Holiday Sales Increase, Will It Continue into Spring?
Consumers opened up their wallets this holiday season and retailers saw an unexpected increase in their sales … and it looks like those wallets may be staying open in 2018.
According to the National Retail Federation, holiday sales during November and December increased 5.5 percent over the same period in 2016 to $691.9 billion.
Experts say growing wages, stronger employment and higher confidence are what led consumers to spend more than had been expected.
Initially, the NRF was forecasting sales to reach $678 to $682 billion.
“We knew going in that retailers were going to have a good holiday season but the results are even better than anything we could have hoped for, especially given the misleading headlines of the past year,” said Matthew Shay, NRF president and CEO. “Consumers were in the mood to spend, and retailers were there to offer them good value for their money … We are confident that retailers will have a very good year ahead.”
Jack Kleinheinz, chief economist at the NRF concurred with Shay. “Strong employment and more money in consumers’ pockets … helped with the pace of shopping,” Kleinheinz said. “We think the willingness to spend and growing purchasing power seen during the holidays will be key drivers of the 2018 economy.”
Spring is just a couple months away. Hopefully, these prognosticators are right!
Final Reminder
The deadline to nominate someone for GPN’s 40 Under 40 Class of 2018 is next Monday (Jan. 22).
If you think you know someone who belongs in this year’s class, you only have a few more days to nominate that person.
You can nominate an individual by filling out the form at www.gpnmag.com/40-under-40-nomination.
Walmart Associates Get a Raise
On Jan. 11, Walmart announced plans to increase the starting wage rate for all hourly associates to $11, expand maternity and parental leave benefits, and provide a one-time cash bonus for eligible associates of up to $1,000. The company also is creating a new benefit to assist associates with adoption expenses. The wage increase will take effect in February. The one-time bonus represents an additional payment to associates of approximately $400 million in the current fiscal year, which ends Jan. 31, 2018.
Investment Firm Reportedly Takes Stake in Lowe’s
Last week, several different news outlets were reporting that D.E. Shaw, a global investment firm and hedge fund, reportedly has “built an activist stake” in Lowe’s. The investment firm’s investment commitment and immediate plans for the home improvement retailer have not been made public. Analysts have speculated that D.E. Shaw will work to drive the company’s stock price up by lobbying for changes in strategy, spending and management.
Sam’s Club to Shutter 63 Stores
On the same day that its parent company, Walmart, handed out raises to employees, it was announced that Sam’s Club will close 63 stores across the country. The company will convert up to 12 of the impacted clubs to eCommerce fulfillment centers in a move that will speed delivery of online orders, with the balance of the facilities closing by the end of January. Walmart will provide support and resources to those associates who are affected, including the bonus announced last week and 60 days of pay, as well as severance to those eligible.
Video Library 
