Weak Christmas Spending Warnings! Walmart and Major Retailers Cutting Imports Dramatically Ahead of Shopping Season
1min read As investors celebrate Trump's victory, weak figures warn that consumer spending for this Christmas is not as strong as many expect. Walmart and other big retailers have drastically cut imports, including Christmas trees, toys, and decorations to the United States, indicating a lackluster shopping season ahead.
Walmart has drastically reduced its Christmas imports, according to Reuters. The world's largest retailer shipped at least 340,000 kilos of products labeled as Christmas goods into the U.S. in the 12 months ending September 30. This is a steep decline from the nearly 980,000 kilos shipped in the previous 12 months and more than 1.9 million kilos in the same period in 2022, which included items like reindeer ornaments and Grinch plush toys.
A Walmart spokesperson noted that bill of lading data only paints a partial picture of what we source due to the exclusion of data from the marketplace, national brands, and domestic importer data for private brands, among other things. The retailer's executives are expected to provide their holiday season outlook when the company reports third-quarter results on November 19.
Charles Sizemore, Chief Investment Officer at Sizemore Capital Management, stated that Walmart routinely analyzes data on shoppers' spending patterns, including credit card data. They have done the research on their consumer. And what they have concluded is that the holiday season is not going to be as strong, Sizemore said.
While the holiday-product import data does not include electronics, clothing, or other general merchandise, Sizemore remarked, If Walmart is ordering less, they are expecting sales to be tepid.
Retail consultant and former Target Vice Chairman and ex-CEO of Hudson's Bay, Gerald Storch, echoed these sentiments. Retailers are predicting a smaller sales increase this holiday than we saw last year, he said.
Storch added that consumers are stretched thin, with less money available for discretionary purchases. While total U.S. consumer spending is up, some commentators confuse total consumer spending (including necessities like housing or healthcare) with discretionary spending.