Americans Are Still Spending Ahead Of Holiday Season Despite Inflation Surge

Personal spending rose 1.3% last month in a sign that consumers are continuing to spend more despite higher inflation, which continues to rise at its fastest pace in three decades, according to new data from the Commerce Department on Wednesday.

Prices climbed by 5% in the year through October, the fastest gain in over 30 years, according to the latest Personal Consumption Expenditures price index report.

Inflation is surging at its fastest pace in three decades, data shows: October’s annual jump in prices is more than last month’s reading, which showed prices for the year through September climbing 4.4%.

Despite the lingering Covid-19 pandemic, the reduction of stimulus payments and ongoing supply chain issues adding to investor fears about inflation, consumer demand remains steady amid rising private wages and salaries, the Commerce Department’s report said.

Personal consumption expenditures (or PCE)—a key measure of consumer spending—rose 1.3% in October, while personal income rose 0.5%, according to the data.

Both measures of consumer strength were up sharply from recent months: The elevated spending levels ahead of a busy holiday season could help boost the broader economic recovery, experts say.

The increase in personal spending comes as Americans benefit from large pay increases and healthy household balance sheets, especially after several rounds of government stimulus, according to the report.

“Within goods, increases were widespread, led by motor vehicles and parts,” according to the report. Energy prices increased over 30% and food prices nearly 5%. Excluding both of those, the PCE price index for October gained 4.1% from a year ago.

Whether rising inflation starts to cut into consumer demand. While spending on consumer goods is now well above prepandemic levels, Americans with lower incomes could start to defer purchases if price increases continue, economists warn.

genesis-1-1-1-1-1-1-1-2-1-1

In a more positive sign for the U.S. economic recovery, weekly jobless claims fell substantially to their lowest level in 52 years, according to new data on Wednesday. The latest report from the Labor Department showed that the jobs market has continued to make a comeback in recent weeks. Around 199,000 people filed initial jobless claims in the week ending November 20, which was down 71,000 from the previous week and the lowest level since November 1969.

Stocks continue to remain near record highs—with the S&P 500 up 26% so far this year, though markets could be more volatile in 2022, experts warn. Rising fears about higher inflation, the Covid-19 delta variant, supply chain issues and Federal Reserve policy are all top of mind for investors going into the end of the year.

Further Reading:

This Wall Street Firm Sees A Negative Year Ahead For The Stock Market (Forbes)

New Jobless Claims Unexpectedly Sink To 52-Year Low Despite 2 Million Americans Still Receiving Unemployment Benefits (Forbes)

Stocks Jump After Biden Reappoints Jerome Powell To Lead Federal Reserve (Forbes)

Follow me on Twitter or LinkedIn. Send me a secure tip.

I am a New York-based reporter covering billionaires and their wealth for Forbes. Previously, I worked on the breaking news team at Forbes covering

Source: Americans Are Still Spending Ahead Of Holiday Season Despite Inflation Surge

.

More Contents:

The Sudden, Uncomfy Fall of The Biggest Pandemic Fashion Trend

Last year, many people got many things wrong about how the pandemic might change our lives. No, cities did not die; yes, people still blow out birthday candles and risk spreading their germs. But few 2020 forecasts missed their mark so spectacularly as the oft-repeated claim that, as the world reopened, we’d return to it in sweatpants.

If any single event crystallizes this misfire, it’s last month’s announcement that the direct-to-consumer loungewear brand Entireworld was going out of business. The company had been a breakout darling of 2020, its cheerfully hued cotton basics poised at the fortuitous intersection of “cute enough for Zoom” and “cozy enough to work, sleep, and recreate from bed in, for the bulk of a calendar year”. News outlets, meanwhile, pointed to Entireworld’s astonishing 662% increase in sales last March not as a right-place, right-time one-off, but an indication of our collective sartorial destiny.

The sweatpant has supplanted the blue jean in the pants-wearing American imagination,” declared GQ last April. The New York Times Magazine followed suit a few months later with an Entireworld name-check in its August 2020 cover story, headlined “Sweatpants Forever”.

But it wasn’t to be. Instead, as 2021 brought forth the world’s reopening, I noticed a style sensibility that seemed to defy last year’s housebound pragmatism. From Instagram to the streets of my New York City neighborhood, the people were turning looks. Kooky looks, to be precise, from platform Crocs to strong-shouldered silhouettes.

My online window shopping exploits turned up scores of sundry garments, across brands, all in the same exuberant hue of 90s DayGlo green. From sensible underpants to faux fur–trimmed tops, I subconsciously catalogued the color labels assigned to each (“celery”, “gross green”, “slime”).

This new, psychedelic palette seemed like a spiritual departure from Trump-era minimalism and its many shades of beige. Less dutiful, more winking.

Sweatpants seem destined for a mere supporting role. Jessica Richards, a trend forecasting consultant based in New York City, agrees that the pandemic has changed the way we dress. “It’s actually for the better,” she says – and in more ways than one.

It’s no coincidence that the styles of the Great Re-entry reflect a certain giddiness, says Dr Jaehee Jung, a University of Delaware fashion studies professor who researches the psychology of fashion and consumer behavior. “The fact that there are more opportunities to present ourselves to others makes us excited about the clothes we wear,” Jung tells me.

“I’m definitely seeing people taking more risks, in terms of color choices, prints and patterns, even shapes and silhouettes that they wouldn’t have worn before,” says Sydney Mintle, a fashion industry publicist in Seattle. “People are like, ‘life is short, wear yellow.’”

Tamar Miller, CEO of the women’s luxury footwear brand Bells & Becks, has seen this fashion risk-taking impulse first-hand in her company’s recent sales. “My absolute, number-one, kind of off-the-charts shoe is one I did not expect,” she says.

That shoe, per Miller’s description, is a pointed-toe loafer in black-and-white snakeskin leather, topped by a prominent decorative tab with hardware detailing. It’s a bold choice, and one that affirms the demographic breadth of the desire to make a statement. Miller’s target customers are not members of Gen Z, but rather their parents and grandparents.

Secondhand clothing – and its promise of luxe-for-less – has also found its time to shine.

2020 was a banner year for the online resale market. Digital consignment platforms like Depop, ThredUp, and Poshmark swelled with the sartorial discards of an estimated 52.6 million people in 2020, 36.2 million of whom were selling for the first time, according to a survey by ThredUp. A majority of millennial and Gen Z consumers indicated that they plan to spend more on secondhand apparel in the next five years than in any other retail category, a sentiment expressed by 42% of consumers overall.

It’s a phenomenon that may also be contributing to the moment’s ethos of mix-and-match experimentation. “Gone are the days of sleek, edited ‘capsule wardrobes’, and in their place are drawers overstuffed with vintage treasures sourced from Poshmark or Depop,” writes Isabel Slone in a recent Harper’s Bazaar article headlined “How Gen Z Killed Basic Black”.

This doesn’t necessarily mean that fast fashion is on its way out. (“Some of those brands are doing big business, and the numbers don’t lie,” Mintle sighs.) But the boom reflects, and may have helped accelerate, a growing departure from trend-chasing and disposable, low-cost wares. You might even say that reflexive participation in fads is so 2019 – not least because the US is struggling with supply chain bottlenecks as we enter the holiday season.

But our Roaring Twenties may be on the horizon. For 2022, Richards anticipates sparkle, novelty, “shoes that go ‘clunk’” and “really maximalist styling”. She didn’t mention sweatpants.

By:

Source: The sudden, uncomfy fall of the biggest pandemic fashion trend | Fashion | The Guardian

.

More Contents:

Biggest U.S. Retailers Charter Private Cargo Ships To Sail Around Port Delays

Source: Biggest U.S. Retailers Charter Private Cargo Ships to Sail Around Port Delays – WSJ

.

Related Contents:

How A Hotel Earned Five Stars For Five Years

Managing director Robert Schofield

Managing director Robert Schofield

The Langham, Chicago

It’s difficult to earn a Forbes Travel Guide Five-Star award — only 20 percent of all hotels rated attain the honor — but it’s even harder to maintain it. The Langham, Chicago hit a hot streak, winning the top accolade for five years in a row. The 52-story riverfront hotel also holds the distinction of having the only Five-Star spa in the city.

We talked to hotel managing director Robert Schofield to find out what it takes to achieve excellence year after year, the most underrated amenity at the property and what you should do on your next Chicago visit.

Take A Dip In The Pool

Take A Dip In The Pool

The Langham, Chicago

What’s The Langham, Chicago’s secret to continual Five-Star success?

The Langham brand itself was not very well-known in the United States when we decided to build the Chicago company, and therefore we were faced with some real big challenges in terms of our competition because we have some really great hotels here in Chicago — the Peninsula, the Waldorf and the Ritz.

We said, “Okay, how are we going to introduce a sort of limited name, not a lot of recognition, a Five-Star property against the big brands?” The only way we could do that was to establish the best hotel.

We set about seeing what standards we would need to do that. [We blended] in the Forbes [Travel Guide] standards into Langham brand standards and then basically created a vision for all our colleagues that we employ.

Most importantly, with any product at all, it’s the consistency of that product. So to make sure that we were consistent in what is a human service type of business is in many ways much more challenging than creating a motorcar or suit or any other product that you put to the public. They can test it before they go out, and therefore the guest gets something that has already been checked as being perfect.

Human beings aren’t quite the same in terms of being perfect, and we have to instill a culture into the hotel whereby each colleague actually feels ownership of our product. And through ownership of our product, they have to engage with our guests, they effectively have to take that ownership to deal with any guest inquiry at any point in time. And through tens and twenties of thirties of contact points in that whole of the guest experience, not one of those can be adverse. Because as we all know, the one that you remember is the one that doesn’t go well.

Infinity Suite

Infinity Suite

The Langham, Chicago

We don’t employ guest relations managers in the hotel, which is odd. I know many, many Five-Star hotels do. The philosophy behind that was really every single colleague has to take responsibility to be the guest relations manager. So effectively everybody has to take action on the spot to meet the needs of the guest. The key thing there is each and every one of our colleagues is personally empowered to do that. We expect it from every one of our colleagues. And we orientate them to that right at the beginning. We try to employ colleagues that are willing to take ownership, that are naturally hospitable, keen to please the guest, and this will create a total environment whereby everybody is a guest relations manager.

If we have guests who leave without great memories, we have failed. We have a beautiful stage, a beautiful hotel. But a stage is a stage, and at the end of the day, it’s the performance on that stage that creates the memories for our guests.

To make something consistent, you have to have processes in place. Once those processes are in place, you have to continually review what your colleagues are doing. The same way that if you were a producer of a stage production, you would be watching what everybody was doing on that stage all of the time to make sure everything was perfect and was in accordance in what your goals and objectives were.

We have the same attitude with our departmental managers. They effectively have their stages via the Pavilion restaurant, Travelle restaurant or spa. It doesn’t matter which location in the hotel — the manager in charge of that, it’s their show. They have to watch the body language, they have to watch the reactions of our colleagues towards guests and basically make sure they are in full compliance with the training we’ve given them.

But most of all, it’s hiring the right people who actually want to do this and want to be part of building the reputation of the hotel, maintaining the reputation of the hotel.

Pavilion

Pavilion

The Langham, Chicago

What are the biggest challenges of running a Five-Star hotel?

The biggest challenge is to be better every day. You can never rest on your laurels, you have to effectively all day, every day, look at every aspect of the operation and see how it can be better, whether the maintenance department, the kitchen, the restaurant, the spa — the whole team has to continually be looking to see how they can get better.

Challenges come and go. The market conditions in a hotel change. Sometimes you’ll have a bigger demand in the marketplace, sometimes a lesser demand. Maybe new hotels are built and that becomes challenge, because now the guest has more opportunities. We have to build guest loyalty through their interactions with us so they will continually come back and spend time with us.

The challenges going forward: it’s a tight labor market in Chicago and nationally. We have to make sure we hire the right people. We only hire 2 percent of the applicants that actually apply to us. We have to make sure we retain the colleagues we have, and we do that through a big concentration on our colleagues in terms of what their individual needs are for the next five years. We look at the succession planning processes that we incorporate into the hotel. We train people, we recognize and respect each and every our colleagues for the part they play. At the end of the day, it’s a one team, one dream situation. Our goal now is to become a legendary Langham.

In your five years of having the Five-Star award, how has the luxury traveler changed?

I think much more casual elegance as opposed to formal elegance. Things don’t change drastically over a five-year period. But things tend to evolve. The world is a much more casual environment. We maintain a graciousness. We definitely don’t want to be formal and stuffy — and we never were when we opened the hotel.

Travelle
The Langham, Chicago

What’s an underrated feature at the hotel?

I think the club lounge on the 13th floor. Many hotels in the past had butlers that went to guest rooms and knocked on doors to ask if guests effectively wanted any services.

We incorporated our butlers into our club lounge, which is a very unique, relaxing area with food available for breakfast, lunch, afternoon tea and dinner. And that has been so popular. The panoramic view covers Lake Michigan and the whole of the riverwalk and the river itself.

The goal of the butlers in the club lounge is to have a private check-in facility and very much a personalized level of service whereby the guest meets the butlers all day long, rather than just meeting them when they have tea in a normal situation. Now the butlers get the guests the minute they arrive, they check them in, they escort them to the room, they provide other services for them if they want a bath run or want their luggage unpacked.

How has Chicago changed in the six years you’ve been at the Langham?

We’ve seen a very lovely evolvement on the Chicago Riverwalk whereby the walking and entertainment area has been expanded for a great distance all the way up to Lake Street. That is literally what we look out onto — the Chicago Riverwalk and the Chicago River. So that’s been much more of a leisure destination now, which has brought a lot of business down into this part of town where we are located.

What are some of your favorite places in Chicago?

The riverwalk. You have all the restaurants, you have the kayaking — it’s lovely. The architectural tour is obviously right outside our windows, and that is such a popular thing for anybody coming to Chicago.

If you want to go a little further north, you can go to Lincoln Park. I personally love that area for walking dogs. It has a zoo, it has the lakefront down there, it has a lot of people sunbathing during the summer months and bicycling up and down there all year round. It’s a really memorable section of Chicago, for sure.

Forbes Travel Guide, formerly Mobil, created America’s original hospitality Star Rating system in 1958.

Source: How A Hotel Earned Five Stars For Five Years

%d bloggers like this: