Despite signs of a last-minute rush, ShopperTrak now forecasts holiday sales for the months of November and December will increase by about 2.5 percent over last year – down slightly from the 3.3 percent increase it projected in September. Several factors contributed to the companys decision to lower its forecast, including heavily discounted merchandise and the impact of Hurricane Sandy.
ShopperTrak still maintains holiday season foot traffic will increase 2.8 percent over last year. This represents the first increase in retail foot traffic during the holiday season since the recession in 2008.
Retail foot traffic and sales continued to increase last week, as the holidays drew nearer and more consumers headed back to stores. For the week ending Dec. 15, retail foot traffic increased 15.1 percent over the previous week. Retail sales increased 16.4 percent during the same period.
Though week-over-week traffic and sales increased, ShopperTrak, the worlds largest counter of retail foot traffic, reported traffic and sales were down from the same period last year. In year-over-year comparisons, foot traffic declined 4.4 percent and sales declined 4.3 percent.
Hanukkah-related shopping helped boost retail sales last week, but many consumers delayed their Christmas shopping – and with good reason. They saw 32 shopping days between Black Friday and Christmas, the longest interval possible, said Bill Martin, ShopperTrak founder. However, time is running out and Christmas is less than one week away.
As a result, we forecast the week ending Dec. 22 will experience the largest weekly sales volume of the year. And Saturday, Dec. 22 will be one of the five busiest shopping days of the season.
