Changing Economic Temperature Puts Pressure on Retailers

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Changing Economic Temperature Puts Pressure on Retailers
Economic TemperatureCorporate EarningsExecutives
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Recent corporate earnings results and executives’ comments highlight the changing economic temperature after two years of robust growth. Retailers are feeling the pressure as consumers face increasing mortgage payments.

From big-box retailers to toy marketers to coat manufacturers, recent corporate earnings results and executives’ comments underscore how quickly the economic temperature is changing after two years of robust growth. Sooner than U.S. consumers because their mortgage terms tend to be shorter. More than a third of mortgage borrowers have seen their payments increase since February 2022, according to central bank data.

The company — which owns a collection of retail brands that sell sporting goods, hardware, auto parts, clothing and other categories — said the soft trends were particularly notable in Ontario and British Columbia, the two provinces with the most expensive housing markets. Chief executive Greg Hicks calls it an environment of “relentless uncertainty,” despite economists’ belief that rate hikes are likely done

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