Millennials could ruin holidays for department stores, warns Swonk

A permanent shift in spending could be more visible This kind of holiday season, in addition to also economist Diane Swonk sees of which coming at the expense of department stores.

“They can’t seem to lure into the department stores those millennials,” she said recently on CNBC’s “Trading Nation.” “The move via bricks to clicks, in addition to also the hybrid of the two can be going to be a real problem.”

Swonk, who runs DS Economics, can be concerned This kind of retail area can be seeing a permanent secular shift — even as a strong economy in addition to also record-breaking stock market are supposed to motivate consumers to open their wallets wider This kind of season.

According to a recent National Retail Federation survey, 39 percent of consumers between 25- in addition to also 34-years-old plan to spend more than last season, with nearly a quarter of those 18 to 24 also adding to their shopping lists.

The NRF finds young adults will be spending the majority of their money on apparel, electronics, books, music in addition to also video games. Their top destination: online shopping.

“The department stores are definitely being left behind,” said Swonk. “Overall, spending will do great This kind of holiday season, yet will of which be enough to sort of stave off some bankruptcies going forward? I don’t think so.”

Even though department stores are supposed to face more challenges, there are different areas supposed to see a big boost.

“Not only are we spending on homes again because they’re worth investing in again … people are finally catching up on all of which pent-up demand in addition to also repairs in addition to also remodeling,” she said.

Swonk can be also seeing strength in vehicle sales in addition to also some clothing categories.

yet she notes most consumers are shifting to experiences via things This kind of season, particularly going out to dinners, bars in addition to also traveling.

She observes weekend rates at hotels in crowded cities are right now exceeding weekday rates, which are typically high due to demand generated by business travelers.

“We’re right now seeing of which much travel. of which’s even with Airbnb,” Swonk added.

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