Hey Friends,
Happy Friday the 13th….. Halloween spending is expected to reach a record $12.2 billion, exceeding last year’s record of $10.6 billion, according to the National Retail Federation’s annual survey. Per person spending is also up as consumers plan to spend a record $108.24 each, up from the previous record of $102.74 in 2021
Buy-now-pay-later services will hit a record this holiday as increasingly cash-strapped US shoppers struggle with higher prices and rising borrowing costs, according to projections from Adobe Analytics.
Online spending using those services, which stretch payments over a longer period of time, will reach $17 billion in November and December — 17% higher than last year — as shoppers use the option to help manage their budgets, Adobe said in a report looking forward at e-commerce during the holidays. Consumers, one in five of whom will use layaway to buy gifts during the holidays, have become more hesitant to make purchases and will prioritize services and essential goods this holiday season, according to the report.
A growing concern this year with holiday spending is the state of the consumer’s finances. Before the holidays even arrive, credit card debt will top $1 trillion. Factors such as resumption of student loan repayments, a dwindling down of pandemic savings, and higher debt servicing costs could shift buyer habits as they plan their spending. Last year, consumers added $116 billion in new credit card debt, with $88.4 billion of that just from spending during the holiday quarter, according to a report from WalletHub.
To continue with some holiday shopping news, Amazon says this year’s fall prime event outpaced last year. The average spend per order increased during this year’s event to $53.47, but still remained down from the company’s July Prime Day sale.
Big Lots is encouraging shoppers to begin their holiday shopping early by turning every Friday into a Black Friday-level sales event now through Dec. 22. These events feature special one-day deals up to 50% off across categories that change each week and are available to shoppers during in-store hours only.
Rite Aid is facing issues with the New York Stock Exchange's listing requirements because its stock price is currently trading at around 50 cents, falling short of the required $1.00 average closing share price over a 30-day period. The company has a limited time to decide if it will try to regain compliance, with a 10-business day window for a formal decision and six months to achieve compliance. However, Rite Aid is uncertain about its ability to meet NYSE standards. This development comes amidst earlier reports suggesting that Rite Aid may need to close many of its stores and potentially consider Chapter 11 bankruptcy due to its substantial $3.3 billion debt.
In the first nine months of 2023, there has been a significant increase in bankruptcy filings among U.S. businesses. Commercial Chapter 11 bankruptcies have surged by 61% year over year, reaching a total of 4,553 cases. Small businesses have also been affected, with filings rising by 41% to 1,419. Overall, when considering all types of bankruptcies, commercial sector filings have gone up by 17%, totaling 18,680 cases.
Even consumer bankruptcies, which had previously declined due in part to pandemic-related financial support, have risen by 17% this year, reaching a total of 313,458 filings.
In some fitness and apparel news….Peloton and Lululemon have formed a five-year partnership focused on content, apparel, and community initiatives. Peloton will be the exclusive provider of digital content for Lululemon, replacing Lululemon's unsuccessful attempt to create its own connected fitness platform through the acquisition of Mirror in 2020, which will now be shut down. Lululemon will offer Peloton classes to its Studio All-Access subscribers instead. Additionally, Lululemon will become Peloton's primary athletic apparel partner, and the two companies will collaborate on co-branded apparel.
And to finish with the wackiest story of the week…. is Netflix getting into retail? Netflix is set to open permanent retail locations called "Netflix House," offering merchandise, food, and themed experiences based on popular Netflix shows and movies. While Netflix already has an online merch shop and has previously tried pop-up retail stores and immersive experiences, Netflix House will be the first permanent location of it’s kind.