Retailers experienced a disappointing fall quarter, but the election appears to be bringing positive changes.

Many U.S. retailers are looking to move past the challenging fall quarter, with Best Buy reporting one of its worst three-month stretches in recent years, partly due to the distraction of the presidential election. However, the decisive outcome of the election, with a GOP sweep, seems to be boosting holiday sales momentum for retailers. Best Buy’s struggles reflect the uncertain environment most retailers are facing, with consumers grappling with higher prices.
Surveys show that economic confidence has improved since the election, with Gallup’s Economic Confidence Index seeing a significant jump compared to October. While most Americans still believe economic conditions are worsening, there is an overall improvement in sentiment. A separate consumer-confidence report released also indicates growing optimism about family finances and job availability.
Retailers like Abercrombie & Fitch and Burlington are forecasting strong holiday sales, with the former expecting sales growth ahead of analysts’ expectations. Wall Street is also responding positively, with retail-focused stock trackers seeing a 10% increase this month. The Philadelphia Federal Reserve’s quarterly survey of economic forecasters has raised its predictions for U.S. economic growth in the next few months, indicating a more positive outlook compared to earlier in the year. Overall, retailers are cautiously optimistic about the upcoming holiday season and beyond.

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