Bouyed by a stable economic foundation and high consumer confidence, holiday season spending is poised to rise this year, according to Deloitte’s latest sales forecast.
During the holiday season, retailers can expect to see an increase in sales between 4.5 to 5 percent, compared to just over 3 percent in 2018. This year’s projected holiday season growth is due partially to the current health of the labor market and considers a hold in spending during the government shutdown in December of last year, which resulted in more modest growth.
With current near-record-low unemployment rates and continued monthly job creation, Deloitte forecasters project holiday spending to be at a high due to a trend of elevated consumer confidence. In comparison to slow December spending in 2018, Deloitte estimates 2019 sales will show steady growth over time.
“Based on growth in consumer disposable income and spending indicators, retailers, across channels, should expect a strong holiday season in 2019,” Deloitte said in the report. Deloitte expects total holiday retail sales to surpass $1.1 trillion over November through January, compared with $1.09 trillion in 2018.
E-commerce sales are also expected to see growth with a predicted rise of 14 to 18 percent in year-over-year growth and $144 to $149 billion in sales over the 2019 holiday season.
“We’ve seen retailers continue to improve customer experience, invest in the fundamentals and leverage relationships with innovative startups to boost engagement and efficiency,” said Rod Sides, vice chairman, Deloitte LLP. “But convenience is the new retail currency; retailers who offer seamless experiences, have products available and can deliver items more quickly than ever are most likely to win this holiday season.”
A similar report by WWD earlier this week shared complementary results on predicted gift purchasing, finding overall that retailers are remaining positive for fourth-quarter sales and consumers promising to be positioned as financially healthy to spend on gifts this year.
For More WWD Business News: