The former vice president of Target has issued a dire warning to American consumers ahead of the holiday shopping period.
Gerald Storch predicted that the seasonal shopping season between Thanksgiving and Christmas would be affected by economic and political uncertainties this year.
“It’s very clear that consumers are running out of money,” he told Fox Business.
“They are increasingly stressed by inflation and the depletion of their pandemic-era savings…they are spending less than the growth of inflation,” he told the program Thursday.
The former Target executive noted that a quirk in the calendar means Thanksgiving falls later than usual this year, meaning the shopping period will also be shorter.
Shopping season between Thanksgiving and Christmas will be shorter this year
Former Target executive Gerald Storch has issued a dire warning about the shopping season.
“By the way, we have the shortest holiday season you can imagine, which works against retailers,” he said.
“Now the time between Thanksgiving and Christmas is very, very short, so it’s going to be bad.”
The presidential election on Nov. 5 will also affect consumer confidence in the run-up to Christmas, Storch said.
“The elections are going to influence things and also the geopolitical situation, so I think it will be a pretty weak Christmas,” he said.
Concerns about the overall consumer outlook have been exasperated by mass store closures throughout the year.
Earlier this week, pharmaceutical giant Walgreens closed 1,200 locations nationwide.
About 500 of the stores slated for the cut will close over the next year, although their locations have not yet been revealed.
Pharmacy chains are facing the most turbulent time in their recent history, as consumers shun high-priced grocery products and increase pressures on the payments they receive from drug brokers for filling prescriptions.
The US retail sector is facing what has been called a “retail apocalypse” driven by high inflation leading to store closures and bankruptcies. Consumers are also increasingly choosing to shop online rather than in brick-and-mortar stores.
Earlier this week, Big Lots announced details of another 208 stores it plans to close as it fights bankruptcy.
There were almost 2,600 store closures in the first four months of 2024. If that trend continues, almost 8,000 will have been lost by the end of the year.
The Big Lots store in Dennis Port, Massachusetts, on Cape Cod, is closing soon and is up to 50 percent off in its liquidation sale.
Bargain stores like Big Lots and dollar stores have been especially hard hit.
For example, 99 Cents Only announced in April that it would close its 371 locations in California, Texas, Arizona and Nevada.
Additionally, Macy’s will close 150 stores over the next three years, including closing 55 this year.