Holiday Season Sales to Rise, but Retailers Shouldn't Expect Huge Gains, Says Report

E-commerce will continue to gain share of total holiday season sales, said a Monday Coresight Research report, saying online retail sales will rise by nearly 16 percent year on year, capturing 20 percent of nonfood retail sales in Q4. The research firm forecasts 4 percent overall growth in holiday season sales on favorable economic conditions including low unemployment, wage growth and modest inflation, comparing it with 5.5 percent growth last year and average annual increases of 2.8 percent over the past decade. One more shopping day this season will help boost sales over 2017, with 32 days -- the longest possible period -- between Thanksgiving and Christmas vs. 31 last year, it said. Over the full year, Coresight projects more than a third of CE sales and more than 20 percent of apparel sales will be made online, higher during the holiday season. It cited findings from Prosper Insights & Analytics pointing to a solid, “though possibly mixed,” season ahead after its July survey of consumers’ spending plans for the holiday seasons showed they plan to spend more than last year. But the number of respondents who said they plan to spend less this year also grew, it said. Coresight predicted a “robust” holiday season “though it may be more mixed than current trajectories imply.” Shoppers will open their wallets, but “retailers should not expect a spectacular end to the year,” it said.