For many sectors, the pandemic completely flipped the proverbial script and exacerbated trends that were already in place. Omnichannel became the rallying cry and those firms that did it well were able to push past their peers, score major revenue increases, and realize profits. Heading into the holiday season, another foe is once again making and breaking the retail sector.
We are talking about high inflation and economic woes.
Thanks to persistently high rates of inflation, consumers are once again voting with their dollars. And this time, the name of the game continues to be discounted. Those firms with the ability to offer value for their products seem to be winning, while others have suffered. However, the discounts haven’t come without a price. Margins have continued to drop.
For investors, the sector remains a tough nut to crack, one that may well best be avoided for the most part.
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