|ShopperTrak offers predictions for ‘retail’s largest profit opportunity’|
|Written by Jeremy Burns|
|Tuesday, 17 September 2013 04:39 PM EDT|
Retail sales will increase this holiday season, according to ShopperTrak, but retailers will have a shorter window in which to earn their share. A shorter holiday season will mean more cutthroat competition as retailers vie for a piece of the consumer spending pie.
The shopper analytics company forecasts a 2.4% increase over last year’s holiday season. However, overall foot traffic is expected to decrease 1.4% compared to last year.
This decrease in shoppers is largely due to the reduced window of time retailers have to capture peak holiday spending in 2013, as only 25 days lie between Black Friday (Nov. 29) and Christmas this year, compared to 31 days in 2012. Additionally, there are only four full weekends within that period versus five in last year’s holiday season.
“Nobody can afford to procrastinate,” said ShopperTrak founder Bill Martin. “Retailers must have their holiday marketing and operations ready to go when November begins, as consumers will be ready to take advantage of those deals.”
Holiday sales and store shopper traffic historically account for about 20% of annual retail activity. This year’s projected holiday sales increase builds on the 3.0% increase seen in 2012 versus 2011.
“Although the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge,” said Martin. “Even though online buying increases each year, brick-and-mortar sales remain retail’s largest profit opportunity. Retailers who deliver a seamless experience both in-store and at every customer touch-point have the chance to capitalize and grab their share of wallet when shoppers visit the stores.”