Inflation takes a bite out of retail stocks

Higher operating costs, inventory gluts and cash-strapped consumers are adding up to a selloff of retail company stocks. “Investors are worried about every datapoint pointing to further incremental inflation,” said Michel Keusch, a fund manager at Bellevue Asset Management. “The wake-up call started with the comments from Walmart and Target, and since then we have seen many retailers warning, adding to the general pessimism.”