Big discounts are coming this holiday season

Date:


New York
CNN Business

Few of us want summer to end, but there’s some good news this winter break: You’ll find more discounts than in previous holiday shopping seasons.

Executives at Best Buy (BBY), Ulta (ULTA), Gap (GPS) and other top chains have said in recent weeks that they expect a shopping season full of discounts. Walmart (WMT) released its annual top toys list Tuesday, saying it was offering more “rollbacks” — temporary price cuts on items — than in previous years and a wider variety of toys for under $50 and $25.

In addition to toys, shoppers will likely find discounts on clothing, televisions, beauty products, sporting goods, and other items.

Some chains have overstocked in recent months and will ramp up promotions to try and sell the glut of goods during the holiday season.

Other companies are also running promotions to give incentives to inflation-stressed shoppers who might otherwise be priced out of holiday gifts.

“We expect it to be more competitive and promotional this year than it was a year ago,” Ulta Beauty Finance Chief Scott Settersten told analysts during an earnings call last week.

Best Buy executives said Tuesday its own inventory levels are healthy, but competitors who have surplus consumer electronics are discounting these to entice buyers feeling pinched by inflation.

“We’re seeing a customer that’s more value-oriented, definitely moving more toward some of those sales events,” CEO Corie Barry said during a conversation with analysts. Barry expects Christmas shopping to start later in the season than a year ago.

“You’re going to experience a vacation that’s starting to look a little bit more like what we saw before the pandemic,” she said.

Retailers are not “where they want to be in terms of inventory levels, which will require more discounts,” Jonathan Matuszewski, a retail analyst at Jefferies, said in a note to customers Tuesday. He expects a “fierce promotional holiday.”

While shoppers love discounts, they are not loved by retailers as they eat up the profits. Some chains, such as Kohl’s (KSS) and Gap (GPS), are instead packing their excess inventory and planning to sell it in coming seasons.

However, it’s unclear whether holiday discounts will be attractive enough to spur inflation-conscious shoppers to buy.

A large number of retailers have said in recent weeks that lower-income customers are shifting their purchases from discretionary goods to necessities such as groceries and household items. Some higher-income consumers are also cutting their spending.

“High-income consumers, who generate a disproportionate share of spending, recorded large declines in both their current personal finances and purchasing conditions for durable goods,” University of Michigan researchers wrote this month.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Share post:

Popular

More like this
Related

Zip ties found at the scene of Pelosi home invasion, police say

Zippers were found at the scene of an intruder's...

NASA captures photo of ‘smiling’ sun. It’s not as cute as it looks.

Reply to this storyRemarkIt turns out that everyone who...

Elon Musk plans Twitter layoffs with new team

Reply to this storyRemarkSAN FRANCISCO — Members of billionaire...