Following up on an earlier thread. Retail inventories are rising, but customers–possibly worried about inflation–aren’t buying. Bad news for retailers, but good news for consumers, and this may lead to lower prices, and lower inflation.
https://www.axios.com/2022/06/29/store-inventory-overstock-s…
Following up on an earlier thread. Retail inventories are rising, but customers–possibly worried about inflation–aren’t buying. Bad news for retailers, but good news for consumers, and this may lead to lower prices, and lower inflation.
The affects on equities will be tightening margins post Covid.
“Retail inventories are rising, but customers–possibly worried about inflation–aren’t buying.”
If food and gasoline - i.e. necessities - are rising in cost to the point where
consumers must cut back on other items, the price of non-necessities becomes
immaterial. Capital project work for contract engineering/construction
professionals continues to “contract”.
Howie52
English is a quite fun language.
Bad news for retailers, but good news for consumers, and this may lead to lower prices, and lower inflation.
Good news for off-price retailers like Ross Stores (ROST), they will buy the overstock for pennies on the dollar and sell it later at great discounts to the thrifty!
ROST used to be a great investment. While retail is growing it is a good investment but when they run out of places for new stores they hit a wall. There is a limit to the number of stores a market can support, a lot for eateries, much fewer for apparel.
https://bigcharts.marketwatch.com/advchart/frames/frames.asp…
The Captain
Good news for off-price retailers like Ross Stores (ROST), they will buy the overstock for pennies on the dollar and sell it later at great discounts to the thrifty!
I also think that merchandisers at TJX are tripping all over themselves trying to get these deals as well.
Nice thing about TJX (which differs from ROST) is that TJX has a number of brand names (Marshalls, TJ Maxx, HomeGoods, etc. in the US and also TK Maxx and other brands globally).
'38Packard