With a month of 2023 behind us, everyone in retail is wondering how consumer trends will play out this year in the face of ongoing (but lessening) inflation and a tricky macroeconomic picture, to say the least. To get a better understanding of the months ahead, we spoke with Sarah Wyeth, Retail Sector Lead for S&P Global Ratings.
A China import law taking effect June 21 that bans imports from the Xinjiang region due to allegations of widespread forced labor will worsen supply chain and inventory issues just as conditions are easing somewhat, while exacerbating rampant inflation, according to a report in Bloomberg.
Fears of inflation eating away at household incomes continues to run ahead of COVID-19 concerns, according to a May trend report from 84.51˚, the consumer data and analytics arm of Kroger. These concerns are also causing more consumers to want BNPL to expand beyond products to services, according to a Harris poll.
Walmart started charging higher prices online than in store for some items, in an effort to offset shipping costs and drive more shoppers to its brick-and-mortar locations. See how Walmart will differentiate prices for both channels.