Scott Nishimura
Undoubtedly, one reason consumers are in a better mood this holiday season is because, unlike a year ago, masks aren't required by state mandate.
It’s beginning to look a lot like Christmas, including retail cheers on news leading up to start of the holiday shopping season that suggests consumers are in the mood.
Last month, the National Retail Federation forecast that holiday sales during November and December will grow between 8.5% and 10.5% over 2020 to between $843.4 billion to $859 billion.
The NRF also expects online and other nonbrick-and-mortar sales, included in the total, will increase between 11% and 15% to a total of between $218.3 billion and $226.2 billion.
“There is considerable momentum heading into the holiday shopping season,” says NRF President and CEO Matthew Shay in a statement. “Consumers are in a very favorable position going into the last few months of the year as income is rising and household balance sheets have never been stronger.”
That outlook appeared even rosier with the Labor Department’s announcement on Wednesday that weekly jobless claims fell to the lowest level in 52 years, reflecting the labor market’s tightening as the economy recovers from the pandemic.
Claims have declined steadily over the past two months since increasing slightly in September.
Yet, there will be challenges, particularly with the continuing supply chain snarl that will hamper retail meeting the demand for products, not to mention drive prices northward in an already-inflationary market.
With that said, Best Buy reportedly won’t have trouble meeting demand, saying it has 15% more inventory than a year ago, according to the Wall Street Journal.
Thus far, however, the challenges have done nothing to dampen the spirits of consumers, who, unlike a year ago, appear to be much more enthused with season.
In the inbox this morning was a survey conducted by Lisa Miller & Associates and Prodege LLC showing that more than half of respondents — 54% — were “excited” and “happy” about the forthcoming holidays. Only 39% felt that way a year ago with COVID still hanging over our heads.
The numbers were further broken down by the following:
- 69% of mothers with children under 18 vs. 55% of dads
- 76% of parents with children 6 - 8 years old
- 87% of Gen Z
The socioeconomic data was broken down by the following, with no real surprises:
- 50% under $50,000 income
- 53% $50,000 – $100,000 income
- 63% Above $100,000 income
The survey data was collected the week ending Nov. 22, 2021, from a representative sample of 1,008 adults 18 years and older.
This story has been updated from a previous version.