October 18, 2021

The Queens County Citizen

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Deloitte estimates that 2020 holiday retail sales will grow by 1 to 1.5%

Deloitte estimates that 2020 holiday retail sales will grow by 1 to 1.5%

Consulting firm Deloitte released forecasts on Tuesday that the growth rate of retail sales this holiday is expected to be lower than in recent years.

But how muted that growth will be depends on how high-income consumers grow and how much belt-tightening is done in low-income homes.

Some economists Now calling for K-shaped recovery – The scenario where some types of industries see profits, while others are abandoned. Unlike U- or W-shaped recoveries, the increase in K-shaped rebounds‌ is unevenly divided between income groups, creating an illustration with “hass” and “have-notes”.

Since then Corona virus pandemic Beginning, some industries still have workers productive at home. Others, however, have seen sales dry up as consumers refrain from eating, going to the movies and taking vacations.

“This year, one of the two holidays will play,” said Rod Sides, vice chairman of Deloitte and its retail and distribution leader. “History tells us … consumer groups recover differently.”

According to Deloitte, holiday retail sales this year are expected to grow between 1% and 1.5%, from $ 1.147 trillion to $ 1.152 trillion from November to January. According to the U.S. Census Bureau, sales were up nearly $ 1.14 trillion, compared to 4.1% growth in 2019.

The 1% to 1.5% range is created by combining two different scenarios, large and small, run by spenders, Deloitte explained.

For one, Deloitte expects sales to grow relatively 0% to 1% during the holidays, if consumers – especially low-wage editors – are worried about their finances and health, and should allocate their spending to higher needs. Unemployment insurance benefits could further exacerbate this first scenario, Deloitte said.

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A big 2.5% to 3.5% increase would occur if wealthy consumers gain more confidence in the back of 2020. Factors that boost confidence in the group include declining unemployment, additional government stimulus and an effective Kovid-19 vaccine, Deloitte said. In this scenario high-income consumers do not spend on holidays and experience like concert and Broadway tickets for holiday gifts, people show more interest than ever.

“High unemployment and financial anxiety this holiday season will depend on overall retail sales, while reducing spending on epidemic-sensitive services such as restaurants and travel will help boost retail holiday sales somewhat,” said Daniel Bachmann, Deloitte’s U.S. economic forecast.

Since many consumers still spend more time at home and avoid crowded, open spaces, it is inevitable to spend more online even during this holiday season. Deloitte expects holiday e-commerce sales to grow by 25% to 35%, from $ 182 billion to $ 196 billion. It achieved 14.7% online growth in 2019, with sales reaching $ 145 billion.

It is putting pressure on retailers to prepare for the onslaught of online orders, starting early next month and running until the last-minute shipping deadline.

“A lot of the people I’m talking about right now are afraid they’re going to be listed,” Deborah Weinswig, founder and CEO of CorSite, said in an interview. “We already have the capacity. … and the customer does not know it is coming.”

Said several retailers, including Mackie They are guessing Holiday shopping is starting this year more than ever.

Many have declared them Close their doors on Thanksgiving, It has become a recent tradition to open before Black Friday. Strategies are being explored to prevent shops from being overcrowded in an age where social distance must be enforced. Companies are trying to estimate what consumers want to buy in the midst of the global health crisis. There seems to be a consensus: anything is cozy.

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According to Deloitte, retailers, in particular, need to plan for a scenario where recovery is unequal in the US – the rift between rich and poor will move further.