Analysts Expect Strong E-Commerce Sales for 2017 Holidays

Posted on Oct 4 2017 - 1:00am by Business Day TV

Retail Commerce Sale and Online Selling Business Graph Seen on a ComputerDeloitte expects online sales to rise up to 21% to $114 billion in the holiday season of 2017, while RetailNext estimated a 14.9% increase.

Online retailers should start to beef up their marketing and competitive strategies, including a minimum advertised pricing policy, ahead of an expected increase in e-commerce sales in the U.S. from the holiday season of 2017.

Deloitte expects online retail sales to rise between 18% and 21%, or $111 billion to $114 billion, while RetailNext estimated a 14.9% increase. A strong employment market would cause a higher spending power among consumers.

Digital Selling

The National Retail Federation (NRF) said that online retail sales accounted for an estimated 19% of all sales in 2016, when total purchases increased 4% to $658.3 billion. Deloitte expects holiday sales in 2017 to rise 4.5%, with e-commerce comprising less than 11% of an estimated $1.05 trillion in total sales.

Daniel Bachman, Deloitte’s senior U.S. economist, said that consumer confidence stays high amid a strong labor market. Bachman expects the personal savings rate to remain stable at its current low level, as disposable income would likely increase between 3.8% and 4.2%. Now that Labor Day is over, holiday sales will now focus on those heading to the Thanksgiving and Christmas holidays.

Halloween Rush

An NRF survey showed that 22% of respondents plan to look for online bargain deals for this year’s Halloween festivities. Sales would amount to $9.1 billion in 2017, up from $8.4 billion year over year. The number of people that plan to celebrate also increased to 179 million from 171 million in 2016, according to the NRF.

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The group based its survey on 7,013 consumers and it showed that 48% of adult respondents intend to dress up in a costume, which gives retailers another reason to sell products for grown-ups.

Online retailers should start finding ways on how to beat their business rivals, as the expected increase in e-commerce sales will surely tighten competition.