Holiday Spending To Reach $630.5 Billion This Year, NRF Projects
Retailers who invest in omnichannel efforts — and seasonal in-store experiences — can grab a chunk of the change.
Holiday sales will increase by 3.7 percent this year, reaching a total of $630.5 billion according to the National Retail Federation.
That figure represents 19 percent of the retail industry’s annual sales of $3.2 trillion — meaning that no one needs to tell brick and mortar businesses how important November and December are to revenues.
Fortunately, “with several months of solid retail sales behind us, we’re heading into the all-important holiday season fully expecting to see healthy growth,” said NRF President and CEO Matthew Shay. “We expect families to spend prudently and deliberately, [but] less constrained than what we saw even two years ago.
Below, three key suggestions for retailers looking to make the most of the final months of 2015.
- Invest in omnichannel experiences: Is app-rooming the new showrooming? With 88 percent of consumers’ mobile time now spent in apps — and 71 percent using a retail mobile app to browse before making an in-store purchase — it’s certainly something to note. This points to the importance of omnichannel efforts and a coherent cross-channel narrative: Matching the customer experience in the mobile app to the experience in-store and beyond can pay off at the cash register.
- Think relevancy: Once November hits, its go time — meaning that targeted, real-time offers can have a significant impact on shopper behavior because they are already in “holiday mode,” expecting to go in-store and make purchases. Relevant offers can be provided in multiple ways, from geo-targeted mobile ads to in-app loyalty point reminders, but the key is to tap into the consumer mindset and provide offers and deals at the right moment.
- Up the in-store experience: It’s certainly been said before, but it bears repeating: Over 90 percent of purchases still take place in the physical store. Points one and two are about getting consumers to a physical location by using their digital devices, but once they’re there, atmosphere can make or break a transaction. Stock extra store associates, break out that tinsel, offer special sales… but maybe hold off on playing Rudolph The Red Nosed Reindeer on repeat.