This interview podcast features Morgan Stanley's Andrew Sheets and Jenna Gianelli discussing the outlook for the retail and consumer sectors in 2025. The conversation begins with an overview of the current economic climate, noting seemingly strong data alongside consumer cost pressures and uncertainty surrounding the new administration's policies. Gianelli then details her cautious outlook, highlighting the divergence between high-end and low-end consumer spending and predicting a deceleration in services demand while goods hold relatively steady. Specific examples include potential recovery in home-related spending and continued underperformance from traditional department stores. Finally, the discussion touches upon the impact of potential tariffs and increased M&A activity within the retail sector, with Gianelli emphasizing the wide range of potential outcomes and the opportunities for private equity investment in undervalued companies. Listeners gain insights into the complexities of the retail sector and potential investment strategies for 2025.
