‘Tis the Season! Holiday Spending Trends
Mixed earnings reports from U.S. retailers, plus mixed messages from forecasters, are putting a question mark into the holiday shopping equation.
Tip: “Expected to hit almost $26 billion this season, gift cards are hot. Why not take a tip from the big boys and create one for your optical?”
Mixed Reviews
Even at this late date, how healthy the holidays look depends on your source. For example, NRF’s annual forecast projects spending will rise 3.7% from last year. Consultancy IHS is projecting a 3.5% increase. Those numbers translate, according to the NRF, to about $805 per family.
Economic Concerns
“Don’t get me wrong,” says STORES Magazine’s Matthew Shay. “3.7% growth is not a bad year. In fact, that amounts to a very positive holiday season. But it could be higher if not for headwinds from Washington.”
Gift Cards
Expected to hit almost $26 billion this season, gift cards are hot. Why not take a tip from the big boys and create one for your optical? The per-card-spend will be down a bit from last year, though—from $173 to $153.
Let It Snow
One unexpected boon to business is the recent cold weather and heavy snows across the country’s mid section.
Macy’s, for example, had already lowered its outlook in early November due to both warm weather and a drop in foreign tourists caused by the strong dollar. “I wish I could say it’s going to get ice cold across the country,” Macy’s chief executive Terry Lundgren said on November 11. And, just like that, it did!
Price Pressure
“We’re selling fashion apparel, so we’re going to mark that inventory down,” explained Macy’s Lundgren. “That will be good for consumers but put pressure on our margins.” Economist Chris Christopher told AFP that he agrees. “Consumers are benefiting, but retailers are having a hard time.”
Black Friday (and Mon. and Tue.)
Many stores are no longer opening up on Thanksgiving night and instead are stretching the season of holiday promotions. Amazon, for instance, has been promoting “Black Friday” specials since Nov. 1.
Taking It Online
For the first time, Wal-Mart is making 90% of its Black Friday discounts available online. The Consumerist’s Chris Morran says this is part of a transition among retailers to move Black Friday online within five years. “That will be more convenient for consumers and enable retailers to [reduce] staffing,” he says.
Making It Easy
Taking a page from the restaurant business, Target is inviting its customers to pick up online orders curbside… “without ever leaving the car,” the company reports. Like many other retailers, they’re also offering free shipping on some items that cost as little as $5, and will continue free shipping on orders through Christmas Day.
What have you tried that helps build sales over the holidays? Please join the conversation about this on our Facebook page here.
Reference: http://finance.yahoo.com/news/retailers-cautious-ahead-us-holiday-shopping-season-055850836.html
Erinn Morgan
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