All eyes are on Target and Walmart as they prepare to report their quarterly results this week.Two retailers’ third-quarter results could be an indicator of how holiday spending will fare, especially on Black Friday, according to reports Reuters.
Walmart will hold an earnings call on Wednesday, followed by Target on Thursday.
according to ReutersThe study, using data from the London Stock Exchange Group (LSEG), found that Walmart is expected to see sales rise 4.4% in the third quarter, while Target expects sales to fall 4.8%.
Food inflation has flattened recently, but the National Retail Federation predicts that the U.S. holiday season will be the weakest in five years. Rising credit card debt and declining pandemic-era savings both contribute to the weak outlook.
Although food inflation fell in September, the eating-at-home index rose slightly by 0.1% as three of the six major grocery store food group indexes rose for the month.
Additionally, a report released in September by data analytics firm PYMNTS showed that 1 in 5 shoppers pay for their groceries in installments, with the main reason being “spending and credit.” “Because it allows us to manage the situation.”
Reuters The company also reported that Walmart chose not to hire more employees to cover the holiday season, another clear sign of weak sales in the coming months.