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.
…
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.
Do you have information to share with us?