Sept 12 (Askume) – U.S. holiday sales are expected to grow at the slowest pace in six years, data from Deloitte showed on Thursday, as persistent inflation and a drop in savings prevent shoppers from being more active during the key shopping period.
The data shows that between November 2024 and January 2025, holiday retail sales are expected to grow by 2.3% to 3.3%, totaling US$1.59 trillion, compared with last year’s 4.3% growth to reach US$1.54 trillion.
Sales increased 3.1% in 2018.
Why is this important?
Sales during the holiday season typically account for more than half of U.S. retailers’ annual revenue.
Because of this year’s shorter season — only 27 days between Thanksgiving and Christmas — retailers are forced to offer more promotional discounts at the start of the season.
situation
The report said consumers across all income groups have been hit by a drop in personal savings, which has fallen to around 3.4% in recent months, compared with an average decline of 3.8% in June this year.
As consumer pockets get tighter, consumers are expected to soon start looking for bargains and additional discounts in categories such as grocery and home décor.
By number
Deloitte estimates that e-commerce sales in the 2024 holiday season will grow by 7%-9% to a total of US$294 billion, compared with a 10.1% increase last year, reaching US$270 billion.
For the upcoming holiday season, store sales are expected to rise 1.3% to 2.1% to $1.3 trillion, compared with a 3.1% rise to $1.27 trillion a year ago.
Key Quotes
“Rising credit card debt and the likelihood that many consumers will exhaust their pandemic savings will likely weigh on sales growth this quarter compared to the previous quarter,” said Michael Jeschke, leader of Deloitte Consulting’s retail and consumer products practice.
“Our forecasts indicate that e-commerce sales will remain strong as consumers continue to leverage online transactions to maximize their spending.”
