RETAIL
Holiday Sales Will Be Up and Shopper Traffic Down This Year
Retailers will have to work harder for their money this holiday season.
The holiday shopping season will be shorter than last year, and Hanukkah starts the day before Thanksgiving, which means that stores may feel compelled to launch their promotions in late October, according to ShopperTrak, a Chicago company that analyzes and predicts retail sales.
Apparel and accessories sales are forecast to rise 2.8 percent this year compared with last year, which saw a 3 percent uptick over 2010. But shopper traffic is expected to decline 1.2 percent from the 2012 holiday season.
“Although the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge,” said ShopperTrak founder Bill Martin. “Even though online buying increases each year, bricks-and-mortar sales remain retail’s largest profit opportunity. Retailers who deliver a seamless experience both in-store and at every customer touchpoint have the chance to capitalize and grab their share of the wallet when shoppers visit the stores.”
Retailers have a shortened holiday season to tackle. There are only 25 days between Black Friday, on Nov. 29, and Christmas this year. That total is six days less than last year.
Hanukkah begins on Nov. 27, 11 days earlier than last year. Martin noted that while an early Hanukkah won’t affect holiday sales, it will shift the time retailers anticipate traffic increases. As a result, ShopperTrak expects promotions will begin as early as the day after Halloween.
“Nobody can afford to procrastinate,” Martin said. “Retailers must have their holiday marketing and operations ready to go when November begins, as consumers will be ready to take advantage of those deals.”
While apparel and accessories sales will move up 2.8 percent, electronics and appliance sales are predicted to rise only 2 percent over last year.
More than 90 percent of sales still take place in bricks-and-mortar stores. “Keeping a close eye on their in-store shopper analytics will help retailers succeed this holiday season,” Martin said.
The holiday sales forecast mirrors what many retailers have been reporting—that lackluster sales are still taking place despite the U.S. unemployment rate dropping to 7.3 percent in August.
