The Week Retail Died

The Week Retail Died

This week will go down as one of the most abysmal stretches ever for US retailers. Shares of Ross were on track for their worst day since 1986 on Friday after the chain followed Walmart, Target and Kohl's in adopting a cautious outlook. I'd say the figure (below) gives you some context, but that wouldn't be quite right. There isn't any context. Not really, anyway. Friday's collapse was mostly unprecedented. "Although we continue to expect sales and profitability to improve as we move throug
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6 thoughts on “The Week Retail Died

  1. I was at Costco yesterday, a Thursday, around noon. I had to park waaaaay in the back of the lot in one of the last remaining spots, and there were cars waiting for spots when I left. I’ve rarely seen it so full, usually only on the weekends. The line for the registers stretched halfway to the back of the store. Anecdotal, of course, but makes me think that Costco’s typical higher-income shopper has been less-effected than the typical Walmart or Kohl’s shopper, and so its precipitous drop from $600 to $400 might be a little overwrought.

    1. That has been true of housing with existing sales falling in the < $500k price points, but steady to higher at prices above that. So lower incomes are running out of money while higher incomes can’t spend fast enough. Guess some things in life are truly not transitory.

  2. Not sure their typical customer is higher-income, I’m used to seeing folks with large families and large shopping carts full of bulk items. Also, they have been consistent where I am with keeping hard to find items on their shelves. Well run business.

  3. The market basket has switched and services are in somewhat higher demand- that is also affecting the retailers. Lower income quartiles are retrenching due to higher prices for food, utilities, rents and energy. Discretionary purchases go out the window.

  4. Costco filling means Inflation has taken hold psychologically: people (rich and poor) are buying in bulk to shield themselves from future inflation.
    I guess now we watch toilet paper consumption to see if fear/panic have reached “buy to control for the crisis” moment…

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