Former Home Depot CEO issues grim warning about US economy

Published

2 years ago

April 15, 2023

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close video US economy is in a very complex environment: Bob Nardelli

Former Home Depot CEO Bob Nardelli joined Cavuto: Coast to Coast to weigh in on France raising the retirement age to 64 and retail sales falling more than expected in March.

Former Home Depot CEO Bob Nardelli issued a grim warning over the U.S.'s "very complex" economy, cautioning consumers that middle market companies are under "tremendous pressure."

"I think we're going to see a lot of bankruptcies. Like Bed, Bath and Beyond. We got Walmart not only laying people off, but closing stores. We got Accenture laying people off. We got Amazon closing distribution centers. So I think there's a tremendous-mixed message," Nardelli said during an appearance on "Cavuto: Coast to Coast."

WALMART CLOSING THREE TECH HUBS, ASKING EMPLOYEES TO RELOCATE

The former CEO continued, saying that the "complexity" of the U.S. economy is "different than anything I have seen in my 52 years." Image 1 of 2

According to the U.S. Commerce Department, retail sales in March are up 2.9% year-over-year. | Fox News

According to UBS analysts, more than 50,000 retail locations could permanently shut their doors over the next five years. Those closures would cut the current U.S. store count of about 940,000 by around 5% by the end of 2027.

50K STORES COULD CLOSE IN FIVE YEARS DUE TO A SLOWDOWN IN CONSUMER SPENDING, ECOMMERCE DEMAND

The number of shuttered stores is "already up significantly" in 2023 compared to last year, due to heavy hitters like Bed Bath & Beyond, Foot Locker and bankrupt Tuesday Morning trimming their footprints.

“We’re in a very complex environment. And, of course, this debt issue only adds to that,” – Bob Nardelli, former Home Depot CEO

Over the past year, Bed Bath & Beyond has initiated a turnaround plan that involved shuttering hundreds of stores. Last month, Foot Locker announced it plans to shutter more than 400 low-performing stores in shopping malls by 2026 as it shifts its focus to new concept stores. close video Retail sales expected to get worse in 2023: Stacey Widlitz

Stacey Widlitz, the founder of SW Retail Advisors, reacts to Novembers retail sales coming in worse than expected at a 0.6% decline on Mornings with Maria.

According to Nardelli, Congress' inability to come together and raise the debt ceiling limit has placed an unprecedented burden on businesses, sharing with host Neil Cavuto that he is "definitely worried."

"I'm seeing inventory builds in a lot of the businesses, both public and private. Neil, you remember when we spoke in ‘07, ’08 and '09, there was a singular focus on the banks, right? Their meltdown took everything down," Nardelli continued, Friday.

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"Today, the banks are doing great. But now we have this mixed messaging. Retail is not doing so well. Banks are doing well. Transportation is up 13.9% over the last 12 months. I think we're in a very complex environment. And, of course, this debt issue only adds to that. It adds to the certainty of uncertainty, what's going to happen," he concluded.

FOX Business' Daniella Genovese contributed to this report.

Business

Energy bills to rise again from January but spring falls to come, research firm Cornwall Insight forecasts

Published

40 mins ago

November 18, 2024

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Energy bills to rise again from January but spring falls to come, research firm Cornwall Insight forecasts

Energy bills are to rise again next year, according to a respected forecaster.

Costs from January to March are projected to rise another 1% to £1,736 a year for the average user, according to research firm Cornwall Insight.

The energy price cap, which sets a limit on how much companies can charge per unit of electricity, is also expected to rise, costing typical households an extra £19 a year.

It’s a further increase after energy costs rose 10% from October.

After the latest hike, there were hopes of a fall in the new year, but volatile wholesale gas and electricity markets are still above historic average costs.

Money blog: Supermarket-own champagne beats expensive brands in taste test

Prices have gone up due to supply concerns arising from Russia‘s war in Ukraine, and maintenance of Norwegian gas infrastructure.

But spring is expected to herald a reduction as is October 2025, Cornwall Insight said.

Every three months energy regulator Ofgem revises the cap based on wholesale costs.

The official January price cap announcement will be made on Friday.

It comes as millions of pensioners lost their automatic winter fuel allowance payment after the government means-tested the benefit.

Meanwhile, Cornwall Insight’s principal consultant Dr Craig Lowrey warned “millions” of households won’t heat their homes to “recommended temperatures, risking serious health consequences” with bills on the rise.

“With it being widely accepted that high prices are here to stay, we need to see action,” he said, suggesting options like cheaper rates for low-income homes, benefit restructuring, or other targeted support for the vulnerable “must be seriously considered”.

The energy price cap system is being reviewed by Ofgem with possible changes to the standing charge coming over the next year.

The long-lasting solution to high energy bills is the transition to UK-produced renewable power, the firm said.

“While there will be upfront costs, this shift is essential to building a sustainable and secure energy system for the future.”

UK

Masked burglars ‘raid’ Windsor Castle grounds ‘while William, Kate and children slept at home on estate’

Published

40 mins ago

November 18, 2024

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Masked burglars 'raid' Windsor Castle grounds 'while William, Kate and children slept at home on estate'

Masked burglars have stolen farm vehicles from the Windsor Castle estate while members of the Royal Family are believed to have been asleep nearby.

Two men scaled a 6ft fence on the night of 13 October and used a stolen truck to break through a security gate, The Sun first reported.

The pair then fled with a pick-up and a quad bike that were stored in a barn.

The King and Queen were not in residence.

But the Prince and Princess of Wales, along with their three children George, 11, Charlotte, nine, and six-year-old Louis were believed to have been in their home, Adelaide Cottage, on the estate, according to The Sun.

The family moved there in 2022.

In a statement, Thames Valley Police said: “At around 11.45pm on Sunday 13 October, we received a report of burglary at a property on Crown Estate land near to the A308 in Windsor.

“Offenders entered a farm building and made off with a black Isuzu pick-up and a red quad bike. They then made off towards the Old Windsor/Datchet area.

“No arrests have been made at this stage and an investigation is ongoing.”

On Christmas Day 2021, a man climbed a fence at Windsor Castle armed with a crossbow and claimed he wanted to kill Queen Elizabeth II.

Jaswant Singh Chail was handed a nine-year custodial sentence for treason, possession of an offensive weapon and making threats to kill.

UK

UK told to expect ‘disruptive snow’ as warnings cover large parts of country

Published

40 mins ago

November 18, 2024

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UK told to expect 'disruptive snow' as warnings cover large parts of country

The UK is braced for “disruptive snow” as yellow weather warnings cover large parts of the country until Tuesday – with the Met Office saying there is the “potential” for the alerts to be “escalated”.

The forecaster has warned up to 20cm of snow may accumulate in the worst affected areas as the country experiences its “first taste of winter”.

The Met Office has also told people to expect ice, cold temperatures and wintry showers this week.

Check the forecast in your area

A yellow warning for snow and ice is in place for much of the north of the country – covering areas in the East Midlands, Yorkshire, Wales and the north of England – from 7pm on Monday night to 10am on Tuesday morning.

Those in the impacted areas have been told power cuts are possible and mobile phone coverage might be affected.

The Met Office has said there is a “slight chance” some rural communities could be cut off and that bus and train services may be delayed or cancelled.

People are also warned to be careful not to slip or fall on icy surfaces.

The Met Office has said there will be bright spells across northern and eastern areas throughout today, but rain in the south and west will gradually spread northeastwards and turn to snow over northern hills.

Tom Morgan, Met Office meteorologist, said: “We could see some disruptive snow in the Pennine regions, in particular, the Peak District as well, especially Monday night, but we could well see some impacts lasting on until Tuesday morning’s rush hour.

“Even down to lower levels, we could well see some snow as well, so quite a bit of disruption possible by Tuesday morning, and then the week ahead is likely to stay cold nationwide, a windy day on Tuesday, and then winter showers through the week ahead.”

Mr Morgan said that despite a “mild” start to the month, the cold conditions are more typical of “mid-winter to late-winter”.

“What we can say is that it’s going to be very cold for the time of year, there will be widespread overnight frosts, and a few locations where there’s snow on the ground,” he continued.

Meanwhile, a yellow snow and ice weather warning that came into force at 4pm on Sunday will end at 11am this morning.

The warning covers the northern tip of Scotland and people there have been told there may be icy patches on some untreated roads, pavements and cycle paths.

The Met Office has said there is “potential” for both yellow warnings to be “escalated”.

In southern England, a typical maximum temperature for this time of year is 11C (52F), but daytime highs for the week ahead are forecast to be around 5C (41F), while some parts of Scotland will reach “only just above freezing”, Mr Morgan said.

The meteorologist said the public can best prepare for the wintry weather by checking their cars are suitable for icy and potentially snowy conditions and to take extra supplies including food, blankets and a fully charged mobile phone with them on journeys.

He added there were “likely” to be changes to the weather warnings in the coming days, and that “winter flurries” could be seen in the south of England later in the week.

Despite the cold conditions, the “whole of the UK” will enjoy more sunshine this week, the meteorologist added.

He said: “There’ll be some snow showers in the peripheries of the UK, particularly northern Scotland, and down the east and the west coast, but if you live inland and you live in the south, there’ll be lots of sparkly blue skies on the most days through Tuesday to Friday.”

It comes as a cold weather alert issued by the UK Health Security Agency, which was introduced at 9am on Sunday, will be in place until 9am on Thursday.

It covers a large area of England, north of Northhampton. The alert is triggered when there is a risk that healthcare services might face extra pressure and is designed to prepare those who are “particularly vulnerable” and “likely to struggle to cope”.