Retail data shows US consumer confidence recovering, UK consumer sentiment remains sluggish

According to foreign media reports, the US economy is currently sluggish and consumer confidence is low. Through the latest retailer data and company performance, we have the opportunity to get a glimpse of the real situation.

While big U.S. retailers have stopped talking about the "glory 20s," there are signs that the industry can survive the current downturn.

The positive results from Walmart, the world's largest retailer and a bellwether for U.S. consumer demand, confirmed that Americans still love a bargain, even though just three weeks ago the company issued a profit warning due to excess inventory.

Home Depot, another retail giant, also performed buoyantly, reporting its highest quarterly sales and earnings on record as consumers remained willing to spend on home improvements despite rising prices. Target, another leading U.S. retailer, was less optimistic, as its plans to clear inventory led to a bigger-than-expected profit drop.

Meanwhile, official data on Wednesday showed U.S. retail sales remained resilient, while consumer confidence appeared to be recovering from historic lows.

The picture is much bleaker across the Atlantic, though, with two new sets of figures published today showing the impact of the cost of living crisis on British households and their shopping habits.

British consumer confidence has fallen to its lowest level in 50 years, according to a monthly survey by researcher GfK, while official retail data show consumers are even less willing to spend.

London's Oxford Street, one of Europe's busiest shopping streets, has seen a 60% drop in foot traffic compared to before the outbreak in 2019, with the street filled with empty retail stores, shabby souvenir shops and mysterious American candy stores.

The e-commerce industry, which has grown strongly during the epidemic, also appears to be slowing down, as evidenced by the performance of companies such as Zalando, Europe's largest online fashion retailer, and data from countries such as Japan.

The retail industry’s hopes now lie in live-streaming commerce, a modern version of home TV shopping, but with influencers promoting products.

The platforms that power e-commerce have also taken a hit. Shopify announced it would cut 10% of its workforce as it bets optimistically that the pandemic shopping boom will continue.

Innovation editor John Thornhill said the direct-to-consumer retail trend is faltering because, in addition to the problems facing traditional retailers, companies are facing higher advertising costs and the complex hurdles that Apple has created to track user habits.

In today's environment, challenges continue to arise. As a cross-border seller, you need to adapt to major trends and changes in consumer shopping habits in a timely manner.

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