Holiday shopping sales are expected to rebound this year, with more than a 4 percent year-over-year increase. Last year’s growth of 3.6 percent will be outshined this year, which is a welcome bump for may retailers.
That’s according to new research from Customer Growth Partners’ 16th Annual Holiday Forecast. The research found that retail sales for the November-December holiday period will reach $632 billion, which is a record-breaking number, reflecting rising incomes and helpful deflation in food prices, clothing and electronics. The study used data points for 50 major retailers collected on a weekly basis and have been refined since 2001.
That said, experts say consumers remain cautious, with their eyes on value. Other key findings in the research include a bright spot on health and beauty stores, like CVS and Ulta, slated to show a year-over-year of growth of nearly 7.5 percent. Of course, online and direct-to-consumer sales have a sturdy churning pace of almost 14 percent, pumping up that type of holiday spending to 17 percent of total holiday spending. Home-related holiday sales will head toward just under 6 percent in growth as more people are fixing up their homes, while cold-weather apparel will approach 4 percent, especially with bomber jackets, longer sweaters and boots.
Department stores, however, will see a decline. Experts connect this with the fall in popularity of the American mall and uptick in eCommerce. Luxury is also having a hard sell — especially jewelry.