Table of Contents:
Introduction to Christmas shopping in the United States
Thanksgiving Day, which is celebrated on November 28, marks the official start of the Christmas shopping season in the United States. This period is crucial for the American economy, with forecasts that indicate a record of online sales during the 2024 holidays, estimated at 241 billion dollars, with an increase of 8.4% compared to the previous year. The holidays not only represent an opportunity for consumers to buy gifts, but also a time of great attention for investors, since consumption represents 68% of the US GDP.
The most popular gift categories
Among the most requested categories of gifts, clothing stands out as the consumers’ favorite. This has led fast fashion platforms such as Temu and Shein to intensify their investments in online marketing. According to the analyses, these companies are using aggressive strategies to reach consumers, making it more difficult for other retailers to compete. Online marketing spending has increased, and brands are now faced with the challenge of emerging in a crowded market
.
The winning and losing companies in the fast fashion industry
According to Gabriel Debach, market analyst at eToro, some companies in the fast fashion sector are establishing themselves as market leaders. Abercrombie & Fitch, for example, recorded an impressive growth in Total Return YTD of +68% and a cumulative increase of 811% over the past five years. Other companies such as Fast Retailing, the giant behind Uniqlo, show a 5-year Total Return growth of +140%. However, not all companies are thriving: H&M and ASOS, for example, are facing significant difficulties, with falling revenues and negative operating margins
.
The challenges for traditional retailers
Traditional companies like Kohl’s Corp and Target are facing increasing challenges in keeping their clientele. Kohl’s saw a -44% YTD stock drop, while Target recorded a -9% YTD decline. These difficulties are indicative of a change in consumer behavior, who are increasingly moving towards more agile and competitive retailers. Even Best Buy, despite recording a modest +14% YTD, is facing pressure from consumers who postpone their expenses while waiting for
seasonal discounts.
Conclusion: an evolving landscape
The Christmas shopping landscape in the United States is constantly evolving, with rapidly changing trends and increasingly fierce competition. Companies must adapt to these dynamics to remain relevant and competitive. As the holidays approach, it will be interesting to observe how sales will develop and which companies will emerge
as leaders in the market.
