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.”

 

 

 

Jim Russell
Portfolio Manager
jrussell@bahl-gaynor.com

See the entire article HERE