According to Salesforce data, the firm expects total digital sales on Thanksgiving to reach $36 billion globally and $8.6 billion in the U.S.
- Walmart CFO John David Rainey said customers and members are leaning into the seasonal events and holiday shopping period.
- Best Buy CEO Corie Barry said on Tuesday that shoppers remained resilient but deal-focused and were attracted to more predictable sales moments during the third quarter.
- The National Retail Federation said it forecasts U.S. annual holiday sales in November and December will grow between 3.7% and 4.2% over 2024.
Major retailers from Walmart to Best Buy’s earnings have hinted that more American shoppers are looking for more deals and discounts to snap up even essentials at the lowest possible price, even as results from retailers over the last two weeks have showcased a more resilient and consistent consumer heading into the holiday season.
“Holiday is off to a pretty good start. Back to school tends to be an early indicator for how that goes. Halloween, likewise, for Thanksgiving. Everything that we’ve seen so far makes us optimistic and encouraged about customers and members leaning into the seasonal events and holiday shopping period,” Walmart (WMT) CFO John David Rainey said.
With Black Friday kicking off and several retailers offering Black Friday to Cyber Monday deals, shoppers who have become cautious about the current macro environment, driven by price hikes, are looking to buy everything from electronics to household items at a lower prices.
Best Buy (BBY) CEO Corie Barry said on Tuesday that shoppers remained resilient but deal-focused and were attracted to more predictable sales moments during the third quarter.
She added that most customers shopped during Best Buy’s Back-to-School sales events and TechTober sales held near the October Prime Day event.
Holiday Season Data
In early November, the National Retail Federation (NRF) forecast that U.S. annual holiday sales in November and December will grow between 3.7% and 4.2% over 2024.
NRF said this would amount to total spending of between $1.01 trillion and $1.02 trillion. Last year, holiday sales rose 4.3% to $976.1 billion compared to 2023.
Analyst and data companies expect a surge in sales during the Thanksgiving weekend, when shoppers are likely to start shelling out their savings beginning on Thursday.
According to Salesforce data, the firm expects a total digital sales on Thanksgiving to reach $36 billion globally and $8.6 billion in the U.S. As of 2 pm EST on Thursday, the global spend reached $13.1 billion, up 7.9% year-over-year, and $2.6 billion in the U.S, which was a 5.8% increase compared to last year.
What Is Retail Thinking?
Retail sentiment on Walmart was in the ‘neutral’ territory compared to ‘bullish’ territory from a day ago, while sentiment on Target remained unchanged in the ‘neutral’ territory.
Best Buy’s retail sentiment was in the ‘bullish’ territory, compared to the ‘extremely bullish’ a day ago, while Kohl’s sentiment remained unchanged in the ‘extremely bullish’ territory.
Retailers are offering as much as 50% or more in some cases to attract shoppers who have become frugal in the last year due to price hikes related to U.S. President Donald Trump’s tariffs on global trading partners, which have increased production costs for companies.
This has pressured the shares of retailers, with Target stock down over 33% this year, and Best Buy shares have declined 5%. On the other hand, turnaround efforts at Kohl’s pushed the stock up nearly 72% this year, and Walmart, which has consistently tried to remain competitive with pricing, saw its stock jump almost 21%.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<