Budgets/Spending/Market Size

Consumer confidence slipped slightly in January after reaching a 15-year high in December, though outlook for the present overrode the outlook for the future.   The index now stands at 111.8 (less than an expected 113), down from 113.3 the previous month.  

An Evercore ISI analyst maintained his “buy” rating on Walgreens Boots Alliance stock, stating that although its proposed deadline for a deal with Rite Aid has been delayed, “there is still a chance of a reasonable outcome for both parties.”   The companies pushed back the deadline for merger from Jan. 27 to July 31 and trimmed the purchase price paid to Rite Aid to $6.50 to $7 per share — based upon the number of store divestitures the FTC requires — from $9 per share.  

There is no denying it: Ulta Salon Cosmetics & Fragrance is on a roll.   The retailer will open 100 stores this year, including its first-ever location in Manhattan.   Shares of Ulta rose 38% last year, about four times higher than the Standard & Poor’s 500 Index’s gain, Bloomberg reported, and its annual revenue has quadrupled to $3.9 billion since it went public 10 years ago.  

American consumers are ready to celebrate the Super Bowl, but they don’t plan on spending as much as they did last year.      Consumers will spend an average of $75 for a total of $14.1 billion as an estimated 188.5 million watch the Atlanta Falcons face the New England Patriots in Super Bowl LI on February 5, according to the National Retail Federation’s annual Super Bowl Spending Survey conducted by Prosper Insights & Analytics.  

Retailers executives are bullish on 2017.   That’s according to a survey from TD Bank, which polled 173 retail executives at the National Retail Federation’s annual Big Show in New York City. Seventy-four percent of the retailers said they believe sales will increase in the next 12 months. What’s more, 81% of the retailers reported that they met or exceeded their revenue goals in 2016.   In other key findings:  

A combination of factors, including innovation, cross-border deal interest and the availability of cash reserves, bodes well for deal activity in the retail and consumer markets.   That’s according to a review by PwC, which reported that the retail and consumer deals market ended 2016 with an increase in deal volume and a decline in deal value when compared to 2015.   

Despite global economic fluctuations, China is still a world leader in many markets — including global e-commerce.   China’s online retail sales have grown by 33.3% to exceed $581 billion in 2015. Momentum is expected to continue, as sales in the country are expected to grow by 20% yearly through 2020, according to BizView, a B2B marketplace that enables users to connect with over seven million companies around the globe.  

It was a less than merry holiday for some retailers, especially in the department store sector, but total sales still managed to beat industry projections, fueled by a strengthening economy.    Retail sales (excluding autos, gas stations and restaurants) during November and December rose 4% over 2015 to $658.3 billion, according to the National Retail Federation. The group had forecast sales would rise 3.6% to $655.8 billion.