9 months ago
Americans Defy Economic Uncertainty, Boosting Holiday Retail Sales
Despite worries about tariffs and a wobbly economy, Americans are spending more money during the holiday season.
Many big stores like Walmart and Gap are doing well.
Some people are still struggling, but overall, it's a good shopping season for retailers.
They're trying to make deals even better to attract customers.
Strong financial results from major retailers like Walmart, Gap, and TJX indicate robust consumer spending
Holiday sales expected to grow 3.7% to 4.2%, comparable to last year's 4.3% growth
Tariffs and economic pressures have led to some pockets of weakness in retail sales
Retailers are offering earlier Black Friday deals and absorbing tariff costs to encourage shopping
Discount retailers like TJX and Ross Stores are thriving due to consumer demand for value
- Who
- American consumers
- What
- are spending more during the holiday season
- Where
- in the United States
- When
- during the 2019 holiday shopping season
- Why
- due to strong consumer demand and retailers' efforts to offer better value
Optimistic View
Cautious View
Consumer Spending
Optimistic View
Strong and resilient despite economic pressures
Cautious View
Some consumers are dialing back spending due to financial constraints
Retailer Performance
Optimistic View
Many retailers are seeing growth and improved sales
Cautious View
Some retailers are struggling with soft or declining sales
Key facts
- Expected holiday sales growth
- 3.7% to 4.2% compared to last year
- Total expected holiday sales
- Last year's holiday sales growth
- 4.3%
- Total last year's holiday sales
- Retailers' share of annual sales and profits
- significant portion
Quotes
Chris Fasciano, chief market strategist at Commonwealth Financial Network
Chris Fasciano is the chief market strategist at Commonwealth Financial Network.
“From a sentiment standpoint, the early reads we get on Black Friday and Cyber Monday, due to the lack of data we have, will be important.”
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“The entirety of the holiday shopping period will be an important read for where we are with the consumer and what that means for the economy.”
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Michael Pearce, deputy chief U.S. economist at Oxford Economics
Michael Pearce is the deputy chief U.S. economist at Oxford Economics.
“The most important factor for consumer spending is the health of the labor market.”
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“Persistently firm inflation, with import tariffs contributing to higher prices, also could weigh on spending.”
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Doug Beath, global equity strategist at the Wells Fargo Investment Institute
Doug Beath is a global equity strategist at the Wells Fargo Investment Institute.
“If you get a pullback there, a lot of the wealth in the upper income is in the stock market ... so it will be interesting to see if they spend like they have in the past.”
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