Retailers Fear Weak Holidays

According to a recent CNBC Supply Chain Survey, retailers expect a lackluster holiday spending season in 2023, despite improvements in inflation, the stock market, and retail sales. The survey revealed that retailers are ordering less and anticipating consumers to be on the lookout for discounts and freebies to encourage purchases. Last year, major retailers like Target and Walmart faced inventory build-ups, leading to significant markdowns. The survey also highlighted concerns about inflation, with 71% of respondents worried that consumers would cut back on holiday spending in response to rising prices. Most items being ordered are middle-price point items, and over half of the orders will be promotional products. Additionally, only 17% of items ordered are high-end products, suggesting that the luxury market may have peaked.