{"id":14227,"date":"2023-05-26T12:45:26","date_gmt":"2023-05-26T16:45:26","guid":{"rendered":"https:\/\/ifintechworld.com\/investing\/retailers-stuck-between-consumer-spending-shift-dogged-inventory-glut\/"},"modified":"2023-05-26T12:45:28","modified_gmt":"2023-05-26T16:45:28","slug":"retailers-stuck-between-consumer-spending-shift-dogged-inventory-glut","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=14227","title":{"rendered":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut"},"content":{"rendered":"
\n

Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a harbinger of things to come for the bricks-and-mortar retail universe as consumers shift their discretionary spending from goods to experiences. To make matters even dicier, the Federal Reserve\u2019s most recent report suggests that last year\u2019s inventory glut remains a stiff headwind, hovering just below its peak reading earlier this year.<\/p>\n

That\u2019s the sober reality behind the hopeful-sounding report from the Commerce Department that, after a two-month decline, retail sales rose slightly in April (0.4%), suggesting a turnaround might be in the works. Behind the headlines (\u201cShoppers Boosted Retail Sales\u201d), a very different picture emerges.<\/p>\n

For starters, year-over-year retail sales growth has steadily declined since last July \u2014 up 1.6% this April versus 8.2% a year ago. More importantly, the topline retail sales figure lumps bricks-and-mortar spending with non-store retail. But since November, spending on goods fell four out of the last six months.<\/p>\n

When you break the details down further, you discover that non-store retail (e.g., ecommerce) rose 8%, health and beauty spending was up 7.9%, and food and beverage services spiked 9.4%. Consumers are buying less stuff and spending more on experiences. <\/em><\/strong><\/p>\n

<\/fbs-ad><\/p>\n

This trend would explain why Target\u2019s sales for the quarter ended April 29 were flat compared to last year. Target reported that comparable-store sales in beauty products grew by about 15% while sales declined in apparel, home, and hardlines, accounting for more than half of the company\u2019s sales.<\/p>\n

While companies like Walmart and Target have reported progress in winnowing their inventory backlogs, the overall picture is daunting if these shopping trends continue. So far, there are no signs that destocking by American retailers is over, and restocking has begun. According to a report in The Wall Street Journal, shipping and logistics providers say inbound volumes of containers from Asia into West Coast ports are down by almost a quarter from last year.<\/p>\n

The change in consumers\u2019 spending habits may be the final nail in the coffin for retailers struggling but got a stay of execution during the pandemic from the surge in consumer spending and low-interest rates. <\/em><\/strong><\/p>\n

The list of retail bankruptcies has been growing \u2014 Bed Bath and Beyond, David\u2019s Bridal, Christmas Tree Shops, discounter Tuesday Morning, Tupperware Brands, and Party City.<\/p>\n

As the pandemic fades and consumers pull back, expect to see more store closings and liquidations.<\/p>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a harbinger of things to come for the bricks-and-mortar retail universe as consumers shift their discretionary spending from goods to experiences. To make matters even dicier, the Federal […]<\/p>\n","protected":false},"author":1,"featured_media":14228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[239],"tags":[83],"class_list":["post-14227","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-featured"],"yoast_head":"\nRetailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=14227\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=14227\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-05-26T16:45:26+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-05-26T16:45:28+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1685119527_0x0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14227#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14227\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut\",\"datePublished\":\"2023-05-26T16:45:26+00:00\",\"dateModified\":\"2023-05-26T16:45:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14227\"},\"wordCount\":417,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Investing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=14227#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14227\",\"url\":\"https:\/\/ifintechworld.com\/?p=14227\",\"name\":\"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-05-26T16:45:26+00:00\",\"dateModified\":\"2023-05-26T16:45:28+00:00\",\"description\":\"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=14227#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=14227\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=14227#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld","description":"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=14227","og_locale":"en_US","og_type":"article","og_title":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld","og_description":"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a","og_url":"https:\/\/ifintechworld.com\/?p=14227","og_site_name":"iFintechWorld","article_published_time":"2023-05-26T16:45:26+00:00","article_modified_time":"2023-05-26T16:45:28+00:00","og_image":[{"width":1200,"height":675,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/05\/1685119527_0x0.jpg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=14227#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=14227"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut","datePublished":"2023-05-26T16:45:26+00:00","dateModified":"2023-05-26T16:45:28+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=14227"},"wordCount":417,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Investing"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=14227#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=14227","url":"https:\/\/ifintechworld.com\/?p=14227","name":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-05-26T16:45:26+00:00","dateModified":"2023-05-26T16:45:28+00:00","description":"Home Depot\u2019s recent announcement that it expects fiscal 2023 same-store sales to decline by as much as 5% \u2014 its first retreat since 2009 \u2014 may be a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=14227#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=14227"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=14227#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Retailers Stuck Between Consumer Spending Shift, Dogged Inventory Glut"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14227","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14227"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14227\/revisions"}],"predecessor-version":[{"id":14229,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/14227\/revisions\/14229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/14228"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14227"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14227"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14227"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}