Retail sales in the US are expected to grow to over 1 trillion USD during the holiday season for the first time, supported by the low unemployment, income growth and high consumer confidence.
The total retail sales in the US will reach 1.002 trillion USD during the holiday season – from November 1 to December 31, which would be an increase of 6% over the previous year. This would be the strongest growth since 2011.
The latest data contrasts with concerns about the future of retailers, such as Sears and Toys”R”Us, which faced the possibility of bankruptcy, even though the creditors canceled the launch of bankruptcy-related actions.
However, several retailers close hundreds of stores across the country, as the threat of increased competition from e-commerce companies like Amazon and eBay continues to put pressure on the industry. On Monday, the retail chain Lowe announced plans to close 51 stores with lower performance in the US and Canada.
However, the latest survey of eMarketer shows that the sector will see a 4.4% year-on-year increase in store sales to 878.38 billion USD.
“While e-commerce continues to show strong double-digit profits, the sales in physical stores will be the biggest winner this season”, said Andrew Lipsman, chief analyst at eMarketer.
Not all retailers with physical stores have to close objects. Some still manage to take advantage of the strong economy by attracting buyers with refurbished stores, improved customer experience and online shopping.
However, e-commerce continues to grow in market share and will capture 12.3% of total sales this year. Online retail sales are expected to grow by 16.6% from the previous year to 123.73 billion USD. It is likely that during this year’s holiday season customers will be attracted with more promotions and bonuses such as free and faster delivery as retailers compete with Amazon.