Consumers Starting to Buckle for First Time in more than a Decade

According to former Walmart U.S. CEO Bill Simon, consumers are starting to buckle under various economic pressures, including inflation, higher interest rates, federal budget issues, polarized politics, and student loan repayments.

Simon also cites new global tensions connected to violence in Israel as an additional concern. This pileup of challenges is causing consumers to be more cautious and hesitant.

This trend comes at a time when major retailers like Amazon, Walmart, and Target are launching sales events and competing for early holiday shopping. However, Simon notes that the discounts and bargains offered by these retailers are not as deep as in previous years. He suggests that the relative price points are being pushed up due to inflation.

Among the three retailers, Simon believes that Walmart has an advantage, primarily because of its strong presence in the food business. He predicts that Walmart will attract both the eyeballs and food traffic, potentially leading to a better holiday season compared to its competitors.

It is worth noting that this information is based on Bill Simon's analysis and perspective, and other factors may also impact consumer behavior and retail performance.

Additional information can be found on CNBC's Fast Money.