Inflation in Europe and the U.S.A. is holding back non-essential household purchases, energy prices are soaring, and costs are rising for retailers. Clément Genelot, retail analyst, and Cédric Rossi, senior equity analyst at Bryan, Garnier & Co, take stock of the strategies adopted by retailers to preserve their margins in this difficult context.
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In Europe and the U.S.A., households have started to reduce non-essential purchases. How are the retailers reacting?
Cédric Rossi: Retail is coming out of an 18-month period of interior-oriented consumption (renovation, furniture, household appliances or wellness) associated with a period of low inventories, during which the supply chain was unable to keep up with demand. Now the big problem is that stock levels have swelled but demand has fallen off. Walmart and Best Buy were down in Q2 becau
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