In our four-part blog series, RSM’s senior industry analysts explore back-to-school shopping trends and the impact on consumer businesses. This week we focus on how consumers are adjusting shopping habits this season. With consumers feeling the tightening of their monthly budgets and impact to their ... READ MORE >
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.
Consumer products M&A posts second straight quarterly slowdown
Deal activity in the consumer products sector contracted for the second consecutive quarter to the lowest level since third quarter of 2020, based on information available through July 22. The slowdown comes as market uncertainty curtailed deal urgency and valuations, and as participants continued to ... READ MORE >
Have we entered a “goods-cession” or goods fatigue?
In the June 2022 real consumer spending data released by the Bureau of Economic Analysis on Friday, on a three-month annualized basis, spending on both durable and non-durable goods declined for the second consecutive month, furthering the evidence we are in the midst of a “goods-cession.” After a ... READ MORE >
Unexpectedly strong durable goods orders and trade data temper recession concerns
U.S. durable goods orders and the goods trade deficit in June beat expectations, according to data released Wednesday, tempering recession concerns before the Federal Reserve is expected to announce a rate hike later in the day. On top of that, shipments of nondefense capital goods excluding aircraft—a ... READ MORE >
Back-to-school consumer business outlook: Return of the discount
In our four-part blog series, RSM’s senior industry analysts explore back-to-school shopping trends and the impact on consumer businesses. This week we focus on how retailers are leveraging discount strategies. During the COVID-19 pandemic retailers and wholesalers faced supply chain disruptions and ... READ MORE >
Back-to-school consumer business outlook: How will no enhanced child tax credit affect shopping?
As consumers enter the peak back-to-school shopping season (July through September), retailers and other consumer businesses are beginning to make room for backpacks, clothing, school supplies and other back-to-school needs. This season will certainly be different from last year, as consumers are in a ... READ MORE >
A new ban on some Chinese goods may prompt further consumer goods supply chain disruptions
On June 21, the United States government implemented laws under the Uyghur Forced Labor Prevention Act that have a significant impact on consumer goods companies’ supply chains. This stems from the U.S. condemning forced labor and repression of minority groups in the Xinjiang region in China, including ... READ MORE >
U.S. retail sales fall as inflation takes a toll
U.S. retail sales declined in May as surges in energy and food prices forced consumers to reduce their spending on vehicles and other discretionary items. With inflation running hot, sales plunged on an inflation-adjusted basis, paring most of April's gains. That implies more headwinds to consumer ... READ MORE >
Are inventory levels too high?
In March, overall consumer spending continued at a robust pace, with the three-month annualized real consumer spending increasing 4.7% on a year-over-year basis. But even with healthy consumer demand, companies are beginning to rethink current inventory positions as they plan for back-to-school and winter ... READ MORE >
Consumer products M&A insights from the first quarter
After a strong 2021, consumer products deal activity contracted in the first quarter as market uncertainty affected deal urgency. As we enter the second quarter, more recent activity points to a rebound in consumer products closed transactions. Consumer products companies continue to benefit from ... READ MORE >