Recently, the dynamics of income reports and business changes published by several consumer enterprises abroad show that the high inflation environment and weak consumption have dragged the continued decline in enterprise performance, and some enterprises have to shut down. adjust the business strategy is also becoming the main means for many enterprises to cope with the wind of performance.

U.S. retailer Cohen has recently become the latest chain retailer to enter bankruptcy clearing procedures. According to U.S. media reports, Cohen is currently launching clearing promotions at its more than 550 retail sites, which is part of the company’s bankruptcy application to enter the clearing procedure last week. Cohen stores joined the chain shutdown that broke out last year, retailers have blamed it for high inflation and rising interest rates, suppressing consumer spending, leading to the bankruptcy of retail operations.

Not only in the U.S., but other countries facing high inflation also face similar challenges. In New Zealand, more and more retailers are worried that the economic situation will continue to be severe and they will have to shut down. The latest New Zealand Retailers’ Association member survey shows that 43% of members are unsure of whether their business will continue to operate in the next 12 months. At the same time, more than 70% of retailers failed to meet their sales goals in the second quarter. The head of the association said that this shows that people’s pessimism about the trade situation is growing. Consumer confidence is promising to increase as the government cuts taxes, banks begin to lower mortgage interest rates and inflation declines.

Germany is also facing similar weaknesses in the retail industry. Statistics released by the German think-tank Institute for Economic Research on July 25 show that the German retail economy index in July fell for the third consecutive month, falling from 88.6 points in June to 87,0 points. The retail index has also worsened again, regardless of the current state of operation or future expectations, and the judgment of the respondents is very negative. The German retail association analysis report showed that 5,000 retail stores in Germany will be closed this year, which means that there will be a total of 460,000 stores closed from 2020 to the end of this year. Stephen Gens, general manager of HDE, warned that economic weakness and high inflation plagued the German retail industry. Last year, German retail sales grew by 2.9%, to €65 billion, but this

Revenue reports released by several consumer retail catering giants around the world show that the overall weak consumption environment slows down corporate performance.

According to the first half of 2024 financial report, as of June 30, 2024, the groups first half revenue fell by 11% to €90.18 billion.

LVMH’s first-half report for 2024, released by LVMH, showed that the group’s sales revenue fell by 1% to €4.17 billion, while net profit fell by 14% to €7.3 billion.

Cartier’s parent company Calendar Group’s latest earnings report shows that in the three months as of June 30, 2024, the group’s sales grew by 1 percent to 5.3 billion euros at fixed exchange rates, up from 19 percent in the same period last year.

The weak consumption cloud has spread to the food chain industry, and the fast food index in the U.S. stock market has dropped more than 9% this year. After the weak performance of the fourth quarter of the fiscal year just ended last week, the stock price of U.S. freezing potato giant Blue Weston crashed. Tom Warner, CEO of Blue Weston, said that due to rising prices, global restaurant customers declined, and the demand for freezing potatoes also weakened. Since this year, Blue Weston’s stock market value has dropped by about half. Blue Weston is also a supplier of companies such as McDonald’s and McDonald’s Food Group. Since this year, McDonald’s stock prices have dropped by about 14%.

In response to the decline in performance, consumer brands and retailers have recently adjusted their business strategies.

Tom Warner of Blue Weston said the company is undergoing operational adjustments to adapt to macroeconomic realities and business environments, including reboosting sales, using targeted investment to promote business, taking cost control measures and optimizing supply chain initiatives, and rearranging investments.

In response to a decline in performance, Nike decided to cut jobs by 2%, as part of the companys three-year cost reduction plan, and will take steps to resume cooperation with retailers. Nikes latest earnings report shows that revenue fell by 2 percent to $12.6 billion in the fourth quarter of the fiscal year 2024, and sales are expected to drop by 5 to 9 percent in 2025.

The third-largest convenience chain in Japan, Rosen, has begun to pursue digital transformation.KDDI, the Japanese telecommunications operator, has successfully acquired Rosen, and Rosen plans to improve the operational efficiency of the stores by leveraging KDDI’s digital technology, developing new services such as network sales, convenience stores and remote medical care.

In the context of higher inflation and weak consumption, the global retail industry faces serious challenges. Enterprises actively respond to market changes by adjusting business strategies in order to seek new growth points in difficult situations. In the future, with the improvement of the macroeconomic environment, these adjustments may bring new opportunities to enterprises.