Topic of the Week - US Holiday Retail Sales Expected to Reach $1 Trillion
The holiday season is just around the corner, and retailers are gearing up for a busy few weeks. According to a recent report by Forrester, US holiday retail sales are expected to reach a record-breaking $1 trillion. This marks a 3.7% year-over-year increase, with online sales playing a significant role in this growth.
Online sales are expected to jump 10.1% to 257 billion, accounting for approximately 26% of overall US holiday retail sales. In-store sales, on the other hand, are expected to see a 1.7% bump from the previous year to 744 billion. This marks a continuation of a slowing growth trend for in-store holiday sales.
Wealthier consumers are likely driving retail sales increases, partly due to the significant appreciation in their housing values and stock growth. However, blue-collar workers may struggle to keep up with modest real wage growth. Despite economic uncertainty, government spending on infrastructure and social programmes has helped give US consumers spending power.
The National Retail Federation (NRF) predicts US holiday retail sales will increase between 2.5% and 3.5% compared to last year. Deloitte expects retail sales to reach between 1.58 trillion and 1.59 trillion during this year's holiday season, growing between 2.3% and 3.3% year-over-year. A recent Bain & Company survey found that 76% of US shoppers expect to buy at least half of their holiday items online.
Retailers should focus on optimising their online shopping experiences to capitalise on the growing trend of online holiday sales. In-store sales may continue to slow, so retailers should prioritise creating engaging in-store experiences to drive foot traffic. Wealthier consumers may be more likely to spend during the holiday season, so retailers should target these demographics with targeted marketing campaigns. To appeal to a broader audience, retailers should consider offering affordable and accessible products to appeal to those who may be struggling with modest real wage growth.
Overall, the holiday season is shaping up to be a busy and lucrative time for retailers. By prioritising online sales, creating engaging in-store experiences, and targeting the right demographics, retailers can maximise their holiday sales and set themselves up for success in the new year.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Holiday Season eCommerce stats
- Total holiday season sales in the United States reached $753.9 billion in 2023, a 3.5% increase from 2022
- Online holiday sales reached $164.3 billion in 2023, a 14.5% increase from 2022
- 65% of holiday shoppers planned to do most of their shopping online in 2023
- The average holiday shopper spent $1,080 in 2023
*Statistics sourced from Statista
That’s all for this week…
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