New Report from Ankura's Performance Improvement Practice
Read the most recent report from our Performance Improvement Practice, which includes a breakdown of the Economic Indicators for the previous month.
- U.S. retail store sales increased 6.9% in August, slightly above the Core CPI increase of 6.3%, indicating little if any real growth for retail broadly. Home Improvement and Grocery sales increased but several retail segments were well below the rate of inflation.
- Consumer sentiment has risen slightly in the last few months but remains at historically low levels. Shoppers are still grappling with the rising cost of basic goods as we head into the holidays, and have dipped into their personal savings, with savings rate down to 5% - putting more pressure on revolving credit debt which remains at nearly14% over 2021.
- While retailers and consumer goods companies advanced receipts anticipating supply chain pressures, inventories remain bloated and distribution centers are at excess capacity, incurring additional costs in storage and handling. With the Q2 earnings nearly complete, operating profits continue to take a hit as companies work diligently to take markdowns to clear out excess inventory before heading into the holiday season.
Copyright 2022. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.