International
Inflation clouds ‘Black Friday’ kickoff of US holiday shopping season
| PAr AFP | John Biers |
US retailers unveiled a trove of fresh promotions Friday, as they try to coax sales from reticent shoppers whose holiday cheer has been tempered by inflation and worries over a softening economy.
“Black Friday,” the unofficial start of the US holiday shopping season, announced itself with the annual day-after-Thanksgiving deluge of online deals and early store openings.
Traffic was steady at Macy’s flagship store in midtown Manhattan, where crowds braved drizzly, chilly weather to survey the mammoth department store and take in holiday windows that feature a Santa surrounded by disco balls and fox family of stuffed animals clad in plaid.
But industry experts have been cautious about this year’s prospects, in light of price pressures that have exacerbated concerns about an oversupply of goods.
A year ago, retailers faced product shortfalls in the wake of shipping backlogs and factory closures related to Covid-19. To avert a repeat, the industry front-loaded holiday imports this year, leaving it vulnerable to oversupply at a time when consumers are cutting back.
“Today’s problem is having too much stuff,” said Neil Saunders, managing director for consultancy GlobalData Retail.
Saunders said retailers have made progress in reducing excess inventories, but oversupply will mean deep discounts in many categories, including electronics and apparel.
“This is a holiday season where retailers are going to have to work very hard for very small gains,” he said.
The dynamic has created opportunities for savvy shoppers like Carla Forbes, who began scouring for holiday discounts weeks ago. She nabbed a jacket Friday at Macy’s for $79, down from an original price of $225.
While promotions on watches and jewelry have got “better,” she noted that such deals are not available for staples like food, for which prices have soared.
“You just have to buy it if you want (it),” Forbes said.
Diminishing savings
Leading forecasts from Deloitte and the National Retail Federation project a single-digit percentage rise in sales, but this is unlikely to exceed the inflation rate.
Adobe expects an overall holiday sales increase of 2.5 percent, less than a third of last year’s level. Besides inflation, Adobe cited higher Federal Reserve interest rates and an uptick in brick-and-mortar shopping as factors.
Consumers spent $7.28 billion up through 6:00 pm Eastern time (2300 GMT) for Black Friday, according to Adobe. The company anticipates that when the final tally is in, consumers will spend between $9 billion and $9.2 billion for the day, setting a new record for online sales on Black Friday.
Countries like Britain and France have been marking Black Friday too, but with soaring inflation, merchants there face a similar dilemma.
“The worry is that it could turn out to be more of a Bleak Friday,” said Hargreaves Lansdown analyst Susannah Streeter.
Anne Campbell, who was visiting New York from Scotland, said the mood felt very different from home, where worries about energy security and a weakening economy dominated.
“Things are very tight in the UK for a lot of people,” she said, contrasting this with spending in the US.
US shoppers have remained resilient throughout the pandemic, often spending more than expected even when consumer sentiment surveys suggested gloominess.
Part of the reason has been the unusually robust state of savings, with many households banking government pandemic aid payments at a time of reduced consumption due to virus restrictions.
But that cushion is starting to whittle away. After hitting $2.5 trillion in excess savings in mid-2021, the benchmark fell to $1.7 trillion in the second quarter, according to Moody’s.
Accompanying this drop has been a rise in credit card debt visible in Fed data and anecdotally described by chains that report more purchases made with food stamps.
Mixed picture
Recent earnings reports from retailers paint a mixed picture on consumer health.
Target stood on the downcast side, pointing to a sharp decline in shopping activity in late October, potentially portending a weak holiday season.
“We’ve had a consumer who has been dealing with very stubborn inflation for quarter after quarter now,” Chief Executive Brian Cornell told a conference call with analysts.
He added that customers are “shopping very carefully on a budget.”
But Lowe’s, another US chain specializing in home-improvement, described the same late-October period as “strong.”
Friday’s crowds in New York were more robust compared with a year ago, said shopper Marvin Thomas, who also ventured out for Black Friday in 2021.
Inflation is a “big problem,” he told AFP, catching his breath outdoors after finding a deal on a hat at Foot Locker.
“I’m not going to deny that it has affected me, but you gotta do what you gotta do.”
International
Man arrested after deliberately driving into seven children in Osaka
Japanese police arrested a man on Thursday after he rammed his car into a group of seven schoolchildren in an apparent deliberate attack in the city of Osaka.
The children, who were on their way home from school, sustained injuries and were taken to the hospital. All seven remained conscious, according to local authorities.
An Osaka police officer, speaking on condition of anonymity, said the suspect is a 28-year-old man from Tokyo. The officer shared statements the man made after his arrest: “I was fed up with everything, so I decided to kill people by driving into several elementary school children,” the suspect reportedly said.
The man has been arrested on suspicion of attempted murder.
The injured children, aged between seven and eight, included a seven-year-old girl who suffered a fractured jaw. The six other children—all boys—suffered minor injuries such as bruises and scratches and were undergoing medical evaluation.
Witnesses described the car as “zigzagging” before hitting the children. One witness told Nippon TV that a girl was “covered in blood” and the others appeared to have scratches.
Another witness said the driver, who was wearing a face mask, looked to be in shock when school staff pulled him from the vehicle.
Violent crimes are rare in Japan, though serious incidents do occur from time to time. In 2008, Tomohiro Kato drove a two-ton truck into pedestrians in Tokyo’s Akihabara district, then fatally stabbed several victims. Seven people were killed in that attack.
Internacionales
Clashes erupt during may day protests across France amid calls for better wages
May Day protests in France were marked by a heavy police presence and clashes between demonstrators and law enforcement in several cities.
In Paris, Lyon, and Nantes, thousands took to the streets to demand better wages, fairer working conditions, and to voice their dissatisfaction with President Emmanuel Macron’s government.
While the majority of the demonstrations remained peaceful, isolated confrontations broke out in some areas. Protesters threw objects at the police, prompting the use of tear gas and resulting in several arrests.
Videos showing police crackdowns circulated widely on social media, drawing criticism from labor unions and human rights advocates, who denounced the authorities’ response to the protests.
International
Kristi Noem credits Trump for mass migrant deportations by mexican president
U.S. Secretary of Homeland Security Kristi Noem claimed that Mexican President Claudia Sheinbaum has deported “more than half a million” migrants due to pressure from former President Donald Trump.
During a cabinet meeting highlighting the “achievements” of Trump’s administration in its first 100 days, Noem asserted that under the Republican leader’s influence, “Mexico has finally come to the table” to negotiate on migration and fentanyl trafficking.
“The president of Mexico told me she has returned just over half a million people before they reached our border,” Noem stated, criticizing media reports that suggest the Biden administration deported more migrants than Trump’s.
“I wish those deportations were counted,” Noem added, “because those people never made it to our border—she sent them back because you made her.” She went on to thank Trump: “They never made it here because they got the message—because you were so aggressive.”
Noem has made controversial claims about Sheinbaum in the past, prompting the Mexican leader to refute them.
On April 1, Sheinbaum responded to one such statement by declaring, “The president answers to only one authority, and that is the people of Mexico,” after Noem said on Fox News that she gave Sheinbaum “a list of things Trump would like to see” and that Mexico’s actions would determine whether Trump granted tariff relief.
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