Retailers including Walmart are importing fewer festive products ahead of an expectedly poor holiday season, according to Reuters.
Walmart, the world’s largest retailer, sharply cut Christmas imports, sending at least 340,000 kilograms of goods called “Christmas” merchandise to the US in 12 months, according to ImportYeti. The retailer imported almost three times as many items – at least 980,000 kilograms – in the pre-September 30 year to date, according to import data. In the same 12 months in 2022, Walmart imported over 1.9 million kilograms of Christmas goods.
Walmart investor Sizemore Capital Management said the retailer regularly examined data on shoppers’ spending patterns, including credit card information. Charles Sizemore, chief investment officer at the firm, said:
They have done the research on their consumer. And what they have concluded is that the holiday season is not going to be as strong.
Although the holiday import data does not include electronics, clothing or other general merchandise, the figures still draw a “pretty obvious” picture, Sizemore added.
If Walmart is ordering less, they are expecting sales to be tepid.
While total consumer spending in the US is rising, “some commentators keep confusing total consumer spending (including necessities like housing or healthcare) with discretionary spending,” said Gerald Storch, retail consultant and former CEO of Hudson’s Bay.
Consumers are stretched with less money left for discretionary purchases.
In the 12 months through 30 September 2024, US companies imported about 141 million kilograms of goods described as “Christmas” on bills of lading, documents that companies must file when bringing imports into the country. During the same period in 2022, companies imported about 180 million kilograms of Christmas goods, up 22% from this year.
The US National Retail Federation said in October that holiday spending in the last two months of the year is expected to grow by just 2.5-3.5 per cent year-on-year. That represents the slowest rate of growth since 2018, when holiday sales rose 1.8%. Major retailers, including Walmart, want to avoid a surplus of products, as happened during the last two holiday periods.
Import data only reflects what retailers bring into the United States, as they also buy goods from local suppliers and domestic importers. Craig Johnson, president of retail consulting firm Customer Growth Partners, says it is hard to draw conclusions based on holiday import data. He expects holiday sales in the US to grow 4 per cent this year.
Fewer Christmas decoration and toy imports does not necessarily imply a slow season.
