May 11, 2022
Good morning, Retail readers!
Something to chew on: Mondelez said yesterday that it plans to sell its chewing gum business, including Trident and Dentyne, as well as Halls cough drops. It's all about chocolate and snacks these days.
1 big thing: Pricing power
Adobe said today that online retail prices rose at a slower pace in April, Richard writes.
Why it matters: All eyes are on U.S. government data but Adobe's survey gets to the heart of pricing, and it supports the view that the spike in inflation is easing. That's good news for retailers, for now.
- The Consumer Price Index rose 0.3% in April and was up 8.3% from a year earlier, but has cooled compared with March, when the CPI was 8.5%.
Details: Adobe said online prices in April were up 2.9% from a year earlier. In March, the YOY increase was up a record 3.6%.
- Consumer spending appears disconnected from consumer sentiment, which is largely tied to inflation fears, as shoppers open up their wallets, said Jack Kleinhenz, the National Retail Federation's chief economist.
What we're watching: The U.S. Census Bureau's advance monthly sales for retail and food services in April will be released in the coming days, another gauge of inflation's impact on the shopper.