A recent graph from Bloomberg shows a “Bullwhip Effect” as retailers see long-term orders made during the supply crunch fulfilled in the face of present static demand:

Previously retailers could not meet demand sue to lack of inventory. Now as inventory builds, the stimulus money issued during Covid is no longer fueling increased buying power from consumers. In addition there is a shift from tangible purchases to to non-tangible experiences, as demonstrated in recent rises in airline stocks such as United.

Regardless retailers such as Walmart and Target still report strong demand, and predict they will work through the current excess inventory over the next few months.