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Welcome to a new week. Summer is just beginning, but earnings season is moving into its later stages. This week, Chewy, Lululemon and Macy's highlight the quarterly reports, while Hormel will offer an inside look at a CPG. To close out the week, the federal government will release the latest jobs data.
Here’s a look at what we’ll learn about the consumer economy this week:
Consumer Confidence Index: The Conference Board issues monthly data on consumer buying conditions, expectations on inflation and other views on the state of the economy. (May 30, 10 a.m.)
Jobs report: The U.S. Labor Department reports data for May 2023 on the number of new jobs created, the unemployment rate and wages. This report is viewed as a key indicator of consumer demand, as people are more likely to spend if they have stable employment. (June 2, 8:30 a.m.)
Wednesday, May 31: Chewy, Victoria’s Secret, Nordstrom, Salesforce.
Thursday, June 1: Hormel, Lululemon, Macy’s, PVH Corp., Lands End
Trending in Economy
Labor disputes on the West Coast could cause further disruption heading into peak season.
When the first half of 2023 is complete, imports are expected to dip 22% below last year.
That’s according to new data from the Global Port Tracker, which is compiled monthly by the National Retail Federation and Hackett Associates.
The decline has been building over the entire year, as imports dipped in the winter. With the spring, volume started to rebound. In April, the major ports handled 1.78 million Twenty-Foot Equivalent Units. That was an increase of 9.6% from March. Still it was a decline of 21.3% year over year – reflecting the record cargo hauled in over the spike in consumer demand of 2021 and the inventory glut 2022.
In 2023, consumer spending is remaining resilient with in a strong job market, despite the collision of inflation and interest rates. The economy remains different from pre-pandemic days, but shipping volumes are beginning to once again resemble the time before COVID-19.
“Economists and shipping lines increasingly wonder why the decline in container import demand is so much at odds with continuous growth in consumer demand,” said Hackett Associates Founder Ben Hackett, in a statement. “Import container shipments have returned the pre-pandemic levels seen in 2019 and appear likely to stay there for a while.”
Retailers and logistics professionals alike are looking to the second half of the year for a potential upswing. Peak shipping season occurs in the summer, which is in preparation for peak shopping season over the holidays.
Yet disruption could occur on the West Coast if labor issues can’t be settled. This week, ports from Los Angeles to Seattle reported closures and slowdowns as ongoing union disputes boil over, CNBC reported. NRF called on the Biden administration to intervene.
“Cargo volume is lower than last year but retailers are entering the busiest shipping season of the year bringing in holiday merchandise. The last thing retailers and other shippers need is ongoing disruption at the ports,” aid NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “If labor and management can’t reach agreement and operate smoothly and efficiently, retailers will have no choice but to continue to take their cargo to East Coast and Gulf Coast gateways. We continue to urge the administration to step in and help the parties reach an agreement and end the disruptions so operations can return to normal. We’ve had enough unavoidable supply chain issues the past two years. This is not the time for one that can be avoided.”