Only 11 Shopping Days Until Christmas

By Douglas A. McIntyre Updated Jan 30, 12:10PM EST · Published Dec 14, 8:15AM EST

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Only 11 Shopping Days Until Christmas — © nautilus_shell_studios / Getty Images

Barring any last-minute problems, 2019 should be one of the most successful shopping seasons on record, especially for American retailers. Cyber Monday, in particular, was a sign of consumer strength. Consumers spent nearly $9.5 billion on December 2, up 20%. E-commerce has become so critical to industry totals that it may have been a rising tide that lifted all boats. That assumes that all boats are the same, but this shopping season has proved again that they are not.

Data from FedEx, UPS and the U.S. Postal Service show that the busiest shipping day of the year falls on December 14 or 15, so there is still a great deal to come. When the National Retail Federation announced Thanksgiving holiday data, it made the fact clear that only a small fraction of Americans were done with their shopping:

Strong deals and promotions encouraged more consumers to shop over the holiday weekend. More than 154 million consumers will shop over Thanksgiving weekend, up from 151 million shoppers in 2015. NRF’s annual Thanksgiving weekend survey conducted by Prosper Insights found that 44 percent went online and 40 percent shopped in-store. Only 9 percent of consumers have finished their holiday shopping.

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Between now and Christmas, the frenzy of sales events and discount promotions may die down somewhat, but the bloodiest hand-to-hand combat among retailers is hardly over.

One tactic that retailers have used again this season is ever deeper discounts, as the chance to draw revenue shrinks as the days pass. The theory is that the need for retailers to offload inventory and drive their top lines is bad for them and good for consumers. Without any question, the consumer part of the equation is accurate. J.C. Penney Co. Inc. (NYSE: JCP) is pushing discounts as high as 30% and free shipping for as little as $49. The company’s net income to revenue ratios have been razor-thin recently, after a number of quarterly losses. How much thinner can they get? In fact, J.C. Penney may not make it to early next year still intact.

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Kmart is also discounting some items as much as 30%. Sears stores are equally aggressive, offering 25% discounts for shoppers who spend over $75 on some items — online only.

Mighty Walmart Inc. (NASDAQ: WMT) also offers a long list of shipping, credit card and discount deals. Even at its size, the retailer is not immune from the need to discount and keep or drive up its market share in a jam-packed industry. Walmart is so huge that it is the largest employer in many states.

With just 11 days until Christmas, every retailer is battling its way forward.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.