Armstrong Economics- Oversaturated Retail
Samsung is not the only company suffering from supply now outweighing demand. Walmart, Gap, Target, and American Eagle all reported in their last earnings calls that they have more products than they can sell. The warehousing costs for idle inventory are leading some companies to consider reversing their return policy – here’s your money, keep the item.
“For every dollar in sales, a retailer’s net profit is between a cent to five cents. With returns, for every dollar in returned merchandise, it costs a retailer between 15 cents to 30 cents to handle it,” retail expert Burt Flickinger told CNN. This puts retailers at risk since many will abuse the policy. Sales and clearances on seasonal items are expected as the retail market is oversaturated with supplies that arrived too late.
We’ll probably consider ourselves fortunate if this cascade of economic dislocations corrects by the end of the decade.
I suspect it won’t take a decade. This hysterical Covid mandate induced anomaly of inflation will likely pass fast. Interest rates are about as high as they can go.
Not in my side of things. The trucking business is still insane. Rates are sky high, especially cross-border. Used and new equipment is scarce. I bought my 2002 KW 8 years ago and it has quadrupled in value. Part of that is because it is pee emissions.
Tires, parts, and oil are hard to come by. It can take a month to get into a shop.
As much as I love sky high rates, I know it’s also a drag on the economy.
Allan S. Are you really in the trucking business? Usually, unless I am writing to the wrong Allen, your business experience seemed to be all socialist oriented. Truckers need, and all associated with them need, to make a profit. At one point in my life I bought trucks, tractors, trailers, big stuff, millions of dollars in my budget, I would hate to be trying to do that now.
A far left socialist who is a trucker …that is like a vegetarian working as a butcher.
Be glad yer rig is pre 2010…if what you say is true…
DEF is becoming had to find…on Purpose. The Company that supplies up to 30% of the DEF sold to Flying J, has been told their bulk rail shipments (Via Union Pacific – owned by BLACKROCK), are being cut in half.
No reason given…(DEF: urea & De-Ionized water).
I’m thinking that much of the Truck Industry is using Post 2010 rigs..??
Covid whiplash. The sheet metal shop where I work has been getting a lot of calls in the last two weeks from trucking companies wondering if we have anything to haul. A few months prior to that, if you wanted something shipped a lot of the companies would turn you down as they were just too busy.
Putting the economy through the blender is resulting in a pureed mess.
Perhaps if they put a lot of stuff on sale for like 70%+ off retail they’d be able to persuade consumers to come in.
At a certain point they’d rather send this stuff to the land fill sites rather than try and peddle it.
Value your product realistically and your sales might increase. Just a suggestion from an old man that sold everything from bubble gum, furniture, milk, gas, more things that need no mention. If the product is not worth the price, reduce the price, better to have a cash flow right off than garbage.
Yup.
Garbage costs money to get rid of.
Let someone pay you to take it of your hands.
We’ve got to the point where after people have paid for their inflated house, inflated fuel and inflated food they have no money left to spend on anything else. It’s shocking that consumer demand has gone down.
Looks like everything is free at Walmart now just return it and I’ll give you money back and give you the product.
All sales will be final. One chain will stick their tow in the water, the sky won’t fall other stores follow and soon the returns problem has gone away
The canary in that mine will be Costco , on par with Ye Olde Sears.
Too generous by half.