Consumer behavior has never been more diverse, volatile and difficult to predict this holiday season. However, as consumers navigate an evolving landscape of mask and vaccine mandates, localized outbreaks and school re-openings, some trends have begun to emerge. Some at-home trends have begun to ... READ MORE >
retail
Consumer products holiday season countdown: Shopping has already started
For the second year in a row, we expect the pandemic to set the tone for the holiday season. In 2020, retailers and consumer companies throughout the supply chain were forced to start competing for holiday dollars earlier, with Amazon moving its Prime Day, their annual deal event for members, from ... READ MORE >
Food sales remain steady as we move into fall
While top-line retail sales data for September increased by 0.7%, beating analyst expectations of a 0.2% decline, food-focused categories remained only slightly up from August. Grocery sales were up by 0.7%, and restaurants, a proxy of food and drink places, were up 0.3%. The relatively flat numbers ... READ MORE >
Already hot ‘buy now, pay later’ space gets a big boost from Amazon
Amazon, which has been slowly adding financial services products to its portfolio, has entered the hot “buy now, pay later” space. Last Friday, the e-commerce giant announced its partnership with Affirm, a buy-now-pay-later platform that allows customers to pay for purchases in installments. This ... READ MORE >
CHART OF THE DAY: Retail sales dip reflects shift in spending habits
A decline in retail spending in July may signal a shift in spending habits as consumers straddle a strengthening economy and virus-related concerns. Retail sales declined 1.1% in July compared to June, with the biggest decreases coming from motor vehicle and parts dealers, as well as non-store ... READ MORE >
Four ways retailers and restaurants can manage current inflation and labor pressures
As the economic recovery from the pandemic-induced recession continues, consumer demand is high and the opportunity exists for a strong holiday retail and restaurant season. But these sectors are facing two significant headwinds: inflation and challenges finding qualified labor. During the recession, ... 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 ... READ MORE >
What middle market companies can learn from Nike about managing disruption
Last week, Nike surprised investors in its earnings report when it revealed that sales in China had declined by only 5% for the quarter ending February 28. While China is a key growth market for the apparel and footwear giant, the decrease demonstrated how well Nike had navigated a nationwide shutdown of ... 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 ... READ MORE >
Between a rock and a hard place, retailers ask to stop paying rent to survive
In a move for self-preservation, retailers are demanding that their landlords withhold or slash rent in the coming months as stores have closed to slow the spread of the coronavirus. Even before the onset of the virus, retail was already experiencing bankruptcies and store closures as consumers migrated ... READ MORE >