Surplus Goods Eat at Corporate Profits
June 10, 2022
In the face of rising inflation, consumers are buying less, forcing many U.S. retailers to slash prices to reduce inventory. Target, Walmart, Abercrombie & Fitch and American Eagle are among those claiming 30% more inventory this year than last. Our Jim Russell told WCPO reporter Dan Monk the discounts impact corporate profits.
“Inventory is a tough one, it’s tough to get right,” says Russell. “It’s clear some of the big retailers miscalculated. I think the consumer is going to be increasingly choosy, increasingly frugal.”
That combined with rising interest rates could slow the economy.
“Whether we technically get to a recession or not we don’t know, but we think it’s going to unfortunately be heading in that direction.”
See the entire article HERE