The retail industry has been struggling to stay afloat amid the multi-decade high inflation and continued supply chain disruptions. Rising prices have dampened consumer demand significantly. In addition, supply chain bottlenecks and increased freight costs have made it difficult for them to maintain the required inventory.
Moreover, with rising recession fears dampening consumer sentiment further, retailers are expected to remain under pressure. Investors’ avoidance of retail stocks is evident from the VanEck Vectors Retail ETF’s (RTH) 11.5% year-to-date decline.
