In the US customers could spend more than $1 trillion during the holiday season, according to market research firm eMarketer, the first time retail sales have surpassed this amount.
This will be a 5.8 percent increase from 2017 when consumers spent a total of 947.55 million between 1 Nov. and 31 Dec. The lowest unemployment rates since 1970, steady incomes and higher consumer confidence are being credited for this hike in spending — and because retailers won’t be passing on price increases due to Donald Trump’s tariffs until next year, this means spending will remain strong.
Holiday spending at retail stores across the US in millions
Brick-and-mortar stores still represent almost 87.7 percent of holiday shopping, but this year online sales are estimated to account for 12.3 percent of retail sales during the season.
This is a stark difference from the UK, where the total holiday spend has been on a downward slope since hitting £821 billion that year, down to £751 in 2017.
Spending in the UK during the holidays in billions
“For retailers, it will be a battle for e-commerce market share,” eMarketer analyst Cindy Liu said. It’s clear this is the case — with Amazon offering free same-day shipping on holiday orders for Prime members and Target offering free two-day shipping with no minimum spend.