Andrea Felsted is a Bloomberg Opinion columnist covering consumer goods and the retail industry. Previously, she was a reporter for the Financial Times. With interest rates lower, inflation collapsing and wages rising faster than prices, there’s potential for a very happy holiday for U.
S. retailers. But it’s not time to celebrate yet.
Even as the first deals kick off next week from Amazon.com Inc., Walmart Inc.
and Target Corp, lowerto middle earners are still struggling to shake off the pain of the past few years, the presidential election looms over some key shopping weeks and the East and Gulf Coast ports have been on strike. For those without compelling prices or products, or who lack the agility to navigate these seasonal challenges, it might not be such a fun sleigh ride. With consumers staying picky, sellers will need to ensure their selections resonate with their customers, that they deliver impeccable value for money and that their in-store seasonal displays are eye-catching enough to stimulate sales.
Of course, that should all be Retail 101. But absolutely nailing these attributes will be more important than ever and will separate the winners from losers. There’s some evidence to suggest that consumers are ready to splash out more than they did last holiday.
Back-to-school spending was solid, up 2.6% from 2023, according to retail research group GlobalData. Then there are the macro forces: Not just cheaper borrowing costs and tamer inflation, but savings that .