Retail Sales Look Merry and Bright
It may not be a blue Christmas after all.
After some preliminary doom and gloom reported from some retailers last month, a pall was cast upon Commerce reported Thursday that November retail sales reached $449.3 billion — up 0.7 percent compared with October and an increase of 5.1 percent compared with November 2013. In addition, total retail sales from September through November are up 4.7 percent annually. That’s much better than expected, on the heels of Black Friday and Thanksgiving shopping reports that were flat.
Avoiding a sales slump similar to that of the 2013 holiday season
The National Retail Foundation reported similar findings to the Commerce department’s. It said that retail sales rose .6 percent in November from the prior month. That’s in line with the organization’s forecast for the holiday shopping season overall, of a 4.1 percent increase in revenue from 2013.
Experts noted that shoppers have taken advantage of some early discounts offered, and are pacing themselves in the weeks leading up to Christmas and Hanukah.
“It is important to remember that for most retailers, the holiday season is a marathon, not a sprint, and there are plenty of important holiday shopping days ahead of us, including the week leading up to Super Saturday – the day many expect will be the biggest shopping day of the season,” NRF President and CEO Matthew Shay said in a statement.
So shoppers are stretching out their spending — and they probably have a bit more to spend this year as well. Gas prices are down significantly, from an average of $3.27 on Dec. 2, 2013, to $2.67 today. Job creation is up also, with employment up 321,000, an average monthly gain of 224,000 during the prior 12 months. Those are positive signs that while spending may be steady, the NRF’s prediction of greater sales may be on target.
Now is the ideal time for retailers to take advantage of increased sales and take stock of their technological prowess. Those who can implement technology such as RFID tags, mobile check out and data analysis will realize cost savings in their daily procedures:
- RFID helps store associates and managers improve tracking and stocking inventory in stores, and make better decisions when ordering merchandise and selecting products. Additionally, overall loss prevention is improved because the exact product locations are known and logged throughout the brick-and-mortar store.
- Mobile checkout lets retailers manage long lines and also provides the opportunity for associates to interact more with customers. By getting salespeople out from behind the cash wrap, they are able to get to know their customers better and provide consultative sales, thereby increasing revenue.
- As mobile, tablets and social media becomes increasingly popular, more customer data is being collected. Today’s retailer knows not only the basic demographic information about a customer, but purchase history, call center interaction, mobile/social interaction, supply chain data as well. The amount of information available to retailers is unprecedented, even for brands that have years of experience analyzing customer data. By analyzing this information, retailers can make appropriate sourcing and marketing decisions.
The time is ripe for retailers to review their IT and make appropriate upgrades. Consider it a gift that will keep on giving.
