Overall supply at retailers still 18% below normal, huge shortages in some segments, gluts in others. Thankfully, grocery stores only a tad below normal.
No, consumers didn’t suddenly flock back to the mall. That was just a media joke. They bought online more than ever. Sales at department stores fell.
Food sales are hot, but some other merchandise, “particularly apparel,” requires markdowns to get moving.
But inflation is eating everyone’s lunch.
It’s still supply-chain chaos for retailers, but different retailers face different kinds of chaos.
Spent $20 billion more at gas stations, from a year ago, due to spiking prices; came out of hide of other retailers. Inflation eats everyone’s lunch.
Not a revenue-shocker (they were up even from stimulus-miracle a year ago), but a cost-shocker. Unable to pass on all the cost increases, their margins got squeezed.
Retail Therapy at Bars & Restaurants, Cannabis Stores, and Ecommerce? Other retailers not so lucky.
On crappy earnings and lowered guidance, many of these highflyer stocks kathoomphed -70% to -85% from highs last year.
It’s rough out there in multiple ways.