HdL HeadLines calls out retail trends affecting the economy and HdL news to provide you with insight and support in your budget preparation and economic planning.
- U.S. Retail Sales Surge as Holiday Shopping Starts, Brightening Economic Outlook
- Thanksgiving Weekend to See Lots More Shoppers This Year than Last
- Home Depot Earnings Top Estimates Fueled by 9.8% Jump in Sales as Consumers Fix Up Homes
- Macy's to Delay Store Closures, Launch Third-Party Marketplace Next Year
- CVS Closing 900 Locations, Adding ‘New Store Formats’
- HdL Announcements
U.S. retail sales surged in October as Americans eagerly started their holiday shopping early to avoid empty shelves amid shortages of some goods because of the ongoing pandemic, giving the economy a lift at the start of the fourth quarter. The report from the Commerce Department suggested high inflation was not yet dampening spending, even as worries about the rising cost of living sent consumer sentiment tumbling to a 10-year low in early November. Rising household wealth, thanks to a strong stock market and house prices, as well as massive savings and wage gains appear to be cushioning consumers against the highest annual inflation in three decades.
Consumers may have already started their holiday shopping, but that’s not going to deter them from turning out in force over Thanksgiving weekend. Nearly 2 million more people than last year are expected to shop from Thanksgiving Day through Cyber Monday this year, according to the annual survey released by the National Retail Federation and Prosper Insights & Analytics. Among those shopping on Thanksgiving Day, 65% are likely to do so in stores, up from 50% last year. On Black Friday, 64% are likely to shop in stores, up from 51% last year.
Home Depot reported third-quarter earnings and revenue that beat analysts’ forecasts as customers spent more on home improvement projects. Strong demand is carrying over into the next quarter as the retailer readies for the holiday season. Home Depot executives told analysts that same-store sales growth for the first two weeks of the fiscal fourth quarter are slightly higher than third-quarter levels.
Macy's is pausing its plan to close 125 stores, announced last year as part of its Polaris turnaround, telling analysts that physical locations have proven key to digital as well as brick-and-mortar sales. Following a tactic employed by Amazon, Nordstrom, Walmart and Target to varying degrees, Macy's also said it will launch a third-party marketplace for Macy's and Bloomingdale's customers in the second half of next year. The announcements came as the department store reported third-quarter net sales rose 36.3% year over year and 5.2% from 2019 to $5.4 billion.
CVS is planning to close a total of 900 stores over the next three years, the company announced. CVS said it has been “evaluating changes in population, consumer buying patterns and future health needs” to make sure it has its locations in the right places. Part of the company’s strategy is to create “new store formats.” The remaining stores are to be adapted into three types of sites, that will be dedicated to offering primary care services, an enhanced version of HealthHUB locations, along the traditional CVS Pharmacy store. The first 300 stores will begin closing in spring 2022.
Click the links below to access our recent client communications.
- What is Really Behind the Supply Chain Crisis?
- Prop. 172: Public Safety Sales Tax Update
- Sales Tax Rebounding Throughout California
HdL will be at the following upcoming event:
- CSAC Annual Meeting - Being held November 30 - December 3, 2021 in Monterey, CA. Visit us at Booth 202.
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