The retail market has been experiencing a slowdown many in the industry attribute to inflation. In this episode of the Rapaport Diamond Podcast, US-based consultant David Marcotte tears down that excuse, arguing that changes in spending habits are the true culprit.
“Inflation is a tremendous media story, but it doesn’t seem to have impacted shopper behavior much,” said Marcotte, who is senior vice president of global insights and technology at Kantar Consulting.
Consumers say they’re concerned about inflation and budget, but they still take expensive trips to compensate for the lack of travel during the pandemic, he pointed out in this conversation with Rapaport Senior News Reporter Leah Meirovich.
“So, I think we need to step away from saying inflation is the problem,” Marcotte continued. “They’re really competing for wallet share, and people are spending on travel, family, education, food. But for some reason, every CEO feels comfortable in their quarterly reports saying our results are poor because of inflation. Well, no, it’s not.”
He also discusses other factors affecting the market, including the recent spate of smash and grabs, why retailers need to stop relying on the traditional holidays, and how stores can cater to the newest jewelry buyers. Most surprising, Marcotte noted, is that more jewelers haven’t been remodeling their stores, a move he feels could cost them in the long run.
Listen to the podcast here:
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