US holiday sales are expected to grow at their slowest rate in six years, as continued inflation and depletion of savings make consumers more frugal during critical shopping periods, according to data released by Deloitte on Thursday.
US holiday sales are expected to grow at their slowest rate in six years, as continued inflation and depletion of savings make consumers more frugal during critical shopping periods, according to data released by Deloitte on Thursday.
According to the data report, retail sales during the holiday season may increase by 2.3% to 3.3% between November 2024 and January 2025, and the total is expected to reach a maximum of 1.59 trillion US dollars. Compared with the previous year's increase of 4.3%, a total of 1.54 trillion US dollars. Sales increased 3.1% in 2018.
According to information, holiday sales usually account for more than half of the annual revenue of US retailers, which makes the market very concerned about the performance of this period.
Notably, this year's shorter holiday season — only 27 days between Thanksgiving and Christmas — prompted retailers to launch higher promotional discounts earlier in the season.
According to the report, consumers in all income groups have been impacted by the decline in personal savings rates. In recent months, the personal savings rate fell to about 3.4%, compared to an average of 3.8% in June this year.
As consumers tighten their wallets, they are expected to start scouting for bargains as soon as possible, looking for additional discounts on a variety of products, including groceries and household items.
Deloitte expects e-commerce sales to grow 7%-9% during the 2024 holiday season, reaching a maximum of 294 billion US dollars, compared to 10.1% growth in the previous year, totaling 270 billion US dollars.
In the upcoming holiday season, physical store sales are expected to increase by 1.3% to 2.1%, reaching a maximum of 1.3 trillion US dollars. The total amount for the previous year was 1.27 trillion US dollars, a growth rate of 3.1%.
Michael Jeschke, head of retail and consumer products at Deloitte Consulting, said: “Compared to the previous quarter, the increase in credit card debt and the fact that many consumers may have exhausted their savings during the pandemic may affect sales growth this quarter.”
“Our predictions suggest e-commerce sales will remain strong as consumers continue to use online transactions to maximize their spending.”
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