When middle market fashion and apparel leaders weighed moving production from China after the onset of tariffs in the second half of 2019, a global virus outbreak probably wasn’t part of the equation. Nonetheless, companies that elected to keep sourcing from China are faced with a new wave of ... READ MORE >
Consumer products
Betting that size matters: Macy’s closures on trend in retail
The number of store closings in the retail industry is widely publicized. Many media outlets cite data published by Coresight Research, which tracks store openings and closings in the retail ecosystem. Closings reached a record high of 9,302 in 2019, and 2020 is off to an equally troubling start, as ... READ MORE >
In the digital age, knowing the customer becomes all the more important
The most wonderful time of the year has passed, and retailers across the country are tallying sales to determine whether or not the holiday season was a boon or bust. It’s not such a clear picture. Take Target and Costco, two big box retailers trying to shift to digital commerce. Target reported ... READ MORE >
U.S. retail sales grew at a healthy 0.3% in October
The U.S. household continues to demonstrate strength through domestic retail sales, though at a decelerating pace. The October increase of 0.3 percent in top-line retail sales and the control estimate that feeds into the calculation of domestic gross domestic product reaffirm that the consumer remains on ... READ MORE >
How middle market retailers can compete with free delivery
As consumer shopping habits continue to evolve away from traditional brick-and-mortar stores, the speed and cost of delivery have become a critical component of a true omnichannel retail strategy. Amazon, for example, recently announced that it would offer free grocery delivery to Prime members at ... READ MORE >
No holiday break for fashion and apparel
On Aug.1, President Trump announced a 10% tariff on an additional $300 billion of Chinese goods not subject to previous tariffs levied by the United States during the protracted trade war. Last Friday, the president announced that the fresh tariffs would be hiked to 15%. According to the American Apparel ... READ MORE >
US data deluge: cold cup of coffee on a sunny summer day
This morning’s data deluge provided a perfect snapshot of the U.S. economy at the current time. A robust consumer, driven by strong real compensation in the first quarter of the year, continued to prop up the American economy, even as the domestic manufacturing sector contracted by 0.5% on a year-ago ... READ MORE >
Think China is paying for tariffs? Guess again
The U.S. Customs and Border Patrol is on pace to collect more than $72 billion in import duties as a result of U.S. tariffs so far this year. An oft-repeated claim is that China is paying the cost of these new duties. But we have data showing exactly who is paying--U.S. businesses and ... READ MORE >
Despite strong consumer spending, higher costs bite into consumer margins
Even as trade disputes and other economic headwinds surface in 2019, the U.S. consumer has held strong and continues to fuel growth in the domestic economy, albeit at a slower pace than in recent years. Last Wednesday, the Federal Reserve cut the federal funds rate by 25 basis points. Another ... READ MORE >
Consumer companies stand to gain from opportunity zones
Opportunity zones—those specially created districts that offer tax breaks to investors—provide some attractive benefits to consumer businesses. The U.S. Treasury Department in April clarified many of the outstanding questions related to OZs, which were created under the 2017 Tax Cuts and Jobs Act to ... READ MORE >