With the economy being unstable, retail shoppers were not expecting to see much of sales this year. But the sales figures during the month of October have certainly turned the tide from depressing to a much more prospective one.
October Retail Statistics
Based on the Government statistics, the retail sales in October has increased to about 3.9%. Though the sales in September were dismal leading to the prediction the holiday shopping will not be that good this year, this boost of sales has made the retailers heave a sigh of relief. The 0.4% rise in retail sales in October has certainly made retailers look forward to the upcoming Black Friday sales.
Sluggish Sales
The government shutdown that lasted for over two weeks and the congress budget standoff issue had the consumers slow down on their spending. The situations had a negative effect on:
• The sales development and
• Consumer confidence
A generalized insecurity prevailed among consumers regarding the economy. But the sales figures during the month of October look promising and illustrate that the consumers have not backed down by the unstable economic state.
Black Friday Looming Large
Though the general economic situation is not good, retailers may see a good amount of increase in sales which will be more due to the holiday optimism rather than a big change in the spending ways of the consumers. Black Friday sales are expected to amount over 40% of the annual income of retailers in general. Black Friday sales are usually considered as a promising onset of holiday shopping. With the September sales showing an alarming dip in the sales figures, retailers have started to work earlier to gain more from the Thanksgiving holiday.
Optimistic Trend
The average consumer is not that much enamored about splurging in holiday shopping, but the statistics from the government look good. The vehicle sales are up by 1.4% and the retail sales in general has gone 3.9% up since last year. The electronic goods section has also seen a surge of 1.4% with clothing and other accessories rising up to 3.8% when compared to 2012.
What the Consumer Needs?
In spite of the holiday shopping being only slightly affected by the state of the economy, the need of the hour is change in the government policies that will lead to more sustained growth, better jobs, and a sizeable increase in the average income.
Holiday Forecast
Statistics reveal that the lowered price of gasoline has resulted in more spending amount for consumers and the lowering of the consumer prices in relation to energy consumption has perked up the general retail sales considerably. This rise in sales statistics predict a good holiday income for the retailers who have put in considerable efforts to get maximum revenue during the holidays from Thanksgiving till Christmas.
On the outset, the holiday shopping this year seems to be unperturbed by the oscillating economy with consumers splurging on cars, furniture, food, electronics, and clothing. Figures show that after the slowdown in the third quarter, things are looking really bright for the economy in holiday season.
