As US retailers in various product categories, including apparel, are facing a challenging holiday season, it is a sign that higher discounts might not spark the level of spending the companies are hoping for during their most important period of the year.
Retail executives said that higher interest rates, inflation and a resumption in student loan repayments will keep consumer wallets under pressure.
Numerous retailers said that holiday outlook is mixed after a choppy start to the fourth quarter, when most Americans gear up for Christmas shopping.
Retailers plan to lean on competitive promotions and kicked off holiday deals early to motivate customers to open up their wallets during the Thanksgiving weekend.
Department store chain Kohl’s said sales at stores open at least a year were lower in the most recent quarter, and cut their sales forecasts for the year.
Apparel retailers Abercrombie & Fitch and American Eagle Outfitters posted upbeat quarterly results, but their shares still dropped due to broader concerns about consumer spending declining.
A report of Reuters says that the US holiday sales are expected to rise at its slowest pace in five years, according to data from the National Retail Federation, as Americans are likely to pull back on holiday shopping.
Just a few days back, industry bellwether Walmart warned of cautious consumer spending as the holiday shopping season gets underway.
