US merchants in fashion, electronics, and home improvement are prepared for a difficult holiday season, indicating that more significant discounts may not elicit the level of spending that they expect during their busiest time of year.
According to October retail sales numbers, economic demand in the United States has declined. Several merchants said on Tuesday that the holiday season is looking good following a rocky start to the fourth quarter when most Americans start shopping for the holidays, reported Reuters.
Retailers intend to rely on discounts and have begun offering holiday deals early to entice people to open their wallets during Thanksgiving weekend.
However, Lowe’s, Best Buy, and department store chain Kohl’s reported lower sales at locations open at least a year in the most recent quarter and decreased their sales expectations for the year.
According to the National Retail Federation, holiday sales in the United States are predicted to climb at the slowest rate in five years as Americans are expected to cut back on holiday spending, added the report.