Article

2022-01-21 Economy

Target CEO Says Consumers To Shop Less, Stay Home Amid Inflationary Storm

[ZERO] Consumer prices soared the most in 40 years in December, a stunning 7% from a year earlier that is crushing real wage gains and sending President Biden's polling numbers to a new record low. The Federal Reserve is expected to embark on an inflation-crushing mission with the first-rate hike expected in March to tame inflation.

According to Target's top executive, high inflation eating into wage gains is expected to directly impact US consumers who will be forced to drive less, eat at home, and reduce their shopping habits.

Chief Executive Officer Brian Cornell told attendees at a National Retail Federation event in New York on Sunday that high inflation will derail consumer spending patterns. Many will resort to cheaper generic-brand goods to save money.

"Some of the historical ways consumers react to inflation will play out again in 2022," Cornell said.

He noted consumers would "drive fewer miles, and you'll consolidate the number of times and locations where you shop. You'll probably spend a little more eating at home versus your favorite restaurant, and you might make some trade-offs between a national brand and an own brand."

Compared to the last two years of stimulus-fueled retail spending, Cornell expects spending patterns to change. He said a lot about the consumer would be understood in the next "60, 90, 120 days" in adapting to the high inflation environment.

As part of the rapid recovery, fueled by trillions of dollars in monetary and fiscal aid, prices for cars, gas, food, and furniture rose sharply in 2021. As consumers increased spending, supply chains became snarled, and prices increased further.

In the new year, US inflation pressures show very little easing, and some economists predict the peak could be nearing. The high inflation problem has led rate markets to price in 4 rate hikes by December, with the first live meeting expected in March.

Many consumers have never seen anything like this because they weren't around in the 1970s and early 1980s of high inflation. It only took then-Fed Chair Paul Volcker to increase interest rates to double digits to tame inflation which sent the economy into a deep recession.

High inflation has put Biden on the spot ahead of midterms. The latest polling data shows the president's popularity sunk to a new low this week.

Posted by Besoeker 2022-01-21 00:20|| || Front Page|| [29 views ] Top

#1 They'll shop less because there's less stuff to buy. But they'll spend more money doing it.

Posted by Glenmore 2022-01-21 00:32|| 2022-01-21 00:32|| Front Page Top

#2 Many Americans won't stop shopping until their credit cards are canceled.

Posted by Bubba Lover of the Faeries8843 2022-01-21 00:47|| 2022-01-21 00:47|| Front Page Top

#3 I didn't have any problem with the 17% mutual fund rates (in the 80's). We just chose not to purchase anything we didn't need.

Posted by The Walking Unvaxed 2022-01-21 00:55|| 2022-01-21 00:55|| Front Page Top

#4 Bread & circuses (21st c version)
...Apparel and footwear will be hit hard
...Food staples will be OK - but Starbucks and packaged foods will be hit hard (how the hell can you keep buying cereal at $5 a 12-oz box?)
...Gambling and stock trading will suffer: the 5m+ little retail moron-muppets who bought "meme stock" garbage with their stimulus checks have lost 50-90% of their savings and have nothing left to invest in 2022
... Liquor Tobacco and Video Games: biggest winners in the consumer economy, followed by Hotels and Airlines as COVID-insanity collapses over the next 6-8 weeks

Posted by Merrick Ferret 2022-01-21 01:30|| 2022-01-21 01:30|| Front Page Top

#5 Lets see,
Less stuff to buy, Limits, lines, stores following Government mandates, playing social issues and following politics etc, etc, etc. Yep! Sure sounds remittance of a country back in the 1960-1990's.

BTW: What I saw at WALLY WORLD and other Stores on 1-20-22

Certain Frozen Food dinners/pizza's Depending on brand and item type were OUT.

Certain brand Name Canned goods and packaged items OUT.

Milk, eggs and etc. - coolers far from fully stocked.

Bread well picked over.

Plenty of Smith Field Bacon @ $6.89+lb. available.

Other stores (Kroger, ALDI, Lidl, KJ's and Food Loin) all have similar situations. All depending on brand names and item types.

BUT ! ☺ There is plenty of TP and paper towels still on the shelves.

Posted by NN2N1 2022-01-21 05:35|| 2022-01-21 05:35|| Front Page Top

#6 But do you think for one minute corporate America might see that corporate support for dems put things where they are now, and maybe stop doing that? Nah. Too obvious.

Posted by M. Murcek 2022-01-21 06:52|| 2022-01-21 06:52|| Front Page Top

#7 /\ As long as the ~~company~~ gov't store remains open and the 'mom & pops' continue to be eradicated, support for dems and the socialist dream will continue.

Posted by Besoeker 2022-01-21 06:56|| 2022-01-21 06:56|| Front Page Top

#8 Well I sure as fuck ain't shopping at your over priced store.

Posted by DarthVader 2022-01-21 08:01|| 2022-01-21 08:01|| Front Page Top

#9 It's a given in the financial media that "we spend too much," until we don't spend enough. We also "don't save enough," until we suddenly don't spend enough.

Posted by M. Murcek 2022-01-21 08:13|| 2022-01-21 08:13|| Front Page Top

#10 /\ Bottom line...it's all our fault !

Posted by Besoeker 2022-01-21 09:02|| 2022-01-21 09:02|| Front Page Top

#11 current price per share is about 215 (off quite a bit today)

but at the beginning of the pandemic panic in March 2000, the price per share was about 100. It was about 30 per share at the bottom of the 2008-9 recession.

Posted by Lord Garth 2022-01-21 10:20|| 2022-01-21 10:20|| Front Page Top

#12 On the other hand, Berkshire Hathaway A class shares are $458,675 today, but on 1 Feb 1990 were just $7455. Back then I had the $ but not the nerve to invest that much. I lost well over that much in much poorer investments over the next 10 years.

Posted by Bubba Lover of the Faeries8843 2022-01-21 17:47|| 2022-01-21 17:47|| Front Page Top

06:59 Procopius2k
06:46 MikeKozlowski
06:22 Besoeker
06:20 Besoeker
06:16 Besoeker
06:07 Grom the Reflective
06:00 NN2N1
05:47 NN2N1
05:38 NN2N1
05:33 Grom the Reflective
05:32 NN2N1
05:24 NN2N1
04:31 NN2N1
04:21 NN2N1
03:40 Besoeker
03:27 Grom the Reflective
03:17 Besoeker
03:05 Besoeker
03:01 Besoeker
02:33 Rex Mundi
02:14 Besoeker
01:18 Grom the Reflective
01:08 Grom the Reflective
01:01 Grom the Reflective