We saw a nexus shift with the consumer in Q1 from discretionary to non-discretionary spending. “Bigger names such as Walmart and Costco are doing well, and others like Target and smaller discount retailers are being impacted,” said Eric Lynch, managing director at Scharf Investments, on a recent appearance on Schwab Network’s “Morning Trade Live” program with Oliver Renick ahead of Five Below’s earnings report. Eric discussed the current state of the consumer and discount retailers, and reviewed the typical retail growth flywheel and how discounters such as Five Below are feeling under pressure.

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https://schwabnetwork.com/video/five-below-five-state-of-the-consumer-discount-retailers