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BizReport : Ecommerce archives : October 08, 2019

Holiday forecasts suggest retail could bump past $727b

This year, holiday retail could surpass the $727 billion mark and may even reach $730 billion. that's the word from the National Retail Federations holiday shopping forecast; the increase would be about a 4% increase over 2018 numbers.

by Kristina Knight

While not skyrocketing, the holiday sales forecast from the National Retail Federation suggests a decent increase in income for merchants and brands over the fourth quarter as consumer spending and optimism about the US economy continues to grow.

"The U.S. economy is continuing to grow and consumer spending is still the primary engine behind that growth," NRF President and CEO Matthew Shay said. "Nonetheless, there has clearly been a slowdown brought on by considerable uncertainty around issues including trade, interest rates, global risk factors and political rhetoric.  Consumers are in good financial shape and retailers expect a strong holiday season. However, confidence could be eroded by continued deterioration of these and other variables."

Shopping outside of brick-and-mortar stores will increase even more, by about 11% to reach at least $162 billion. More data from the NRF can be found here.

Meanwhile, data from Salesforce suggests that, on a global scale, ecommerce could reach $768 billion. Their data suggests that mobile will be a driving force for many merchants, with mobile accounting for about 70% of ecommerce traffic and at least half or orders placed.

"With six fewer days between Thanksgiving and Christmas, retailers will feel the pressure to create and fulfill demand before and after Cyber Week," said Rob Garf, VP of Strategy and Insights for Retail and Consumer Goods, Salesforce. "That said, our data indicates a very strong digital season is ahead. Retailers that provide more personalized experiences, click and collect offerings, and of course, unbeatable prices, will be the ones that succeed this holiday season."

More data from the Salesforce report can be accessed here.

Tags: 2019 holiday forecast, ecommerce, m:commerce, mobile marketing, National Retail Federation, Salesforce

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