The holidays are almost here and retailers are getting excited about the increase in sales that are on the way. Depending on the consumer markets, this can be a very profitable time for retailers and via the latest forecast, the numbers look it will be online.
Internet Retailers recently reported how various forecasts are coming in for this holiday season and non-store sales are projected to grow between double and quadruple the rate of total sales. The National Retail Federation (NRF) expects for non-store sales to increase 7-10% from last year, equating to roughly $117 billion for the 2016 holiday season of November and December. The non-store sales were described as those made primarily online that include include phone and catalog sales. One important note from the article was that the NRF projected last year that online sales would increase by 6-8% for last year’s holiday season. However, online holiday sales out did those numbers, reaching 9% instead.
“All of the fundamentals are in a good place, giving strength to consumers and leading us to believe that this will be a very positive holiday season,” NRF president and CEO Matthew Shay stated in the article, optimistic about this year’s sales for retailers. He went on to say, “This year hasn’t been perfect, starting with a long summer and unseasonably warm fall, but our forecast reflects the very realistic steady momentum of the economy and industry expectations.” The thriving of technology and the increase of value-added services like Same-Day Delivery is also playing its’ role in offering convenient online shopping options and the comfort level of online purchasing as well.
Rod Sides, Deloitte LLP vice chairman and retail and distribution sector leader weighed in on its’ forecasts about sales online this year. He stated, “The trend to watch is the way that online, mobile and store channels influence each other. Large e e-commerce players and digital platforms such as Facebook and Pinterest are shaping what people think a great shopping experience is—a fast, highly-curated assortment with access to visuals, information and buying sources. Since these bigger platforms are more connected to the customer than the tradition retailer, it is important that they are part of retailers’ digital marketing campaigns this holiday season”.
He concluded with discussing the biggest competition for retailers. Sides said, “It’s likely to be the small and midsized retailers that focus on niche products and experiences. This group has been collectively stealing share from large, traditional retailers to the tune of $200 billion in annual sales over the last five years. The retailers that compete on differentiated products and experiences should be better positioned to outperform those who try to compete on low-price, value and convenience, or continue to rely on conventional sales events and promotions”.
Many retailers are setting themselves up to be the online store that e-shoppers will turn to for the holidays. Amazon, Google, Wal-Mart, Macy’s, Whole Foods, BestBuy, and more have all turned to offering same-day delivery as a value-added service to increase online sales. A Same-Day Courier like 1-800 Courier can help retailers seize the promising online sales projection by offering the convenience of delivering items to shoppers, instead of them having to get involved in the holiday rush. The Houston Courier has the courier expertise to create sound delivery solutions nationwide.
Reference: 10.4.16, www.internetretailer, Tracy Maple, Online holiday sales head for double-digit growth
