A Dose of Inflation May Be Just What Retailers Need

June 25 2021 by Greg Petro

Like the Chinese character that means both crisis and opportunity, the recent spike in the Consumer Price Index — inflation — may not be quite the retail calamity that some of the headlines have suggested.

 

In fact, a shot of inflation may be the best medicine there is for an industry savaged by the pandemic and, before that, ground down by nearly a decade of constrained price flexibility.

 

Those who are worried point to the surge in real estate prices and the stock market, trends reminiscent of the last inflationary period (2004-2007) which accompanied a similar rise in home and stock prices. That boom ended with a spectacular crash in all asset categories, wiping out the savings of millions and lingering for years. Or they cite such anomalies as the breathtaking prices of used cars: on average, a pre-owned pickup truck now costs almost twice what it did a year ago, according to CarGurus.

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pricing  retail  retail pricing  voice of the customer  price elasticity  voice of the customer tools  price optimization  Voice of Customer Analytics  inflation

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