Amid continuing to be careful of consumers, retail sales on American holidays in November and December 4 % are expected to increase annual (YO), as it is ashamed of the average support of 10 years of 5.2 %, according to annual expectations from Bain & Company.
The report said that the growth rate will generate about 975 billion dollars of sales, although the final number may be higher if the numbers are strengthened through positive factors such as high wages, the stock market strength, and possible interest rates discounts.
But retailers may face a hard rise, as the Bain Consumer Health Index shows that American families through income groups have reported the increasing financial expectations in August. In fact, financial pressure is clear, found Payne. Severe credit jewel cases (90 days or more) increased by 3 % on an annual basis, reaching its highest level since 2011, especially among borrowers under the age of 30. Savings rates are still low, and participation in the workforce decreased 0.4 percentage points in August compared to the previous year, which represents a fourth consecutive monthly decrease and the reflection of the transitional trend that was seen since the baccalaureate.
In this climate, consumers expect more shopping in the store compared to last year, according to Payne’s survey of American consumers.
The report estimates that sales inside the store will increase by 2.75 % (YOY), which contributes 2 % of total growth, with the most powerful gains in clothes and accessories, general goods (except for administrative stores), health and personal care, which prepare to provide 5 % or more. On the other hand, the sales of other sectors such as electronics, devices, building shops, garden, and furniture stores are expected to decrease.
However, growth slowed from uncontrolled sales, which includes e-commerce and post orders, to 7 %-by a decrease of 9-10 % of the growth that the non-contestants have seen during the same period in the past two years. However, the unveiled sales are still expected to represent half (50 %) of all sales growth in general.
“This holiday season will be mixed for American retailers,” Aaron Sheris, a retail partner in Payne. “Consumers are cautious and face financial pressure, but they also feel the higher wages and strong stock market. Senior retailers will get the right balance – they tend to value, create warm human experiences while implementing new technologies, and taking advantage of major events such as black Friday to capture a share of competitors.”
