Against the background of new quarantine restrictions, the pre-holiday shopping season may look different than usual.
Retailers are preparing for an unprecedented holiday shopping season, which begins with the traditional Black Friday and unfolds against the backdrop of the COVID-19 pandemic.
Stores traditionally offer great discounts on Friday after Thanksgiving, opening a month’s pre-holiday shopping season that is critical to the retail sector.
Consumer spending during the holidays is expected to increase overall, but the rapid spread of coronavirus in recent weeks has made retailers worried that new restrictions may discourage people from shopping.
American Eagle Outfitters’ clothing brand management said on Tuesday that Coronavirus foci are affecting store attendance.
Competing brand Gap warned that the recent coronavirus outbreak could reduce store attendance.
Abercrombie & Fitch expects sales volumes this quarter to be lower than in previous years.
“There is still a lot of uncertainty about the scope and duration of the pandemic, as well as the economic impact of sustained high unemployment,” said Cory Barry, executive director of Best Buy, an electronics and home appliance chain.
According to the U.S. Department of Commerce, in October, U.S. consumer spending grew for the sixth consecutive month, up 0.5 percent.
But last month, however, household incomes fell 0.7 percent, and consumer confidence fell amid a spike in disease rates.
According to the National Federation of Retailers, spending is expected to increase by 3.6-5.2 percent year over year in November and December.
“People do not spend money on things like travel, sporting events or concerts. Studies show that as disposable income increases, people are more likely to buy our brands’ products in the lead-up to the holidays,” Gap CEO Sonia Singal suggested.
Other retail executives note that some shoppers are still afraid to go to regular stores and prefer to store online.
“We can see that some consumers still don’t want to store online. Others are likely to reduce the number of shopping trips during the holiday season,” said Ernie Herrmann, general manager of the TJX Cos retail chain, which includes stores such as T.J. “We see that some customers are still reluctant to store online. Maxx and HomeGoods.
Giant Macy’s fears that severe restrictions in many cities will affect demand.
As a result of temporary store closures, Macy’s sales fell to $3 billion in the first quarter, but rose to about $3.6 billion and $4 billion in the next two periods.
However, retailers say they are now better prepared than earlier this year. In order to attract customers, they are actively advertising online order placement systems with the ability to receive goods in stores, as well as fast delivery of online purchases.