Executive Summary

• This week’s note “From the Desk of Deborah Weinswig” discusses whether Amazon is a threat to off-price retailers.
• As the transpacific trade war officially gets under way, US retailers are rushing to fill inventories before additional tariffs are put on Chinese goods. Longer term, escalating tariffs could mean increased sourcing in South and Southeast Asia.
• British retailer Tesco is reportedly planning to launch a new chain of discount stores across the UK to compete with German cut-price retail rivals Aldi and Lidl.
• Chinese retail sales of consumer goods grew by 9% year over year in June, according to the National Bureau of Statistics of China. The later arrival of the Dragon Boat Festival this year accelerated growth in June.