Retailers Effect on Inflation

July 18, 2022

How it Started

Historically retailers have done well in a recession. The average American will always cut back on going to restaurants before they cut back on grocery shopping. Though prices will continue to increase, the need for food and necessities will always remain. 

Whats going on

We have seen a cutback on unnecessary purchases due to rising inflation rates. For example, Target faced an over-supply problem concerning TVs this year. Yet other big-name retailers such as Walmart were seeing continued business success, regardless of an impending recession. And that is due to the need for essential goods offered at Walmart. 

Why it matters

Americans are very good at raising credit card debt, and these purchases might be on a line of credit. As people try to keep up with their purchasing needs, they might see their line of credit develop high interest. The ongoing increase in inflation rates causes a high level of stress to the consumer. 

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