Shopping in a recession: How US retail sales impact giants like Walmart, Target


After the 7.7% drop in the gasoline index in July, consumers continued their shopping habits, despite the rise in prices at retailers and grocers.

U.S. Retail and Foodservice Sales: According to the US Census Bureau, retail and foodservice sales for the month of July were unchanged at $682.6 billion from the previous month, although they were still 10.3% higher than the previous month. July 2021.

With the back-to-school season in full swing, non-store retailers or online shopping grew 20.2% year over year. However, many retailers struggled in the first quarter as they overstocked on incorrect inventory as consumers favored wants.

Doug McMillion, Walmart’s President and CEO, said in the latest quarterly report, “We’re excited to see more customers choosing Walmart during this time of inflation, and we’re working hard to support them as they prioritize their spending. . The actions we took to improve inventory levels in the U.S., along with a stronger grocery sales mix, put pressure on the second quarter profit margin and our outlook for the year. “.

Similar to Walmart, Target and Best Buy both saw weak sales in the first quarter as consumer spending began to shift, but has yet to slow.

Retail sales are important because they provide key information about consumer spending, which drives much of our economy.

In the final minutes of the Federal Reserve, Fed officials agreed to raise interest rates until the economy slows and inflation shows signs of easing.

“Some participants indicated that once the policy rate had reached a sufficiently restrictive level, it would probably be appropriate to maintain this level for a while to ensure that inflation was firmly on the way back to 2% “, reads the report.

Jump to: Benzinga before the bell: Walmart’s downgraded outlook, Apple’s self-driving car dreams, Coinbase’s SEC investigation and other major financial stories Tuesday, July 26

Retail and foodservice inventory to watch: As the state of the market and economy remains in flux, here is a list of retailers to watch for the second half of 2022.

  • Walmart Inc. WMT
  • Target company TGT
  • Inc. AMZN
  • Best Buy Co. Inc. BBY
  • Brands Yum Inc. YUM

If inflationary and supply chain pressures continue to worsen, retailers such as Target could find it harder to sell high-margin products as consumers become more conscientious.


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