Santa Claus Is Coming To Retail Town
Retailers may get some extra stuffing for their stockings this year. A 6% increase over last year's sales over the holiday is predicted for the U.S.
“As we head into the holiday season, consumer confidence is the highest it has been in nearly 17 years. We expect that holiday spending will mirror overall retail sales trends, and anticipate that sales growth could reach as much as a 6% jump due to favorable economic conditions and the strength of the labor market,” JLL Retail CEO Greg Maloney said.
A JLL report shows that 29.9% of shoppers have already hit retailers for gift shopping, and shoppers are predicted to buy more in brick-and-mortar than online — 47.1% of responders said they will be visiting physical stores to make their purchases. That is good news for beleaguered retailers far and wide.
“There was a novelty to a complete online transaction and there is no doubt that model will continue to grow over time. However, brick-and-mortar is still firmly the staple in how we are buying consumer goods during the holiday season,” JLL Executive Vice President Rob Franks said.
Franks predicts the big winners this holiday season are going to be unique or niche brands as well as discount retailers like TJ Maxx and Ross. The report indicates that 63.9% of shoppers will hit superstores like Walmart and Target at some point during their gift shopping escapades, and 18.5% of shoppers intend to buy from local, mom-and-pop retailers.