The consumer isn’t as healthy as we think: Fmr. Hudson Bay CEO

Major retailers like Target (TGT) and Walmart (WMT) recently reported their second quarter earnings, giving more insight into how the consumer is faring while still battling inflation. Each paint a slightly different picture, however, both signal that the consumer has become more discerning. Storch Advisors CEO, Former Toys R Us CEO, and Former Hudson's Bay CEO Jerry Storch joins Market Domination to give insight into US retail earnings and what it means for the state of the consumer. "I will simply say the consumer isn't as healthy, everyone says, 'Oh, the consumer has been so healthy.' Look, take a look at retail sales year-over-year for the last two years, there's maybe been one month out of two years where the pace of growth of retail sales year-over-year has actually exceeded the rate of inflation...in almost all cases, inflation has been higher year-over-year, the CPI growth, than the rate of growth in retail sales, which are not adjusted for inflation," say Storch. He follows that up with: "So consumers feel like, and in fact, it's true, that they're spending more money and getting less. That's exactly what's happening." He says there are four companies that hitting the mark right now: Walmart, Costco (COST), TJX Companies (TJX), and Amazon (AMZN). For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino Read More...