I Have No Idea Why They Are Spending More On Christmas

I heard on Fox Business Network’s (FBN) Fast Money Halftime Report that even when you don’t want a gift this year, it’s still going to be the most expensive year yet. Retailers expect these…

I Have No Idea Why They Are Spending More On Christmas

I heard on Fox Business Network’s (FBN) Fast Money Halftime Report that even when you don’t want a gift this year, it’s still going to be the most expensive year yet.

Retailers expect these reports to show that average spending this year will be 5% higher than last year, and for the first time since 2008, they won’t see a year-over-year drop.

As big as that 5% increase is, it isn’t much compared to how much more we are spending on holiday gifting. Last year, people were spending $959 on average and this year they will spend $997.

I have no idea why they are spending that much more because Christmas is supposed to be one of the most inexpensive times of the year.

For example, we spent $126 on Halloween but the total holiday gift expenses were $108. I would find it hard to believe we are spending $100 on a quarter of that cost while spending almost three times that amount on every gift.

What is driving the spending? Probably Amazon (AMZN) and the way they are handling selection and delivery. But I don’t really know how they manage the extra inventory they need to keep up. Christmas is as big a purchase for most consumers as the holidays are. More people will make more purchases around Christmas that they do during the rest of the year.

By the way, I’m just guessing that Amazon will report $7 billion in third quarter revenue, but one of the attendees on FBN’s Fast Money Halftime Report countered that number and said it was $12 billion. They were both right. I’m not going to hang my hat on that number, but Amazon has set themselves up for big earnings growth. Revenue growth, especially for a company of their size, is what counts.

Retailers are making a killing this season. They are raising shipping fees and trying to make us all spend money. Perhaps that money is better spent on the more wonderful (selling, of course) times of Christmas.

All that was missing from this show were fireworks and a siren. Perhaps that will come tomorrow. I don’t think so.

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