Amazon and Shopify Partnership

Market Overview
Read time 1.1 minutes

Year To Date Performances:

1. Retailers are struggling as sales decline and theft rises. While some retailers focused on staple goods seem relatively shielded from economic downturns, big names like Gap and Macy's have missed their marks, citing declines in consumer spending and increasing credit card payment delays. A ubiquitous issue is swelling inventories as wary customers curb spending due to rising inflation. But a darker trend is also emerging: theft is skyrocketing. Target reported a staggering 120% rise in violent thefts at its stores in the first five months of the year, anticipating a $1.3 billion loss from theft alone in 2023. This trend isn't isolated to Target. Sporting goods retailer Dick's also cited "shrink" - industry parlance for theft - as a substantial hit to their profitability, echoing a rising concern across the retail sector. With theft rates doubling, retailers are grappling with a new level of desperation among consumers.

2. Tipping point for the Fed? Job openings hit the lowest point in 2.5 years as quits and layoffs hold steady. Job openings dropped to 8.8 million in July, falling short of the expected 9.5 million, signalling a cooling labour market that could relieve some pressure on the Federal Reserve. While quits also saw a decline, layoffs remained unchanged. Despite the downtrend, the labour market remains historically tight, with 1.5 job openings for every unemployed person, a ratio significantly above the 1.0-1.2 range that typically suggests a stable jobs market. This complex picture presents a labour landscape that is still tight but shows signs of cooling, perhaps influencing the Fed's decisions on inflation management.

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4. Headlines

   1. Kylie Jenner may repurchase Coty, her cosmetics brand.

   2. Shopify is partnering with Amazon to allow customers to purchase items on Shopify stores through Prime.

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