Food inflation remains high as Americans shift shopping habits

[February 24, 2023](Comprehensive report by Epoch Times reporter Li Yan) With foodpriceSoaring, U.S. consumers are cutting back on other purchases such as toys, clothing and household goods, posing a challenge for retailers.

Related posts

The United States added 311,000 new jobs in February, exceeding expectations

March 25, 2023

U.S.-China trade deficit continues to shrink, China’s exports remain under pressure

March 25, 2023

Comments from executives at Walmart and other retailers this week showed that the crisis in the face of the highest rate of sales in a generation has been reported by Reuters.inflationrate, Americans are changing theirShoppingGet used to it, and at the same time try to buy a bargain.

Walmart is the world’s highest-grossing retailer, its global chief executive, Doug McMillon, told analysts that highinflationAt this time, Americans are still consuming, but they are more “selective, discerning, and thoughtful” about what they buy.

foodpriceThe gains led to weak sales of electronics, toys, home and apparel in Walmart’s most recent quarter.Macmillan says he believes in dry goods and direct consumer goodsinflationThe rate will remain high “for some time”.

The average cost of food consumed at home climbed 11.3 percent in January from a year earlier, Labor Department data showed. That’s nearly 5 percentage points above headline inflation, the widest gap since the 1970s.

Among them, cereals and bakery products rose 15.6%, other categories rose from 7.2% (fruits and vegetables) to 14% (dairy products), and eating out rose 8.2%.For almost a year, food price increases have outpaced the widerinflation.

クーポン利用で1,680★円★ 楽天1位 ボーダーロング Tシャツ ボーダー ロング カットソー プルオーバー Tシャツ 長袖 クルーネック シンプル きれいめ カジュアル ガーリー ドルマン ゆったり 長袖 カジュアル 秋 冬 韓国ファッション【予約販売：11月11日に発送予定】 価格：2980円（税込、送料無料) (2022/10/12時点) 楽天で購入

“Food inflation is the most stubborn of all categories,” said John Furner, Walmart’s U.S. chief executive.

walmart and target

Coresight Research forecasts that annual grocery retail sales will grow by about $500 billion between 2022 and 2030.

Sales in categories other than food have fallen sharply, with retailers like Target forced to slash prices on everything from toys to electronics.

【16000円OFFクーポン配布中】iPhone 14 Pro 512GB simフリー 国内正規品 Apple 本体 端末 新品 回線セット 価格：214800円（税込、送料無料) (2022/10/12時点) 楽天で購入

“If I were a (U.S. retail) chief financial officer right now, I’d be talking about the most conservative (investment) guidance possible,” said David Wagner, a portfolio manager at Aptus Capital Advisors. He owns about $7 million in Walmart stock and recently sold his Target stock holdings.

Investors say Walmart is better positioned to weather the challenge than other retailers because groceries make up a larger share of its sales. Target, on the other hand, is more reliant on its home goods, apparel and beauty businesses.

For comparison, grocery accounts for 56% of Walmart’s sales, but only about 20% of Target’s sales. Sales at Target, which reported Feb. 28, are expected to grow 2.7 percent in its last fiscal year, well below the 6.7 percent growth Walmart reported, according to estimates.

“There’s still risk in the market … but for Walmart, it’s able to manage that risk, which is why we own it,” said Eric McNew, a portfolio manager at Summit Global Investments. We’re overweight in Target compared to Target.”

Household Goods Sales Fall

Home improvement retailers are under pressure, with data from the U.S. Census Bureau showing that sales of home furnishings and home improvement merchandise, including gardening products, will account for just 11% of total retail sales in 2022, down from 15% in 2017.

Home Depot CEO Edward Decker said in the most recent quarter,ShoppingThose spending less on goods like soft floors and roofing.

Sales at discount apparel and home goods retailer TJX’s Home Goods segment will slip 11% in 2022.

“We’re still trying to figure out the national home furnishing trends,” TJX CEO Ernie Herrman told analysts on Wednesday.

Lowe’s Cos Inc, due to report on March 1, could face more pressure than its bigger rival Home Depot as it tends to attract more do-it-yourself (DIY) shoppers builders, not inflation-resistant specialist builders and contractors.

On apparel sales, Wall Street will learn more about the inflation-related impact in March, when Kohl’s, Nordstrom and Victoria’s Secret & Co. of retailers will report quarterly results.

“The macro outlook is shaky and I think some of the data suggests we may not have seen the end of it yet … a recession is looming,” McNew said.

Responsible editor: Lin Yan#