With the holidays now fast approaching, for many this is the busiest time of the year. It is a notoriously good time for sales, as there is an expected increase from the previous year.
Retail holiday sales are said to have an increase of 4 to 4.5% this coming holiday season.
The projection for eCommerce has also been good, with a projected increase for this holiday season between 18 to 21%. The projections are according to Deloitte’s annual retail holiday sales forecast.
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One of the reasons for this growth is that many people have experienced a personal income growth for this year. This is according to Deloitte’s U.S. senior economist, Daniel Bachman.
“Last year, disposable personal income grew 2 percent over the year to the holiday period, and we may see that rise to a range of 3.8 to 4.2 percent this season. Consumer confidence remains elevated, the labor market is strong and the personal savings rate should remain stable at its current low level.” – Daniel Bachman, Senior Economist, Deloitte LLP
Tied to this is that consumer confidence has been high as well. However, there are some uncertainties that might have some effect.
Savings among people have been also high, so spending for the holiday season might not be as high as expected. The impact of the recent series of hurricanes aren’t known yet, though most likely home improvement products would see a surge because of them.
The growth in sales could also be attributed to more retailers coming out. A number of online retailers are providing much for niche markets, and with that there is also consumer interest in some of the niche markets.
There are many alternatives that consumers can look into, which can result in some people switching brands and more competition coming in.
With this increase in competition and the growth in niche markets, retailers should have a new approach which would cater more towards customization, as noted by Rod Sides, Vice-Chairman of Deloitte LLP.
“Retailers should modify their assumptions about what drives traffic, engagement and holiday sales growth, and realign around customer experience, creating relevant, emotional and inspirational connections that go beyond just product, price and assortment.” – Rod Sides, Vice Chairman, Deloitte LLP
That would mean retailers going beyond just product and price assortment, towards a more targeted customer experience. With a targeted customer experience, retailers could get more sales which could go beyond the holiday season.