US consumers cut spending sharply! Demand for perfume, candles and grills plummets!

According to Reuters, as U.S. inflation reaches a 40-year high, consumers are cutting spending across the board, with demand for soaps, perfumes and candles as well as barbecue grills falling significantly.

Affected by the decline in consumer demand, US companies have begun to reassess their second-quarter revenue expectations and expansion plans.

On July 20, grill maker Traeger Inc said it would stop its grill delivery service, postpone plans to build a factory in Mexico and cut labor to reduce costs.

Meanwhile, Bath & Body Works Inc, a soap, perfume and candle retailer, also cut its second-quarter revenue forecast, citing inflationary pressures affecting its customers and business.

Research firm DA Davidson also expressed concerns about the quarterly revenue of online retailers Etsy and Shopify due to rising inflation and people spending their discretionary money on travel rather than online shopping.

It is learned that Americans are also getting rid of subscription services they don't need due to inflation. On July 19, video streaming subscription service Netflix said it lost 970,000 users from April to June.

In addition, data from market research firm CIRP showed that the growth of Amazon's Prime membership in the United States stagnated for the first time in the first half of 2022. As of June 30, Amazon had approximately 172 million Prime members in the United States, the same as six months ago.

Editor ✎ Nicole/

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