations. 

“Vrbo has been connecting families with private, whole homes for 25 years, and it’s obvious that COVID-19 has added to what people need as they plan their next trip – having the flexibility to change or cancel plans and knowing how a space has been cleaned are essential to feeling comfortable enough to travel again,” said Vrbo president Jeff Hurst. 

“We’re adding the tools quickly to meet those additional requirements families now have when they are choosing a place to stay, as well as the systems our homeowners and property managers need to clearly communicate their policies and standards with future guests. Transparency between travelers and homeowners about expectations and protocols is more important than ever.”

After closing for several months due to the coronavirus pandemic, Macy’s has announced that it has raised close to $4.5 billion in new financing to help it recover from the hit. 

The struggling retailer said the funding -- which includes $3.15 billion in asset-based credit and a previously announced $1.3 billion bond offering -- will give it enough liquidity to stay afloat. With that liquidity, Macy’s said it plans to purchase fresh merchandise for the upcoming selling seasons and repay upcoming debt maturities. 

Macy’s stores have been closed since mid-March but are gradually beginning to reopen across the country. However, department stores are still feeling the impact of the pandemic since many consumers still don’t feel comfortable going out to complete non-essential tasks. 

The additional funding will allow for "sufficient flexibility and liquidity to navigate our current environment and fund our business for the foreseeable future," Macy’s Chief Executive Jeff Gennette said in a statement Monday. 

“We are pleased with the strong demand from new investors in our notes issuance, which allowed us to tighten pricing and increase the size of the offering,” Gennette said. “The high quality of our real estate portfolio positioned us well to execute this offering.” 

Department stores have struggled to maintain foot traffic in recent years, in part due to changing consumer shopping preferences. In February, Macy’s announced that it would be closing 125 stores over the next three years. 

The pandemic hasn’t helped matters for many brick-and-mortar retailers that were already struggling. Neiman Marcus, Stage Stores, and J.C. Penney have all filed for Chapter 11 bankruptcy protection in the past few months. Lord & Taylor is also expected to liquidate. 

While the economy faces enormous challenges in the months ahead, consumers seem to think things will get better sooner than most experts have predicted.

The Federal Reserve’s May Survey of Consumer Expectations shows small signs of improvement in households’ expectations compared to April. Consumers expect prices to rise over the next year but think the labor market will get slightly better in the months ahead.

As the stock market surged, even in the absence of encouraging data, consumers' mood seemed to reflect that optimism. Consumers are more upbeat about employment opportunities, even as company after company warned that its earnings would slide.

At the same time, consumers’ outlook was not completely rosy. Their perceived and expected availability of credit continued to worsen. Median inflation expectations increased at the one-year horizon and remained stable at the three-year horizon.

Inflation expectations

The expectation for inflation at the one-year horizon increased by 0.4 of a percentage point to 3.0 percent in May. Median expectations for inflation three years from now remained unchanged at 2.6 percent. 

The expectation for home prices improved slightly. In April, there was not much sentiment for rising home prices; however, consumers improved their outlook in May, suggesting prices could rise by 0.6 percent. The slight increase was driven mostly by respondents who live in the West and Northeast Census regions.

In spite of the widespread layoffs and surge in unemployment, consumers appear to believe the employment picture is improving. Median year-ahead household income growth expectations increased from 1.9 percent in April to 2.1 percent in May after declining for three consecutive months. 

Even so, that number is considerably lower than its year-ago level of 2.8 percent. A quarter of respondents expect a decrease of at least 0.3 percent in their household incomes over the next 12 months.

A return to household spending

But in spite of all the headwinds to the economy that have increased over the last three months, consumers expect their median household spending to increase by 0.7 percent, even as it remains below its year-over-year average of  3.5 percent.

Most consumers don’t expect to see an improvement in access to credit anytime soon. Perceptions of credit access compared to a year ago deteriorated for the third consecutive month, with almost half of respondents reporting that credit is harder to get today than a year ago. 

Expectations for year-ahead credit availability also worsened, with fewer respondents expecting credit will become easier to obtain.

General Motors is recalling 12,200 model year 2019-2020 Chevrolet 4500HD, 5500HD, and 6500HD medium duty trucks.

If the vehicle's body control module (BCM) loses communication with the vehicle's electronic brake control module (EBCM), the EBCM software programming may not illuminate the vehicle's ABS malfunction indicator light (MIL).

If a driver is unaware that the ABS system is malfunctioning, there may be an increased risk of a crash.

What to do

GM will notify owners, and dealers will update the software calibration for the body control module (BCM).

This recall is expected to begin July 13, 2020.

Owners may contact Chevrolet customer service at (800) 222-1020. GM's number for this recall is N202305070.

Vee Tyre and Rubber Co., Ltd. is recalling 522 Taiga A/T tires, size LT285/75R16.

Due to a manufacturing issue, the sidewall may separate from the tire, which can lead to tire failure, increasing the risk of a crash.

What to do

Vee Tyres will notify and reimburse owners the cost of the tires along with any service fees.

This recall is expected to begin June 30, 2020.

Owners may contact Vee's customer service at (917) 863-2422. Vee's numbers for this recall are 6MSLD8 2117 and 2217.

Facebook has pulled nearly 200 accounts tied to white supremacy groups, including the Proud Boys and American Guard, which were already banned on the platforms. 

Company officials told the Associated Press that they were already monitoring and planning to remove the accounts. The accounts were finally taken down after Facebook saw posts attempting to exploit the protests that have been happening in the wake of the killing of George Floyd at the hands of police in Minneapolis.

The groups intended to recruit members to attend protests and start confrontations. Facebook’s counterterrorism director Brian Fishman said some members were “preparing to go with weapons.” 

Curbing hate speech 

In light of recent events, Facebook has stepped up its effort to crack down on hate groups. 

Just a few days ago, Facebook announced that it would be limiting the spread of pages and groups linked with the word “boogaloo” -- a term sometimes used to refer to the idea of a potential second American Civil War. The company is also using artificial intelligence to detect hate speech. 

“We have a responsibility to keep the people on our platforms safe, and dealing with hate speech is one of the most complex and important components of this work,” the company said in a blog post. “To better protect people, we have AI tools to quickly — and often proactively — detect this content.” 

The government’s supply of remdesivir, an antiviral drug that emerged as a viable COVID-19 defense, will run out at the end of the month, CNN reports. 

Dr. Robert Kadlec, a U.S. Department of Health and Human Services official, told the media company that the last shipment of the drug will go out the week of June 29. Its manufacturer, Gilead Sciences, is aware of the situation and is gearing up to make more. However, no one is sure how much of the drug will be available in the coming months. 

"Right now, we're waiting to hear from Gilead what is their expected delivery availability of the drug as we go from June to July," Kadlec said. "We're kind of not in negotiations, but in discussions with Gilead as they project what the availability of their product will be."

“Whatever the supply may be, there may not be enough for everyone who may need it,” he added.

Breakout drug

In May, the U.S. Food and Drug Administration (FDA) granted emergency approval to remdesivir as a treatment for COVID-19. Following two clinical trials, researchers said they were optimistic about the drug as a potential treatment. 

While not enough to combat the virus by itself, a study showed that remdesivir could shorten the length of a hospital stay from 15 days to 11 days. 

“These two rigorously done trials provide really the first evidence of the efficacy of any therapeutic for this disease,” said Lloyd Minor, dean of the Stanford School of Medicine. “I think this is very encouraging in terms of the future.”

Last month, the government began distributing a supply of remdesivir donated by Gilead. However, the free supply has nearly run out, and now fears about high prices are setting in. 

"The price that Gilead can charge, as with any pharmaceutical in America, appears to be the sky's the limit -- whatever sick and dying people will pay," said Rep. Lloyd Doggett, a Texas Democrat who chairs the House Ways and Means health subcommittee.

Gilead has said it plans to have more than 500,000 treatment courses available by October and more than a million by December, according to CNN. 

“The production of remdesivir is a long, linear chemical synthesis process that must be completed sequentially and includes several specialized chemistry steps and novel substances with limited global availability,” Gilead Sciences explained on its website. 

“Every day we are improving processes, shortening timelines and increasing volumes as we work to bring remdesivir to patients as soon as possible,” the company said.

Former FDA Commissioner Scott Gottlieb said in an interview on Friday that there’s “no question” that the protests stemming from the killing of George Floyd in Minneapolis will lead to the transmission of coronavirus cases. 

“We’re certainly going to see transmissions coming out of these gatherings, there’s no question about that,” Gottlieb said on CBS’ “Face the Nation.” He added that the prevalence of coronavirus infection in the U.S. is currently about one in every 200 people. 

Demonstrators can take several precautions to reduce the risk of spreading or catching the virus, he said, noting that reducing the risk from these protests is a “shared responsibility.”

Beyond wearing masks, people participating in protests can practice social distancing and avoid coming into contact with the elderly or other vulnerable individuals. Gottlieb said law enforcement can mitigate the spread of the virus by de-escalating situations when possible.

"The protesters understood the risks, many of them,” he said. “I think that's evidenced by the fact that they wore masks and they made a judgment that they were worth the risk in terms of going out and protesting what are legitimate underlying grievances."

Reducing risk at protests

In terms of things authorities can do to reduce risk, Gottlieb said the best science comes from a recent study out of Germany involving transmission at a large outdoor festival.

“They looked at what the spread was coming out of those gatherings,” he said. “The science showed there was about a two-and-half-times increase in the rate of transmission as a result of bringing people together in large gatherings. So we have some scientific basis to understand that these kinds of settings do create risk.”

On average, symptoms of COVID-19 show up in a newly infected person about five days after contact. Gottlieb said that because of the incubation period, it’s “hard to judge” just how much of an uptick we’re going to see.  

“It’s going to take a couple of weeks,” he said. “We’re probably going to have to get a few transmission cycles out to really judge what the impact was. I think what the protesters can do is try to take precautions. Wear masks.” 

With Americans starting to emerge from the pandemic and jumping back in line at stores and restaurants, Dunkin’ franchisees are on a hiring binge. 

Word came from Dunkin’ HQ on Monday that up to 25,000 new restaurant employees will be hired at U.S. locations. Jobs will include everything from front-counter to restaurant management.

New education perks for employees

While Dunkin’ -- or any fast-food chain for that matter -- is not out of the COVID-19 woods yet, its foot traffic is picking up. Still, unemployment is at a runaway pace, and the company wants to be ready when normalcy returns.

It may also be sensing that students might be looking to get their degree online because colleges are unsure about how on-campus education will play out this fall.

To that end, Dunkin’ is beginning a new partnership with Southern New Hampshire University (SNHU) to offer an online college education to franchise employees. This is similar to what Chipotle, UPS, and Walmart have offered. Thanks to an aggressive marketing effort, SNHU has become a big-time player in online education, with over 135,000 students online and on campus.

“Dunkin’ is committed to keeping America running and working. We are proud to support our franchisees who offer much-needed job opportunities, in a welcoming environment where people can feel appreciated and rewarded for serving both customers and their communities during this critical time,” said Stephanie Lilak, Dunkin’ Brands’ Senior Vice President and Chief Human Resources Officer. 

“With the brand’s new partnership with SNHU, new advertising campaign, and in-store safety measures, our franchisees are providing both new and current restaurant employees a great workplace, and the chance to gain experiences and skills that will benefit them throughout their lives.”

High blood pressure affects millions of consumers across the country, and taking a daily medication is an effective way to keep hypertension under control. 

Now, researchers from the American Heart Association (AHA) have found that blood pressure medication can actually contribute to longer life -- particularly for older consumers. Their study found that maintaining blood pressure medication can add years to consumers’ lives -- even those with several other medical conditions. 

“We know that high blood pressure medication was protective in general among older people, however, we focused on whether it is also protective in frail patients with many other medical conditions who are usually excluded from randomized trials,” said researcher Dr. Giuseppe Mancia. 

Following through with medications

This study included medical data from between 2011 and 2012 on over one million Italian residents with high blood pressure. All of the participants were over the age of 65 and had received at least three prescriptions for blood pressure medication over the course of the study. 

The researchers explained that all participants were able to receive their medication as needed because of Italy’s health care system. For the study, the biggest factor was whether or not the participants took their blood pressure medication as prescribed. 

Ultimately, they learned that those who followed through with their medication had much better health outcomes, including lifespan. 

The study revealed that those who took their blood pressure medication as directed and were in good health when the study began were nearly 45 percent less likely to die. Those who followed doctors’ orders with their blood pressure medication but were also struggling with other health concerns reduced their mortality rate by over 30 percent. 

Though this sample is based strictly on the Italian population, and medication is much easier to come by in this region, the findings are still promising -- particularly for older consumers. The researchers hope that medical professionals do their part to urge their patients to stick with their medications, as it could add years to their lives. 

“Our findings definitely suggest that even in very frail people, anti-hypertensive treatment reduces the risk of death; however, the benefits may be smaller in this group,” said Dr. Mancia. “Do your best to encourage and support patients to take their medications, because adherence is crucial to getting the benefits. Medications do nothing if people don’t take them.”