Dana your optimism this year has been an Act of god your shop has said forget the Gloom things are good out there how good Is it out there for the american Consumer right now for chairman powell Or chairman Brainerd it is a very good holiday Season that's upcoming for the consumer In 2021 We have consumers who basically have the Dollars to spend retailers are giving Them innovative products they've got to Shop early because supply chain Obstacles are really a headwind this Year but overall the dollars are there For consumers to spend and this is going To be the first thanksgiving we've had In nearly two years that families can Gather together so i think we're going To see the theme of christmas is Celebratory it'll be a celebratory Holiday season in 2021 can they pass Price increases on to consumers what's The evidence that you and joe feldman See The evidence that joe and i see is that They can and we're seeing it in all Categories whether it's in calm goods Whether it's in clothing whether it's in Accessories price increases are there it Can be low single digits of around three Percent and it is being passed on the Consumer wants the goods they've got the Money to spend and i've seen it in the
Sales results of the retailers from Department stores like macy's from Off-price retailers like tjx from Accessory companies like tapestry and Capri with michael kors and coach we are And even cosmetics companies like estee Lauder we're seeing price increases Being accepted how universally are they Being accepted is there a two-tier Acceptance of higher prices of the low Income earners and the high income Earners as we start to see the likes of Walmart and even target say those price Pressures are actually becoming more of An issue for them So i think the price pressures overall There's cost headwinds in terms of labor But then passing it on to the consumer Even companies like bath and body works Have raised their promotional prices and They're not seeing obstacles Now if this continues and you trees Don't grow to the sky So this is a point in time that you're Able to see this but i think it's Something to watch carefully we've had Some on the low end said they have to Navigate those price increases carefully In order to figure out what is the level Of resistance so it's it is a moment in Time now that you're seeing it be Accepted but carefully managed dana There's a theory out there that when People start uh to have to pay their
Paychecks and use those to pay for the Higher uh input prices that they are More just more discerning in terms of What they are willing to pay they're Basically using the money they still Have received from the government to buy Things is that true are you seeing the Same dynamic playing out that basically There is a limited amount of time that These uh this acceptance will work for Child tax credits are expected expected To go through the end of the year so Certainly as we head into 2022 for Spring and easter that's something we're Going to be watching carefully to see if Is there a headwind that's going to be There keep in mind that we still have Four four higher signs at so many Different businesses the demand for Labor is high so consumers can get a job If they choose to we'll have to see as This child tax credit runs out and Frankly we're not going to be in a Holiday season then if you're going to Be able to pass through the same amount Of increases we do have inflationary Pressures and it's cotton also in terms Of raw materials dana let's go back to The sell side and all of your heritage On the street what's the chelsea single Best buy for next year I think overall when i think about What's going to work in 2022 i think We're going to see companies like levi
Strauss in terms of denim work well Given back to work can mean a more Casual attire also i think when we see New business models emerge look at Companies like figgs who's providing Scrubs for the health care profession Which is one of the fastest growing Professions out there and we think of Other types of business look it off Price tjx burlington raw stores traffic Goes to the off-pricers
