Tuesday, October 8, 2013

Holiday Shopping on the Rise this Year

Three business forecasters have published their outlooks for the holiday 2013 season, and everyone agrees that sales will rise.  The disagreement is, by how much.  National Retail Federation looks to a modest growth of 3.9%, while Deloitte LLP thinks 4.5 is a healthy figure.  Meanwhile Accenture is bullish on the holidays, and predicts an 11% growth in spending over last year.  In a year where consumer outlook remains gloomy, forecasters found their silver lining in the extra discretionary income many have on hand, as well as consumers' need to treat themselves after a tough year.

Hunter Communications Original News Source:
Bloomberg BusinessWeek

Link to article:
Holiday Spending to Rise as Black Friday Lures Shoppers

Excerpt: "Though people will spend more overall, holiday shoppers will be “keenly focused on discounts and sales,” Accenture said. Economic and political uncertainty, with the government partially shut down, combined with higher payroll taxes, rising mortgage interest rates and limited gains in employment, have kept consumers wary of overspending. Consumer confidence fell to a five-month low in September.

Still, Accenture said the projected rise in spending comes as consumers 'treat themselves after a tough year,' and enjoy increased discretionary income.

Accenture’s study, an online survey of 500 U.S. consumers conducted last month, is more optimistic than other researchers’, including the National Retail Federation, which said earlier this month that holiday retail sales could increase 3.9 percent. Deloitte LLP estimated last month sales could climb as much as 4.5 percent.

Accenture, however, said fewer consumers expect economic concerns to impact their shopping plans and only 18 percent said they would spend less than last year.
Trending Up

Still, shoppers will be focused on discounts, with 94 percent indicating it will be an important part of their purchasing decisions. 'Although retailers’ main draw on Thanksgiving Day and Black Friday will be "doorbuster" deals, shoppers will be demanding discounts of 30 percent or more throughout the season,' Chris Donnelly, global managing director of Accenture’s retail practice, wrote in a statement.

Thanksgiving Day is also marking itself as an 'established holiday season event,' with 38 percent of respondents saying they are likely to shop at four or more stores that day. Almost three-quarters of those surveyed said they had already started their holiday shopping or plan to do most of it by the end of November."

No comments:

Post a Comment