Are the top ten retailers over charging consumers
Has anyone noticed how prices at your favorite retailer have been increasing more and more since Child Tax Credit Checks were approved by Congress? Consumers across the United States are currently seeing high gas prices and extremely high food prices. We are experiencing record-high inflation in 40 years. So, who should we blame for the rising prices? Should we blame the Federal Government or the retail giants? A corporate watchdog group claims that stores including CVS Health, Target, Walmart, and Costco raised their prices needlessly in 2020 and 2021 as the nation was struggling with the Covid-19 pandemic. Recent reports show that the top ten retailers in the country collectively increased their profits by $24.6 million. How can retailers' profits increase while the nation is struggling to put food on the table?
According to recent financial reports:
Walmart saw its net income increase by $163 million, to over $13.6 billion in its most recent fiscal year, crediting the income boost to "price management and mix." The company's shareholder handouts grew by $7.2 billion to nearly $16 billion. Target saw its 2021 net earnings rise by 59 percent and spent $1.5 billion on shareholder dividends.
CVS Health saw over $7.8 billion in net income and spent $2.6 billion on shareholder dividends. Moreover, it paid its new CEO nearly $20.4 million.
Costco and its shareholders should be much happier after having a record-breaking $5 billion net income, growing its shareholder handouts by over $4.5 billion. This raises the question of whether or not these companies needed to increase their prices in the first place.
The Federal Government should be watching large retail companies more closely than they do. Increasing prices unnecessarily apply financial stress to consumers who are having to deal with high gas prices and food prices.
The other top ten retailers in the United States were also included in the report. TJ Maxx, whose CEO admitted that "inflationary price increases were "a major opportunity," saw its 2021 profits rise by 3,546% to over $3.28 billion. Amazon, which hiked its Prime subscriptions earlier this year, saw its 2021 net income increase from $12 billion to over $33 billion. Amazon claimed its increase in revenue is due to staffing and scaling fulfillment.