Macy’s predicts another early start to holiday season shopping By Reuters
© Reuters. FILE PHOTO: Shoppers are seen outside Macy’s in the Manhattan borough of New York City, New York, U.S., March 30, 2021. REUTERS/Caitlin Ochs
By Uday Sampath Kumar
(Reuters) – Macy’s Inc (NYSE:) expects another early start to holiday season shopping this year, a contrast to a prediction from Best Buy Co Inc (NYSE:) that highlights the uncertainty among U.S. retailers in forecasting inflation-driven shopping behavior.
Pandemic-induced disruptions to supply chains prompted consumers to start their holiday shopping as early as October in the last two years on fears that in-demand products would disappear from shelves by the traditional period around Thanksgiving in late November.
Even with supply-chain problems showing signs of easing and shelves at stores adequately stocked, Macy’s does not expect the trend to change this year.
“We believe that holiday again this year will start early,” Macy’s chief financial officer, Adrian Mitchell, said at the Goldman Sachs (NYSE:) Global Retailing Conference on Thursday.
The department store chain is also discounting heavily to spur demand for discretionary products such as casual apparel, which has fallen out of fashion due to soaring inflation.
“There are so many deals because of retailers’ over inventory situation that people are buying early for the holidays. But there are many different takes on how it’s going to play out,” retail analyst Jane Hali of Jane Hali & Associates said.
Best Buy Chief Executive Corie Barry said in August she expected shoppers to return to the usual late pre-pandemic holiday shopping pattern this year as they wait for the best deals on products at its stores.
Macy’s and a host of other retailers cut their annual earnings forecasts last month as a rise in discounts hit their profit margins.