From the resolution of a major dockworkers strike to promising September sales, October brought a mix of challenges and opportunities for retailers.
October kicked off with a major Eastern Seaboard Dockworkers strike, which initially raised concerns among retailers as a prolonged work stoppage could lead to higher prices and reduced supply ahead of the holiday season. Retailers were prepared to weather a strike lasting under a week, and fortunately, the strike ended on October 4th when the union accepted a 62% increase in base wages, a relief for the industry. In more positive news, September sales surpassed expectations, providing an optimistic outlook for the fourth quarter as department stores look to increased mall traffic during the holiday season to lift what has been a challenging 2024.
As the holiday season ramps up amid an election year, retailers are proactively addressing potential election-related anxieties and a shortened shopping period. According to The Wall Street Journal, strategies vary, but retailers are united in ensuring consumers stay engaged. The National Retail Federation (NRF) is forecasting a 3.5% rise in holiday spending, citing that “the economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year,” despite some macroeconomic headwinds.
In the business development space, the trend of retailers entering the wholesale market continues as Anne Taylor and Loft announce a shop-in-shop partnership with Hudson’s Bay in Canada. Meanwhile, Amazon is scaling back its relationships with first-party vendors, a move that could increase pressure on impacted businesses as they look ahead to 2025. Bloomingdale’s is also expanding its footprint with the opening of a fourth small-format “Bloomie’s” store in Shrewsbury. While this diversification may foster growth, it is unclear if this strategy will deliver enough volume to significantly lift the company’s overall performance. Saks and Authentic Brands have also teamed up, aiming to reach the luxury consumer through a new joint venture, while Nike reported a 10% revenue dip as it continues its pivot toward a direct-to-consumer (DTC) model, hoping to regain traction amid ongoing turnaround efforts.
Fashion trends, often influenced by cultural shifts, are seeing unpredictable results this year. TikTok, for example, is spurring remarkable growth for certain brands, with Frye experiencing a boost as their boots trend on the platform. On the other hand, Levi’s is looking to sell Dockers, once a go-to for casual workwear, as office attire increasingly favors athletic wear over traditional business casual—a sign of changing times in workplace fashion. And, as always, while consumer trends come and go pumpkin spice remains a seasonal staple, beloved as ever.