Retailers approach the holiday season with optimism, as consumers show they plan to keep spending. That's the message from analysts and from retailers themselves as shoppers scrutinize Black Friday and Cyber Monday deals.
The National Retail Federation expects a 3.5% decline in online and in-store spending, between November and December. That would mark the slowest growth rate in six years. At the same time, consumer sentiment is showing signs of improvement, as moderate inflation and low interest rates take hold. The University of Michigan's Consumer Sentiment Index rose for the fourth consecutive month in November.
However, consumers remain cautious, citing uncertainty about the state of the economy and President-elect Donald Trump's policies, including additional taxes.
“I think we're going to see a little more inflation as we go into next year, so I'm a little worried about that idea,” said Donna Campbell, while shopping with her daughter.
Since Black Friday falls later in the month this year, retailers have started rolling out promotions in October. Adobe Analytics expects stores to receive up to 30% off list prices, with the highest discounts online.
Walmart ( WMT ) CFO John Rainey told Yahoo Finance that he expects pocketbooks to remain stretched, as the company raised its sales and profit outlook for the holiday quarter.
“We see that [shoppers] they buy general merchandise as they spend more money on food; there is little you can use in some of the things you can choose from,” he said.
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