Visions of Christmas yet to come

Christmas music already is ringing through the halls of shopping malls. Holiday decorations have been hung in the aisles. But are shoppers crowding stores to see and hear it all?

The holiday shopping season has unofficially begun (jumping from holiday to holiday). It looks to be as competitive as ever, which is good news for consumers looking for lower prices. But it ups the stakes for retailers, putting already tight profit margins under more pressure. Already, Macy's has warned its slow third quarter business left its shelves full even as it stocks up for the holidays. The warning to other retailers: Macy's may cut prices fast and deep in order to entice shoppers to buy.

Business isn't so hot at another end of the retail spectrum. In October, Walmart warned that sales were slower than anticipated. In the week ahead, its investors will see the specifics. Walmart releases its third quarter financials on Tuesday. The company no longer provides monthly updates on sales but expects management to provide some broad hints about the early holiday season. It also needs to address the relentless price and inventory competition from online retailers. As the biggest traditional retailer, its actions can cast a long shadow in retailing.

Not to worry. Americans are not about to give up holiday spending. Instead, Walmart, Macy's and other retailers continue experiencing the Amazon effect. This season, 46 percent of holiday shopping and buying will be done online, according to the National Retail Federation. This year could mark the last year that a majority of shopping is done at brick and mortar retail stores. It's a vision of Christmases yet to come for traditional retailers and their investors.

Tom Hudson, financial journalist, hosts "The Sunshine Economy" on WLRN-FM in Miami, where he is the vice president of news. Follow him on Twitter@HudsonsView.

This story was originally published November 13, 2015 at 7:35 PM with the headline "Visions of Christmas yet to come ."