Consumers opened their wallets in September as retail sales showed unexpected strength, rising by 1.9% over August for the fifth straight monthly gain, the Commerce Department reported on Friday. Analysts surveyed by Bloomberg had expected a gain of 0.8% after the 0.6% increase in August. But this strength faces headwinds with the critical holiday ... READ MORE >
Consumer Products
From retail to restaurants, the consumer products industry includes many sectors and subsectors. The industry also involves many well-known brands with loyal customers and employees, and ownership structures ranging from family-owned businesses to public and private equity-backed companies.
CHART OF THE DAY: Consumer confidence bounces back
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: Consumer sentiment continues its climb back
The index of U.S. consumer sentiment index continued to climb back from the depths of the economic shutdown in April, the University of Michigan reported Friday. The index reached 78.9 in September, which was up from 74.1 in August and 71.8 in April. It was the second month in a row that the index had exceeded the consensus estimate, which was 75. The ... READ MORE >
CHART OF THE DAY: Higher food costs during the pandemic
The latest consumer price inflation data confirms what we all know – it costs more to eat during the pandemic, but it costs a lot less to drive to your favorite closed restaurant. Using February as the base month – the high point for the “all Items” consumer price index – the cost for food made at home is 3.6% higher than before the economic shutdown. ... 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: Consumers upgrade groceries in lieu of restaurant meals as pandemic continues
In July and August, specialty food retail sales grew to 30.6% and 28.1% of pre-pandemic levels, respectively, outpacing categories that saw strong sales growth in March 2020. With consumer packaged goods giants reducing their offerings to focus on replenishing core products, and grocers softening on in-store promotional requirements, there are plenty of ... 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 >
Grocers get margin relief, but it may only be temporary
Food retailers experienced better profit margins in June as they passed along price increases to customers while their costs from suppliers dropped. This relief marked a welcome change from recent years, when their ability to pass along rising food costs met stiff resistance from consumers. The shift has come at a good time for food retailers, allowing ... 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 >
Miles away: U.S. airports face heavy lift and slow recovery
The COVID-19 pandemic and resulting shelter-in-place protocols have devastated the airline industry. Along with it, airports across the country, rife with retail, have suffered significant losses. As cancellations of business trips and vacations mounted beginning with the onset of the outbreak in mid-March, traffic from travelers plummeted. The ... READ MORE >