Retailers in the US are looking at the forthcoming holiday season with trepidation, with sales growth slowing and customers remaining price-conscious.
Retail sales are forecast to grow at around 3 per cent this year – below the 4.7 per cent in 2023 and the five-year average of 5.3 per cent, according to S&P Global. “Inflation has had a significant impact on consumers and real income growth has softened,” said Sarah Wyeth, a managing director at the ratings agency.
Despite some retailers starting Christmas and Thanksgiving offers earlier this year, spending only increased 0.4 per cent from September to October, and was only 2.8 per cent higher than in October 2023, according to US government data.