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Cash Still Rules: 84% of Consumers Stick With Bills Over Bytes
Cash remains the anchor of consumer trust—proof that even in a digital-first world, old money habits still define how people really spend.
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Good morning, ! This week we’re diving into M&A experience as a return driver, gift cards are one of the best tools for retailers inventory turnover maximization and value creation in consumer markets. AI Is Rewriting the Rules of Online Shopping, and cash in recovering its old dominance among in-person transactions.
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— The Consumer150 Team
TREND OF THE WEEK
Why Serial Acquirers Win (and When It Matters Most)
New BCG data shows a striking divergence in acquirer performance depending on experience and economic cycle. Over a 2-year horizon, serial acquirers consistently generate positive returns—+1.2% in weak economies, +1.7% in strong ones. Meanwhile, inexperienced acquirers lose value, especially during boom times: ‑$8.2% in strong economies vs ‑$2.4% in weak ones.
The takeaway: M&A isn’t a “buy when it’s easy” game. In fact, it’s the opposite.
Why this matters for consumer investors and corp dev teams:
Market timing alone doesn’t drive returns—discipline and repetition do. M&A success isn’t about the macro, it’s about the muscle.
Strong economies lure weak buyers. When multiples expand and liquidity flows, undisciplined operators overpay and under-integrate. The cost? TSR collapse.
Downturns favor skilled operators. Serial acquirers find better assets, face less competition, and know how to integrate under stress.
Bottom line: Experience compounds in M&A. For investors, that means backing platforms and holding companies with a proven acquisition playbook—not first-time buyers chasing a hot cycle. (More)
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ECOMMERCE
AI Is Rewriting the Rules of Online Shopping
Artificial Intelligence has gone from hype to habit in e-commerce. 7 in 10 shoppers now expect AI-driven tools. Leading the wishlist: virtual try-on (77%), AI shopping assistants (76%), and voice search (72%). Shoppers also want AR experiences (71%), smart cart suggestions (70%), and even auto-reordering (69%) for household staples. Translation: the future of retail isn’t about choice overload—it’s about removing friction. The AI-in-retail market hit $11.83B in 2024 and could top $63B by 2034. For brands, that’s not an opportunity—it’s a mandate. AI is no longer a differentiator; it’s table stakes. (More)
DEAL OF THE WEEK
RaceTrac’s $566M Bet on Sandwiches
Deal of the Week:RaceTrac has officially acquired Potbelly Corporation for $17.12/share, a deal valued at $566M. The acquisition, completed via tender offer and short-form merger, brings Potbelly’s 445 stores into RaceTrac’s portfolio, which already includes 800+ convenience stores and 1,200 Gulf-branded locations. Potbelly will maintain its brand identity but lean into RaceTrac’s muscle in real estate, marketing, and operations to hit its target of 2,000 shops.
Advisors: BofA Securities (RaceTrac), Kilpatrick Townsend, Piper Sandler (Potbelly), Kirkland & Ellis. (More)
TOGETHER WITH SYNTHFLOW
Introducing WhatsApp Business Calls in Synthflow
65% of people still prefer voice, but 40% of business calls go unanswered. Now Synthflow Voice AI Agents can answer WhatsApp calls directly — resolving issues, booking, and following up 24/7 with full analytics.
Prepaid, Preloaded, and Pretty Genius
Want to juice your cash flow without taking on debt? Try a gift card. It’s a micro-loan from customers—zero interest, zero risk, and they thank you for the privilege. That’s the magic of breakage (unused balances = pure profit) and delayed redemption (you get paid before delivering anything). Some recipients even spend more than the card’s value, lifting average transaction size. Bonus: it’s also a Trojan horse for customer acquisition. And the impact? That $100K in holiday gift cards? It’s a working capital flex that CFOs would gladly frame. In short, gift cards speed up your turnover ratio—because nothing moves money like selling something you haven’t shipped. (More)
CONSUMER BEHAVIOR
Cash Still Reigns: The Return of Tangible Transactions
In a world obsessed with digital wallets and tap-to-pay ease, cash still rules the checkout counter. According to KPMG’s 2025 Consumer Pulse Survey, 84% of U.S. consumers prefer using cash—more than debit (82%) or credit cards (80%). Despite fintech’s fanfare, traditional payments remain the backbone of consumer trust. PayPal/Venmo retain a healthy 59% usage, while BNPL options (47%) cater to younger, credit-shy shoppers. Meanwhile, Apple Pay (39%) and crypto (33%) nibble at the edges—signals of slow, steady adoption among the tech-forward crowd. The bigger story: consumers aren’t rejecting innovation; they’re layering it. The future of payments is additive, not revolutionary, with stability—not novelty—driving behavior in an uncertain economy. (More)
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"The first step toward success is taken when you refuse to be a captive of the environment in which you first find yourself."
Mark Caine