Retailers have been posting fairly good numbers for the month of october. However, several retailers have fallen short of their goals and it has some analysts worried. Analysts predict consumer spending to raise by 2.8% for the month of november and december. Last year this number was projected to be 5.6%. In fact, analysts are saying that consumers are going to spend "4.6% less on gifts this year," and would average out to be 516$
"It's been a mixed bag so far," said John Long, retail strategist at Kurt Salmon. "That is due in part to location, given the October storm in the Northeast, and the fact we continue to suffer from high unemployment and a sluggish housing market."
Costco reported numbers this week and were basically in line with projections, in store sales were up 9%
This holiday season is going to be especially aggressive. Retailers such as amazon are setting up black friday deals. Wal-Mart has said that they are going to be offering especially competitive pricing this coming holiday season.
Another interesting fact is that maces, target, and kohl's are all going to be open at midnight for black Friday. This shows how competitive the retail business is going to be this holiday season. Furthermore, it means that every sale is important and that spending is probably going to be on the lighter side this holiday season.
Dow Jones Newswire
So clearly, here David is pointing out that while there is supposed to be a rise in spending, it is less than the number or percentage projected for last year during the same two month period. It is a worry that retailers will make these numbers this year but it is in great hopes that they do so successes will come about.
ReplyDeleteIt has been discussed that the holidays is being worked on at every moment to make a lot of sales this year since it will be very hard with the times now of unemployment and low incomes and economy slowing.
Hopefully, with retailers working hard for black Friday and holidays, retailers will bring in a lot of business this season and keep their numbers up to make profits and start the new year with a bang!!