1/
$COST Costco down 18% YTD
$TGT Target down 35% YTD
$WMT Walmart down 16% YTD
Retailers are getting hurt on two ends right now – supply chain constraints and inflation are pushing up costs for manufacturing and distribution, cutting into retail operating margins.
$COST Costco down 18% YTD
$TGT Target down 35% YTD
$WMT Walmart down 16% YTD
Retailers are getting hurt on two ends right now – supply chain constraints and inflation are pushing up costs for manufacturing and distribution, cutting into retail operating margins.
2/
At the same time, consumer confidence is at lows, and soaring inflation is cutting into the disposable income used to spend on more discretionary retail goods, thereby hurting sales.
At the same time, consumer confidence is at lows, and soaring inflation is cutting into the disposable income used to spend on more discretionary retail goods, thereby hurting sales.
3/
For fashion, inventories go out of style fast, so any slowdown in sales volume and excess supply can force companies to employ discounting, thereby hurting gross margins.
For fashion, inventories go out of style fast, so any slowdown in sales volume and excess supply can force companies to employ discounting, thereby hurting gross margins.
4/
But not all consumers are affected equally.
Retailers are reporting that behaviour of their more wealthy customers appears largely unaffected.
So how should you position here?
Subscribe to find out in tonight's GRIT 👇
gritcapital.substack.com
But not all consumers are affected equally.
Retailers are reporting that behaviour of their more wealthy customers appears largely unaffected.
So how should you position here?
Subscribe to find out in tonight's GRIT 👇
gritcapital.substack.com
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