As the holidays approach it only becomes natural for shoppers to imagine what items they will be gifting this year. Shoppers will go to department stores, high end boutiques, online retailers or perhaps here https://kiosk.com/market-solutions/locker-systems. Regardless, of where a shopper choose to shop, retailers everywhere will be happy with the big profits they are likely to bring in for this holiday season. As for retailers, this last quarter is perhaps the biggest quarter for sales. It is expected that this year holiday spending will surpass the trillion-dollar market.
Retail sales this holiday are expected to cross huge thresholds. This is believed to happen due to the rise income, low unemployment rates and how confident consumers are in certain areas. It is estimated that sales for retail will increase by five percent this holiday season. That five percent increase is what will push the holiday spending right over the trillion-dollar market. Brick and mortar retailers should see this season as a great opportunity to rake in revenue. These retailers are estimated to see four percent jump in holiday sales. This four percent jump equates to over eight hundred billion dollars in sales. Brick and mortar represents the biggest slice of the holiday spending pie. Eighty seven percent of holiday spending will be conducted at a brick and mortar location. Brick and mortar stores have been able to compete with ecommerce due to how stores are getting remodeled and offering in store pickups for online orders.
There are a few key areas where this trillion dollars’ worth of spending will be put towards. Beauty products, electronics and home goods is taking in most of the holiday spending power. Within the apparel industry, streetwear, denim, outwear and activewear will be the shoppers most likely gifts to purchase. Footwear trails behind clothing. Millennials will be one of the largest demographics that make purchases this year.
This year’s holiday spending is going to be a test for many retailers. This year will be a great estimate on if certain brick and mortar retailers have any future remaining in business. Amazon, Wal Mart and Target of course have nothing to worry about. In fact, these three giants are perhaps one of the largest reasons to why other retailers are struggling to get customers. J.C. Penny, Bed Bath & Beyond Nordstrom’s, Claire’s and Charlotte Russe are having a hard time. Mall shopping is not as cool or a big of thing as it was a decade ago. Retailers are having to do much more than just open their doors and hope for customers.
Payless, GNC, Rue 21 and David’s Bridal are on serious debt. If these retailers are not able to pay on their debts then they have a great chance of ending up bankrupt. A healthy economy and consumer spending increase might can cause these retailers to be optimistic. Hopefully, the trillion-dollar holiday spending power that occurs between November 1 to December 25 will revitalize the dying of many iconic American department stores and retailers.