Inferiority complex... During a gold rush, sell shovels. During a downturn, sell McDoubles. In tough times, consumers trade down pricey products for budget alternatives (economists call these “inferior goods”). Think: ditching Clif Bars from Whole Foods for granola bars from Costco. Discount stores like Dollar Tree, Dollar General, and Costco, which all report this week, thrive when inflation spikes — if they can keep their own rising supply costs down. That’s easier said than done: last week other discounters, including Walmart and Target, dropped unexpectedly low quarterly profits.
Mission possible?… “Top Gun: Maverick” opens Friday after two years of delays. The $170M sequel could answer Hollywood’s biggest question of the Covid era: will people go to theaters for something that isn’t a superhero flick? With “Top Gun,” Paramount is betting some films justify the big-screen experience. The summer will test that bet, with the major studios, from Universal (“Jurassic World”) to Warner Bros. (“Elvis”), all releasing “event” movies. The pandemic-scarred industry needs some wins: total box office this year is still down 40% from 2019.