It is already time to start talking about holiday sales. A Google survey found that 20% of consumers began their shopping before Labor Day.
What is going to happen this holiday season? All of the sources I checked have estimates that are above the 2.9% average increase for the last 10 years.
The results will have an impact. Retail sales drive the U.S. economy. According to the National Retail Federation, 1 out 4 jobs are retail related . That’s 42 million jobs. Retail impacts $2.6 trillion of annual GDP. A large portion, 25% to 30%, of sales for the year are made in November and December.
Holiday gift spending should be up by about 8% according to a Prosper Insights & Analytics survey. About half of shoppers, 53%, plan to spend the same this year as last year. Those that say they will spend more tend to be higher-income consumers.
Shop.org forecasts a jump this year over last year of 8 to 11%. The National Retail Federation predicts a more conservative rise of 4.1%.
August sales trends are viewed by many as a gauge of consumer confidence going into the holiday period. Spending in August, driven by back-to-school and Labor Day purchases, was up by 2.7% over last year. As expected, online retailers reported stronger results for the month with a 4.2% year over year increase.
Macy’s is counting on growth. The department store giant will increase hiring of seasonal workers by 3.6% this year. That’s up from 83,000 temporary workers last year to 86,000 this year. Macy’s continues to invest in its omnichannel execution. About 10,000 of the seasonal jobs are additional workers in the company’s fulfillment centers for direct-to-consumer deliveries.
What This Means to Your Small Business
Orders should increase overall. Drop-ship-direct-to-consumer orders will see a larger increase than other orders. Now is the time to talk to your buyers about offering drop ship capability if you do not already have it in place.
Contact us anytime to find out more about how we can assist your small business.What’s Up with Retail Sales This Holiday Season? by Steve Brewer