Retail trade sales showed strong increases again in June 2021, but consumer sentiment dipped in early July due to concerns about the general US economy, especially rising inflation pressures. Retailers were less promotional in Q1 2021 due to lower inventory positions, which led to higher margins. Getting enough product into the supply chain continues to be a challenge, but retailers need to be cautious of buying too much inventory for upcoming seasons, which could restart the highly promotional environment we witnessed pre-pandemic. Of interest in the coming months will be the potential impact of inflation concerns and rising COVID rates across the US, which could dampen shopper enthusiasm.
Download the July retail and consumer summary.
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