Target exec issues grim warning as Americans begin holiday shopping

The former vice chairman of Target has issued a dire warning to American consumers and retailers ahead of the holiday shopping season.

Gerald Storch predicted that the seasonal shopping season between Thanksgiving and Christmas would be pressured this year by economic and political uncertainties.

‘It is 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 inflation growth,” he told the program on Thursday.

The former Target executive pointed out that a quirk in the calendar means Thanksgiving will fall later than normal this year, meaning the shopping window will be shorter and creating a tough environment for retailers.

Former Target CEO Gerald Storch has issued a dire warning about the shopping season

“By the way, you have the shortest holidays imaginable, so that’s against the retailers,” he said.

“Now the time between Thanksgiving and Christmas is very, very short, so that’s going to be bad.”

The traditional shopping season between Thanksgiving and Christmas Day is a busy time for consumers and crucial for major retailers like Walmart and Costco, as well as small independent businesses.

A bad shopping season could weigh heavily on the broader economy as analysts nervously look for cracks after years of high interest rates.

The close presidential election on November 5 will also impact consumer confidence in the run-up to Christmas, Storch argued.

“The election will put a heavy strain on business and the geopolitical situation, so I think it’s going to be a pretty weak Christmas,” he said.

Concerns about the broader consumer landscape have been exacerbated throughout the year by mass retail closures.

Earlier this week, pharmacy giant Walgreens closed 1,200 locations across the country.

About 500 of the planned stores will close over the next year, although their locations have not yet been announced.

Pharmacy chains are facing the most turbulent times in recent history, as consumers avoid expensive groceries and pressure mounts on the payments they receive from drug brokers to fill prescriptions.

The U.S. 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 instead of in physical stores.

Earlier this week, Big Lots announced details of another 208 stores it plans to close due to its bankruptcy.

In the first four months of 2024, there were almost 2,600 store closures. If that trend continues, almost 8,000 stores will have been lost by the end of this year.

The Big Lots store in Dennis Port, Massachusetts, on Cape Cod, is closing soon and has up to 50 percent off 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 all 371 locations in California, Texas, Arizona and Nevada.

In addition, Macy’s will close 150 stores over the next three years, including closing 55 this year.