Holiday spending has the potential to break previous records, with the National Retail Federation (NRF) forecasting that holiday sales in November and December this year will increase by 8.5 percent to 10.5 percent over 2020, totaling $843.4 billion to $859 billion. The figures compare to a previous high of 8.2 percent in 2020, which amounted to $777.3 billion.
The NRF anticipates that online and other non-store sales, which are included in the total, will climb by 11% to 15% to a total of $218.3 billion to $226.2 billion, led by internet purchases. In comparison, the federation stated in a press statement that the figure is up from $196.7 billion in 2020. Consumers turned to internet purchasing to cover their holiday demands during the pandemic last year, resulting in remarkable growth in digital platforms. While e-commerce will continue to play a role, households are likely to return to in-store buying and a more conventional Christmas shopping experience.
“Pandemic-related supply chain disruptions have generated goods shortfalls and the majority of this year’s inflationary pressure,” stated NRF Chief Economist Jack Kleinhenz. “With the possibility of consumers shopping early, inventories may be depleted sooner, and shortages may arise in the last weeks of the shopping season.” While it looks that new COVID-19 infections and hospitalizations are decreasing, a variation increase might possibly derail the present cost pattern. Kleinhenz stated that despite the uncertainty, good household fundamentals provide hope. Wage compensation income is increasing, and household wealth has hit a new high. These factors, taken combined, sustain high spending over the holiday season.
The National Retail Federation anticipates that shops will hire between 500,000 and 665,000 seasonal workers. In 2020, there will be 486,000 seasonal employment. Some of this employment may have been pushed into October since many businesses encouraged customers to order early to prevent running out of merchandise and experiencing shipping delays.
