Former Toys R Us CEO Gerald Storch has warned that a consumer recession is on the way and that “weak” retailers will suffer as consumers splash out less on retail goods.
In an interview for the Fox Business program “Varney & Co.” on July 12, Storch said that retailers feared they would be unable to get inventory into the country before the holiday season, so they ordered “just too much of everything,” which in turn has left the goods “sitting on the shelves” as consumers redirected their priorities to going out as opposed to staying at home.
“There is a consumer slowdown on the way. It is coming,” he said. “It isn’t terrible yet. It’s not like we’re in a consumer recession, but I’m afraid we will be soon given the overall macro conditions.”…