Even if consumers feel stressed, they're spending, says fmr. Toys R Us CEO Gerald Storch

Core Viewpoint - The holiday shopping season is expected to see a year-over-year sales increase of 4% to 5%, driven by consumer spending and inflation effects [1][2]. Consumer Spending - Consumer sales have consistently grown by 4% year-over-year, indicating strong consumer resilience [1]. - Real wages have risen faster than inflation, allowing consumers to continue spending [1]. Economic Dynamics - The current economic situation does not reflect a K-shaped recovery; instead, both high-income and low-income consumers are experiencing growth, albeit at different rates [1]. - The stock market has benefited the wealthy, but they tend to reinvest rather than spend, contrasting with lower-income consumers who are actively spending [1]. Home Improvement Retailers - Home Depot and Lowe's are facing challenges due to high interest rates and a slowdown in large home improvement projects, despite some activity in smaller projects [1][2]. - The outlook for Home Depot indicates a slow growth trajectory for the upcoming year, as stated in their earnings analyst meeting [2].