What Trump’s Election Means For Retail Sales
What are the immediate effects of Donald Trumps’s election on retail sales? There are a few and they are important:
1. Paralysis. The markets hate surprises and consumers do too. Large purchases, like homes and autos, will stall. No one will want to make important, major purchases in the immediate follow-up to this election. Smaller purchases will also drop precipitously in the short-term as consumers hold back for fear of how to handle the election on a personal basis.
2. Higher costs. The election will have an inflationary effect across the board. Labor will become more expensive and over time, so will imported products. That means operating retail stores will become more expensive and consumer products, particularly those imported, will become more expensive as there is more pressure for tariffs on imports and less labor to load, move and sell consumer products. Companies that use technology to lower labor costs, like Amazon and Wal-Mart, will be in a better position than more labor-intensive retailers. Fast food purveyors will suffer. Read more at Forbes.
