Many U.S. retailers had a challenging fall quarter, with Best Buy reporting one of its worst three-month stretches in the past decade. CEO Corie Barry blamed the distraction of the presidential election and overall economic uncertainty for the poor performance. However, after the election, holiday sales momentum has picked up, particularly in categories like computers and tablets. Gallups monthly Economic Confidence Index survey also saw an improvement following the election, with more Americans believing the economy is getting better.
Consumer confidence is also on the rise, with many expecting stronger holiday sales. Abercrombie & Fitch and Burlington reported a strong start to holiday sales and raised their sales growth guidance. The retail sector on Wall Street is seeing positive growth, with a retail-focused stock tracker up 10% for the month, heading for its best month since February.
Additionally, economic forecasters are predicting the U.S. economy will expand at a rate of 2.2% in the coming months, up from previous predictions. The Philadelphia Federal Reserves quarterly survey showed an increase in economic outlook compared to three months ago.
Overall, retailers are optimistic about the upcoming holiday season and the economy’s trajectory, showing signs of recovery and growth post-election.
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