By Heather Burke, Bloomberg Markets Live analyst and reporter
Retail’s horrible 2022 is unlikely to get any better as the all-important holiday season unofficially kicks off this week amid an unprecedented cost-of-living crisis on both sides of the Atlantic.
Retail is one of the worst-performing S&P 500 GICS 2 sectors year-to-date, down more than 30% compared with the overall benchmark’s decline of about 17%. Some of that stems from the selloff in mega-tech: Amazon.com is approximately 45% of the gauge and responsible for about 75% of retail’s decline in terms of market cap.
But even minimizing Amazon with the equal-weight S&P Retail Select Industry Index (SPSIRE), down almost 30% year-to-date, underscores the sector’s underperformance.
US retail sales posted the biggest increase in eight months in October, but some discretionary categories like electronics declined, suggesting price cuts and weaker demand are weighing on the value of sales. Inflation, while slowing, remains firmly entrenched above pre-pandemic levels, meaning people