With earnings season starting to wind down, the retail sector is quickly emerging as a battleground for investors once again. Not surprisingly, rising prices and inflationary pressures are starting to have their way with consumer habits and spending. The kicker is these pressures are affecting retailers differently.
The sector is becoming a tale of two different markets.
Just like the pandemic and speed of omnichannel/online adoption, the sector is quickly being split once again. This time, it has to do with socioeconomic demographics. Those catering to the two extremes seem to be thriving. However, for those in the middle, the current environment is a make or break situation.
For investors—particularly dividend seekers—this could have plenty of portfolio ramifications, including dwindling dividend payments.
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