The upcoming holiday retail shopping season for 2024 is anticipated to be unique and challenging, as outlined by Forbes. Analysts predict that various major events such as the Summer Olympics in Paris, a heated presidential election, and a shortened holiday shopping season will significantly impact consumer behavior and spending patterns. This intersection of events presents both challenges and opportunities for marketers and businesses.
According to reports from the Federal Reserve Bank, a growing number of credit card users are struggling to keep up with their monthly bills due to years of increasing prices and high interest rates. Many Americans rely on credit to cover expenses, including holiday gifts. Despite these challenges, the U.S. Department of Commerce Retail Division data shows fluctuations in retail sales growth over the years, with an average of 4.1% from 1992 to 2019, jumping to 9.4% from 2020 to 2019, and then dropping to 3.9% in 2023.
Consumer confidence, as reflected in the Conference Board Consumer Confidence Index, saw a decline in September 2024, indicating uncertainties about current business and labor market conditions. The index fell to 98.7 from 105.6 in August, with the Present Situation Index dropping by 10.3 points to 124.3. Despite these fluctuations, the Expectations Index remained above 80, suggesting a cautious outlook on income and market conditions.
In the midst of economic fluctuations and uncertainties, dockworkers across various ports initiated strikes over wages and automation, causing potential inflation and shortages of goods. The ongoing strike poses challenges for retailers and consumers alike, especially with the holiday shopping season approaching. A prolonged strike could lead to price hikes and supply chain disruptions across the country.
To navigate these market dynamics, businesses need to adapt their strategies to changing consumer behaviors. Retailers like Viewmont Mall in Scranton focus on offering a diverse retail mix, seasonal events, and collaborations with popular brands to attract shoppers. By maintaining an attractive shopping environment, utilizing digital marketing, and providing a range of retail and dining options, malls can enhance the customer experience and drive foot traffic.
Vince Vizza, the vice president of Leasing at PREIT, emphasizes the importance of proactive remerchandising and tenant strategies to keep malls vibrant and appealing to shoppers. By replacing underperforming tenants with high-demand brands and maintaining a strong mix of retailers, malls like Viewmont Mall can sustain foot traffic and tenant success.
As the holiday season approaches, businesses like Melissa Roberts’ Ski Shack focus on engaging their community through special events and curated merchandise selections. Brands like Patagonia, known for sustainability efforts, offer consumers environmentally conscious options. Online shopping remains a convenient choice for consumers, but malls like Viewmont Mall continue to thrive by providing experiences that extend beyond traditional retail.
Despite economic uncertainties, Deloitte’s holiday retail forecast remains optimistic, projecting a 2.3% to 3.3% increase in holiday sales from November to January. Ecommerce is expected to be a significant driver of growth, with online sales forecasted to grow between 7% and 9% during the holiday period. This forecast underscores the importance of businesses adapting to changing consumer preferences and market trends to navigate the evolving retail landscape.
