Crowds expected back at malls and stores over Thanksgiving weekend

Many Americans are expected to return to stores and malls after Thanksgiving, despite rising prices, product shortages, and an early surge in online spending, before the holiday season officially begins.

According to Adobe Analytics, US consumers are expected to spend $ 5.1 billion to $ 5.9 billion on Thanksgiving Day, a record for the day.

US shoppers have already spent $ 72.2 billion online since early November. That’s nearly 20% above the same period in 2020, more than one-third of Adobe’s $ 207 billion online spending forecast for November and December.

Sharply Divergence of revenue Announcements from major chains set the time from Thursday’s Thanksgiving to Cyber ​​Monday, the traditional five-day peak of the US retail calendar, as a definitive test of the health of the industry. ..

After strong results from “big box” retailers such as: Walmart And disappointing performance by Home Depot and electronics and apparel chains Best buy Gap, investors are monitoring the strength of consumer confidence and clues to the resilience of supply chains struggling to support demand.

A National Retail Federation survey found that the number of Americans planning to shop this Thanksgiving weekend was slightly higher than at the same time last year.The day after Thanksgiving for those who shop on Black Friday Retail company Historically, it has served many customers, with 64% planning to go to the store instead of buying online.

This is a leap from 51% a year ago when the Covid-19 vaccine was unavailable and health concerns kept most shoppers at home. However, it was still below the share I went to the store in 2019.

ICSC, a shopping center industry group, predict This weekend, twice as many people will visit the mall as it did during the same period in 2020.

In the United States, consumer spending is skyrocketing, supported by trillions of dollars of government support. Economy.. Retail sales in October were up 1.9% month-on-month, almost 15% above October 2020 levels.

The resilience of consumer spending has believed in retailers’ concerns earlier this year. Inflation price And continued disruption to the global supply chain will weaken demand.

Consumer prices rose 6.2% year-on-year, the fastest growth since 1990, as retailers passed on soaring labor, raw material and transportation costs in October. Dollar Tree, a chain built by selling products for $ 1 this week, Raise the price For $ 1.25 for most of the items it sells.

Line chart of upfront monthly sales ($ 1 billion) for retail and food services showing accelerating US retail sales

Salesforce reported last week that early-season discounts on US chains were down 16% year-over-year. Adobe has found that discounts offered online in some categories, such as appliances and furniture, are running at half the levels seen during the 2020 holiday season.

Almost 59% of US consumers started Shop fast According to market research group Global Data, it has a similar share expressing concern that the products it needs may not be available or may be delayed beyond 2020.

Wal-Mart said last week that consumer sales of frozen turkey more than doubled in October compared to the same month in 2020, given the potential shortage of consumers. Still, retailers expected a “sufficient supply.”

US retail inventories have plummeted in the last 18 months due to unprocessed ports and a shortage of truck drivers. Warehouse space Complex store efforts to replenish shelves. By September, the average retailer’s inventory was about 33 days, down from about 44 days in September 2019.

Additional report by Jamie Smyth

Crowds expected back at malls and stores over Thanksgiving weekend Source link Crowds expected back at malls and stores over Thanksgiving weekend

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