Retailers are appalled by strange behavior exhibited by customers as the busiest shopping season of the year approaches.
Bank of America CEO Brian Moynihan says shopper numbers have remained steady despite the current economic climate.
However, some experts believe there will be a major backlash from consumers after the summer season.
Walmart is also concerned about consumer behavior and what that means for next year.
Walmart Chief Financial Officer John David Rainey said Wednesday at Morgan Stanley’s Global Consumer and Retail Conference that shopper behavior in October was so unusual that his boss was “squeezing in his chair.” He said it became.
Rainey said spending patterns in the last two weeks of the month were “puzzling” compared to the previous month.
Walmart CEO Doug McMillon said customers still spend a lot of money, but Americans still spent a record $9.8 billion on goods on Black Friday this year, but people still spend a lot of money. He said he stops when buying daily necessities.
McMillon spoke to CNBC to learn more about his shopping habits.
“Generally speaking, customers are very sensitive now,” he said.
“They are prioritizing orders and we know that prices may be lower due to stock clearance just before or right after Christmas, so we expect that to happen.”
Mr McMillon added that now that the economy has experienced a period of inflation, shoppers have become price sensitive and that is changing.
“We are starting to see some degree of deflation, which is good to see, but as price sensitivity increases, everyone is looking for value.”
Some food prices are falling, according to data from the U.S. Bureau of Labor Statistics.
According to October data, prices for dairy products and non-alcoholic drinks fell, and gasoline prices also fell by 4.9%.
Amazon CEO Andy Jassy said his team has noticed similar trends as Walmart and is confident customers will continue to rely on the company and for essential items.
“Consumers are still spending,” Jassy told CNBC earlier this week.
“They’re careful about what they spend, and they’re looking for bargains and deals wherever they can. Wherever they can get prices down, they’re going to do it.”
But while inflation remains higher than normal, Jassy said consumers are resilient, noting it would take significant inflation to stop people from buying essentials.
“I think people will buy certain retail items,” he said. “A lot of things are going to have to get worse before people stop investing in detergents, shampoos and soaps. If you look at our consumables business, the growth rate is pretty exceptional.”