Retail earnings have never been better, but the delta variant remains the wild card

Aug 19, 2021
Written by wpengine

Retailers are seeing significant increases in earnings, according to reports which began coming out this week. Whether it be mom-and-pop shops or major retailers, most are experiencing increased sales and profitability. Ranging from apparel shops to home improvement centers, these earnings across the retail industry are not surprising.

Consumers have historically high amounts of disposable cash, and they’ve had the free time to spend it. In addition, due to the high demand for goods coupled with disrupted supply chains, there is little reason to entice buyers with lower prices.

Consumers are not being driven by price, but rather are less resistant to higher prices, resulting in fewer retail sales events. Consumer’s uninhibited spending also results in inflation as prices rise to meet demand and availability.

Retailers who “expect the unexpected” will fare better than those planning on the market maintaining the status quo. Keeping an eye on overhead costs will be critical.