In its latest earnings call, BJ’s Wholsealse Club says it expects further price deflation for consumer staples in the second half of the year.
The company experienced falling prices across most of its product range in the second quarter, with perishables such as meats, milk, and produce hit particularly hard.
Here’s a clear example of how falling prices can be a great source of relief for consumers.
Going forward, they expect price declines to continue into the fourth quarter, and even lowered second half guidance as a result. They now expect comparable sales to rise 3.5% to 5.5% in the second half versus a previous forecast of 5% to 7%. Otherwise, the company overall is in good shape, and actually beat analyst estimates. Shares were up as of mid-afternoon.
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