Faced with the reluctance of consumers to buy at so-called "normal prices", retailers have resorted to early and substantial price cutting, lower costs of financing, and other price-related promotions. These tactics are intended to spur sales to clear inventories even at the expense of planned profitability.
One important outcome of this situation will effectively be a massive transfer of capital to energy producers from retailers. The situation likely does not presage a change in the long-run supply curve for retail consumer goods unless energy costs remain at their current elevated levels in relation to consumer disposable income.
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