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Macy’s CEO Jeff Gennette: The crowds are back and the merchandise is ready for the holidays
The crowds are bigger than they were a year ago in Messi In stores, as shoppers look for gifts in person again, CEO Jeff Jennett said.
On CNBCcroak boxThe head of retail spoke from the location of the department store in Herald Square on Friday morning. All retail stores opened at 6 a.m. local time.
“The first hour of work was very strong,” he said. “We’ve been really encouraged by the traffic we’re seeing and we think it’s going to be a great Black Friday.”
The traffic on the internet was also strong. He said the retailer experienced a “big rush” on Thanksgiving Day, when its stores were closed.
He said the store has taken extra measures to get the goods it needs, from ordering early to going to less crowded ports. He said inventory levels are up about 20% compared to 2020. He said the shipping cut-off dates will be later this year than last year.
“We will not disappoint customers,” he said. “We’ll have all the gifts they’ve come to expect from Macy’s online and in stores.”
– Melissa Rybko
Amazon is well prepared for the holiday rush despite supply chain disaster
Amazon shipping center in Eastville, California on Tuesday, August 31, 2021.
MediaNews Group / The Riverside Press-Enterprise via Getty Images | Media News Group | Getty Images
Talks about global supply chain shortages have been near constant this holiday season, with many experts urging consumers to plan ahead and place their orders early.
Amazon It may be one of the few retailers that ends up insulated from supply chain shocks.
The company has a huge advantage. It operates a huge network of its planes, trucks, ships and delivery vans that run up to the last mile. It also brings in 150,000 seasonal workers to help handle packages during peak holiday period.
Amazon He said last month It has enhanced its tools to better predict what goods people want and where they need to go, while shipping goods to different ports to avoid obstacles.
Amazon spends big to make sure shoppers have a happy holiday. In its latest earnings reportAmazon said it will incur $4 billion in costs in the current quarter, threatening to wipe out all of its earnings in the last quarter.
– Annie Palmer
More Shoppers, Less Marks-Outs at Roosevelt Field
The number of shoppers who walked out at Simon Real Estate Group Dana Telsey, chief research officer and CEO of Telsey Advisory Group, said the Roosevelt Field Shopping Center in Garden City, New York, ranked first last year. However, she said the turnout is not as strong as it was in 2019.
Telsey said shoppers were strong throughout November, even as discounts remained at 50% or less.
“I think the discount rate is lower than in the past,” she said. “I think they’re taking it on merchandise where they know they’re going to make it in other areas of sales at full price. I think the margins being made on that have been solid.”
Telsey said it expects this trend to continue in the coming months as supply chain issues will not be resolved until the second half of next year. Other analysts said it could take longer.
—Christina Cheddar Burke
Macy CEO Jeff Jennett said dealing with the new Covid variant is ‘very familiar’
Retail was supposed to be in the spotlight on Black Friday, when larger crowds of shoppers were expected to return to the stores. Instead, the stock market is going down Fears of the discovery of a new type of Covid-19 virus in South Africa.
“We went through Alpha. We went through the delta,” he said. “Now we have new variants. … We’ve been playing with this for nearly 20 months, so we’ve been really good at it.”
The retailer has tools it can use to adapt, he said, from shipping orders online to customers’ doors to contactless pickup at the curbside.
But he added, “It’s all familiar to us, what we’re going through right now. And we’ll be ready for the next wave, whatever that may be.”
– Melissa Rybko
Peloton will go on sale on Black Friday
Peloton Interactive Inc. logo. On a stationary bike at the company’s showroom in Dedham, Massachusetts, US, on Wednesday, February 3, 2021.
Adam Glanzmann | Bloomberg | Getty Images
peloton A series of big write-offs are underway on Black Friday, hoping to lure shoppers who might have been waiting for a good deal on connected fitness equipment.
Bike+ is currently $350 off, plus free delivery, according to its website. Her original bike, which recently got a Reduce the price by about 20%, set at $150. And her treadmill is $250 less than its usual list price. Peloton separately operates a Black Friday sale of a selection of clothing on its website.
The company rarely offers deals on its fitness equipment. When that happens, they usually come around the holidays.
But this holiday season, the Peloton finds itself in a much different situation than in the past. Earlier this month, the company It lowered its full-year forecast Amid the decline in the demand for its courses and treadmills. CEO John Foley commented that the company “challenged the vision” in the near term. competition from other home fitness players, such as Tonal, LululemonThe mirror and owned Hydrow, also swelled.
“We have seen more cuts in [fitness] As competition continues and reopens, suggesting to us that this is not where the price wars end but where they begin,” said Simeon Siegel, analyst at BMO Capital Markets.
Amazon prepares to win the holiday season
The busiest days of the holiday shopping period, Black Friday and Internet Monday, typically generate billions of dollars in sales for retailers.
Amazon is expected to claim a large share of Americans’ wallets during the shopping rush, if trends from previous years continue. The e-commerce giant accounted for 19% of total spending during the Black Friday weekend last year, up from 11.7% in 2019, according to data from numerator.
The surge of sales during the holiday shopping period may also translate into a rise in Amazon’s overall share of the e-commerce market.
a Study 2020 by Bain & Co. Amazon has found it typically earns two to three points of US e-commerce share during the second half of the year, driven in part by its annual Prime Day sale held in summer and holiday sales.
Amazon is expected to account for 40.4% of e-commerce sales in the country this year, according to E-Marketing.
– Annie Palmer
Holiday discounts are on sale this season
Black Friday has become synonymous with door manufacturers and big discounts in malls. But there likely won’t be many deals shoppers can choose from this holiday season, according to one analysis.
The average promotional discount for the week ending November 21 was 33.4%, compared to an average discount of about 37% just two months ago, according to data from Refinitiv and StyleSage. The average for the year so far has been slightly higher, at 38.2%, the duo found in their study of holiday deals.
“This is mainly due to supply concerns … which have already limited inventory levels for retailers,” said Jaron Martis, retail analyst at Refinitiv. “You combine that with very strong consumer demand and that puts [retailers] In a very unique and powerful position to cut back on those huge discounts we’ve seen on previous Black Fridays.”
Record number of US consumers sit out the holiday season
The outlook for holiday retail sales is rosy with the National Retail Federation Calling for Historic Gains From 8.5% to 10.5% of last year’s levels. But the growth has been largely driven by a wealthy portion of consumers, while a record number of people don’t partake in any of the gifts.
This holiday, 11.5% of people plan to sit out the season by spending nothing on gifts, gift cards or other items of entertainment, according to a survey by Deloitte. That’s a record number of Americans on the sidelines, as long as the consulting firm has been keeping track.
Deloitte found that high-income families plan to spend five times more than lower-income families this holiday season. The consulting firm surveyed 4,315 consumers about their holiday shopping plans between September 7 and 14.
“This tale of two holidays is a good reflection of the story of two true epidemics,” said Stephen Rogers, CEO of Deloitte’s Consumer Industry Division. “What starts out as a health crisis turns into a financial crisis if you are on a low income [bracket]. “
A Deloitte survey found that households earning more than $100,000 a year would pay $2,624 apiece this holiday, up 15% from 2020. While households earning less than $50,000 a year plan to spend $536 per household, down 22% from levels last year.
– Lauren Thomas
Black Friday is becoming a big event again, with stores closed for Thanksgiving
Ariel Skelly | Getty Images
Black Friday is once again the main event for shoppers eager to kick off the festive season by hitting the mall or store.
For years, retailers have tried to push the start of the hunt for gifts. Instead of welcoming the crowds on Black Friday morning, businesses began opening their doors immediately after some families finished their Thanksgiving turkey dinner.
However, the pandemic has shaken that dynamic — and brought Black Friday back into the spotlight. Many retailers, including WalmartAnd targeting, And best buyand chose to keep stores closed last Thanksgiving. They did it again this year. The goal went further, Announcing this week that its stores will be closed on Thanksgiving Day forever.
For retailers, some of the decision is practical: Shoppers have learned they can skip the hassles of lines and crowds, but still check out the items on the gift list.
“What started as a temporary pandemic-driven measure is now our new standard — the standard that recognizes our ability to cater to our holiday guests within and outside of store hours,” Target CEO Brian Cornell wrote in a note to employees.
– Melissa Rybko
Shops are back for the festive season
One of the big changes of the holiday season? shoppers Want to hit the stores again?
This is a big change from last year when more consumers opted for roadside pickup or had packages delivered at their door due to fears of getting Covid-19.
Half of American consumers said they plan to make more trips to stores to shop for gifts this year, according to a survey of 1,005 people from September 24 to September 26 by the ICSC, a trade organization representing the shopping center industry. Last year, 45% said they intended to visit malls.
It is expected to run on Black Friday as well. On holiday shopping, 64% said they expect to head to stores to shop, up from 51% last year, according to the National Retail Federation. The retail group worked with Prosper Insights & Analytics to survey 7,837 adults from November 1-10 about their plans and progress.
For some consumers, returning to the stores is a way to get gift ideas, feel festive and relive old traditions. For others, the decision is a practical one. In a year of supply chain problems, people may feel more peace of mind having a desired item on hand — or being able to look for a solid alternative.
– Melissa Rybko