Part 3/7:
Retailer Responses and Closure Plans
The surge in costs has prompted many retailers to reassess their business models, leading to a wave of store closures that is expected to carry over into 2025. Major retailers and brands are feeling the crunch and are finding it increasingly challenging to maintain profitability amidst this inflationary backdrop.
An interesting shift is occurring within the retail sector where companies like Sharpie have identified the need to pivot from their traditional markets. They are now focusing on consumers who earn $50,000 and above as those earning less struggle to purchase everyday products. This highlights a significant market adjustment driven by economic realities.