Business

Shopping is going to be a lot more painful in 2022

Published

5 years ago

2021/12/24

Bloomberg News The great rotation in consumer spending continues.

When the world shut down in 2020, we bought what we needed to stay home: Pelotons, pets, sweatpants and sourdough starter. In 2021, our shopping reflected reopening: We put on lipstick again, whitened our teeth and swapped loungewear for chinos and dresses. Most consumer, retail and luxury groups had a pretty good year.

But consumer sectors are now facing another shift in habits, and this one may not be as favorable.

The omicron variant is a headwind for travel, hospitality and retail. Even if the latest wave of infections peaks relatively soon, there are other perils ahead — from lockdown savings being exhausted just as prices are rising to tighter monetary policy and higher borrowing costs, something consumers haven’t had to endure for several years.

Already, the cracks are beginning to show.

Even before the surge in omicron cases, there were signs of consumers becoming more cautious. British retailer Currys Plc, for example, said demand for its electronics was weaker than expected. And amid fewer people heading into city centers and offices, famous London department store Harrods brought forward its sales from Dec. 26 (Boxing Day) to Dec. 17. Other metropolitan areas, such as New York City, have also been suffering.

But it’s not just the new variant weighing on shoppers’ minds. U.S. retail sales less than forecast back in November. True, some spending may have been pulled forward to October, when many retailers ran special offers and consumers shopped to avoid product shortages. But the real concern is that rising prices have finally begun to take their toll.

Up to now, consumers have been able to withstand accelerating inflation on everything from coffee to coffee tables. Many were flush with savings after being homebound for much of the past two years. But reopening economies drew down that cash.

And now prices are rising at an even faster clip. Most consumer-goods companies are already negotiating price hikes with retailers or will start in January. With inflation coming through in commodities from oil to packaging, that will make for some difficult conversations. It is also likely to lead to further spikes. U.S. food prices rose 6.1% in November, the highest level in 13 years. We could see a similar escalation in Europe.

Although wages are increasing too, U.S. inflation is outpacing it by some distance: The gap between the two is the biggest it’s been for more than 20 years.

Some of the caution Currys has seen may reflect a spending squeeze already under way in Britain. After all, a new laptop, iPhone or oven is a large purchase. In the U.S., Lowe’s Cos. said it expected the pandemic home improvement boom to finally wane.

Many people spent big during the pandemic, especially on new homes. This might be another source of weakness as interest rates rise. Higher borrowing costs are expected in 2022, which could lead Americans and Europeans to pull in the purse strings.

While large, expensive items may be the first to feel the pinch, other areas will eventually suffer too. Consumers have a tendency to trade down from big brands to cheaper private labels, or switch from meat to vegetable-based meals, when stressed about their wallets. Cutting back on indulgences that grew during the pandemic, such as ordering takeout, would be another way to save money.

There are some silver linings. Although the arrival of omicron is hurting travel and leisure, it may, in the short term, ease some of the forthcoming consumer pain. Working from home again means saving money on commuting and lunches out. Hopes for a “revenge Christmas” this year — going all out to make up for a bleak 2020 holiday — are already looking fragile, as some people cancel their restaurant reservations and plans to hold large gatherings.

January is always a grim month for retailers, restaurants and bars. It’s when credit card bills land and trends such as dry January and Veganuary take hold. But this year it could be even more brutal.

It’s a timely reminder that, like stocks, consumer rotations don’t only go one way. – Bloomberg

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Business

SLT-MOBITEL driving Sri Lanka’s economic resilience through digital infrastructure

Published

9 hours ago

2026/09/10

Sahan Weerasooriya

SLT-MOBITEL marks its triple triumph at the National Business Excellence Awards 2026

Corporate accolades underscore the alignment between its operational excellence and national development

In an era where national competitiveness is intrinsically tied to digital connectivity, strengthening the country’s digital backbone has become an urgent priority. Within this context, the evolving role of Sri Lanka’s leading telecommunications provider, SLT-MOBITEL, offers valuable insight into how technological infrastructure can underpin broader economic resilience.

Telecommunications and digital networks are foundational to economic transformation. By expanding high-speed broadband access, upgrading enterprise cloud capabilities, and bridging the urban-rural connectivity divide, SLT-MOBITEL helps reduce business transaction costs, streamline supply chains, and enable micro, small, and medium enterprises to reach global markets.

Recent corporate accolades further underscore this alignment between operational excellence and national development. SLT-MOBITEL’s triple triumph at the National Business Excellence Awards 2026 – winning in the Infrastructure and Utilities sector, Performance Management, and ICT Services categories – highlights its growing impact. Notably, the recognition of eChannelling’s contributions to digital healthcare reflects a broader strategic pivot toward integrated technology solutions.

“Institutional efficiency of this nature is critical for attracting foreign direct investment, as global partners increasingly assess a country’s digital maturity and systemic stability before committing capital,” noted industry observers.

Moreover, the company’s transition from a conventional telecom utility to a comprehensive digital solutions provider aligns seamlessly with Sri Lanka’s national digitalisation agenda. As the country pursues public sector modernisation, enhanced e-governance, and a competitive knowledge economy, the private sector must step up to deliver secure, scalable, and future-ready networks. Investments in data centres, cybersecurity frameworks, and advanced ICT infrastructure act as strategic buffers, ensuring that Sri Lanka’s economic apparatus remains agile and resilient amid future global uncertainties.

However, industry experts caution that while these achievements are commendable, SLT-MOBITEL still has a considerable distance to cover in fully enabling a truly digital economy.

Business

Port City Colombo strengthens Gulf investment ties at Dubai diplomatic engagement

Published

9 hours ago

2026/09/10

Sahan Weerasooriya

The panel discussion at the engagement

Port City Colombo (PCC) took a prominent role as Platinum Sponsor at the second edition of Sri Lanka Beyond Your Dreams, a high-level diplomatic and investment engagement hosted by the Consulate General of Sri Lanka in Dubai and the Northern Emirates. The event, held on 2nd September 2026 at the Hilton Dubai Al Habtoor City, brought together over 400 senior UAE-based business leaders, investors, diplomats, and institutional stakeholders, alongside Sri Lanka’s most senior government representatives.

The gathering was graced by Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, as Guest of Honour, and Vijitha Herath, Sri Lanka’s Minister of Foreign Affairs, Foreign Employment and Tourism. A high-level Sri Lankan delegation – including the Secretary to the Prime Minister, the Chairman of the Board of Investment, the Chairman of the Export Development Board, and the Director General of Commerce – underscored the government’s strong commitment to deepening economic diplomacy with the UAE.

In his keynote address, Minister Herath reaffirmed the centuries-old ties between Sri Lanka and the Arab region, emphasising the UAE’s vital role as a key economic partner. He stressed the urgency of finalising a Comprehensive Economic Partnership Agreement (CEPA) with the UAE, which would establish a robust framework to elevate trade, investment, and bilateral cooperation. Declaring Sri Lanka “open and ready for business,” he positioned Port City Colombo as the physical embodiment of this economic mission – a modern Special Economic Zone (SEZ) with a dedicated legal framework and competitive incentives, offering UAE investors a natural gateway to South Asia while maintaining strong Gulf connectivity.

Business

American Premium Water strikes Gold at Dragons of Sri Lanka 2026

Published

9 hours ago

2026/09/10

Sahan Weerasooriya

The achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories.

American Premium Water has secured four wins at Dragons of Sri Lanka Awards 2026, including three Gold Dragons and one Black Dragon, marking a significant milestone for the brand following its relaunch last year.

Part of the prestigious Dragons of Asia awards, Dragons of Sri Lanka brings the program’s regional platform to the local market, celebrating creative and effective marketing communications, with entries evaluated on strategic thinking, creativity, execution and impact. Established in 2000, Dragons of Asia is one of Asia’s premier results-driven marketing awards programs.

For American Premium Water, the achievements are particularly significant given that the company’s debut at the Dragons awards has resulted in four Dragons across four categories. In the distinction of Gold Dragons, American Premium Water was recognized across three categories including Product Launch or Re Launch, Cause, Environment or Sustainability and Creative Excellence while the Black Dragon was awarded in recognition of Small Budget.

Competing alongside leading brands and agencies in Sri Lanka, American Premium Water’s four wins demonstrate the strength and effectiveness of its recent work. Winning three Gold Dragons across three distinct categories highlights the breadth of the brand’s achievements, while the Black Dragon for Small Budget further emphasizes its ability to create meaningful impact through focused and efficient investment.