When you think about the economy, what do you think about? If you said manufacturing, tech services, schools, civil servants, you would not be wrong, but the real answer to the US economy is shopping or retail. The economy depends on people buying things – restaurants and shopping or going out to buy something. The biggest retailers in the US are some of the biggest retailers in the world and they employ many people. The most important season in the shopping season is from Black Friday to New Year’s including Christmas and Boxing Day. If the retailers do not make their money in that season, they will not make their money in the winter months of cold. One method to gauge how the season is expected is to examine hiring expectations.
In an article by Siddharth Cavale and Uday Sampath Kumar of Reuters, the people at Reuters asked the large retailers about their hiring expectations. Walmart wishes to hire 40,000 people with 91% in the stores and 9% for the warehouses. Last year, Walmart hired 150,000 new workers with many of them full time status.
Party City is gearing up for Halloween with 20,000 seasonal staff as gatherings are expected to increase from the last few years.
Michaels Companies is expecting to hire 20,000 people, all in store.
Bain and Co expects holiday spending to be $915 billion up 7.5% from last year. To meet the demands the retail sector will add 680,000 workers compared with 700,000 last year.
Linking to dividend paying stocks, when you buy a stock you have expectations the past will repeat itself and the future will continue to be good. There are many methods to access what the future will bring and hiring expectations is one of them. How does your investments handle the busy quarter they have?
There are more questions than answers, till the next time – to raising questions.