Don't blame the Grinch if store shelves look a little less festive than usual this year. Walmart and other major retailers are importing fewer Christmas items this year in preparation for a lukewarm holiday season.
Walmart, the world's largest retailer, shipped at least 340,000 kilograms of purported Christmas goods to the United States in the 12 months ending Sept. 30, according to import data from ImportYeti provided to Reuters.
The amount is less than half of the 980,000 kilograms shipped in the same period last year, the data showed.
And in 2022, Walmart imported more than 1.9 million kilograms of Christmas products in the same 12-month period, according to ImportYeti.
A Walmart spokesperson said the data “paints only a partial picture” of the products the company procures.
Walmart executives are expected to share their outlook for the holiday season on Nov. 19, when Walmart reports its third-quarter results.
Charles Sizemore, chief investment officer at Walmart's investment firm Sizemore Capital Management, said Walmart is looking at shopper spending data.
“We expect sales to be weak as Walmart's orders decline,” he said.
U.S. retail sales unexpectedly increased in September, and recent inflation reports show signs of further cooling. Consumer sentiment rose for the third straight month and hit its highest level since April. According to a University of Michigan consumer survey.
But shoppers hit hard by persistent inflation continue to cut back on discretionary spending as soaring prices erode savings.
According to one survey, approximately 56% of U.S. consumers are concerned about whether they will be able to pay their bills this holiday season. EY Holiday Shopping Survey A survey of 1,000 U.S. consumers. This number rose to 61% of Gen Z consumers in the US.
Greg Zakowitz, senior e-commerce expert at Omnisend, a marketing automation platform for e-commerce sites, said, “Consumer sentiment is becoming more positive, but wallets remain tight and shoppers are becoming more intentional.” “We're starting to buy more and more,” he told the Post.
“Consumers therefore make more self-purchases and large-ticket purchases around Black Friday, as they intentionally look for big-ticket purchases like furniture and TVs, as well as items they can predictably stock up on. “It can actually happen,” Zakovits said.
Walmart is already trying to entice hesitant holiday shoppers into buying more deals at lower prices. The average price of the company's toys this season is $40.16, 10% cheaper than last year.
Retailers are aware that consumers are less likely to splurge this year and want to avoid being burdened with a glut of Christmas merchandise.
U.S. companies, including major retailers such as Walmart and Dollar General, shipped about the same amount of Christmas merchandise this year by weight as last year, according to ImportYeti.
U.S. retailers imported about 141 million kilograms of Christmas goods in the 12 months ending Sept. 30, compared with 180 million kilograms in the same period in 2022, the data shows.
Holiday spending is expected to increase by 2.5% to 3.5%, according to the American Retail Federation. This forecast would be the slowest growth rate since 2018, when holiday sales rose just 1.8%.
Retailers are also expected to hire fewer holiday workers this year compared to last year as companies look to cut costs.
Michael Barbera, chief behavioral officer at ClixAsian Lab, a marketing agency that specializes in consumer psychology, said: “Many retailers are certainly seeing a year-on-year decline, primarily due to persistent inflation and high levels of consumer debt. “We expect sales and profit margins to decline as a result of this,” he told the Post.
“As a result, retailers are managing expenses by adjusting inventory and payroll strategies, refraining from seasonal bulk orders, and offering reduced hours rather than layoffs.”
Another challenge facing U.S. retailers this year is the particularly short holiday season from Black Friday to Christmas, which “reduces retailers' time to capture holiday spending and creates a concentration of last-minute purchases.” “It's possible,” Barbera said.
It is difficult to estimate the complete outlook for retailers from import data alone, which ignores domestic imports and domestic vendors.
Some analysts remain optimistic about the upcoming holiday season, despite lower expectations.
“Just because imports of Christmas decorations and toys are down doesn't necessarily mean it's a slow season,” said Craig Johnson, president of retail consultancy Customer Growth Partners.
He expects U.S. holiday sales to grow 4% this year, slower than last year's 4.1% increase.
with post wire
