Optimistic Prospects for US Small Companies in This Christmas Season

All signs point to a good Christmas sales season for businesses. According to NRF's annual October Consumer Survey, consumers say they spend an average of $ 1,047.83 over the holiday season, an increase of 4% over the previous year. Buyers between the ages of 35 and 44 plan to spend the most for $ 1,158.63.

This consumer survey follows NRF's annual holiday spending forecast, which forecasts total spending, and estimates retail holiday turnover will increase between 3.8% and 4.2%, with a total volume between 727.9 and 730, $ 7 billion.

eMarketer forecasts retail holiday sales will rise 3.8% to $ 1.008 trillion this year. And Cyber ​​Monday is expected to be the largest online shopping day in US history, with a total volume of nearly $ 10 billion or more.

According to the # ThanksChristmas2019 study by PR firm Bospar, 52.1% of Americans spend the same amount on holiday shopping compared to the previous year, 24.8% spend less and 23.1% spend more. Half of the respondents say that concerns over a slowdown in the economy would affect their purchases on vacation. 25.4% say that these concerns severely affect their purchases, and 24.5% say that these concerns have no effect.

What are consumers planning to buy?

According to the NRF survey, consumers plan to buy gifts for family, friends and employees (average spend $ 658.55). Non-giveaways such as sweets and food, decorations, greeting cards and flowers (average spend $ 227.26); and other purchases that are not gifts and use holiday offers and special offers (average spend $ 162.02).

The most popular items? NRF data show:

• Gift Cards – 59%
• Clothing and Accessories – 52%
• Books / Movies / Music / Video Games – 35%
• Electronics – 29%
• Home Decor – 24%
• Jewelery – 23%
• Personal Care / Beauty Articles – 21%
• Sporting Goods – 18%
• Home improvement items – 17%

Who buys?

The NRF reports that 52% of buyers between the ages of 25 and 34 buy gifts for employees, and 82% of those between the ages of 18 and 24 want to buy gifts for their friends.

The NPD Group's purchase intentions survey in 2019 shows that each generation has its own purchasing plan. If you want to turn to the "donors", Gen X and Baby Boomers will spend more on holiday shopping than other generations in the survey.

Marshal Cohen, chief adviser to the NPD group, breaks up the generation purchases for the season:

• Gen Z will spend less than all other generations. They are less likely to shop online as Millennials and Gen X, but they are likely to buy clothing, accessories and electronics.
• Millennials are all about deals, dollars and technology on this holiday. Consumers of this generation plan to spend less than their older counterparts Gen X and Boomer, with one-third planning to spend more than 2018. Most are shopping online.
• Generation X shoppers plan to spend more than any other generation. They are the most likely generation to buy clothing / accessories (68%) and entertainment (44%), most likely to buy mass traders (51%) and pure online games (77%).
• Boomers plan to spend the second highest amount of all generations, and 26% plan to buy alcohol or wine as a Christmas present.
• Silent Generation shoppers shop in stores and at the last minute. Only half the plan to shop online.

Where do consumers shop?

According to the NRF, holiday buyers plan to distribute their purchases across multiple channels and types of stores. 56% want to shop online, 92% want to opt for free shipping options and 48% shop online and pick up shop. And 53% will shop in stores; 23% plan to shop with local small businesses.