HdL HeadLines calls out retail trends affecting the economy to provide you with insight and support in your budget preparation and economic planning.
- U.S. Retail Sales Unexpectedly Rise in August but Inflation Hampering Spending
- Holiday Sales Growth Expected to Slow this Season
- What Walmart and Target's Performance Told Us about Retail for the Rest of 2022
- Auto Sales Increase for the First Time in Over a Year
- Bed Bath & Beyond Announces Locations of Its First Wave of Closures
- Western U.S. Continues to Lead in Home Price, Value Declines
- HdL Insights
U.S. retail sales unexpectedly rebounded in August as Americans ramped up purchases of motor vehicles and dined out more amid lower gasoline prices, but demand is cooling as the Federal Reserve aggressively raises interest rates to fight inflation. Consumer spending, however, is likely to remain supported by persistent strength in the labor market, with other data showing the number of people filing new claims for unemployment benefits last week fell to the lowest level in more than three months.
Deloitte’s holiday forecast shows consumers are likely to feel the impact of inflation late into this year. As a result, holiday sales are expected to grow between 4% and 6%, reaching $1.45 to $1.47 trillion this season compared to an increase of 15.1% during last year’s period. Deloitte also projects that e-commerce sales will grow by 12.8% to 14.3% to reach between $260 and $264 billion year over year compared to last season’s growth of 8.4%.
Inventory, margins, traffic, pricing, food, gas, costs, holidays: The two giants act as a window into the market that everyone is trying to peer through. With both physical and online stores, and merchandising that spans everything from clothing to televisions to dumbbells to organic coffee, and much more, Walmart and Target both function to some degree as barometers for the American consumer and the wider retail market. Their most recent earnings reports tell us that spending hasn't collapsed, and may be improving.
Car sales increased for the first time in more than a year in August. Industry analysts at LMC Automotive and TrueCar are reporting that for the first time since last summer, new car sales increased last month. Excluding fleet sales, TrueCar expects U.S. retail deliveries of new vehicles to be 1,015,575 units, up 6% from a year ago and up about 3% from July 2022.
After announcing plans to close more than 150 stores, Bed Bath & Beyond this week released a list of over 50 locations it intends to shutter. The first wave of closures affect select stores in more than 20 states, including California, Connecticut, New Jersey, Florida, Illinois, Michigan, North Carolina and Pennsylvania. The retailer late last month announced its plan to close stores as part of a new turnaround plan, which also included laying off 20% of its corporate and supply chain staff and discontinuing three of its private labels in favor of national brands.
After a slowdown in buyer activity starting in late spring, home price and value drops are being observed more frequently across the U.S. Nowhere are home values declining quicker than in the western United States, though. California cities San Francisco, Los Angeles and Sacramento, as well as Salt Lake City in Utah, saw the biggest drops in typical home values between July and August, according to Zillow Group Inc. Values fell 3.4% in San Francisco and Los Angeles, 3.2% in Sacramento, and 2.6% in Salt Lake City.
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