Non-Store Holiday Sales Expected to Go Up This Year

In several weeks, the holiday shopping season will begin and many retailers probably can't wait until it arrives. The holiday shopping season is a time to make-up for loss revenue and low sales during prior quarters, as retailers are hopeful for big returns this year. The latest forecasts show indeed retailers have big reasons to be excited because the numbers are expected to be good, namely for online sales.

The National Retail Federation (NRF) forecasts that non-store sales will go up 7-10% from last year, equating to about $117 billion for the 2016 holiday season of November and December. Internet Retailer recently discussed how various forecasts like these are beginning to be released for this holiday season and non-store sales. They are projecting online growth to double or quadruple the rate of total sales. Non-store sales were described as primarily online sales via phone and catalog sales. The NRF projected last year's online sales would increase by 6-8% for last year's holiday season, yet online holiday sales reaching 9% instead. Retailers hope shopping results we be higher than projected this year as well.

"All of the fundamentals are in a good place, giving strength to consumers and leading us to believe that this will be a very positive holiday season,” NRF president and CEO Matthew Shay stated in the article, optimistic about this year's sales. He went on to say, “This year hasn’t been perfect, starting with a long summer and unseasonably warm fall, but our forecast reflects the very realistic steady momentum of the economy and industry expectations.” Another driving of the momentum of shopping online is that customers have become more comfortable with purchasing over the web and having those items delivered. Shoppers have even begun to enjoy fast delivery services like Same-Day Delivery from Amazon, Google, Macy's, BestBuy, and more.

Rod Sides, Deloitte LLP vice chairman and retail & distribution sector leader, discussed in the article the company's own forecasts about this year's holiday online sales. He stated, “The trend to watch is the way that online, mobile and store channels influence each other. Large e e-commerce players and digital platforms such as Facebook and Pinterest are shaping what people think a great shopping experience is—a fast, highly-curated assortment with access to visuals, information and buying sources. Since these bigger platforms are more connected to the customer than the tradition retailer, it is important that they are part of retailers’ digital marketing campaigns this holiday season”.

Sides also said, “It’s likely to be the small and midsized retailers that focus on niche products and experiences. This group has been collectively stealing share from large, traditional retailers to the tune of $200 billion in annual sales over the last five years. The retailers that compete on differentiated products and experiences should be better positioned to outperform those who try to compete on low-price, value and convenience, or continue to rely on conventional sales events and promotions”.

Indeed, the retailers that move beyond conventional products, will not attract the growing market of online shoppers, especially millennials they want an experience that is easy and can be done utilizing tech devices also. Same-day delivery continues to be service product that more and more customers like because of cost, time saving and convenience. A Same-Day Courier like A-1 Express can be a viable partner that retailers can turn to for last-mile deliveries for the holidays. The Philadelphia Courier can implement same-day delivery in no time, as retailers seek to seize all the online sales to come.

Reference: 10.4.16, www.internetretailer, Tracy Maple, Online holiday sales head for double-digit growth