Attitudes: Retailers

There is good news for retailers as they head into their most important selling season.

It's only the beginning of November, but some ominous indicators are surfacing for department stores as they head into their most important shopping season.

Social media plays a huge role — bigger than pricing — when it comes to influencing the purchase decisions of Generation Z.   

One of the first holiday quarter sales forecasts is out of the gate.   Global retail consulting firm Kantar Retail predicts that U.S. retail sales will grow 3.7% in the fourth quarter of this year. The forecast represents an improvement relative to weak growth of only 2.9% in the year ago period. But it is underwhelming compared to average growth prior to the recession of 5.0%, according to Kantar.   

Amazon isn't as dominant as is widely believed — at least not according to a new report from Moody's Investor Services.   

The Retail Industry Leaders Association (RILA) and Shoptalk, organizer of the annual conference for retail/ecommerce innovation, announced a partnership focused on creating a global community and conversation for retail and e-commerce innovation.    The partnership will include Shoptalk Europe, which will be held on October 9-11, 2017 at the Bella Center in Copenhagen. It will also include Shoptalk 2018, which will take place on March 18-21, 2018 at the Venetian in Las Vegas.  

Consumer confidence increased in August to the second highest level since late 2000.    The Conference Board's Consumer Confidence Index rose to 122.9 in August, up from 120 in the prior month. Economists had expected the index to rise to 122.5 in August.    The Present Situation Index increased from 145.4 to 151.2. The Expectations Index rose marginally from 103.0 last month to 104.0.  

Expect an Amazon-dominated holiday retail season among U.S. consumers this year, with the e-commerce giant being the top destination for shoppers.  

Back-to-school advertising appears to be losing some of its resonance with consumers.    Walmart, Target and Old Navy scored the highest awareness levels among consumers (with children under the age of 18) in a survey of BTS advertising from 30 retailers by YouGov BrandIndex. But many retailers scored less than last year.   

U.S. consumer sentiment rose to its highest level since January in early August, reflecting optimism in the overall economy and in personal financial prospects.     The University of Michigan's consumer sentiment index rose to 97.6 in the first half of August from 93.4 in July, which was an eight-month low.  Economists estimated the index would hit 94 in August.