More on Combating Inflation and Uncertainty:
Decisive Actions for Retailers

Just as retailers were feeling like they had returned to (a new) normal, inflation has brought another wave of uncertainty and instability. Particularly for retailers who cater to customers’ discretionary spending, this latest economic hurdle feels like another unfair headwind.

Essentially, these headwinds are coming from two directions:

Domestic Instability

Inflation in the US continues to erode consumer confidence, with many consumers reporting that they plan to spend less than last year on discretionary purchases (source: Consumer Confidence Index).

International Uncertainty

Global growth is expected to fall (year over year) in 2023 due to the ripple effects of both the Ukrainian conflict and a combination of Chinese actions which are eroding international confidence (source: IMF).

These continuing unstable times require introspection, decisiveness, and flexibility. Most importantly, a comprehensive approach is needed, with the understanding that present and future actions are interdependent. Let’s take a deeper look at the decisive actions that retailers can take to mitigate the risks presented by these external challenges. We will focus on actions to take in the current season as well as those more appropriate for future seasons.