Retailers Eye Holidays to Make Up Dismal Summer

A slow summer and changing customer shopping behavior have retailers pinning their hopes on a robust holiday season.

October 14, 2014

WASHINGTON – Despite lethargic sales over the summer and a shift in customer shopping habits, retailer expectations for upcoming holiday season are hopeful, Advertising Age reports. Sales in November and December are forecast to reach $617 billion, a 4% bump over last year, according to the National Retail Federation. 2013 had a 3% jump in holiday sales over 2012.

“Retailers could see a welcome boost in holiday shopping, giving some companies the shot in the arm they need after a volatile first half of the year and an uneventful summer,” said Matthew Shay, president and CEO of the federation.

Again this year, retailers are pressing ahead earlier and earlier with holiday displays. For example, Kmart debuted a “Merry Birthday” ad that attempts humor on Christmas creep. While Kmart might jokingly go after earlier shoppers, Walmart has seen the opposite effect on its shopping trends. “We’re seeing this tendency for the consumer every holiday to shop a little later,” said Matt Kistler, senior vice president of global consumer insights and analytics. The discount retailer is trying to figure out how to convince consumers to buy in November or early in December.

This year, a major focus for Walmart will be gift cards. “The No. 1 gift card people want to get is from Walmart, because of all you can buy,” said Stephen Quinn, the U.S. chief marketing officer for Walmart. However, it “is also the card that they’re most nervous about giving to someone. So what we need to do is actually lower people's 'guilt level’.”

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