Deloitte 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.
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.
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.
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.