The retailers vying to win this year’s shortened holiday shopping season
The holiday shopping season officially kicked off on Black Friday, but this year, holiday sales are expected to grow at the slowest pace since 2018. While inflation has significantly slowed, compounded inflation over the years has families thinking twice about big purchases or multiple smaller purchases.
The National Retail Federation (NRF) still projects Americans will spend more this year than ever before. Shoppers are edging ever closer to that trillion-dollar mark, with estimates holiday spending will reach between $979.5 billion and $989 billion, compared with $956 billion last year. That represents 2.5% to 3.5% growth, the slowest growth in six years.
One thing out of retailers’ control is the shorter-than-usual holiday shopping season. Thanksgiving came exceptionally late in 2024, shrinking the shopping season by five days compared with 2023.
Fewer days to capitalize is bad news for retailers and small businesses already feeling the inflation crunch. Target is one of them. The red retailer’s stock price plunged 22% after reporting the latest quarterly earnings and forecasting a flat holiday season.
“Consumers tell us their budgets remain stretched and they’re shopping carefully as they work to overcome the cumulative impact of multiple years of price inflation,” CEO Brian Cornell said on a call with analysts.
Despite efforts by Target over the past six months to slash prices on thousands of items, customers aren’t expecting to pay less at Target stores. Instead, middle- and upper-income shoppers are switching to Walmart, where the world’s largest retailer is feeling jollier about the upcoming holiday spending.
Walmart told its workers it plans to win the season, and expects holiday growth to outpace NRF estimates. Analysts caution that Walmart’s success is not a sign of broader retail industry health, since Walmart is snagging inflation-fatigued customers away from other stores.
Walmart is increasingly focusing on two fronts, in-store and online. Last quarter, Walmart’s e-commerce sales jumped 22%.
If Target is chasing Walmart, Walmart is chasing Amazon. EMarketer projects Amazon will capture 42% of all U.S. online holiday sales. They forecast Walmart’s share will be around 8%.
Amazon will also look to expand on last year’s initial success with interactive advertisements during its Black Friday football broadcast.
Overall, the NRF said holiday online shopping will increase 8% to 9% this year, accounting for about 30% of all holiday spending.
Mexico’s president refutes Trump’s claim she promised to close the border
President-elect Donald Trump said Mexico has agreed to stem the tide of migrants flowing into the United States, but Mexico’s president is now saying that’s not quite accurate. And Amazon workers are using Black Friday to make a statement about their labor situation. These stories and more highlight your Unbiased Updates for Friday, Nov. 29, 2024.
Mexico’s president refutes Trump’s claim she promised to close the border
As President-elect Donald Trump gets ready to return to office, he’s already making moves to follow through on some of his biggest campaign promises. After announcing this week his plans to impose tariffs on goods from China, Canada and Mexico, he turned his attention to another hot-button issue: immigration.
It’s a bit of a case of “he said, she said” after Trump had a call with Mexican President Claudia Sheinbaum on Wednesday, Nov. 27. President-elect Trump posted on his Truth Social platform after the call saying Sheinbaum agreed to stop migration into the U.S. through Mexico, “effectively closing our southern border.”
Sheinbaum appeared to contradict Trump in a post of her own on X, saying in part, “Mexico’s position is not to close borders…”
She did, however, lay out Mexico’s “comprehensive strategy” for addressing the migration issue. In a separate post on X, Sheinbaum said during the call, she told President-elect Trump, “No caravans are arriving at the border because they are being attended to in Mexico.”
En nuestra conversación con el presidente Trump, le expuse la estrategia integral que ha seguido México para atender el fenómeno migratorio, respetando los derechos humanos. Gracias a ello se atiende a las personas migrantes y a las caravanas previo a que lleguen a la frontera.…
The two leaders also talked about how they’re addressing the U.S. fentanyl crisis.
The call was scheduled after Trump unveiled plans to slap 25% tariffs on all imports from Mexico to the U.S. as part of the effort to stem the flow of illegal drugs into the U.S. through Mexico.
Not only would that impact the prices of avocados and agave — both very popular in the U.S. — Mexico’s economy secretary said Wednesday 88% of all North American pickup trucks come from Mexico. Sheinbaum then suggested Mexico could retaliate with tariffs of its own.
“I hope he rethinks it,” Biden said. “I think it’s a counterproductive thing to do. You know, one of the things you’ve heard me say before is that we are – we have an unusual situation in America. We’re surrounded by the Pacific Ocean, the Atlantic Ocean, and two allies: Mexico and Canada. The last thing we need to do is begin to screw up those relationships.”
Economists forecast Trump’s planned tariffs would increase prices for American shoppers, costing the average U.S. household about $2,600 per year, according to an estimate from the Peterson Institute for International Economics.
Israel and Hezbollah both claim ceasefire violations
Barely three days into a 60-day ceasefire between Israel and the Iran-backed militant group Hezbollah in Lebanon, both sides are claiming violations.
Yesterday, Hezbollah had a precision-guided missile manufacturing site—today, they don’t.
Hezbollah’s largest precision-guided missiles manufacturing site, 1.4km wide and 70m underground, was struck and dismantled by IAF fighter jets yesterday.
Lebanese authorities also said two people, who were trying to return to southern Lebanon, were shot and wounded by Israeli forces. Lebanon’s health ministry said they were civilians, but the IDF claimed they were suspected of violating terms of the truce.
The agreement, brokered by the United States and France, includes an initial two-month ceasefire during which Hezbollah militants will withdraw north of the Litani River and Israeli forces are to return to their side of the border.
Thousands of Amazon workers to strike from Black Friday to Cyber Monday
Amazon workers in more than 20 countries, including the U.S., are on strike on some of the busiest pre-Christmas shopping days across the world. It started on Black Friday, Nov. 29, a day for bargain hunters to score some of the biggest discounts from stores across the country as holiday shopping kicks into high gear.
Organizers told the United Nations the so-called “days of resistance” are to hold Amazon accountable for alleged labor abuses, as well as “environmental degradation and threats to democracy.” According to ABC News, the strike could delay holiday deliveries.
The organizers said this is their fifth year of labor action against Amazon during the beginning of the holiday shopping season.
In a statement, Amazon said the group that organized the strikes is being “intentionally misleading” and promoting a “false narrative.” Management said the company offers great pay and benefits.
Canada sues Google over control of online ads
Canada’s antitrust watchdog said it is suing Google over alleged anti-competitive conduct in the company’s online advertising business. They’re calling for Google to sell off two of its ad tech services and pay a penalty.
The Competition Bureau said it’s necessary because an investigation into Google found the company “unlawfully” tied together its ad tech tools to maintain its dominant market position. Google insists the online advertising market is a highly competitive sector and is fighting the allegations.
This comes just a week after the U.S. Department of Justice asked a federal judge to force Google to sell its Chrome web browser, saying it continues to crush the competition through its dominant search engine.
America facing a live Christmas tree shortage again
As millions of Americans get ready to begin their search for the perfect Christmas tree, growers are having historic challenges getting them to sale lots, according to the Wall Street Journal.
The day after Thanksgiving is usually the biggest day for live tree sales, but since Thanksgiving came so late this year, it’s a very short selling season. On top of that, a nationwide shortage is expected thanks to severe weather across the country this year, such as a northeastern drought and North Carolina floods caused by Hurricane Helene. North Carolina is the second-biggest supplier of Christmas trees in the country.
Shoppers bought roughly 21.6 million real Christmas trees in the U.S. last year, according to the National Christmas Tree Association. The Department of Agriculture said the number of trees harvested in the U.S. has declined 30% since 2002, while the American population has grown 16% over the same period.
Alaska native air drops Thanksgiving turkeys to families in remote areas
In the most remote parts of Alaska a Thanksgiving turkey is hard to come by. So, one woman made sure families in roadless parts of the state had their holiday feast.
Pilot Esther Keim calls it “Alaska Turkey Bomb.” She flies in a small plane to off-the-grid homes and air drops frozen turkeys for families to enjoy for Thanksgiving.
Keim said it’s a tribute to a family friend who did the same thing for her family when she was growing up.
She started the tradition in 2022 after somebody that she knew told her they did not have much of a holiday dinner — and no turkey at all. Since then, she has delivered 30 to 40 turkeys every year to families living in remote areas of Alaska.
Amazon workers in 20 countries plan Black Friday, Cyber Monday strike
Thousands of Amazon workers from around the world are planning to strike again on one of the biggest shopping weekends of the year. This is the fifth holiday season in a row for Make Amazon Pay protests, when warehouse staff and delivery drivers strike in support of workers’ rights and climate action from Black Friday through Cyber Monday.
Employees in 20 countries, including the United States, United Kingdom, Germany and Japan, are demanding higher pay, the option to unionize, and a company commitment to environmental sustainability.
It’s all led by a pair of social and economic justice organizations, UNI Global and Progressive International.
“Amazon is everywhere, but so are we,” Progressive International’s Co-General Coordinator Varsha Gandikota-Nellutla said. “By uniting our movements across borders, we can not only force Amazon to change its ways but lay the foundations of a world that prioritizes human dignity, not Jeff Bezos’ bank balance.”
According to numbers from Amazon, employees in the U.S. can earn between $18.50 and $29.50 per hour depending on the position and location.
A 2023 report by the National Employment Law Project found that warehouse workers in areas with Amazon fulfillment centers make $822 less a month than warehouse workers in areas that don’t have Amazon fulfillment centers.
It’s not clear exactly how much more money Amazon workers are asking for, but they specifically want hazard pay and premium pay for peak times.
When it comes to environmental concerns, the advocacy groups are asking Amazon to commit to zero emissions by 2030 and to transition to electric vehicles.
An Amazon spokesperson said in a statement that it is already taking a proactive stance against climate change by becoming the world’s largest purchaser of renewable energy.
“These groups represent a variety of interests, and while we’re always listening and looking at ways to improve, we remain proud of the competitive pay, comprehensive benefits, and engaging, safe work experience we provide our teams,” Amazon said.
‘Black Fraud Day’: Social media sees influx of Black Friday AI fraudsters
The ads for the best sales of the season and Black Friday deals are aimed at attracting those day-after Thanksgiving shoppers. Cyber security experts are sounding the alarm that scammers are now using AI to turn it into so-called “Black Fraud Day.”
Richard Horne, chief executive of the National Cyber Security Center in the U.K., said scammers are targeting bargain hunters by using artificial intelligence and becoming more sophisticated. The shady tactics include fake ads online, often for clothing and tech products. These are generally social media ads with huge discounts.
Users should be on the look out for phony links that direct users to websites that look real but are really after their personal and financial information. Often, the web link is slightly different from the real one and consumers can have a hard time recognizing the difference.
Consumer experts also said be careful when buying gift cards online. Fake gift cards are now a favorite of scammers. Gift cards make it almost impossible for the victim to get their money back. Instead, experts advise shoppers to go directly to the company website or buy gift cards at the physical store.
Another favorite of thieves is the fake delivery alert that shows up in a person’s email. Once the person clicks on the link that is attached, the scammer steals their information.
The British security chief says customers across the pond lost the equivalent of $14.5 million to thieves during the holiday shopping season last year and his country saw 16,000 reports of online scams.
Four-day ceasefire in Gaza sets table for hostage release: The Morning Rundown, Nov. 24, 2023
This morning begins a four-day ceasefire in Gaza, setting the table for hostages to be released. And if you are looking for a Black Friday deal, the U.S. Marshals might have some for you. These stories and more highlight The Morning Rundown for Friday, Nov. 24, 2023.
During the pause in fighting, Hamas is expected to release 50 women and children who were taken captive during Hamas’ Oct. 7 terror attack on Israel, which killed 1,200 people. It has been reported that during the attack in October, Hamas took nearly 250 hostages.
Hamas said that during the ceasefire, Israel will release 150 Palestinian prisoners.
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The four-day truce, which was brokered with the help of officials in Qatar, Egypt, and the U.S., may be extended with the additional release of hostages. According to Qatari officials, the first 13 hostages are set to be freed Friday afternoon, Nov. 24.
Fiery crash that killed 2 at U.S.-Canada border likely not terrorism
I want to be very, very clear to Americans and New Yorkers. At this time, there is no indication of a terrorist attack.
Gov. Kathy Hochul
With the fear of terrorism surrounding the crash, the FBI announced it concluded its investigation and declared it found no evidence of terrorism.
“I just returned from the scene of a horrific accident that led to a high-level of anxiety all the way from Western New York to Albany to Washington, but before I describe the details, I want to be very, very clear to Americans and New Yorkers. At this time, there is no indication of a terrorist attack,” Gov. Kathy Hochul said. “Let me repeat that at this time there is no indication of a terrorist involved attack here at the Rainbow Bridge in western New York.”
In a security camera video, you can see a car speeding, going airborne, and then exploding on the Rainbow Bridge crossing Niagara Falls.
The driver and the only passenger in the car died, according to officials. CNN reported that the couple from New York, who have yet to be identified by law enforcement, were planning to attend a Kiss concert in Canada that had recently been canceled.
The crash shut down multiple border crossings in Western New York, but all have reopened. After concluding its investigation, the FBI turned the scene over to local law enforcement.
NYC mayor facing sexual assault allegations
New York City Mayor Eric Adams, who is at the center of an FBI probe into his campaign finances, is now being accused of sexual assault. The allegations stem from his time as a New York City police officer in 1993.
A lawsuit filed under the Adult Survivors Act in New York on Wednesday, Nov. 22, alleges that Adams sexually assaulted the plaintiff while they were working for the city. The plaintiff is seeking $5 million in damages.
The Guardian reported that Mayor Adams denied the allegations, stating that he does not know the plaintiff and would never physically harm another person.
The Adult Survivors Act gives sex assault accusers a one-year window to retroactively file civil suits, which otherwise would have been blocked due to the statute of limitations; that window expires Friday, Nov. 24.
World Health Organization looking into cluster of pneumonia cases in children in China
The World Health Organization is investigating a cluster of pneumonia cases in children in China following an alert on Tuesday, Nov. 21, calling for more information about undiagnosed pneumonia in China.
According to a WHO release, scientists attribute the rise in respiratory illness to lifting COVID restrictions, adding that this is likely a rise in common respiratory illnesses, like the flu, and could be an uptick in COVID cases.
The WHO added that it always requests additional information when unknown diseases are reported as part of its International Health Regulations System.
Amazon workers around the world strike as Black Friday begins
More than 1,000 Amazon workers hit the picket line in Europe as one of the year’s busiest shopping days gets underway. At Amazon’s Coventry warehouse in the UK, one of the online retailer’s busiest hubs, workers are the first to strike as Amazon workers globally call for better wages.
It comes as Amazon extended its Black Friday deals throughout a couple of days with millions of consumers ready to cash in on the savings.
Amazon sets Black Friday, Cyber Monday records; COVID case anniversary
Today marks a grim COVID-19 milestone; Tesla unveils its electric semitruck; and Amazon hits record high. These stories and more highlight the midday rundown for Thursday, Dec. 1, 2022.
First COVID-19 case in China 3 years ago
Today is the three year anniversary of the first COVID-19 patient in China. It’s been three years since the first infection in China and there are still many questions surrounding the virus, including its origins.
“what we would really like to know is the details with the original people who were infected. We keep a completely open mind as to what the origin is,” said Director of NIAID Dr. Anthony Fauci.
COVID-19 wasted no time spreading around the globe, altering the way of life and killing more than 6 million worldwide. Deaths in the U.S. topped one million this year.
EU’s plan to cap Russian oil stalls
The European Union decided months ago it would ban the purchase of Russia’s crude oil in an effort to hurt Russia’s economy amid its conflict with Ukraine. They set a deadline for Dec. 5, but an agreement on how to execute the squeeze on Russia has yet to be settled among the 27 countries.
The world is too reliant on Russia’s crude oil for a complete ban. The countries concluded that would only send prices soaring and disrupt their own markets. So instead, they’re considering a price cap on how much Russian oil they’ll purchase.
The EU is still at odds over how high to set the cap. Many nations agreed to $60 per barrel. Without a full consensus, Russia will continue to rake in profits while the world considers how to implement repercussions.
Florida pulls $2 billion from BlackRock
Republican states are making their biggest move yet against a giant investment bank that’s accused of taking a political stance on where it invests money.
Florida is pulling $2 billion worth of assets managed by BlackRock. It’s the biggest divestment by a state opposed to BlackRock’s “environmental, social and corporate governance” policies.
BlackRock is accused of focusing on ESG investments and turning away from the fossil fuel industry. Louisiana and West Virginia have also transferred state funds out of BlackRock investments.
Tesla unveils all electric semi truck
Tesla is set to unveil its new all-electric 18-wheeler Thursday. Tesla semitrucks are finally hitting the road, three years later than originally planned.
Pepsi is set to receive the first electric semitruck during a delivery event after its reveal.
The truck’s battery power can reportedly last about 500 miles carrying an 80,000 pound load.
Record high of holiday sales on Amazon
For many Americans, packages are now arriving daily from online shopping orders placed over the weekend. From Black Friday to Cyber Monday, shoppers shelled out a record number of spending.
Amazon is now saying it was their biggest ever holiday shopping weekend on record. Inflation on prices was not a deterrent this year, with an estimated 200 million Americans participating in the holiday shopping rush.
Rosa Parks arrested on this day in history
It was on this day, 67 years ago, when a Black seamstress took a seat on the bus and was told to go to the back based on her skin color. Rosa Parks refused to give up her seat for a white passenger, and was arrested by police for her protest.
“As I look back on those days it’s just like a dream and only thing that bothered me was we waited so long to make this protest and let it be known wherever we go that all of us should be free and equal and have opportunities,” said Rosa Parks in a past interview.
Rosa Parks was later named the first lady of civil rights. Her protest created a law that prevented segregation on city buses.
Black Friday gun sales third busiest on record
Some of the most popular items sold during this year’s Black Friday include things like electric toothbrushes, wireless headphones, and Legos. But Americans also bought a lot of guns. This year’s Black Friday gun sales numbers made it one of the busiest gun sales days in history.
The National Shooting Sport Foundation said the FBI’s National Instant Criminal Background Checks System ran more than more than 711,000 background checks last week, including more than 192,000 on Friday alone. That’s enough to make Nov. 25, or Black Friday, the third busiest day on record for NICS.
The NICS data are raw, so it’s unclear what types of firearms were purchased. Also, just because a background check is run doesn’t mean a gun was sold. However, NICS is still the best way to track the number of gun sales in America.
During the COVID-19 pandemic, American gun ownership increased dramatically. NSSF said more than 5 million Americans became first-time gun owners in 2021.
According to a Pew research study, 40% of adults in the U.S. now live in a home with a gun present, and 30% of adults personally own one. While most people buying guns are white men, plenty of women and people of color are buying guns, as well. One-third of first time gun buyers last year were women.
The increase in gun ownership comes during a time of rising crime rates across the country and a renewed push by Democrats for a ban on so-called “assault weapons.” On Thanksgiving, President Biden said the idea of selling semi-automatic weapons is “sick.”
World’s biggest volcano erupts, Black Friday and Cyber Monday break records
The World’s biggest volcano is erupting; a recall is issued for sippy cups; and this Cyber Monday could break records. These stories and more highlight the midday rundown for Monday, Nov. 28, 2022.
World’s most active volcano erupts
The world’s largest active volcano is erupting in Hawaii for the first time in nearly 40 years. Even though Mauna Loa has been dormant since 1984, officials have noticed an increase in seismic activity over the past few months. The volcano covers half of the island.
Lava is not threatening downhill communities, but there is an ash-fall advisory in place.
U.S. eases sanctions on Venezuela
Over the weekend, the Biden administration eased oil sanctions on Venezuela, and the Treasury Department granted Chevron permission to pump oil in Venezuela and expand its operations.
Venezuela was slapped with the sanctions 15 years ago for human rights abuses, drug trafficking and corruption. A vast portion of migrants entering the U.S. for asylum come from Venezuela to escape persecution. The move was an attempt to curb revenue to a country that holds the world’s largest oil reserves.
The Biden administration is easing sanctions after the Venezuelan government opened the door to its opposition party to discuss humanitarian crises.
Recall issued on stainless steel sippy cups
An important recall alert has been issued for parents of toddlers. Potential lead poisoning has caused thousands of sippy cups to be recalled. The stainless steel bottles from Green Sprouts are sold at popular retailers like Whole Foods and Bed Bath and Beyond.
The danger is that if the bottle breaks, it could potentially expose your toddler to a toxic metal that can cause poisoning if ingested.
Black Friday, Cyber Monday break records
It’s the most wonderful time of the year for retail, after a booming Black Friday set records on spending. Cyber Monday is projected to do the same thing.
Black Friday raked in more than 9 billion dollars in sales and now Cyber Monday is projected to break online purchasing record with $11 billion in sales.
Holiday promotions are tempting consumers even amid high inflation.
Word of the year: Gaslighting
“The word of the year for 2022 from Merriam-Webster is gaslighting. The act or practice of grossly misleading someone, especially for one’s own advantage,” said Merriam-Webster Editor at Large Peter Sokoloski.
Webster’s word of the year is “gaslighting.” Searches of the word on their website increased 1,700% compared to last year. It’s a term frequently heard on the dating scene.
Black Friday amid inflation; frustration over China COVID lockdowns
Americans take part in Black Friday amid record inflation; Musk grants Twitter amnesty; and Covid lockdown frustrations are growing in China. These stories and more highlight the morning rundown for Friday, Nov. 25, 2022.
Black Friday begins amid record inflation
It’s the biggest shopping weekend of the year and Americans are ready for deals after dealing with four-decade-high inflation all year. A record 166 million people are expected to shop now through Cyber Monday, up about 8 million from last year, according to the National Retail Foundation.
The group expects sales growth will slow to 6%-8% this weekend, down from last year’s 13.5% growth. And that’s not adjusted for inflation, so real spending could actually be down this year.
With high prices on the mind, shoppers are willing to wait for steep discounts, forcing retailers to extend Black Friday-like deals far beyond the holiday shopping weekend.
Elon Musk grants amnesty to suspended accounts
Elon Musk is giving blanket amnesty to suspended Twitter accounts that may have posted hate speech and other company violations. The new chief said he’d reinstate suspended users next week as long as they haven’t “broken the law or engaged in egregious spam.”
Musk continued the trend of making his leadership decisions via Twitter polls: 72% voted in favor of general amnesty.
This decision comes about a week after Musk reinstated former President Donald Trump’s account after another poll showed 52% of respondents in favor of the move. Trump has so far declined to tweet on the platform.
In other Twitter news, Musk tweeted today that the verified system will relaunch next Friday with different color checks for companies, government and people, which will all be manually verified.
The blue check system was put on pause after an explosion of imposter accounts.
Witness: Walmart shooter was going hunting
Employees who were in the break room of the Chesapeake, Virginia, Walmart are talking about what they saw when their supervisor opened fire on them, killing six coworkers.
One employee told the Associated Press it looked like he was going hunting and seemed to target people, even going back and shooting victims who were already dead. But others say he shot wildly.
“As soon as my team lead said, ‘All right, guys, you know, we have a light night ahead of us,’ I looked up and my manager turned around and he just opened fire on everybody in the break room. And it is by the grace of God that a bullet missed me,” witness Briana Tyler said.
The city of Chesapeake says at least two employees are still hospitalized, including one in critical condition.
The FBI went through the shooter’s home Wednesday searching for any clues in this Chesapeake tragedy.
Frustration over China COVID lockdowns grows
China is facing record COVID infections with outbreaks in every region of the country. Lockdowns continue to batter the economy as worker frustration grows.
Employees clashed with authorities at a major iPhone factory in the Henan province this week, rebelling over lockdown conditions and pay. Now, the company Foxconn is offering severance payments of $1,400 to get disgruntled workers to leave.
Conditions in China are rippling through the global oil market as experts see demand weakening. A measure of Asian crude consumption tumbled to a seven-month low.
U.S. takes on England at World Cup
The U.S. is facing a tough matchup against England today in the World Cup. After settling for a draw against Wales, the American team is fighting to get to the knockout stage in its group, going up against a team that’s not only a favorite, but cruising from its decisive 6-2 victory against Iran earlier this week. The kickoff is at 1 p.m. CST.
Meanwhile, one of the best players in the world went down with a severely sprained ankle Thursday. Brazil’s Neymar limped off as his team held on to win against Serbia.
Brazil is the overall favorite for the Cup, but it’s not clear whether Neymar will be able to play in its next match Monday against Switzerland.
Retail results a mixed bag before hottest shopping week of year
It’s the most critical time of the year for retail stores but Target isn’t feeling the holiday cheer. The company’s huge miss in earnings in the third quarter sent shares tumbling more than 16% Wednesday morning and forecast more doom for the company’s holiday season.
Target said shoppers were increasingly feeling the impact of inflation as the quarter dragged on and pulled back on spending toward the end of it, taking a sledgehammer to profits. Because of it, the company is planning for a weaker holiday season and is also strategizing to become leaner in the medium term, with a goal of cutting $2 billion to $3 billion in costs over the next three years. The company did not explain how it plans to meet that goal but said it is not planning for layoffs at this time.
In an effort to boost sales, Target has been trying to attract holiday shoppers early by advertising Black Friday discounts more than six weeks ahead of the day. Walmart also pushed early holiday rollback deals, in part to compete with Amazon’s Prime Day event.
Walmart echoed some of Target’s retail concerns in its earnings report this week, noting shoppers are spending more on needs than wants. But because Walmart has a robust grocery department and is attracting more high-income shoppers amid high inflation, the big-box store actually beat expectations.
The holiday picture
Retailers are currently gearing up for the biggest shopping week of the year, Cyber Week, which runs from Thanksgiving through Cyber Monday. Experts predict sales will still grow during this time but not by as much as some previous years.
Adobe forecasts Black Friday online sales will grow by just 1% on the year, while Cyber Monday will be up 5.1%, setting a record $11.2 billion in spending for the day. Adobe said early holiday deals are drawing away from typical Cyber Week spending.
Meanwhile, the National Retail Federation forecasts overall holiday sales will still grow between 6% and 8% for the 2022 season, but that’s a big dip from the 13.5% growth seen in 2021.
Retail sales strengthen
In October, retail sales grew more than expected at 1.3%, boosted by vehicle purchases and gasoline. The figure is adjusted for seasonal variation but not inflation. Gas stations saw a 4.1% increase on the month while auto dealerships saw a 1.3% increase, according to the Commerce Department. Grocery stores also saw a 1.4% increase in sales on the month.
Meanwhile, sales of electronics and appliances went down 0.3% on the month and 12.1% compared with a year ago. Department stores saw a 2.1% decline on the month for October.
“October retail sales data confirms that consumers continue to stretch their dollars on household priorities,” NRF President Matthew Shay said. “With a strong labor market and excess savings, we are expecting a solid 5-day holiday shopping weekend.”