Latest news with #CoresightResearch
The Hill
16 hours ago
- Business
- The Hill
Retail sales up a surprising 0.6% in June after a May pullback by consumers
WASHINGTON (AP) — After an earlier pullback, consumers picked up their spending in June despite anxiety over tariffs and the state of the U.S. economy. Retail sales rose a better-than-expected 0.6% in June after declining 0.9% in May, the Commerce Department said Thursday. Sales in April fell 0.1%, pulled down by a steep drop in auto sales, after Americans ramped up their car-buying in March to get ahead of President Donald Trump's 25% duty on imported cars and car parts. Excluding autos and automotive parts, sales rose 0.5%, according to the Commerce Department. There was broad-based strength across the board. Clothing and accessories stores posted a 0.9% sales increase, while restaurants had a 0.6% increase. Online retailers saw a 0.4% gain. The retail sales report arrives amid a whipsaw frenzy of on and off again tariffs have that jolted businesses and households. For businesses, that has made it harder to manage supply and inventories. Americans are focusing more on necessities, when they do shop. The latest government report showed that inflation rose last month to its highest level since February as Trump's sweeping tariffs push up the costs of everything from groceries and clothes to furniture and appliances. Consumer prices rose 2.7% in June from a year earlier, the Labor Department said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month. Trump insists that the U.S. effectively has no inflation as he has attempted to pressure Federal Reserve Chair Jerome Powell into reducing short-term interest rates. Yet the new inflation numbers make it more likely that the central bank will leave rates where they are. Powell has said that he wants to measure the economic impact of Trump's tariffs before reducing borrowing costs. Americans have continued to spend, but they appear to be growing cautious. A big litmus test was Amazon's four-day Prime event along with competing retail sales from the likes of Walmart and Target that kicked off last week. Adobe Digital Insights, which tracks online sales, reported that the sales events drove $24.1 billion in online spending, a 30.3% increase compared with the same period last year. But those buying prioritized lower priced essentials like dish soap and paper products over big-ticket purchases, according to consumer data provider Numerator, based on its analysis of Amazon Prime orders. Deborah Weinswig, founder and CEO of Coresight Research, said she's becoming more optimistic about the financial health of the consumer after the Amazon Prime events. She said inventories are at a healthy level, and she didn't' see these big fire sales. 'People aren't buying things that they don't need,' she said. 'I think it's a healthier retail environment.' Retailers are now turning their attention to the back-to-school shopping season, which is the second largest shopping period behind the winter holidays. Coresight Research estimates that total U.S. back-to-school spending will increase by 3.3% year compared with the year-ago period, to $33.3 billion. And it predicts that shoppers will do a big chunk of their shopping before August to get ahead of tariffs. Economists will also dissect quarterly financial reports next month from major retailers like Walmart, Target and Macy's, both for consumer behavior and to gauge how businesses are navigating a chaotic period of global trade due to fluid U.S. policies. Levi Strauss & Co. said last week that it was cutting back on making styles that aren't selling and making targeted price increases as it moves production away from China due to tariffs.
Axios
19 hours ago
- Business
- Axios
What tariffs mean for back-to-school shopping in Florida
Parents are heading into the 2025 back-to-school season facing rising prices and looming tariffs — forcing them to shop smarter and earlier. Why it matters: Back-to-school is the second-biggest retail event of the year, after the holidays. This season is a stress test for family budgets and a strategy test for retailers trying to hold onto value-conscious shoppers. Catch up quick: New U.S. tariffs on Chinese imports — including backpacks, pens, binders and shoes — kicked in earlier this year, rose sharply, then came back down to levels still historically high. Some retailers stocked up early and "purchased a lot in advance, and some didn't purchase as much because of the uncertainty," Deborah Weinswig, CEO of Coresight Research, told Axios. Zoom in: Gov. Ron DeSantis signed into law this year a permanent, annual back-to-school sales tax exemption throughout August on clothing, shoes, backpacks, school supplies and personal computers. Clothing, footwear, wallets and bags priced at $100 or less are exempt from sales tax. Jewelry, watches and umbrellas aren't. School supplies priced at $50 or less per item are included, such as pens, pencils, binders and lunch boxes. Personal computers and related accessories priced at $1,500 or less are also tax-free. The big picture: 67% of back-to-school shoppers had already started buying for the coming school year as of early June, according to the National Retail Federation's annual survey of nearly 7,600 consumers. This is up from 55% last year and the highest since NRF started tracking early shopping in 2018, the group said. 51% of families said they are shopping earlier this year compared with last year, "out of concern that prices will rise due to tariffs." By the numbers: Stationery and supplies prices have risen 30% over the past five years, according to Deloitte's 2025 back-to-school survey. Between May 2021 and 2025, boys' apparel climbed 14%, girls' apparel and footwear were each up 4%, while personal computers and peripheral equipment fell 11%. "Parents are experiencing overall economic pressures and need to make decisions about what they buy," Brian McCarthy, principal of retail strategy at Deloitte Consulting LLP, told Axios.
Axios
2 days ago
- Business
- Axios
Tariffs and tight budgets reshape back-to-school shopping
Parents are heading into the 2025 back-to-school season facing rising prices and looming tariffs — forcing them to shop smarter and earlier. Why it matters: Back-to-school is the second-biggest retail event of the year, after the holidays. This season is a stress test for family budgets and a strategy test for retailers trying to hold onto value-conscious shoppers. Catch up quick: New U.S. tariffs on Chinese imports — including backpacks, pens, binders and shoes — kicked in earlier this year, rose sharply, then came back down to levels still historically high. Some retailers stocked up early and "purchased a lot in advance, and some didn't purchase as much because of the uncertainty," Deborah Weinswig, CEO of Coresight Research, told Axios. "Clients of ours who are in denim or basics brought everything in early. They've been warehousing it," Weinswig said. Early school shopping driven by tariff anxiety The big picture: 67% of back-to-school shoppers had already started buying for the coming school year as of early June, according to the National Retail Federation's annual survey of nearly 7,600 consumers, released Tuesday. This is up from 55% last year and the highest since NRF started tracking early shopping in 2018, the group said. 51% of families said they are shopping earlier this year compared with last year "out of concern that prices will rise due to tariffs," NRF said. School supply purchases were up 175% during last week's Prime Day, Adam Davis, managing director at Wells Fargo Retail Finance, tells Axios, citing Adobe Analytics data. Davis says this shows "price-weary consumers were looking to make the most of retail sales." By the numbers: NRF said Tuesday that families with students in elementary through high school plan to spend an average of $858.07 on clothing, shoes, school supplies and electronics, down from $874.68 in 2024. Total spending is estimated at $39.4 billion, up from $38.8 billion last year. Shoppers are expected to spend $13.6 billion on electronics, $11.4 billion for clothing and accessories, $7.8 billion on shoes and $6.6 billion on school supplies, NRF said. Back-to-school prices up Zoom in: Stationery and supplies prices have risen 30% over the past five years, according to Deloitte's 2025 back-to-school survey. Between May 2021 and 2025, boys' apparel climbed 14%, girls' apparel and footwear were each up 4%, while personal computers and peripheral equipment fell 11%. "Parents are experiencing overall economic pressures and need to make decisions about what they buy," Brian McCarthy, principal of retail strategy at Deloitte Consulting LLP, told Axios. Yes, but: The full impact of tariffs hasn't hit store shelves yet — and back-to-school season may be the first test of how much price pressure shoppers will tolerate, according to a Wells Fargo Investment Institute report released Monday. The June Consumer Price Index shows a 3.4% increase in stationary, stationery supplies and gift wrap and a 10.2% price index in college textbooks. What they're saying: "Retailers have done a solid job front-loading inventory to delay price spikes — so for now, many shelves still reflect pre-tariff costs," David Warrick, EVP at supply chain risk firm Overhaul, told Axios. "But that buffer may run out by late summer or early fall." "We're starting to see price creep on everyday items — including school supplies — but the full impact of tariffs will likely cascade in phases," Warrick said. "Many of these categories are caught in the crossfire of the latest tariff expansions, and we're expecting an average price increase of 12 to 15% across back-to-school essentials," Warrick added. Target teacher discount 2025, holding supply prices Target is holding the line on 2024 prices for key items like a $5 backpack and a bundle of 20 supplies under $20, to help ease pressure on family budgets. As in past years, Target is offering a one-time 20% discount for verified college students and verified teachers. Zoom out: Not all retailers have unveiled their full back-to-school plans.
Daily Mail
5 days ago
- Business
- Daily Mail
CVS, Walgreens, Macy's and dozens more bracing for '15,000 store closures' this year amid brutal retail culls
Store closures have continued to gather pace and remain on track to far surpass the number of stores that shut down last year. 5,822 stores closed in the first half of the year alone, a new report from Coresight Research revealed. By comparison, 7,325 brick-and-mortar stores were closed in the whole of last year. Coresight predicted that as many as 15,000 stores would shut up shop in 2025. While the figures remain under that prediction for now, experts are still concerned about the future of in-store retail as ecommerce giants continue to surge ahead. Iconic department store Macy's and beloved retailer Kohl's have been among the household names to announce mass closures this year. Pharmacies have also been thrown into the fray with leading chains such as Walgreens and CVS closing dozens of underperforming locations. Bankrupt Rite Aid has also closed more than 1,000 locations across the country as it goes through the bankruptcy process. 'US retail is in a period of unusually high real-estate churn as cyclical impacts confront structural shifts,' John Mercer, Coresight's head of global research, said of the report's findings. 'US store closures are up by two-thirds compared to one year earlier, while openings are flat,' he added. 'That closures total is compounding closure numbers that were already up, year over year, in week 27 of 2024.' The closure of local pharmacies is one of the biggest concerns amid the wider retail trend. The closures leave millions of Americans in so-called 'pharmacy deserts' — communities that do not have sufficient access to drugstores. More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found. The figure has increased markedly from 41.2 million in 2021, according to the research. Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience. Rite Aid has now closed more than 1,000 stores 'It's not an overstatement to say pharmacies are facing unprecedented economic strain,' Miranda Rochol of healthcare technology firm Prescryptive Health, told Newsweek. 'With shrinking margins and reimbursement rates many small pharmacies now operate at a loss on common prescriptions,' Rochol explained. 'Large chains are restructuring in response to reduced revenues, declining foot traffic, and other outdated models that no longer align with the needs of modern consumers,' she added.
Daily Mail
6 days ago
- Business
- Daily Mail
Report: Store closures set to balloon this year
Published: Updated: Store closures have continued to gather pace and remain on track to far surpass the number of stores that shut down last year. 5,822 stores closed in the first half of the year alone, a new report from Coresight Research revealed. By comparison, 7,325 brick-and-mortar stores were closed in the whole of last year. Coresight predicted that as many as 15,000 stores would shut up shop in 2025. While the figures remain under that prediction for now, experts are still concerned about the future of in-store retail as e-commerce giants continue to surge ahead. Iconic department store Macy's and beloved retailer Kohl's have been among the household names to announce mass closures this year. Pharmacies have also been thrown into the fray, with leading chains such as Walgreens and CVS closing dozens of underperforming locations. Bankrupt Rite Aid has also closed more than 1,000 locations across the country as it goes through the bankruptcy process. 'US retail is in a period of unusually high real-estate churn as cyclical impacts confront structural shifts,' John Mercer, Coresight's head of global research, said of the report's findings. 'US store closures are up by two-thirds compared to one year earlier, while openings are flat,' he added. 'That closures total is compounding closure numbers that were already up, year over year, in week 27 of 2024.' The closure of local pharmacies is one of the biggest concerns amid the wider retail trend. The closures leave millions of Americans in so-called 'pharmacy deserts' — communities that do not have sufficient access to drugstores. More than 48 million Americans now lack access to a nearby drugstore, research from healthcare company GoodRx found. The figure has increased markedly from 41.2 million in 2021, according to the research. Online competitors — like upstarts Capsule, Blink Health, and even Amazon — have been eating at the brick-and-mortar giants because of their delivery methods and convenience.
