International Retailers Hey Fam!
Inflation in the US: a thing or not? Asking one Tik Tokker who tracked an identical basket of goods over two years, defs a thing. At the end of 2020, Walmart shopper, @amywaytosave, posted the receipt for a basket of foods like frozen veggies, eggs, flour, rice and beans, bananas, enough to get her through the week: $10.09. The next year, she did it again, to check out the rumblings around rising inflation, and it came in around 10% more. Now, at the start of 2023, the same basket is up around 50% to $15.10, and Amy is crying price gouging. So far, she’s has over 1.3 million views. In China, reports of the imminent demise of Carrefour, owned by Suning.com, the e-commerce giant which also owns Inter Milan, have been hotly denied. But the retailer, which has been ruffled by the recessionary winds threatening the Hidden Kingdom, saw its store footprint decrease by 23 stores in 2021. And according to financial reports issued by Suning, Carrefour China closed 24 stores in the first half of 2022, with no new stores opening, and another 30 stores were shut down by the end of the third quarter. Finally, Tesco has scaled back its plans for a network of urban fulfilment centres (UFCs) in the UK, despite its latest results showing online grocery sales returning to growth. In 2019, Tesco announced plans to double its online capacity with the launch of 25 UFCs by end 2023; this target has since been dropped in favour of a “test and learn approach”.
Comment: Economic headwinds all round, causing the big retailers to tailor their approaches, cutting back or padding the bottom line where they can get away with it.