In what is great news for retailers in the build-up to Black Friday and Cyber Monday, this year’s holiday season in the US is set to be a strong one with analysts predicting that low unemployment levels and buoyant consumer confidence will encourage American shoppers to spend at record levels. According to eMarketer, total retail sales between 1 November and 31 December will cross the $1trillion mark for the first time with an increase of 5.8% to $1.002trillion.
In surveys carried out by the National Retail Federation (NRF) shoppers plan to spend an average of$1,007.24 each which represents a 4.1% increase on last year. This shopping is expected to be spread across a variety of different channels with the NRF reporting that an equal number of shoppers (55%) will choose to shop in department stores and online. Macy’s and a number of other department stores have invested heavily in their eCommerce operations in order to face up to the challenge of online retailers. Macy’s are expecting significant growth in their online eCommerce operations this holiday season and have therefore recruited an extra 80,000 seasonal workers, a third of whom will be deployed in their ‘direct-to-consumer fulfillment facilities’, according to the FinancialTimes.
One of the most notable trends during the holiday season over the past few years and one that is expected to continue this year, has been the migration of online shoppers to mobile devices. In 2017, Salesforce.com reported that mobiles had overtaken computers for the first time with 46% of all online orders compared to the computer’s 45% share. Mobiles also accounted for 61% of traffic to retail websites during the 2017 holiday season, significantly more than any other electronic device. This year, mobiles are forecast to make up almost half of all customer visits to US retailers’ websites and 27 % of revenue from online sales.
According to Andrew Lipsman, principal analyst at eMarketer, while mCommerce is projected by to make up only 5.4% of total holiday sales, itis the contribution that mobile will make to growth that is significant. “Mobile’s contribution to growth this holiday season will be six times its contribution to sales. Retailers that look past mobile because it’s the smallest sales channel will find it much harder to post the sort of profits they’re hoping for–and should be able to expect—given the positive economic backdrop.”
At the eBusiness Institute, we understand the importance of optimized online consumer experience to drive your brand’s sales online and offline. Our experts can help you to understand your client’s consumer journey and optimize your online sales process across all devices. Contact us to learn more about how we can help you make your brand an eCommerce winner.