American retailers expecting best holiday sales in five years
As the economy has continued to improve, conditions have been getting better for both American consumers and retailers. With the holiday season fast approaching, shoppers and businesses alike are gearing up for what is expected to be one of the strongest purchasing periods in recent years. Retailers are increasingly optimistic about their winter sales, as new research has revealed that businesses are anticipating sales to be the best since 2007.
Confidence, optimism increasing
As consumers steadily regain their confidence in the recovering economy, so too are retailers. Fox Business reports that, according to a recent study by BDO USA, merchants are expecting at least a 3.7 percent increase in same-store sales this holiday season, both through brick-and-mortar locations and websites. This is the highest level that the figure has reached in five years. Of the sectors that will fare the best during the coming weeks, consumer electronics and gift card sales are anticipated to be the leaders.
"While we haven't returned to pre-recession levels of optimism, retailers are gearing up for what looks to be a promising holiday season," said Doug Hart, partner in the retail and consumer product practice at BDO. "Still, consumers have more choices than ever, and retailers are looking to avoid showrooming by curating a mix of exclusive and top-selling products to get consumers in their door or on their site."
Retailers relying on several strategies
So just what exactly are retailers doing to gear up for the season and draw in consumers over the next few weeks? The San Francisco Chronicle reports that businesses across the country are preparing their stores and operations in the hopes of boosting holiday sales. Brick-and-mortar merchants are especially getting ready for the season, as they want to beat out their online counterparts. The source states that Target has made the decision to match the prices listed on Amazon.com as a way to bring shoppers into their stores. Other retailers, along with Target, are offering same-day shipping as well as faster checkout times for in-store consumers. However, it will not be until after the holiday shopping season has died down for both ecommerce and brick-and-mortar merchants to see how well they performed.
"This will be the first holiday shopping season where (stores) are making a more concerted effort to avoid bleeding sales to online retailers," says Ken Perkins, president of Retail Metrics, as quoted by the news source. "The question on everybody's mind is how are they going to fare?"
