For some retailers and consumers, Christmas can’t come soon enough.
According to a report by Morgan Stanley, the year got off to a “solid” start with total sales 4.1% higher than a year earlier and March’s number (1.4%) beating expectations, with increases virtually across the board.
But now, Morgan Stanley added, investors are concerned that it may have been all about front-loading to get ahead of the tariffs, leading to dwindling hopes. Forget Christmas in July and think Halloween in May. Indeed, if you were at the new Hobby Lobby in Norwalk this spring, you would’ve seen shelves stocked with pumpkins and other signs of autumn, which used to make their appearance in stores only around this time of year. By Memorial Day, there was almost no summer stock left.
Other stores are ordering less inventory in anticipation of the tariffs – and in fear of being caught holding the merchandise bag. That’s because, as Morgan Stanley put it: “Suppliers are unlikely to shoulder as much of the tariff burden as they have historically, placing more weight on retailers/brands to mitigate increased costs.”
Which is something retailers are loath to do. A study by Allianz, the international financial services provider, polled 4,500 businesses in nine countries to discover that 54% of U.S. firms plan to pass the additional costs on to consumers, while 24% are exploring scaling back or switching suppliers. Only 22% are willing to shoulder the burden.
Of course, for some businesses, Christmas in July is an annual ritual, coming off of the Fourth of July sales. The. Nordstrom Anniversary Sale begins July 12 and runs through Aug. 3. (“Among soft-line retailers, department stores could be most affected by incremental tariffs,” Morgan Stanley noted.)
And Christmas in America – the newly expanded retail arm of Mount Vernon’s American Christmas, the company behind much of Manhattan’s iconic yuletide look – is hosting a Christmas in July sale online through July 31st and a two-day sample sale 11 a.m. to 7:30 p.m. July 17 and 18 at its warehouse, 30 Warren Place.
The shop, which has grown from 1,000 square feet to 15,000 square feet, will feature exclusive sample pieces, including showroom displays, never-used items and open-box décor – at up to an 80% discount. These include commercial trees, garlands and wreaths; fiberglass props; oversize ornaments and other holiday décor; and collectible Santas. The popular Fill-a-Bag-of-Ornaments specials will also be back.
“This year marks a major milestone for us,” Dan Casterella, CEO of Christmas in America, said in a statement. “We’ve grown into one of the largest Christmas décor destinations in the region, and this summer’s sale is our way of saying ‘thank you’ to the loyal community that helped us get here.”
But a spokeswoman for the company also noted: “With potential tariffs still looming, it’s a great time to plan ahead and save….”
Which is the name of the retail/consumer game these days.
