Problem
U.S. inflation has hit 40-year record high in early 2022. As a result, consumers are spending less on nonessential products and services. For retail businesses that are at risk of high inflation, what should they do to lessen the impact and survive?
Task
i. What are the impacts of high inflation on consumers?
ii. What are the impacts of high inflation on retail businesses?
iii. Identify at least one type of retail businesses (i.e., industry sectors) that would suffer the most from high inflation
iv. Provide recommendations to those retail businesses you discussed earlier.