Walmart and other US retailers import fewer holiday goods as sticky inflation saps demand

If store shelves seem a little less festive than usual this year, don’t blame the Grinch – Walmart and other major retailers are importing fewer Christmas goods this year as they prepare to face a lukewarm holiday shopping season.Walmart, the world’s largest retailer, has shipped at least 340,000 kilos of products described as Christmas goods into the US in the 12 months ended Sept.30, according to ImportYeti import data provided to Reuters.That amount is less than half the 980,000 kilos shipped in the same period last year, according to the data. And in 2022, Walmart imported more than 1.9 million kilos of Christmas products in the same 12-month period, according to ImportYeti.A Walmart spokesperson said the data “only paints a partial picture” of its sourced goods.

The company’s executives will share its holiday outlook on Nov.19, when Walmart reports its third-quarter results.Charles Sizemore, chief investment officer at Walmart investor Sizemore Capital Management, said Walmart has been researching shopper spending data.“If Walmart is ordering less, they are expecting sales to be tepid,” he said.US retail sales unexpectedly rose in September and recent inflation reports have shown signs of further cooling.

Consumer sentiment rose for the third month in a row to its highest reading since April, according to the University of Michigan’s Survey of Consumers.But shoppers – hit hard by sticky inflation – have seen their savings dwindle thanks to sky-high prices and have continued to cut back on discretionary spending.Some 56% of US consumers noted concerns about being able to pay for this holiday season, according to an EY Holiday Shopping Survey that studied 1,000 consumers in the US.That number rose to 61% of Gen Z consumers in the US.“Though consumer sentiment is more positive, wallets are still squeezed, making shoppers more intentional with their purchases,” Greg Zakowicz, senior e-commerce expert at Omnisend, a marketing automatio...