Retail roundup: Inflation, AI, bankruptcies, crime, and more
It’s been a wild year in the retail space. Inflation is forcing shoppers to spend more cautiously. Organized crime and bankruptcies are casting a shadow over the entire sector. And how does AI change the way you shop? In this week-long series, "Retail Evolution: The New Era," Yahoo Finance spoke to experts across the industry to help with your investing decisions.
Tanger Outlets (SKT) CEO Stephen Yalof discussed the uptick in outlet mall shopping and the new-found approachability of luxury brands. Yalof said, "In this environment right now, that's what the customer is looking for."
RapidRatings Executive Chairman James Gellert shared his concern for small businesses in the retail space. Gellert said, "Mid-sized businesses are being much more squeezed than their public counterparties."
While Unity Marketing President-Founder Pamela Danziger expressed concern for the second half of the year. Danziger said, "Back-to-school shopping is at risk. And back-to-school shopping is a bellwether for what's ahead for Christmas and holiday shopping."
Marty Andrews, VF Corporation (VFC) Vice President of Loss Prevention, discussed the impact of retail theft. Andrews said, "We've seen a significant uptick in organized retail crime. It's certainly impacted the profits or organizations."
Marq Claxton, Director of Black Law Enforcement Alliance and a Former NYPD Officer, discussed the need for retailers, legislators, and law enforcement to collaborate in order to bring the thefts down. Claxton said, "Until they are things put in place to mitigate damage ... there's going to be an increase in these types of activities."
Pulse Ratings CEO Dennis Cantalupo broke down which retailers are in the most need of a turnaround. Cantalupo said, "It's those retailers that are careful with their money ... are the ones that have a better chance of turning things around."
International Council of Shopping Centers CEO Tom McGee discussed the state of the consumer with regard to inflation. McGee said, "Promotions, pricing, and so forth are certainly top of mind ... but they continue to spend."
Bernstein Senior Research Analyst Dean Rosenblum and LSEG Director of Consumer Research Jharonne Martis analyzed the earnings reports of Walmart (WMT) and Target (TGT).
Rosenblum said, "Comparing Walmart to Target directly is somewhat of a false equivalency. They're very, very different businesses."
Martis agreed and said, "The trend that we've been seeing a lot with Walmart is that membership number. Not only have they been gaining new customers, but they've been able to keep the existing customers."
Bernstein Senior Analyst Aneesha Sherman broke down retail earnings and consumer behaviors so far in 2023. Sherman said, "The consumer this year has been much more cautious. Looking for deals, looking to trade down, looking to buy lower priced items within categories."
Pauline Brown, former LVMH Chairman of North America, discussed the state of luxury retail, which she sees on the rebound. Brown said, “When I look in recent weeks, and when I look at the forecast for the rest of the year, I think we have turned a corner.”
Bryan Moore, Co-Founder & CEO of TalkSHopLive, discussed the future of live shopping. Bryan Said, “The future of retail is media, and the future of media is retail. I think if you look to the future, like a year from now, you’re going to start seeing that these retailers are driving content shoppable experiences."
Click here to see more from Yahoo Finance's Retail Evolution: The New Era.
Video highlights:
00:00:03 - Tanger Outlets CEO Stephen Yalof
00:00:15 - RapidRatings Executive Chairman James Gellert
00:00:33 - Unity Marketing President-Founder Pamela Danziger
00:00:43 - VF Corporation Vice President of Loss Prevention Marty Andrews
00:01:04 - Director of Black Law Enforcement Alliance Marq Claxton
00:01:21 - Pulse Ratings CEO Dennis Cantalupo
00:01:30 - International Council of Shopping Centers CEO Tom McGee
00:01:43 - Bernstein Senior Research Analyst Dean Rosenblum
00:01:58 - LSEG Director of Consumer Research Jharonne Martis
00:02:13 - Bernstein Senior Analyst Aneesha Sherman
00:02:24 - Former LVMH Chairman of North America Pauline Brown
00:02:38 - Bryan Moore TalkShopLive Co-Founder & CEO
