by Chris Black
The post Covid boom is over for discretionary items.
When people were locked at home, and flush with stimulus cash, they all bought new furniture and redid their homes.
Furniture has insane markup. A table that costs $20 to make sells for $200 retail.
Retailers believe they are entitled to the obscene margins, and refuse to lower them.
Thirty years ago the average retail margin was 30%. Now it is 65%.
Don’t listen to the BS claims of 15-20%.
That is only because the mass retailers are set up as umbrella corporations, where one division purchases the product and then sells it to the retail division.
They do this so they can immediately book revenue on inventory shipped.
This is Bidenomics!https://t.co/pzqnATF3LK
— The Big Guy get 10% (@RobGerundo) December 4, 2023