By: Arthur Itkis, JLL Vice President, Retail
The holiday shopping season is in full swing and this year retailers are gearing up for a busy season. As the U.S. economy continues its upward climb, it’s not surprising that holiday sales will follow. But, to take a more holistic look at holiday shopping behavior, JLL research surveyed both shoppers (about 2,800) and retail managers (roughly 300) for the 2016 Holiday Forecast.
Read on for top trends from this year’s report.
Wrap Up the Year with Peak Spending and Sales
Compared to 2015 holiday spending, JLL experts are calling for a hefty increase this year—4% to be exact. In fact, 66% of shoppers intend to spend up to $750 on holiday gifts this year.
The Baby Boomer generation reported that they will spend the most this season, with 54% of their demographic spending more than $750 on holiday gifts. Comparatively, millennials have the lowest holiday budget; most plan to spend between $251 and $500. Millennials say low prices is the most important factor when considering holiday gifts, whereas Baby Boomers and those over age 70 reported quality as the most important factor.
Regardless, retailers are arguably the biggest winner of this holiday season. Nearly half of those surveyed expect to make between 11% and 30% of their annual revenue during the holiday. And thanks to the Black Friday weekend, retailers are already on their way to record numbers. According to ComScore, the Thanksgiving holiday and Black Friday shopping weekend combined accounted for more than $3 billion in total e-commerce spending. This ultimately pushed the holiday season-to-date growth rate to a 12% increase.
Check out the infographic for more stats from this year’s report and what to expect throughout December.
About the Author
Arthur Itkis is a Vice President in JLL’s Retail Brokerage group in the Great Lakes Region from Detroit, Michigan. Itkis specializes in tenant representation and retail real estate advisory. He brings more than 15 years of retail real estate brokerage to the Southeast Michigan region. Connect with Arthur on LinkedIn to learn more.