Will Black Friday be a bust?

Big retailers like Walmart and Best Buy are adjusting their expectations ahead of the official holiday season kickoff.

Greetings from the Retailist team! As we welcome Black Friday, the official commencement of the holiday shopping season, we're not just excited about the traditional Thanksgiving apple pies but also the bustling activities in e-commerce, retail, and Direct-to-Consumer (DTC) brands. Our dedicated team is on the forefront, ready to deliver the latest and most significant developments in these sectors.

This edition is packed with a handpicked selection of the past week's most influential news, emerging trends, and expert analyses from the retail world. Join us as we delve into this week's crucial topics, with a heightened focus on Black Friday!

New from Retailist

The standout concern for many retailers this Black Friday is shrinkage. More specifically, theft. With nearly 80% of US brands saying organized retail crime is a risk that has become a priority in the past year for them, increased footfall in-store only enhances the potential for shoplifting.

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In the News: This week’s top headlines

Walmart's shares dip despite beating earnings estimates. Walmart's shares fell despite surpassing fiscal third-quarter earnings estimates. The company's cautious outlook for the year ahead, anticipating lower-than-expected adjusted earnings and a slight increase in consolidated net sales, contributed to this decline​​. [CNBC]

U.S. retailers anticipate a difficult holiday season despite deep discounts. American retailers across a number of sectors are preparing for a challenging holiday season. This situation reflects concerns that even substantial discounts may not generate the expected spending levels during this crucial sales period. Recent economic trends, including slowed demand as indicated by October's retail sales figures, contribute to a mixed holiday outlook. The onset of the fourth quarter, typically marked by increased shopping for Christmas, has started unevenly, as reported by various retailers. [Reuters]

Ecom and physical stores integration = key to success? Successful retailers are utilizing omnichannel strategies to seamlessly integrate in-person and online shopping experiences, making the most of both platforms to engage consumers effectively​​. [Business Observer]

Temu is burning cash to compete with the big dogs. Temu is facing significant financial and logistical challenges as it competes with industry giants like Shein, TikTok, and Amazon. Now operational in 47 countries, Temu has seen impressive app downloads, reaching 250 million by November. This growth, partly fueled by their aggressive marketing and discount tactics, has helped them aim for over $18 billion in sales this year. However, this expansion comes at a high cost. The company is grappling with insufficient warehouse capacity, impacting order fulfillment and return processes. The company is also dealing with significant financial losses. [Wired]

Best Buy reduces its sales projections due to deal-seeking holiday consumers. As Best Buy adjusts its strategy to meet the demands of bargain-seeking customers, the company has revised its annual sales outlook downwards. Despite surpassing earnings expectations set by Wall Street, Best Buy reported sales figures that didn’t meet projected targets. CEO Corie Barry commented on the unpredictable nature of consumer demand, noting its increased irregularity and challenge in forecasting. [CNBC]

Robust interest in credit cards persists, but approval rates decline, says NY Fed. The New York Federal Reserve reports an increase in credit card usage and applications for higher limits, despite a general downturn in consumer credit demand. The Fed's Center for Microeconomic Data indicates that the proportion of consumers applying for credit cards in the past year rose to 29% in October, surpassing the rates in both October 2022 (27.1%) and October 2019 (27.2%). However, the average rejection rate for these applications has also climbed by 1.1 percentage points to 19.6%. Looking ahead, consumers anticipate applying for new credit less frequently and expect a greater likelihood of application denials. [Payments Dive]

Job Board: This week’s Top Openings in DTC, RetailTech, and more

Want to submit a role to our talent board? Email [email protected].

  • AD, Sponsored Ads Sales (Minneapolis, MN) Chewy - more here

  • Associate Buyer, Outlet (New York, NY) Tapestry - more here

  • Regional Foodservice Sales Manager, East Coast (Remote) King’s Hawaiian - more here

  • Process Specialist, Internal CRM (East Moline, IL) John Deere - more here

  • Conversion Rate Optimization (CRO) Manager, eCommerce (Seattle, WA) Sleep Doctor - more here

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