US businesses cope with holiday price pressure

VTV.vn - Slow inflation and income growth make consumers cautious, forcing retailers to launch early promotions and adjust pricing strategies.

To close sales, US retailers have launched incentive programs quite early.

According to the National Retail Federation, nearly 187 million consumers will visit retail stores in the US during the five-day period from Thanksgiving (November 27) to Cyber ​​Monday (December 1), a record number. However, the large number of shoppers does not necessarily mean a strong breakthrough in sales, in the context of high prices that are making many consumers cautious in spending, forcing businesses to adapt their strategies.

According to the JPMorgan Chase Institute, American households are entering the holiday shopping season with the weakest income growth in more than a decade and bank balances that are virtually flat after adjusting for inflation. This reality has led many consumers to be more cautious in their shopping, favoring discount chains like Walmart.

"I like the prices here because they're not too expensive. Other stores are too expensive for me," said American consumer Rosario Agudelo.

To lock in sales, retailers have been rolling out deals early, with Walmart starting mid-month and Amazon kicking off its deals week on November 20. Businesses are trying to adapt to tariff pressures and shifting consumer sentiment.

Mr. Olu Sonola - Head of US Economic Research, Fitch Ratings assessed: "Retailers are using many different strategies to attract customers. Some are increasing prices on non-tariff-related items, just to keep tax-affected items affordable. Others, especially large retailers, are accepting reduced profit margins, or negotiating with foreign partners to reduce prices."

Price pressure and financial difficulties also push many consumers towards forms such as buy now, pay later, so they can shop more comfortably at the end of the year.

Mr. Eric Matisoff - Customer Experience Optimization Expert, Adobe Corporation commented: "Buy now, pay later is growing strongly this year. We expect 2 billion dollars worth of purchases to be made using this type of technology. That shows that consumers are still very excited to shop and take advantage of discount programs. They are looking for ways to make the most of their money and extend shopping time."

However, financial risks are something consumers need to consider. According to the American Institute of Certified Public Accountants, nearly half of U.S. consumers planning to spend on travel or gifts this holiday season will rely on debt, a potentially risky move.

"Having a disciplined spending plan is very important so you don't have to regret it in January. However, spending beyond your budget during the holidays is a common mistake. Using credit cards or buying now and paying later can be a double-edged sword, because on the one hand they are very convenient, but the danger will appear if you do not take into account the expenses and make a debt repayment plan," said Michael Sury, an expert in financial management and analysis at the University of Texas.

The National Retail Federation forecasts that sales in November and December - both in physical stores and online - could top $1 trillion for the first time, representing growth of 3.7% to 4.2%. However, this would be significantly slower than last year's 4.8% increase.

Source: https://vtv.vn/doanh-nghiep-my-xoay-xo-truoc-ap-luc-gia-ca-dip-le-100251126152459707.htm