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Walmart, other US retailers import fewer Christmas goods ahead of tepid holiday season

Updated: 05-11-2024, 11.52 AM

By Richa Naidu, Aishwarya Venugopal and Siddharth Cavale

(Reuters) – Santa Claus is not delivering as many Christmas trees, toys and decorations to the United States this year as in recent years, import data shows, with retailers including Walmart bringing in less holiday product ahead of what is expected to be a so-so holiday season.

Walmart, the world’s biggest retailer, has slashed Christmas imports deeply, shipping at least 340,000 kilos of products described as “Christmas” goods into the U.S. in the 12 months ending Sept. 30, according to U.S. import data provided exclusively to Reuters by ImportYeti.

The retailer shipped in almost three times more product, at least 980,000 kilos, in the prior 12 months through Sept. 30, 2023, the import data shows. In the same 12 months of 2022, Walmart imported more than 1.9 million kilos of Christmas products, from reindeer ornaments to Grinch plush toys.

A Walmart spokesperson said that bill of lading data “only paints a partial picture of what we source due to the exclusion of data from marketplace, national brands, and domestic importer data for private brands, among other things.” The retailer’s executives will provide their holiday season outlook when the company reports third-quarter results on Nov. 19.

Walmart investor Sizemore Capital Management said Walmart routinely scrutinizes data on shoppers’ spending patterns, including credit-card data. “They have done the research on their consumer. And what they have concluded is that the holiday season is not going to be as strong,” said Charles Sizemore, chief investment officer at the firm.

Although the holiday-product import data does not count electronics, clothing or other general merchandise, what it shows “is pretty obvious,” he added. “If Walmart is ordering less, they are expecting sales to be tepid.”

Retailers are “predicting a smaller sales increase this holiday than we saw last year,” said Gerald Storch, retail consultant and former Target vice chairman and ex-CEO of Hudson’s Bay.

“Consumers are stretched with less money left for discretionary purchases,” he said. While total U.S. consumer spending is up, “some commentators keep confusing total consumer spending (including necessities like housing or healthcare) with discretionary spending.”

U.S. retail sales increased in September, supporting the view that the economy maintained a strong growth pace in the third quarter.

D.A. Davidson analyst Linda Bolton Weiser said the consumer environment this year is “far from robust” and that Walmart’s average price point for toys is at $40.16 this season, 10% lower than last year.

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