Dive Brief:
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Weather and changing priorities will more than half retailers’ holiday sales growth, according to investment bank Morgan Stanley.
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Last year Morgan Stanley analysts measured a 2.8% increase in holiday sales, but they expect closer to 1.2% this year, according their report this year entitled “The Grinch will steal Christmas.”
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Some of that is due to what will be lower apparel sales in general, plus warmer weather that will ding sales of winter gear, they say.
Dive Insight:
Morgan Stanley has a fairly bleak outlook on retail sales this year, but does note that some retailers have momentum or better prospects, either because of what they sell or how they’ve positioned themselves ahead of the season.
L Brands’ Victoria’s Secret and Bath and Body Works both have momentum, Lululemon Athletica could see sales rise thanks to improvements in its store design, and Ross Stores, Nike, and Best Buy could all also do well this year, according to Morgan Stanley's report.
