We're Already In A Recession -- Charlie Munger -- November 26, 2023

Locator: 46176ECON.

What does an investor do when the economy is in a recession? Hoard cash.

Record: another source confirms one-day record.

Whether they jostled through brick-and-mortar stores or toggled between tabs and virtual carts, holiday shoppers were eager to participate in Black Friday this year.

Both in-store and online retail sales increased year-over-year unadjusted for inflation, according to Mastercard’s SpendingPulse insights, which noted that apparel, jewelry and restaurant categories saw considerable spikes.

In-store sales jumped a little more than 1%, while e-commerce led the charge with an increase of 8.5%. However, Sensormatic Solutions, which tracks shopper traffic at brick-and-mortar stores, found that visits on Black Friday were up 4.6% from 2022. This is a turnaround for retailers, the company said, as foot traffic has been down an average of 2.4% this year.

“Though we anticipated an increase, in-store shopper traffic outperformed our expectations,” Grant Gustafson, head of retail consulting and analytics at Sensormatic, said in a statement.

“Consumers are again finding joy in brick-and-mortar shopping, seeing it as an experience to be shared with loved ones. It’s a testament to the hard work retailers have done to streamline journeys and deliver satisfying experiences.”

Adobe Analytics, which tracks US online shopping, reported a record $9.8 billion in Black Friday sales, up 7.5% from 2022, driven by surging demand for electronics such as televisions, smart watches and audio equipment. Most shoppers did their browsing and buying on their phones, with mobile purchases accounting for $5.3 billion in sales. Adobe expects that purchases made through smartphones this holiday season will overtake those made by desktops for the first time.

 What next? Destination entertainment. Something on-line shopping can't match.

Why do I even bother to shop at Walmart when I can get same day delivery at Amazon?

• bored at home; want to get out
• a social outing; humans are social animals;
• shopping with Sophia; instant gratification; an afternoon outing;
• see what's new
• human instinct: hunting and gathering  
• brick-and-mortar retailers, like museums, are curators
• see, touch, feel, compare, imagine
• sushi doesn't travel well

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