Food And Energy Inflation Is Catching Up With Discount Retailers
Higher food and energy prices that have helped push the U.S. inflation rate at a 40-year high are beginning to catch up with discount retailers, hurting sales and profits.
This week, discount retailer Ollie's Bargain Outlet reported a 2% drop in net sales for the fourth quarter of 2021 and a 3.1% drop for the full fiscal year. Comparable-store sales dropped 10.5% for the quarter and 11.1% for the year. In addition, operating income decreased 32.1% for the quarter and 26.3% for the year.
Ollie’s disappointing financial results come after a FactSet...