Holiday shopping boosts the economy, but retailers prepare for post-holiday returns and Nike plans layoffs as part of cost-cutting measures.
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What are the reasons for Nike's layoffs and cost-cutting measures?
What are the reasons for Nike's layoffs and cost-cutting measures?
Nike is laying off employees as part of a $2 billion cost-cutting measure.
The layoffs are a response to indications of more cautious consumer behavior around the world.
Nike has experienced slow sales in various global markets, including China, Europe, the Middle East, and Africa.
The company has also faced rampant crime in many markets, including the United States, with a recent robbery resulting in a loss of almost $12,000 in products.
Nike has failed to see major demand for its products beyond holiday sales like Black Friday or back-to-school season.
Christmas retail sales growth slowed down due to inflation and high-interest rates, which reduced holiday spending this year.
Consumer spending around Christmas grew just over 3%, lower than last year's growth of 7.6% and Mastercard's 3.7% September forecast.
Online spending also slowed from 10.6% last year to 6.3% this year.
Most customers consolidated their spending to Cyber Monday and Black Friday, taking advantage of the biggest deals, but overall, consumers were more cautious with their money due to inflation.
Retailers expected spending to be stretched thin this year and offered extended deals, but the deals were not as good as last season when retailers were trying to get rid of excess pandemic stock.
What were the factors that led to increased consumer spending during the holidays?
What were the factors that led to increased consumer spending during the holidays?
Americans showed a willingness to spend during the holiday season, despite concerns about elevated prices for daily necessities and financial anxiety.
Retailers offered discounts on holiday merchandise earlier in October compared to the previous year, and they were cautious about inventory levels after experiencing overstocked warehouses in the past.
The latest report on the Federal Reserve's favored inflation gauge showed that prices are easing, although costs remain higher in areas such as restaurants, car shops, and rent.
Americans unexpectedly increased their spending from October to November, highlighting their spending power in the face of higher costs.
Holiday sales from November through Christmas Eve rose by 3.1% compared to the previous year, although this was a slower pace of growth.
The economic backdrop remained favorable with healthy job creation and easing inflation pressures, empowering consumers to seek the goods and experiences they value most.
The National Retail Federation expects holiday sales to rise by 3% to 4%, which is lower than last year's growth but more consistent with typical holiday spending.
Industry analysts will closely examine the financial performance of major retailers in the fourth quarter when the data is released in February.
There is concern about whether shoppers will pull back sharply after receiving their bills in January, especially with the resumption of student loan payments and the burden of high inflation and interest rates.
What is the average credit card interest rate in Brazil?
What is the average credit card interest rate in Brazil?
The average APR on a consumer credit card in Brazil is 431.6 percent, according to the Central Bank of Brazil.
This high interest rate is a result of historically high inflation, a lack of regulation, and limited competition in the banking sector.
Brazil's four largest banks control 63 percent of the credit card market, giving them little incentive to reduce their rates.
The methods by which lenders calculate rates are out of step with reality, contributing to the uncompetitive market with little transparency or regulation.
Until last year, lenders were not required to share borrowing records with one another, making it difficult for consumers to develop a credit history that could help them argue for lower rates.
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