The specialty retail industry has been struggling to survive due to surging inflation and ongoing supply chain disruption. Rising prices have significantly reduced consumer demand. Furthermore, supply chain bottlenecks and increased freight costs have made it difficult for retailers to maintain inventory.
Moreover, with rising recession fears dampening consumer sentiment, specialty retailers are expected to remain under pressure. Investors’ subsiding interest in the retail sector is evident by the VanEck Vectors Retail ETF’s (RTH) 14.9% decline year-to-date.
