December 23, 2020 by Lisa Brammer
Despite all the economic uncertainty swirling around the COVID pandemic, Americans are projected to spend beaucoup bucks this holiday season.
According to the National Retail Federation’s late November press release, holiday sales during November and December could increase as much as 5.2 percent over last year. Holiday spending is projected to reach a record high of $766.7 billion, up from 2019’s $755.3 billion. That’s some serious coin!
“We know this holiday season will be unlike any other, and retailers have planned ahead by investing billions of dollars to ensure the health and safety of their employees and customers.” NRF President and CEO Matthew Shay said. “Consumers have shown they are excited about the holidays and are willing to spend on gifts that lift the spirits of family and friends after such a challenging year. We expect a strong finish to the holiday season, and will continue to work with municipal and state officials to keep retailers open and the economy moving forward at this critical time.”
The NRF’s spending prediction is based on a variety of indicators such as employment, wages, consumer confidence, disposable income, consumer credit, previous retail sales and weather.
“Given the pandemic, there is uncertainty about consumers’ willingness to spend, but with the economy improving most have the ability to spend.” NRF Chief Economist Jack Kleinhenz said. “Consumers have experienced a difficult year but will likely spend more than anyone would have expected just a few months ago.”
Because of last spring’s stay-at-home orders and shuttered stores the report says not all retailers (think small and mid-sized) have rebounded as quickly as others, but combined retail sales have seen a V-shape recovery, increasing both month-over-month and year-over-year each month since June!
E-commerce sales are up 36.7 percent year-over-year during the third quarter which shouldn’t surprise anyone especially this year when a lot of us are depending on internet shopping when it comes to our holiday purchases.
My take-away? Santa is going to have his work cut out for him tomorrow night. As long as you’ve been good, you should be pleasantly surprised come Friday morning.
United Credit Service, Inc. is a full service, licensed revenue cycle management and debt collection agency that has been providing effective, customized one on one management and recovery solutions for our business partners in the Midwest since 1950. Visit our website at http://www.unitedcreditservice.com, call 877-723-2902, or check out our YouTube video.
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