With America gearing up for its festive season, many are worried that the country's changing leadership is likely to impact the holiday spending
As US President-elect Donald Trump gears up to take office from the 44th and current President of the United States, pundits are having a field day trying to estimate the impact that will likely have on the US citizens. Among the immediate concerns is the impact the election result will have on the holiday spending, especially Black Friday on November 25, 2016.
While some are ambivalent about it, most media reports have indicated that Black Friday might not see as spectacular spending as expected. According to a news article, this year, Veterans Day - the first peak of several peak spending days during the holiday season – failed to kick off holiday spending. It was reported that the sales were $380 million lower than expected, at $1.16 billion. Quoting Adobe Digital Insights, the report indicated that the sales registered a measly 1% growth over a year earlier, against the predicted growth of 16%.
Another report quoting data from Adobe says that between November 1 and November 14, retailers have lost over $800 million in revenue from online sales. The sharpest drop occurred after the election, with total sales growth slowing to only 1.3%, against Adobe's prediction for growth of 7.8%.
Trumping over Black Friday
Elections in any country are a messy affair. While Republican Donald Trump and his Democratic opponent Hillary Clinton were verbally sparring over various issues, their supporters took the fight to the street. Now, after the results are out, they are likely to cast a shadow over the festive shopping.
According to a report, Deutsche Bank analyst Paul Trussel is concerned that the election may have created visible divides and consumers might direct their loyalties over the next several weeks. The outcome may not be small as some businesses might think. Seconding his opinion, senior vice-president for Government Relations at the National Retail Federation, David French, has reportedly said that the current degree of uncertainty and anxiety will impact consumer confidence.
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