because of high inflation (Opens in a new tab) And budgets tighten, holiday shoppers are buying fewer gifts than they did last year. In fact, only projected holiday sales are expected to rise 6% to 8% (Opens in a new tab) From a year ago, it was down when inflation was up 8.2%.
This lack of demand has been a problem for many retailers, and it’s a big shift from last year. While stores previously struggled to keep items in stock, they are now sitting on an overstock. Given that Americans are already spending less on non-essential items such as electronics and clothing, this has led to a severe imbalance in products. More and more retailers are facing diminishing profits and a shortage of storage space as new products keep coming out, but not abroad. targeting lost more than 34% (Opens in a new tab) of its stock due to inventory issues, while Nike stock fell 13% in one day in September for similar reasons.
However, while this excess inventory presents a challenge for retailers, it is good news for consumers. To clear warehouses, retailers will aggressively filter products, which means bigger and better deals this holiday season. Retailers will have to discount items heavily in order to keep up with this drop in demand. Discounted computers would be as high as 32%, electronics 27% and toys 22%, he says USA TODAY (Opens in a new tab)And many more deals to come before Black Friday. On November 7th, Walmart will begin Black Friday deals for the days, with four separate events starting every Monday in November. Everything from electronics to clothing to toys will be drastically reduced, and Walmart+ members will first have access to these deals.
Additionally, off-price retailers will acquire better branded merchandise as retailers sell inventory to them, so if you like to shop at TJ Maxx, expect to see an increase in quality products and brands being sold in the store.
Overall, this is a win-win for holiday shoppers, especially since many are finding it more difficult than ever Save for the holiday season (Opens in a new tab). As retailers struggle to liquidate excess inventory, expect big discounts this holiday season. Black Friday deals are coming early this year, giving you more time to shop for the best sales.
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