ASK THE EXPERT: IS THE SLOWDOWN STARTING EARLY?
Q: My sales softened in October and early November (although Black Friday weekend was good.) I’m starting to think that the slowdown you warned us about is happening early. What are you seeing?
A: We have seen a slight tapering off in our clients’ stores over the last couple of months, but it seems like consumers are just taking a pause. Results are mixed, with some stores doing great and others falling off.
I still believe that we will have a strong holiday season, especially in menswear, since it has been leading sales for some time. It’s just getting cold enough for sweaters to pick up, and outerwear has been doing well for the last month or so.
I do think that we may see a more significant softening in demand as we get closer to next year‘s election since uncertainty tends to make consumers a little more cautious. But, that probably won’t come until after the spring season.
I believe we will have a soft start to the year, with stronger numbers in late spring, based on the slow start we saw this fall.
Fortunately, the economy is looking strong, and our wealthier customers are feeling confident.
Don’t let the recent spending pause keep you from making the most of what should be a profitable holiday season.
Photo by Bruce Mars.
