Stagflation Threat Is Latest Nail-Biter For Retailers

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To the list of recent retail industry headaches — COVID, the great resignation, supply chain disruptions, inflation, declining consumer sentiment — we can now add the looming threat of stagflation.


Stagflation…roughly defined as what happens when rising prices converge with declining demand. 


In my daily discussions about planning and forecasting with executives at major companies, a frequent topic is anxiety about missing short-term financial targets. “We’re just not going to hit our numbers.” Some are debating the usual defensive tactics, like reducing or cancelling orders, cutting overheads, thinning SG&A expense line items and shelving expansion plans.


While Wall Street and Private Equity leaders have the time to leisurely cogitate the long view, business leaders (CEO’s, CMO’s, etc) have to make commitments today with real dollars based on their best guesses about the state of the consumer next fall and spring.


The case for a rough patch ahead is compelling.

But, what to do? Read on…

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supply chain  inflation

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