After hitting a six-year low in August, consumer confidence firmly beat expectations and rebounded in September. The Conference Board, a think tank, reported Tuesday that its consumer confidence index rose to 101.8 — a jump from 86.3 in August — and surpassed analysts’ forecasts of a slight increase. Confidence was much higher among those earning ... READ MORE >
CHART OF THE DAY: Middle market retailers pay close attention to inflation as pandemic progresses
A simple visual demonstrates a critical truth for middle market consumer products companies that will be even more critical in the wake of the pandemic, particularly if the economy enters a prolonged period of deflation. Costs among the different sectors within the consumer ecosystem can diverge sharply from the overall macroeconomic trend. The retail ... READ MORE >
Chart of the Day: Consumer confidence falls to six-year low
The Conference Board’s measure of consumer confidence fell to its lowest level in six years in August, underscoring uncertainty amid high unemployment in a U.S. economy that has faced pandemic-driven stops and starts since mid-March. The unemployment bonus provided by the CARES Act is expiring, and great concern remains surrounding a recent presidential ... READ MORE >
Retail sales rose 7.5% in June as economies reopened
June retail sales were strong for a second straight month, fueled by the reopening of economies across the country and the continuation of pent-up demand from lockdowns earlier in the year. Overall retail sales rose by 7.5% in June, which followed May's record 18.2% gain, the Commerce Department reported on Thursday. June's gains were heavily weighted ... READ MORE >
May retail sales soar, but will it continue?
Retail sales soared by 17.7% in May, the biggest month-over-month increase on record, the Commerce Department reported on Tuesday. The May figures, which easily beat analysts’ estimates but are still below pre-pandemic levels, was most likely fueled by a combination of pent-up demand and stimulus checks received in late April and early May. While ... READ MORE >
CARES Act expands access to loans for small and midsize businesses
The Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law on Friday, March 27, 2020, provides various options for small and midsize businesses facing liquidity challenges from the COVID-19 crisis. The three options included under the act include the U.S. Small Business Administration Economic Injury Disaster Loan Assistance Program; ... READ MORE >
Retail lessons from the RSM US Middle Market Business Index
While it’s no surprise that middle market retailers were hard hit by fallout from the COVID-19 pandemic, proprietary RSM data underscores this vulnerability. Some 44% of U.S. retailers lost domestic revenue because of the pandemic, while nearly half experienced disruptions to U.S. operations or production, according to a special industry oversample ... READ MORE >
Amid chaos of coronavirus, food and beverage sector continues to adapt
The retail sales figures released this week painted a grim picture of consumer spending and the state of the economy amid the mounting human and economic toll of the coronavirus. But a deeper look at the data reveals some profound changes taking place that will most likely endure once the pandemic passes. While retail sales fell off the table with an 8.7% ... READ MORE >
Retailers and restaurants should consider the CARES Act
On March 27 the president signed the CARES Act into law, providing $2 trillion in aid for individuals and business throughout the United States. Great uncertainty exists within the middle market as companies scramble to determine what programs are available, whether they are eligible, and how they can take advantage of the help available to them during one ... READ MORE >
How middle market retailers can position themselves to survive coronavirus, and Amazon
Just as middle market retailers were scrambling to figure out how they would handle the fallout from the coronavirus and maintain their businesses, the industry’s behemoth, Amazon, weighed in with its own plan. Usually, these announcements carry ominous news for small and medium-size retailers. But this announcement from Amazon was different, and in fact ... READ MORE >