With just over 70 days until Christmas, analysts and retailers alike are looking ahead at what is projected to be a high-spending season, according to a release from Purdue University.
Richard Feinburg, a professor of retail management at Purdue, said holiday retail sales will likely rise by 4 percent this year.
In comparison, holiday spending in 2013 increased 2.8 percent from the previous year.
He predicted that total holiday spending for 2014 could be close to $986 billion and that surveys are showing that shoppers are likely to spend between $650 to $725 on gifts.
He also said most non-luxury retailers will target consumers through increased promotions and sales, meaning they will use “flash” and limited-time sales, which tend to work because they increase the sense of urgency for the consumer.
Feinberg warned that geopolitical crises and health concerns could lower consumer confidence if those topics remain in the news.
Still, 75 percent of consumers say they will shop either in stores or online on Black Friday, according to the release.
“Black Friday is now Black November,” the release said. “Retailers no longer wait for the Friday after Thanksgiving to launch big door-buster sales. A dollar spent on holiday gifts in the first week in November in a store is a dollar that another retailer cannot get in the third week of November.”
Holly Hays
