ShopperTrak Forecasts 2013 Holiday Shopping Season to be Worst Since 2009Association of Business Training
September 18, 2013 — 882 views
As the year approaches the holiday season, many people head towards their nearest retail store in order to pick up gifts and toys for the friends and loved ones. However, this year, it seems that the holiday spirit is slowly diminishing as one of the most reputed store traffic measurement firm, ShopperTrak, forecasts the year 2013 as the worst since 2009. During the November and December period, many people get geared up to buy as many products due to the retail store's discounts and offers. But this year, it does not look like it’s going to be a jolly one at all for the retail stores.
Forecasts for this Year
In the United States, the holiday season begins around November, when many people head to shopping malls to maximize out of the different holiday season offers. According to ShopperTrak, the rise in shopping during this period is expected to only rise by about 2.4%. This is much lower than how it was in the previous year where it stood at 3% and the previous two years where it was around 4%. Based on the historical evidence from all the shopping malls in the country, the total annual retail activity is around 20% during the holiday season. This is one of the most important seasons in the year as it forms a large bulk of the overall sales.
Sales Break Ups
ShopperTrak is also known for creating figures that are accurate in determining the total sales in the retail industry. According to the report that was conducted, traffic and sales in electronic and apparel retailers will be at 2% and 2.8% respectively. This is from a survey that was conducted from over 60,000 global locations by using the proprietary model. One of the main reasons why this year does not look promising for retailers is because people are moving out of traditional brick and mortar shopping destinations to digital online stores. Also, ever since the recession, the growth of brick and mortar stores has been very slow, which also adds to the bad news.
Reasons for the Drop in Shopping Sales
One of the major reasons why people are not buying more products is because they are still hit by the impact of the recession. This has prompted the people to save up more money by the time the holiday season reaches a point where the prices are more affordable. Although the numbers may be down, customers are doing the right thing by saving up more and taking a cautious approach towards spending this holiday season.