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I'm no fan of tariffs, but oh please. Last time their prices went up because of COVID and because of supply chain disruptions. Now they are going up because of
by anthuswilliams 2y ago
I'm no fan of tariffs, but oh please. Last time their prices went up because of COVID and because of supply chain disruptions. Now they are going up because of tariffs. All of their earnings calls are filled with analyses of their "pricing power" i.e. the degree to which they can pass on these costs to customers. But when the costs decline, they are happy to keep the prices inflated and pocket the profits.
- benced 2y agoCostly events occurred… so costs went up. Best Buy’s profit margin hovers around 3% and Target’s around 4%, they’re not raking in money.
- rsanek 2y agolow net profits margins are simply how retail works, it's not news that retail requires scale. and in fact both target and best buy did see record profits shortly after the pandemic started.
- Workaccount2 2y agoConsumer spending was shattering records during the pandemic. If consumer spending was dropping as prices were going up, then sure, greed. But prices were rising and consumers were relentless. Which is totally logical. Even more logical when the "spending class" was getting massive raises/offers and rock bottom credit.
- johnnyanmac 2y agoYeah, that's the trap many people don't realize. price almost never come down after inflation. If you want that, you need deflation. And I'm not sure at this point if that's a better move than what's going on now.