RE: Gone short18 Sep 2022 14:04
Motrison has already lost its fourth place in the grocery market to the budget chain Aldi, Deliveroo is cutting its forecasts for sales for next year.
Meanwhile, the designer label Versace is merrily raising its prices, and private jet bookings are going through the roof. With soaring inflation, and real wages getting squeezed on a scale we have not witnessed for decades, one thing is becoming clear. The bottom of the market will be okay, and the top end will be fine as well. But the middle market is about to get slaughtered.
If you are the middle option, people on squeezed incomes will trade down. And, at the top end, the really rich don’t care about inflation. So which major companies are about to face the worst of the squeeze?
Mark and Spencer will be in trouble all over again; BSkyB’s expensive programming looks expendable; British Airways is neither classy nor cheap any more; and Whitbread’s chains of mid-market hotels and restaurants looks like an item that can be easily cut out of any belt-tightened budget.
In reality, the coming year is going to be very tough for some major household names – and those are the businesses right in the firing line.