Retail sales held up pretty well in the first half of the year, even accounting for inflation’s impact on the numbers. But with consumers spending more on food, gas and experiences instead of discretionary goods, it’s not clear how retail will do in the second half.
It’s been a head-spinning shift. Late in the pandemic, consumers were “flush with cash,” thanks to the federal government’s support and lighter spending on services like dining out, according to Wells Fargo analysts led by Edward Kelly.
