End Of Year Expected To Bring Increased Shopping, Spending
The end of the 2016 has retailers looking ahead to what they anticipate will be a busy holiday shopping season. Projections from industry actors and consultants predict that holiday spending will increase over last year. NBC News recently reported a PricewaterhouseCoopers study suggested that households at multiple income levels will increase their spending this holiday season, with those earning less than $50,000 planning to increase spending by 23 percent over 2015, and those making more than that growing their spending by four percent. NPR reported that the National Retail Federation predicts that sales will increase by 3.6 percent over 2015, which would beat the 10 year average of 2.5 percent. Money reported that online sales are expected to grow 25 percent year over year. Reuters reports that Deloitte has projected a 3.5 to 4 percent rise in spending this holiday season.
Another factor adding to forecasts that anticipate a spending boost this holiday season is that 2016 was a major election year. The AP reported that initial reports from retailers including Kohl’s, Macy’s, and JCPenney show that consumer spending increased in the weeks leading up to the election. In previous election years, spending has increased after elections as people look to move forward from political distractions. “We are hoping that in the post-election, we are just going to see people spend,” said JCPenney CEO Marvin Ellison. Bloomberg News reported that retail CEOs have expressed relief that the country’s mood has a chance to improve after blaming it for weak sales en masse. “We expect a bounce-back,” said Barnes & Noble CEO Leonard Riggio. “The preoccupation with the election was hurting sales.”
What This Means For Small Businesses
Many small businesses rely on the holiday season to make a large portion of revenues for the year. Forecasts anticipating higher holiday spending are a positive indication that US consumers may be planning to boost spending during this crucial time for small businesses.
Note: this article is intended to keep small business owners up on the latest news. It does not necessarily represent the policy stances of NFIB.