Retailers Brace for a Tight Holiday Shopping Season with Vigilant Consumers

Retailers anticipate a mixed holiday season as consumers keep spending tight, comparing deals via mobile phones. Walmart gains market share with low prices, while Target faces weaker demand. Mobile shopping rises, driven by Gen-Z. U.S. port strike adds challenges, impacting inventory and holiday planning strategies.

As the holiday shopping season approaches, retailers are preparing for a mixed outlook, with consumers highly watchful of their expenditures. Using mobile phones to hunt for the best deals on apparel, electronics, and toys, shoppers are keeping a tight grip on their finances.

Despite an election year, Walmart has raised its annual sales and profit targets, gaining market share by attracting upper-income households through its competitive pricing. Target, however, painted a more subdued forecast, citing weak demand for higher-margin items, despite a rate cut from the Federal Reserve.

This year's holiday shopping is set to grow at its slowest pace in six years. Influencers and Gen-Z shoppers are shifting dynamics towards mobile spending, with an anticipated surge in online shopping from mobiles. Meanwhile, a U.S. port strike threatens to exacerbate inventory challenges.

(With inputs from agencies.)