ANALYSIS: ‘Tis the Season...For Retail Spending & Activism?

The last two holiday seasons saw heightened investor activism activity in the retail industry compared to the preceding quarter, as well as heightened consumer spending. 2022 is shaping up to diverge from that path, however: activism is low and so is spending.

This year, the overall monthly value of retail purchases decreased by .6% in November—marking the largest decrease since December 2021, according to Bloomberg data. If this spending decrease continues in December, companies are unlikely to meet their financial targets for Q4. And retail companies that don’t meet their expected financial returns may be more vulnerable to investor activism ...