Reported 4 months ago
Barclays' Consumer Discretionary Analyst Adrienne Yih and TD Cowen Analyst Jonna Kim discuss the impact of inflation on consumer spending, describing it as a "creeper effect" affecting consumers across income levels. Yih emphasizes the need for retailers to offer trends or brands that stand out, mentioning American Eagle, Gap, and Old Navy as companies with momentum. Kim notes that newness in products is resonating well with consumers, but overall value remains a priority. Consumers are seen as cautious and focused on necessities rather than wants due to rising prices and inflation, leading to increased promotions and a challenging retail environment.
Source: YAHOO