Deloitte’s forecast: Retailers could generate $1.1 trillion in holiday sales this year
With consumer confidence high and low unemployment, holiday sales could surge in 2018.
Holiday sales are projected to rise between 5 and 5.6 percent to $1.10 trillion this year, according to Deloitte, a corporate consulting firm that tracks sales of the world’s most admired brands. By comparison, as the U.S. Commerce Department’s data indicated, sales between November of last year and January 2018 climbed 5 percent and reached $1.05 trillion.
“We think most retailers will have a good holiday season if they have a distinctive value proposition,” Rod Sides, vice chairman of Deloitte’s U.S. retail and distribution practice, said in an interview with CNBC last week Wednesday. “We think off-price will continue to do well, and there will be a rebound in luxury.”
Sides anticipates a solid year for companies that sell discounted inventory such as TJ Maxx, Burlington and Ross Stores. Discount stores’ popularity among men and women and across all age groups is on the rise, according to the International Council of Shopping Center (ICSC), a research group that focuses on the retail industry.
Meanwhile, spending money on holidays can also benefit luxury retailers.
Shoppers are increasingly using online to order items and pick them up at stores. The firm predicts that e-commerce sales for holidays in 2018 could increase between 17 and 22 percent and hit $134 billion compared to last year. Sales of 2017 rose 16 percent and totaled $110 billion, according to the firm.
Photo: Holiday season shopping (image credit: Andrew Kelly/Getty Images)