Retail investors have a bumpy ride ahead

Retail investors have a bumpy ride ahead
Retail investors have a bumpy ride ahead

Retail companies are facing a tough year in 2022, with the S&P 500 retail stock index down more than 30% since the start of the year.

Experts on Wall Street believe that investors in retail stocks have a “bumpy ride” or a bumpy ride, as they put it, while there are no signs of a breakthrough in the fourth quarter, which is expected to achieve the highest sales in the year with the support of the holiday season.

Given that the high rate of inflation and the increase in spending on necessities left stores stuck in excess supply in the clothing and electronics sector, which prompted retailers to reduce prices at the expense of profits.

According to a Goldman Sachs survey of 1,000 US consumers, half plan to spend less this holiday season than they did last year.

Target chains reported a decline in sales in October, particularly in the gifts sector such as toys.

Shares of Target are down about 9% for the week and more than 30% since the start of the year.

Amazon expected to record the slowest quarterly growth in its history, which led to a brief drop in its market value to less than a trillion dollars, while Amazon shares fell by about 6.5% in a week and 30% in the last 3 months.

On Thursday, Kohl’s pulled its full-year outlook due to volatility in the retail sector and reported a third-quarter profit decline and 7% revenue decline. The company’s shares are down 1.6% in the week and more than 37% year-to-date.

Wal-Mart’s results were higher than expected, but it is considered a special case among retail companies, given that 56% of its sales come from groceries. Therefore, it bucked the trend and its shares rose by more than 9% in a week and more than 4.6% since the beginning of the year.

The article is in Arabic

Tags: Retail investors bumpy ride ahead

PREV Global Digital Room Thermostat Market Report 2023-2031 ABB, Viconics, Siemens, Emerson Electric
NEXT Oil prices are stable fields