The Big Picture
With the election behind us, it’s time to refocus on the economy—and the outlook for 2025 is promising. The third quarter saw GDP growth of 2.8%, fueled by a solid 3.7% increase in consumer spending.
Unemployment remains low, and inflation continues to ease, providing a stable foundation for economic momentum.
October data from the U.S. Commerce Department showed consumer spending edged up 0.4% from September. However, sales in clothing and department stores dipped slightly, down 0.2%, with analysts pointing to disruptions from hurricanes as a factor holding back potential growth.
October Trends
In our client stores, overall sales were up 5% for the month.Sales of women’s wear ticked up 3%, with smaller stores doing better than larger ones. Larger stores struggled with drops in special orders and dresses—dresses were down 13% in October and are off 2% year to date. If this was your story, was it a traffic problem or a bad buy? Look at the data for insights.
Meanwhile, men’s wear shined again, with sales rising 7%. The standout category was clothing, up 11%, boosted by fresh fall fashion. Sportswear also held steady with a 5% gain.
The Final Sprint
As we head toward the end of the holiday season, we expect sales to remain positive, marking the end of a great retail year.
Focus on clearing your floors the day after Christmas with appropriate markdowns – we don’t think they need to be too steep, unless you went into the season overbought.
As we turn toward spring, take a good look at your remaining open to buy. Are there any trends or price points that would have improved your sales last spring? If so, invest in them now.
Blacks’ Bottom Line
There will be a lot of travel next year. Talk to your customers and record those destinations. Follow up with calls in the first quarter to sell them destination looks.
