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It’s a brand-spanking-new Tuesday to make some trouble as we take a look across Auto Retail, marketing, and all retail this morning. From big moves in Europe that give us warning, to the consumer mindset regarding social media ad platforms, we’re leaning in with Auto Dealers so that we can all lean-into our teams and communities today. 

• Mercedes cutting Dealerships and transitioning more into and ‘agency’ model in Europe
  • Will cut 10% worldwide and 20% in Germany ISO fewer large showrooms in ‘mature’ markets’
  • Agency model major changes means fixed pricing and OEM owned inventory
  • OEM executes the financial transaction
  • Take Away: Although legislation and lawmaking are significantly different in the US, studying this situation is beneficial for US Dealers as we navigate and shape the developing ‘normal’
• Starbucks is permanently pulling out of Russia
  • Opened the first of its 130 Russian stores in 2007
  • Will continue to pay its 2000 employees (partners) for six months
  • Other companies considering divesting or pulling out altogether include Marriott, Burger King, and Yum Brands (Pizza Hut, Taco Bell, Pizza Hut)
  • Take Away: Business changes and decisions need to be made, but you can always choose to take care of your people 
• SNAP issues revenue warning noting a faster than expected market deterioration
  • Since late April, "the macroeconomic environment has deteriorated further and faster than anticipated. As a result, we believe it is likely that we will report revenue and adjusted EBITDA below the low end of our Q2 2022 guidance range," 
• Just last month forecasted 20-25% revenue growth and says they are still growing YoY, but did not disclose specifics
• "Like many companies, we continue to face rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, the impact of the war in Ukraine, and more," 
• Take Away: Short term marketers only deploy direct response. Time and data shows that those who keep a steady diet of brand-first marketing in the mix gain market share. This includes Auto! 
• New font, who dis’? Instagram executes a brand refresh
  • New gradient to express vibrancy
  • New font ‘Instagram Sans’ is a mix of pixel perfect and hand drawn to communicate Insta’s heritage
  • Marketing to look “content - foreward” to celebrate creativity, simplicity and self-expression

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Join Paul J Daly and Kyle Mountsier every morning for the Automotive State of the Union podcast as they connect the dots across car dealerships, retail trends, emerging tech like AI, and cultural shifts—bringing clarity, speed, and people-first insight to automotive leaders navigating a rapidly changing industry.

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