United States: Since Joe Biden’s inauguration, the unrelenting tide of inflation has plagued the economy, compelling myriad retail establishments to shutter thousands of outlets and causing widespread distress among the American populace.
Consumers, now more discerning about their shopping choices and purchases, have profoundly impacted the retail sector, as per reported.
A Yahoo Finance analysis forecasts the closure of over 3,400 retail locations within this year alone, marking a 22 percent surge compared to the corresponding period last year.
Walgreens has emerged as a recent casualty of inflationary pressures, as reported by CBS News. The company has unveiled plans to shut down around 2,150 stores, constituting 25 percent of its nationwide 8,600 outlets.
Walgreens’ CEO, Tim Wentworth, intimated to investors that the “current pharmacy model is unsustainable,” underscoring the retailer’s grim prospects for recovery in the foreseeable future, compounded by its present challenges.
Reportedly, to remain competitive amidst economic deceleration, Walgreens, akin to other enterprises, slashed prices on 1,300 items roughly a month ago.
Inflation’s adverse effects have also pervaded the fast-food sector. According to Fox 5, the iconic Hollywood Arby’s location has closed its doors after 55 years, attributed to inflation and California’s USD 20 minimum wage mandate.
In response to rising government regulations and escalating material costs, some retailers have resorted to increasing their prices.