Monday, October 18, 2021
65.2 F
Fort Worth

Holiday sales may have jumped 4.9% in biggest gain since 2005

🕐 2 min read

Holiday shoppers abandoned their early reluctance and boosted spending as the season wore on, pushing U.S. sales to the biggest increase in more than a decade, according to research firm Customer Growth Partners.

On Tuesday, the firm raised its holiday sales estimate to a 4.9 percent gain over last year to $637 billion. That would be the biggest increase since 2005. Customer Growth had previously predicted a 4.1 percent advance.

Online sales grew an estimated 15 percent, up more than a percentage point from the firm’s previous forecast. Sellers of consumer electronics, home-improvement goods, beauty products, and toys saw robust sales and minimal markdowns, according to Craig Johnson, Customer Growth’s president. Low unemployment and fuel prices, as well as real disposable income gains, boosted spending.

Then there was clothing. “You saw rampant discounting,” with 40 percent off required to even get customers in the door and half off to get them to buy, he said.

“If your name is Home Depot, your margins are going to be great,” Johnson said in an interview. For clothing and department-store chains, “you’re going to have trouble.”

Pre-election jitters and unseasonably warm weather produced a slow October that bled into a similarly wan November — until the middle of the month, when spending came back, Johnson said. Even the normal early-December slowdown, when shoppers take a break between Thanksgiving sales and last-minute deal frenzies, was shallower than normal, he said. The firm’s forecast excludes sales from autos, auto parts, fuel and restaurants.

The post-Christmas week is shaping up strong, Johnson said, helped by a variety of factors including most workers getting Dec. 26 off. Retailers in recent years have increasingly seen the week after the holiday, when customers make returns and exchanges, as a chance to lure them with a new selection of full-price merchandise.

“Instead of just being a neutral or a negative, it’s a plus,” he said.

Related Articles

Our Digital Sponsors

Latest Articles

Texas Rangers
Fort Worth Business Press Logo
This advertisement will close in
00
Months
00
Days
00
Hours
00
Minutes
00
Seconds
seconds..
Click here to continue to Fort Worth Business Press

Not ready to subscribe?

Try a few articles on us.

Enter your email address and we will give you access to three articles a month, to give us a try. You also get an opportunity to receive our newsletter with stories of the day.

This field is for validation purposes and should be left unchanged.

Get our email updates

Stay up-to-date with the issues, companies and people that matter most to business in the Fort Worth.

  • Restaurants
  • Technology
  • and more!

FWBP Morning Brief

FWBP 5@5

Weekend Newsletter

  • Banking & Finance
  • Culture
  • Real Estate