The Backroom: How the holidays are different this year
In the first half of this year, retailers repeatedly noted on earnings calls that consumer behavior has been resilient, even as macroeconomic pressures such as tariffs affect both shoppers and businesses. Some retailers have still seen sales growth in traditional discretionary categories, while others have struggled to keep pace. Companies like Target have announced October promotions and expanded product assortments and same-day delivery coverage. Retail Dive reporters Daphne Howland and Dani James outline what is known before the holiday season and industry expectations.
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Throughout the first half of the year, retailers have repeatedly said on earnings calls that consumers are acting resilient. This is despite the fact that macroeconomic pressures, such as tariffs, are impacting both shoppers and companies alike.
Some retailers have continued to see sales rise, even in traditionally discretionary categories, while others are struggling to keep up.
But retailers are responding. Target, for one, recently announced an October deals event — joining Walmart, Amazon and others — to entice consumers to shop early. Ahead of the holidays, Target has doubled its merchandising assortment and expanded its same-day delivery capabilities to new markets.
The mass merchant’s vice president of experiential store operations, Michael Scrafford, recently told Retail Dive during a live virtual event that newness and meeting customers where they shop — in stores or online — is key this season. A recording of our pre-holiday event — where industry experts break down expectations for the season ahead — can be found here.
But with the holiday season approaching, untangling the web of seemingly conflicting consumer insights is vital.
Retail Dive’s Senior Reporter Daphne Howland and Reporter Dani James outline what we know so far and what is expected heading into the most important period for the industry.
Resource links:
- Managing tariff impact gets tougher as the holidays approach
- The holidays should be OK for retailers that try hard enough
- Gen Z pullback could send holiday sales down 5%: PwC
- Consumer sentiment declines as price sensitivity persists
- Retail buyers are reacting to tariffs with AI and early orders
- Walmart revenue grows as it works to absorb tariff hikes
- Dollar Tree tariff mitigation efforts yield results sooner than expected
Editor’s note: This episode was produced and edited by Caroline Jansen.