HdL HeadLines calls out retail trends affecting the economy to provide you with insight and support in your budget preparation and economic planning.
- Retail Sales Fell in May as Consumers Confront Soaring Inflation and Higher Interest Rates
- Slowing Car Sales Could Fuel 'Easing of Prices'
- Walmart is Using Its Thousands of Stores to Battle Amazon for E-Commerce Market Share
- California Warehouse Will Be Amazon's Biggest Ever
- Macy's Stock Surges as Company Raises Profit Outlook Despite Uncertain Retail Landscape
- HdL Announcements
Retail sales fell 0.3% in May, as consumers faced much higher prices for gasoline and food, the Census Bureau reported. The number was well below expectations, which had called for a modest increase. April’s number was revised downward to a 0.7% gain rather than the 0.9% original estimate. Despite the overall decline, spending on gasoline rose 43.2% from a year ago, while sales at food and drinking establishments increased 17.5% from May 2021. The numbers are not adjusted for inflation.
While new and used cars continue to show some of their highest price tags on record, some auto experts claim the pressure for lower prices could give drivers what they want: affordable vehicles. While the annual average number of U.S. car sales sits around 17 million, economic data from the St. Louis Federal Reserve reports only 13.1 million sales are expected in 2022. Slowing sales, likely due to high prices and low inventory, could force car dealers to lower the lot price and offer a more affordable amount.
Walmart faces a stiff challenge in e-commerce, as Amazon dominates with nearly 40% market share and inflation pushes shoppers to spend more on less-profitable gas and food. Walmart is leaning into two key advantages to drive its e-commerce business: its roughly 4,700 stores across the United States and its dominance in the grocery business. Ninety percent of Americans live within 10 miles of a Walmart store. The company is the largest grocer in the U.S. by revenue.
Rising from Inland Empire dairy lands, a box-like building with a trademark “Alexa Blue” stripe around its top soon will become the largest warehouse in Amazon’s logistics network. At almost 4.1 million square feet, the five-story, 97-foot-tall behemoth now taking shape in southwestern Ontario will have more space than any other Amazon warehouse not just in America, but in the world. Amazon confirmed the massive Ontario warehouse was part of its network.
Macy’s recently reported fiscal first-quarter profits and sales ahead of analysts’ expectations, as shoppers returned to malls to shop for new outfits, luggage and luxury goods in spite of decades-high inflation that has threatened to curtail consumption. The department store chain, which also owns Bloomingdale’s, reaffirmed its fiscal 2022 sales outlook and raised its profit guidance, expecting stronger credit card revenue for the remainder of the year.
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- Webinar with ILG: Local Gov’t Taxes: Budgeting, Forecasting and Future Trends
HdL will be at the following upcoming events:
HdL Principal Wayne Padilla will present on the latest sales tax trends including a review of the Use Tax Pool - it's mechanics, importance and how it's changing.
HdL Principal Bobby Young will be presenting a session on the fiscal impacts of the pandemic on local jurisdictions.
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