What kind of recession should C&R leaders prepare for? The chances of a “soft landing” are diminishing.
Consumer and retail (C&R) companies were among the first to get hit by inflation and rising expectations of an economic slowdown. With spiking prices taking thousands of dollars out of household budgets, consumers have been pulling back. As the critical fourth quarter gets under way, many retailers have more inventory than they need to fill weakening demand. This could create additional challenges for C&R companies if, as we anticipate, the U.S. economy tips into a real recession in 2023.