Inflation may be down, but consumer demand is soft, retailers aren't placing big orders for peak season, and they expect discounts will be needed: CNBC survey.
Even as inflation drops sharply year over year, the majority of respondents to the CNBC Supply Chain Survey are concerned the consumer will cut back on holiday spending.Middle-price point items, such as jackets, are dominating early holiday order activity; less than 20% are high-end items.A woman pushes a shopping cart past Christmas decorations displayed for sale at a Wal-Mart.
The largest grouping of respondents expect a lower peak season compared to last year, with 21% of those surveyed expecting the level of orders to be the same. Traditionally, retail sector orders for peak season items are placed in late winter, or early spring. This year, with many retailers still drawing down inventories, the timing of placing holiday orders has been more varied.
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