Retailers across the US have for the most part reported excellent sales performance for August, though a large number admitted that winning over back-to-school shoppers demanded serious discounts and promotions. As such, concerns remain that the overall margin reports for the month won’t be nearly as strong.
The data collected also showed that in a market where the majority of spending is being directed at the homes and cars of consumers, clothing retailers were forced to offer the largest discounts of all. The difference between this summer and that of last year is clearly noticeable in terms of incentives offered, which according to economists confirms a widespread lack of interest in back-to-school spending.
Second only to the annual Christmas buying frenzy, the latter half of August represents one of America’s biggest shopping seasons.
Market analysts have suggested that part of the reason could be the way in which consumers in huge numbers are still trying to make the most of ongoing interest rates, investing in cars, homes and other major purchases while putting smaller retail buys on hold. Should the trend continue over the coming months, it doesn’t paint a promising picture for retailers looking to compensate over the Christmas period.