Rising Wages, Tighter Inventory Spark Retail Holiday Optimism Essay

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The title of this article is: “Rising Wages, Tighter Inventory Spark Retail Holiday Optimism.” This article, written by Wall Street Journal reporter Suzanne Kapner, focuses on wages, supply and price. As the election season turns into the holiday season, department stores are experiencing improving sales trends. This is good news for companies such as Saks Fifth Avenue, Macy’s Inc. and Kohl’s Corp., which have experienced recent quarters of declining sales due to changes in shopping habits and competition from discounters.
Kohl’s experienced a revenue fall of 2.3% last quarter and Macy’s reported a sales drop of 4.2%. People have been spending less on traditional department store items such as clothes and handbags, and are spending more in other areas such as travel, dining and entertainment. Some of these losses are due to changes in consumer spending habits. Retail executives have noticed a shift of consumers making less in-store purchases and spending more money online. As shoppers are opting to make more purchases online from Amazon.com and fashion chains such as H&M, department stores are struggling to keep up. The National Retail Foundation projects non-store sales will increase 7% to 10% to as much as $117 billion.
Macy’s CEO Terry Lundgren said that with rising wages and low unemployment, “there is a potential for consumers to spend in the fourth quarter.” The National Retail Federation projects that 2016 holiday sales for online and in-store shopping will

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