Inflation is here – and consumers across all economic demographics – are noticing what a growing number see as ‘much higher’ retail prices. We’ll be watching how this impacts spending in the coming months.
MARKETS
US inflation hit a 40-year high in January, per the Labor Department.
- The consumer prices index rose by 7.5% on an annual basis in January, up from 7% in December.
- Sentiment around the US economy is at its lowest level (61.7) since the Great Recession in October 2011 (60.8), according to the University of Michigan Economic Sentiment index.
U.S. January retail sales (excluding autos) rose 7.2% year-over-year, according to a Mastercard SpendingPulse report.
- Online sales were up 10.4% year-on-year.
- Sales were driven by wage growth and pent up demand for ‘experiences’ now that retail and services have reopened.
- Apparel sales were up 37.6% year-on-year in January, the 11th consecutive month of growth.
- Department sales increased 10.5% year-over-year and 9.8% vs. pre-pandemic levels.
E-COMMERCE
Sixty thousand sellers topped $1 million in sales on the Amazon marketplace in 2021. The number has doubled over the past three years, according to MarketPlace Pulse.
- Over 3,000 sellers did more than $10 million in sales in 2021.
- More than 50% of the top sellers were on Amazon’s US platform. The others were on one of Amazon’s 19 other international marketplaces.
PODCAST
A New Platform that’s Disrupting the $1T Automotive Industry
Although we don’t typically think about the market for used cars, it’s a huge market – and at present a very lucrative one too!
In this podcast episode Quinn Osha, founder and CEO of Topmarq, a platform that is helping drive the digitization of the used car industry, discusses:
- The critical changes that have taken place in the automotive sales during the last two years.
- Why car prices have surged – even for used cars.
- How digitization is revolutionizing the car business – for dealers and individuals.
LISTEN TO THE PODCASTFINANCE
Under Armor (USA) reported revenue rose 9.2% year-on-year to $1.53 billion for the quarter ended Dec 31, 2021.
- Net income was $109.7 million, down 40% year-on-year.
- Apparel was up 18% and footwear (+17%), while accessories fell 27%.
- warned that heightened freight expenses will weigh on profits in the coming months.
Urban Outfitters (USA) reported Q4 retail sales rose 24.1% year-on-year (15.4% 2019), to $1.26 billion. Same-store sales rose 14% compared to 2019.
- Revenue from Nuuly, the company’s rental and resale brand, reached $17 million in Q4, up 36% over the previous quarter.
- Full year retail sales rose 31.6% year-on-year to $4.25 billion.
Tapestry (USA) reported Q2 net sales rose 27% year-on-year to $2.1 billion on the back of strong holiday sales. Revenue increased 18% over pre-pandemic levels.
- Net income for the quarter rose 2.2% year-on-year to $318 million.
- The company increased guidance for fiscal 2022, forecasting a 20% year-on-year growth in revenue growth to $6.75 billion – a record high.
RETAIL
J. C. Penney (USA) has launched Mutual Weave, a new private label denim lifestyle collection for men.
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