The trend: While inflation hasn’t stopped most consumers from spending, what they’re spending on has abruptly shifted.
A shift away from discretionary purchases: Inflation has driven people in every age cohort and income group to spend more of their money.
First, the bad news: Retailers with excess inventory will mark down those items to move them off their store and fulfillment center shelves.
Now, the good news (for some): The challenges by other retailers is welcome news for off-price retailers that have been struggling to maintain their inventory levels.
The big takeaway: The sudden change in spending patterns caught many retailers off guard.
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