Economic Tailwinds To Drive Holiday Sales
Low unemployment levels along with higher household income growth is boosting consumer confidence and will drive U.S. holiday sales past the trillion-dollar mark this season, according to eMarketer in the firm’s latest forecast report.
And the bulk of the sales will be driven by transactions in physical stores.
The company measures holiday sales from Nov. 1 through the end of December. “This holiday season, total retail sales in the U. S. will increase 5.8 percent to $1.002 trillion,” eMarketer researchers said in their report. “This is the first time holiday sales will cross the $1 trillion mark, and 2018 shows the strongest growth since 2011. Spending momentum will get an added boost from a favorable holiday calendar that features the maximum 32 days between Thanksgiving and Christmas.”
Drilling down into the fashion apparel segment, a separate investment research note from Jane Hali & Associates LLC cited outerwear, denim and streetwear as top performers with outerwear being the “It” category this holiday season.
In the eMarketer report, the company said although some “economic headwinds are finally beginning to form after mostly blue skies in 2018, we expect their effects to be muted until after the holidays. Retailers have built up inventories for products affected by tariffs on imports from China and are not expected to pass on notable price increases to consumers until 2019.”
Authors of the report expect brick-andmortar sales this year to rise 4.4 percent
Sales from Nov. 1 through Dec. 31 are expected to pass the $1 trillion mark, according to eMarketer.
to $878.38 billion, which is above the $863 billion estimate that forecast earlier this year by the company. “Brick-and-mortar still represents the majority [87.7 percent] of holiday sales, but its share has steadily declined,” eMarketer noted.
The report is pegging online holiday season to gain 16.6 percent to $123.73 billion, which is 12.3 percent of all holiday sales this year.
Andrew Lipsman, principal analyst at eMarketer, said while e- commerce will continue to see strong double- digit gains, “brick-and-mortar retail should be a particular bright spot this holiday
A variety of Uniqloouterwear.