{"id":1611122,"date":"2022-08-17T15:47:55","date_gmt":"2022-08-17T19:47:55","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1611122"},"modified":"2022-08-17T15:47:59","modified_gmt":"2022-08-17T19:47:59","slug":"retail-giants-toggle-business-strategies-in-response-to-high-inflation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/retail-giants-toggle-business-strategies-in-response-to-high-inflation\/","title":{"rendered":"Retail Giants Toggle Business Strategies In Response To High Inflation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fretail-giants-toggle-business-strategies-in-response-to-high-inflation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1611122&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Retail giants reported mixed <a href=\"http:\/\/dailywire.com\/topic\/business\" target=\"_blank\" rel=\"noopener\">earnings<\/a> results this week as <a href=\"http:\/\/dailywire.com\/topic\/inflation\" target=\"_blank\" rel=\"noopener\">inflation<\/a> and <a href=\"http:\/\/dailywire.com\/topic\/supply-chain\" target=\"_blank\" rel=\"noopener\">supply chain<\/a> issues continue to disrupt operations.<\/p>\n<p>Retail and food services sales for the month of July remained virtually unchanged from June, according to a Wednesday report from the <a href=\"https:\/\/www.census.gov\/retail\/marts\/www\/marts_current.pdf\">Census Bureau<\/a>, reflecting a Consumer Price Index (CPI) that remained flat during the same period. As year-over-year inflation nevertheless <a href=\"https:\/\/www.dailywire.com\/news\/white-house-starts-victory-lap-amid-slightly-less-dismal-inflation-reading\">remains<\/a> at 8.5% \u2014 continuing to rival four-decade highs \u2014 retailers are witnessing disruptions in consumer behavior and adjusting their business practices in response.<\/p>\n<p>Target, for instance, reported a 90% decline in quarterly profits from last year, which occurred amid the company\u2019s decision to mark down unwanted inventory ahead of the holiday season.<\/p>\n<p>\u201cIf we hadn\u2019t dealt with our excess inventory head on, we could have avoided some short-term pain on the profit line, but that would have hampered our longer-term potential,\u201d Target CFO Michael Fiddelke told reporters, per <a href=\"https:\/\/www.cnbc.com\/2022\/08\/17\/target-tgt-q2-2022-earnings.html\">CNBC<\/a>. \u201cWhile our quarterly profit took a meaningful step down, our future path is brighter.\u201d<\/p>\n<p>According to Target CEO Brian Cornell, the company is prioritizing food, household items, and other inventory with a high turnover rate \u2014 even canceling $1.5 billion in orders for goods with lower demand.<\/p>\n<p>Meanwhile, home improvement retailer Home Depot reported a 6.5% rise in profits from the second quarter of fiscal year 2021.<\/p>\n<p>\u201cOur performance reflects continued strength in demand for home improvement projects,\u201d Home Depot CEO Ted Decker said in a <a href=\"https:\/\/ir.homedepot.com\/news-releases\/2022\/08-16-2022-110048363\">statement<\/a>. \u201cOur team has done a fantastic job serving our customers, while continuing to navigate a challenging and dynamic environment.\u201d<\/p>\n<p>Walmart likewise saw sales that exceeded analysts\u2019 expectations, even as inflation eroded profit margins. In an interview with <a href=\"https:\/\/www.cnbc.com\/2022\/08\/16\/walmart-ceo-doug-mcmillon-says-even-wealthier-families-are-penny-pinching-.html\">CNBC<\/a> anchor Courtney Reagan, Walmart CEO Doug McMillon <a href=\"https:\/\/www.dailywire.com\/news\/walmart-ceo-inflation-will-be-with-us-basically-forever-at-some-level\">explained<\/a> that Walmart is growing its consumer base by attracting wealthier families struggling to contend with higher prices at competing retailers.<\/p>\n<p>\u201cIt\u2019s a conflicting period in terms of the data. If you look at what\u2019s happening across categories and across income levels, inflation is having an impact particularly for those who don\u2019t have as much money,\u201d McMillon said. \u201cSo we see them behaving in different ways. \u2026 Higher income families are shopping at Walmart because they\u2019re so price sensitive right now. We shared earlier this morning that families making more than $100,000 in household income have driven a lot of our growth during this last quarter.\u201d<\/p>\n<p>Likewise, McMillon \u2014 whose company boasts 1.6 million domestic employees and remains the largest private employer in the United States \u2014 said that wage inflation will endure indefinitely.<\/p>\n<p>\u201cWe\u2019ve raised our wages, which we\u2019re happy to do \u2026 that creates a new level of which pricing has to be adjusted to reflect,\u201d he commented. \u201cSo I think there\u2019s some level of inflation that\u2019s going to be with us basically forever. Hopefully we\u2019ll see food inflation in particular improve as we go through next year.\u201d<\/p>\n<p>The earnings reports came as President Joe Biden signed the Inflation Reduction Act \u2014 a $740 billion piece of legislation based primarily upon climate and tax provisions. According to a recent analysis from the <a href=\"https:\/\/taxfoundation.org\/book-minimum-tax-analysis\/\">Tax Foundation<\/a>, the 15% book minimum tax provision enacted by the law will cost retail companies $3.5 billion.<\/p>\n<p>\u201cThe book minimum tax affects industries very differently, some of which may be unintended, reflecting a tax proposal that has not been fully vetted,\u201d the analysis observed.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Retail giants reported mixed earnings results this week as inflation and supply chain issues continue to disrupt operations. Retail and food services sales for the month of July remained virtually unchanged from June, according to a Wednesday report from the Census Bureau, reflecting a Consumer Price Index (CPI) that remained flat during the same period. &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1611198,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1611122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1611122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1611122"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1611122\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1611198"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1611122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1611122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1611122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}