The retail industry is about to experience a turning point that might define its direction forward. Discount retailers, formerly thought of as a refuge during recessionary times, are under fire now. Rising inflation is eating into their razor-thin margins, hence they are raising prices in a setting where customers are cutting back. Once a straightforward formula low prices, strong foot traffic, low prices, high foot traffic has become a delicate calculation as consumers change their purchasing patterns, giving basics top priority and skipping non-essential goods top priority. The issue today is whether these discounters might withstand the storm or bow under pressure.
