Will inflation-weary shoppers spend this holiday season HEAD TOPICS

Will inflation-weary shoppers spend this holiday season

10/21/2022 6:03:00 PM

Will inflation-weary shoppers spend this holiday season

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L A Daily News

Will inflation-weary shoppers spend this holiday season Shoppers in search of early discounts will find markdowns at major retailers on products that were stuck in transit or packed in warehouses during supply-chain backups from last holiday season. But it should be noted that 2021 was a record-setting year for holiday sales, and the increase accentuated by the dismal showing that occurred during the worst of the COVID-19 in 2020.They’re also stepping up discounts as much as they can in the face of their own higher costs. And they’re hoping more people will visit brick-and-mortar stores after doing much of their shopping online during the pandemic. Recent consumer research by the company shows 58% of consumers polled plan to increase their online holiday shopping compared with 2021.Radial typically boosts its staffing by five times during the holidays to keep pace with heightened consumer demand, the company said. Read more:
L.A. Daily News » How Kohl’s Is Handling Holiday 2022 Big bargains will dominate the holiday season, but shoppers may not be sold Visa, Mastercard profits expected to jump as travel rebounds Tickets go on sale for holiday-favorite 'ZooLights' at Lincoln Park Zoo

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Read more >> How Kohl’s Is Handling Holiday 2022Amid the macro headwinds and pressures from activist shareholders, there's a greater sense of urgency to win over shoppers this holiday season. Big bargains will dominate the holiday season, but shoppers may not be soldRetailers are discounting computers, toys and more to try to sell off excess inventory and encourage budget-conscious shoppers to spend. Visa, Mastercard profits expected to jump as travel reboundsU.S. card companies are expected to benefit as pandemic-weary consumers continue to fuel demand for travel, one of the biggest contributors to revenue, despite rising inflation. Tickets go on sale for holiday-favorite 'ZooLights' at Lincoln Park ZooThe holiday season will be here before you know it. Avoid Holiday Overwhelm: This Amazon Toys List Is an Easy Way to ShopThese are the hottest toys to give this holiday season, according to Amazon. 🎁 AlixPartners , a global consulting firm, show Lee’s assessment isn’t far off the mark.the addition of Sephora beauty shops to 600 stores.Key Points Shoppers will see more items on sales this holiday season compared with the past two years.have also forecast strong profits for the rest of the year, in a sign that travel demand was offsetting concerns about expensive air fares. AlixPartners predicts holiday sales will rise 4% to 7% — far below last year’s growth of 16%. With inflation running above 8%, retailers will likely see a decrease in real sales, the company said. It’s in triple the doors versus a year ago,” said Murray. But it should be noted that 2021 was a record-setting year for holiday sales, and the increase accentuated by the dismal showing that occurred during the worst of the COVID-19 in 2020. People walk stores offering sales at a shopping mall in Santa Anita, California on December 20, 2021. Merchants will have to adjust their expectations after that.” Gift sets for fragrances, skin care and body care have doubled, Murray added. This year’s predicted growth in sales is more in line with 2019, which saw an uptick of 4. banking giants that reported earnings earlier this month. 1%. Pets is another big play for holiday . Retailers, desperate to coax inflation-fatigued consumers to spend, are expected to beef up promotions as they struggle to get rid of already-marked-down excess inventory. To prepare, retailers say they ordered inventory earlier to avoid the supply-chain snags that frustrated them the past two holiday seasons and to draw in early birds. They’re also stepping up discounts as much as they can in the face of their own higher costs. They love their pets just like their children,” said Murray. And they’re hoping more people will visit brick-and-mortar stores after doing much of their shopping online during the pandemic. Computers, electronics and toys are all expected to hit the deepest discounting levels since Adobe started tracking figures in 2017. Online sales thriving Even though the pandemic has eased and mall shopping has returned, online sales remain brisk. Reacting to Americans going out again and ready to party after being cooped in due to COVID-19, Kohl’s is touting expanded occasion dressing options ranging from sequined, metallic and velvet dresses, to wide-legged trousers, faux fur coats, and heeled footwear from brands like Nine West, Draper James RSVP and Madden Girl. AmEx shares have dropped 12%, while Mastercard and Visa are down 17% and 14% this year, respectively. Recent consumer research by the company shows 58% of consumers polled plan to increase their online holiday shopping compared with 2021. To meet that demand, local e-commerce companies are bulking up their hiring. 9. Concerns about not getting hot items meant consumers were willing to pay up. In the Inland Empire, Radial Inc. needs to fill more than 1,800 entry-level positions at its centers in Rialto and Montebello ahead of the holiday shopping season. Within Kohl’s “Presentville” shops, which are destinations for board games, barware, puzzles, personalized gifts, stocking stuffers, prank sets, and cocktail kits, among other gift items, “50 percent of the offerings are new,” said Murray. Radial typically boosts its staffing by five times during the holidays to keep pace with heightened consumer demand, the company said. On a larger scale, e-commerce giant Amazon is hiring 150,000 employees in full-time, part-time and seasonal positions across the U.” A “Presentville” area for gifts inside Kohl’s last year.S. for this holiday season. New outdoor products include Duraflame Stoves, Igloo Coolers, Columbia Tents, GoTrax Electric Bikes, and GCI portable folding chairs. To lure the labor pool, Amazon is offering signing bonuses of up to $3,000 in certain areas and is paying more than $19 hourly, according to a company announcement. Retailers are ordering inventory earlier this year to avoid the supply-chain snags that frustrated them the past two holiday seasons. As it has in the past, Kohl’s will spotlight “incredible values” in its private brands such as Sonoma Goods for Life, SO, Apt. Radial Inc., an e-commerce fulfillment company, just announced plans to fill more than 1,800 entry-level positions at its fulfillment centers in Rialto and Montebello. “We spend at lot of time with our private label, where there’s been a tremendous amount of product innovation,” said Murray. (Photo courtesy of Radial) Hiring has also ramped up on the brick-and-mortar side. Target is hiring up to 100,000 seasonal workers, Nordstrom 20,000 and J. Key national brands include Nike, Levi’s, Under Armour, Adidas, Tommy Hilfiger, Calvin Klein, Eddie Bauer, Columbia, Vans, Cole Haan, Cuisinart and KitchenAid.C. Penney has nearly 22,000 seasonal openings. The holiday season is always the most important part of the year to most retailers, though this year there seems to be a greater sense of urgency at the $19. Walmart also announced plans to boost staffing. But this year’s 40,000 seasonal employees will be a 75% decline from the 150,000 who were hired last year. On top of that, Kohl’s and the rest of retailing is dealing with inflation, declining consumer confidence, the volatile stock market, mounting expectations that the nation will enter a recession next year, and the nation’s labor shortage. Amazon Style employee Damian Lopez readies merchandise at the Amazon Style clothing store at The Americana at Brand mall in Glendale Tuesday, May 24, 2022. (File photo by Hans Gutknecht, Los Angeles Daily News/SCNG) Garage , a women’s clothing store in the Irvine Spectrum Center, grappled with supply-chain backups last year, but the business hopes to avoid that scenario this time around. Many retailers have lowered their forecasts for fourth-quarter and year-end revenue totals. “We had a lot of issues with getting products last year,” said Jackie Perez, an assistant manager at the store. “Merchandise stayed in shipping boxes and didn’t move.5 percent decline in sales, Michelle Gass, the chief executive officer of Kohl’s, told WWD, “We are right-sizing our inventory to reflect a more modest sales plan, but we still have plenty of fresh receipts coming in. But this year we’ve ordered ahead and hope to get everything we need before Black Friday.” Perez said the current wave of inflation is impacting Garage customers differently, based on demographics. “The tailwind is that we didn’t have enough inventory last holiday. “A lot of our customers are young women who come here right out of high school as they’re headed for college,” she said. “They find what they need and just swipe their parents’ credit cards.…This is an extraordinary environment. But others who are older and on a budget are more careful with their money.” In search of comfort Cristel Russell, a professor of marketing at the Pepperdine Graziadio Business School in Malibu, said that while many consumers will carefully monitor their spending this year, they’ll still buy. Fourth-quarter inventories will be up 19 percent from 2019. “Sometimes when things are hard, people want to find something of comfort, and that could mean buying something for a special occasion,” Russell said. “Many people might want to spend more money on their homes without splurging on big items.” Some retailers and industry analysts are expecting all-time high levels of price promoting for the upcoming holiday season, due to consumers cutting back on discretionary spending, excess inventories and higher prices. I think they want to ensure there is a sense of normalcy with their families during this time.” Shoppers in search of early discounts will find markdowns at Kohl’s, Costco and other major retailers. For the fourth quarter, Kohl’s has in its arsenal “new tools for how we price and promote,” Gass said. Many had products stuck in transit or packed in warehouses during supply-chain backups from the last holiday season. And there’s lots of it. 11 and 12, whereby shoppers could take an extra $10 off a $50 purchase on some already discounted items. In July, retailers were sitting on $548. 8 billion worth of inventory, a 21. “We know our customers have many options to choose from during the holidays, but where Kohl’s stands apart is in our tremendous breadth of categories, mix of national and private label brands, and incredible value differentiators that make shopping at Kohl’s a go-to destination for the season,” said Murray.6% increase from last year, according to U.S. For the first time, shoppers can earn Kohl’s Cash every day from Cyber Monday (Nov. Census data. Amazon ran its second Prime Day discount event earlier this month and the company typically discounts merchandise ahead of Black Friday. Earlier this year, those using their Kohl’s Card began getting a higher earn rate of 7. Target also ran a Deal Days promotion this month, and the company’s website is already promoting several Black Friday deals. Walmart plans to offer a variety of discounts beginning in early November. Kohl’s Rewards members who choose an alternate payment method receive 5 percent Kohl’s Rewards. Lee, who describes his business as “the last of the old-school hobby stores,” isn’t as affected by supply-chain backups, as he typically orders smaller quantities of items on an as-needed basis. He recently got an influx of fresh merchandise from a longtime customer who needed the money to help pay off medical bills. The retailer has been reflowing key active and casual brands such as Calvin Klein, Draper James RSVP and Under Armour, in proximity to its Sephora shops for better exposure. “I bought two SUVs full of replica guns from World War II and lots of other stuff he had from a lifetime of collecting,” Lee said. “Aside from that, I just buy if a customer needs something. In active, we have elevated brand shops going in,” said Murray.” Increased logistics costs A study for the Council of Supply Chain Management Professionals by global consulting firm Kearney found U.S. Four new stores will open on Nov. business logistics costs surged 22.4% in 2021 to $1. Tags. 85 trillion. There’s a bit of a hangover from that, a bit of fear,” said Max Rhodes, CEO of Faire, an online marketplace used by small businesses to sell their wares wholesale, or buy goods for retail shops. While it’s too early for sales data, the term “Christmas” was the most searched-for term on the site in mid-September. That’s two weeks earlier than last year, and eight weeks earlier than 2020, Rhodes said. The Associated Press contributed to this report. .