Predicting the Holiday Shopping Season for 2008
New retail reports indicate this holiday shopping season a good litmus test for the strength of online sales.
Just released statistics showed slower retail sales than expected in the third quarter of 2007 (July – September). This slowing was due to several factors, and according to one source, it was a recipe for disappointment.
“Sales are coming in soft, as expected… It was a perfect storm, a combination of abnormally warm weather, high food and energy prices, a continued sluggish housing marketing and tight credit”, according to Ken Perkins, president of RetailMetrics LLC.
This general slowing caused a number of large retailers to lower their expectations for this year including Limited Brands Inc. and Mothers Work Inc. J.C. Penney Co., Limited Brands Inc. and Nordstrom Inc.
The litmus test happens when a declining overall sales picture meets a continually surging online economy. The contrast, or expected contrast between the two will show how strong internet e-commerce really is. For large retailers it will be more important than ever to harness the potential in shopping comparison engine and transactional marketplace growth. For small and medium size businesses, it will be more important than ever to solidify your marketing strategy now before the holiday rate increases begin to take effect.
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