Former Walmart CEO Bill Simon warned earlier this month that consumer demand was at a 10-year low.
In a call with CNBC about the Fast Money program, Simon said that inflation, divided politics, student loan repayments, rising interest rates and the conflict between Israel and Hamas are hitting consumers hard.
“This kind of jockeying leaves consumers exhausted and wary,” he says. “For the first time in a while, consumers have a reason to pause.”
Retailers are pushing softer bargains than usual, he continued. “They typically say a 50-inch TV is $199 or something like that,” he told CNBC. “And now they say 50-inch TVs are 40 percent off. If you’re not really proud of your price range, use percentages. I think inflation is driving up relative prices. .”
Simon’s comments are in line with a recent report from the National Retail Federation, which lowered its outlook for the rest of the year.
“Cargo volumes remain strong for the rest of the year, but not as much as we expected a month ago,” said Jonathan Gold, vice president of supply chain and customs policy at NRF.
NRF said consumers remain concerned about the impact of inflation and high interest rates, particularly on groceries, autos and mortgages. Growth in discretionary spending has slowed and retail cargo imports are expected to decline. Consumer spending rose 1.8% year-on-year in the second quarter, rather than the 2.3% initially expected, and NRF said last month that retail sales this year could hit the lower end of its 4-6% annual forecast. It was announced that there is. annual growth.
References from GDA: