Surprisingly, Holiday Shopping May Increase This Year


While we’ve barely finished with summer, folks are already looking towards the holiday season, especially when it comes to shopping, and a new report predicts how things will go for retailers, and the news is mixed. 

According to Deloitte’s annual holiday forecast:

  • Overall holiday spending between November and January should be somewhere between $1,147 billion and $1,152 billion.
  • That marks an increase of between 1% and 1.5% over last year.
  • E-commerce sales are expected to jump by 25% to 35% this year, which is much more than the 14.7% increase last year.
  • E-commerce sales are expected to bring in between $182 and $196 billion this year.

But it’s not all good news. Deloitte notes that the holiday season could go two ways thanks to the coronavirus.

  • One scenario notes that sales could remain steady from last year (0% to 1% increase over last year), due to consumer anxiety over their finances and health.
  • This could be blamed on things like expiration of unemployment insurance, lack of an effective vaccine and increased unemployment numbers.
  • These reasons could lead consumers to spend less in order to save funds for non-discretionary items.
  • The second scenario would see a 2.5% to 3.5% increase, thanks to increasing confidence of consumers.
  • This could be the result of a federal pandemic relief bill, or an effective vaccine.
  • Plus, if consumers aren’t spending money on travel, they could spend it on the holidays instead.
  • The overall 1% to 1.5% increase is an average of the two scenarios. 

Source:Deloitte

Photo: Getty Images

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