Retailers steadily gearing up for holidays
Halloween marks the unofficial start of the holiday shopping season, when retailers begin to increase promotions and stock their shelves with related merchandise. As summer departs, merchants across the country are already gearing up for the next few months. Many retailers are saying they are extremely optimistic about the upcoming shopping season. Some have even brought back layaway programs, and many are hiring new employees to help get ready for the rush of customers.
Retail optimism surges for holidays
The outlook of merchants that are planning to see increases in holiday shopping is becoming increasingly positive. A recent survey by consulting firm Hay Group asked 14 large retailers about their opinions on the upcoming season, and the majority stated they were looking forward to the rise in sales that is expected this year. Three-quarters of businesses responded that they are anticipating a boost in holiday purchases over last year, compared to 68 percent that said the same last year. This is the highest percentage since 2008, the report stated.
Steps are being taken to better plan promotions and discounts, as retailers are focusing on controlling their inventory to decrease deals that can chip away at profits. The survey found that 31 percent of respondents said they plan to begin their holiday incentives earlier this year, representing an increase from the 21 percent who did the same in 2011. October will be a big month for these promotions, as the majority of retailers surveyed said they will start their holiday campaigns during the month.
These merchants are also making efforts to hire new employees for the shopping season, and the chances of these staff members staying on board into next year is also increasing. Thirty-six percent of retailers are employing more workers leading up to the holidays, up from 10 percent last year.
"All things considered, retailers are on the 'nice list' this year," said Maryam Morse, a leader of Hay Group's retail practice. "With sales improving, retailers are placing more emphasis on retaining and rewarding employees beyond the holiday season."
Layaways are making a comeback
Many large retailers are also bringing back their layaway programs, as some consumers are still concerned about economic conditions and may not have the money needed up front to purchase gifts. NBC News reports that Kmart, Toys R Us, Walmart and Sears are all offering layaway services for cash-conscious customers. The companies said they decided to provide these programs because many shoppers asked them to. They are promoting layaway by waiving fees and letting consumers know about the benefits.
