By Jordyn Holman
Inside the cool convention center, the scene felt like a meticulously planned frenzy as Walmart had recreated one of its Supercenter locations. It was the end of August in Orlando, Florida, and the retailer had transported thousands of employees to experience it. They were darting around, attempting to absorb everything around them.
Dozens of illuminated Christmas trees and poinsettias were on display, alongside rows of Halloween candies and clothing racks filled with stylish dresses and sweaters. A Minnie Mouse mascot pranced through the toy department, while quirky inflatable ghosts and foxes floated above inflatable jack-o’-lanterns in a vibrant pumpkin patch. Meanwhile, Walmart employees indulged in samples of pulled pork with chips, Oreo cookies, and ice cream.
A candy cane archway greeted guests as they entered the North Pole — and Walmart’s yearly business meeting focused on the holiday shopping period.
On that steamy day, the nation’s largest retailer aimed to cultivate a festive atmosphere for holidays still months away. However, the primary focus for the 6,700 participants was Walmart’s upcoming fall and winter initiatives.
Beyond the cheerful ambiance, the holiday season carries significant implications. It represents the peak quarter of the year for most retailers, and Walmart’s preparations provide valuable insights into consumer trends and the overall retail landscape.
According to the National Retail Federation, holiday sales are anticipated to rise this year at a slower pace than the previous year. However, this forecast considers only November and December. The holiday season has evolved to include not just purchasing for Thanksgiving and Christmas but also sales related to football tailgating and Halloween.
Jen Acerra, head of Walmart’s consumer insights team, supports the company in assessing how shoppers may perceive the fall and winter periods. Last year, Acerra noted a significant increase in holiday shopping enthusiasm starting before Halloween.
“We’re embracing that trend,” she remarked.
This evolution has compelled Walmart, along with many other retailers, to consider what customers are inclined to buy over an extended timeframe. Determining what shoppers desire this year poses its own set of challenges. Economists and retail analysts observe that consumer hesitancy looms over holiday spending expectations — further intensified by early uncertainties surrounding the upcoming election. Retailers are also aware that this year there are five fewer shopping days between Thanksgiving and Christmas compared to last year.
“This will undoubtedly increase pressure on the holiday period,” said Kate McShane, managing director at Goldman Sachs, who keeps a close watch on major retailers.
However, if managed effectively, a successful holiday quarter that draws customers into both physical stores and online platforms can positively influence the entire upcoming year.
“A positive holiday experience, where customers find popular items at prices comparable to last year or feel they saved some money, will strengthen their loyalty,” commented David Silverman, a retail analyst at Fitch Ratings.
Currently, Walmart executives appear optimistic, as they continue to report sales growth this year, while department store chains like Macy’s and Kohl’s report that their customers have become more cautious. Walmart partly credits its recent success — with U.S. sales climbing 4.2% in the second quarter compared to a year prior — to its commitment to “everyday low prices” and conveniences like expedited shipping.
“Consumer sentiment dictates our actions,” said John Furner, CEO of Walmart’s U.S. operations. “Even when sentiments fluctuate, there are still consumers who feel positive, alongside those who do not. Thus, we focus on aspects we can manage” — including customer service, recruitment, and execution.
In the morning session, Furner and other key executives held presentations to remind store managers of their significance and the objectives ahead. The speakers highlighted that the company implemented 7,200 rollbacks — Walmart’s term for discounts — in the second quarter, surpassing the same period last year. Additionally, for the third and fourth quarters of this year, the company stated there would be “nearly 25% more” rollbacks in the toy category compared to the previous year.
Items typically bought for Thanksgiving meals are expected to cost roughly 3% less than last year. Moreover, turkeys will have predetermined prices, eliminating the need for staff to weigh each one and reducing wait times for customers.
Toys represent a significant category for gifting, and Walmart particularly concentrates on this area. To maintain low prices, Furner explained that it is essential for Walmart’s suppliers to select items that customers are willing to buy at full price, avoiding excessive markdowns.
“The process of managing purchases a year in advance is both a science and an art, as it involves predicting customer preferences and incorporating innovation,” he said, standing adjacent to the toy section in the simulated Supercenter. “You have to make your choices, then endure a suspenseful wait of about six months. We’re currently in that tense waiting period.”
Acerra and her consumer insights team have outlined shoppers’ attitudes throughout each week of the holiday retail period. Around mid-October, customers begin searching for early promotions. Near Thanksgiving, the stress of preparing for family gatherings sets in. Following this, Black Friday marks the chaotic sprint towards the finish line.
“There’s also a sense of dread,” Acerra observed. “Concerns about long lines for desired products or the stress of trying to find what I need in the limited time I have can be overwhelming. Both positive and negative emotions accompany this time, and we must be prepared for whatever way customers choose to engage, whether in-store, interacting with our associates, or shopping online.”
