US corporate media outlets continue to push propaganda that the economy thrives ahead of the presidential elections, cheerleading the most recent retail sales print. However, most Americans know MSM is full of 'malarkey' because inflation and interest rates force many to spend more but receive less. Many folks have depleted their personal savings and racked up insurmountable credit card debt just to keep up with rising food, energy, insurance, and shelter costs.
"It's very clear that consumers are running out of money. They're increasingly stressed by inflation and the exhaustion of their pandemic-era savings. When you take a look over the last several years, what you see month after month, everyone talks about, the consumer's still spending. They might be, but they're spending less than the growth of inflation," Storch Advisors CEO Gerald Storch told Fox Bussiness' Maria Bartiromo on Thursday during an interview.
Bartiromo then asked Storch about his forecast on the upcoming spending season between Black Friday and Christmas. The former Target executive said, "[I don't expect] too much, frankly ... and think that [if] we can get growth in [the] 2.5% range, that'd be doing pretty well, and that's not very good. In the heydays there, we'd really want to see something that's more like 4% type of growth. You have, by the way, the shortest holiday season you can even imagine, so that's against retailers."
Besides Target, Storch was also the former CEO at Toys "R" Us. He noted, "Now and the time between Thanksgiving and Christmas is very, very short, so that's going to be bad. The election's going to weigh on things and the geopolitical situation as well, so I think it's going to be a pretty weak Christmas."
The longtime retail executive's ominous warning about consumers stalling this holiday season comes after retail sales showed consumers increased their purchases at retailers last month. However, this is only because of higher prices. In other words, consumers are spending more but receiving less.
Storch's outlook for the holiday season comes after Goldman analysts noted that the "trade-down phenomenon" has rippled across high-end and low-end consumers. The last time "trading down" mentions soared on earnings calls was during the GFC crisis in 2008.
We noted earlier this week that the National Retail Federation's annual Prosper Insights & Analytics survey showed lower forecasted spending trends for Halloween among consumers nationwide. The last time this happened was just before the Covid crash. All eyes should be on upcoming Black Friday and Cyber Monday to gauge holiday shopping trends.
One last thing: perhaps mounting economic hardships are some of the drivers as to why US drinking rates have surged to the highest levels since the 1970s inflation storm.
No comments:
Post a Comment