Retailers Ho Ho Ho-ping for best Christmas since recession
U.S. Consumer spending is soaring in the run up to Christmas, stoking expectations for the best holiday sales since the recession started a decade ago. According to the Commerce Department, retail sales were better than expected in October and November, as shoppers flocked to stores in an effort to beat the rush and pick up hot Christmas gifts before they sold out. Research firm Customer Growth partners thinks the momentum will keep pace right until the big day itself, and has revised its expectations for holiday period sales upwards – from 4.3% to 5.6%.
Craig Johnson, head of Customer Growth Partners, described his take on this flurry of retail activity: “we think this marks the beginning of a real and sustained rebound. It’s all demographics, and it’s geographically widespread,” he said, clarifying that the group thought spending would continue to increase more this season than any holiday since the Great recession began in 2007.
This is great news for physical retailers, but it’s even better for online players, which are expected to see growth outpace their offline rivals.
The National Retail Federation (NRF) believes that a big part of the spending increase is down to expectations for a tax cut, and said that Thanksgiving weekend similarly outperformed expectations. Jack Kleinhenz, the NRF’s chief economist, said: "All in all, it’s really portending for a very solid and maybe one of the best holiday seasons that we’ve seen in years. We’ll have to wait and see how December plays out.”
The opinions in this article do not reflect those of Dominion Fund Management Limited, and in the instance of any forward-looking statements, these should not be construed as advice.
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