Louisville, KY, December 11, 2015 – Constant Force Displays (www.ConstantForceDisplays.com), a manufacturer of specialized retail solutions, is commenting on a new study that suggests that customers are going to be spending more this holiday season.
According to a new study, 47% of consumers are more confident in their finances than they were a year ago and 48% are planning on starting their holiday shopping earlier. The study suggests that, as a result, the holiday season will see a large increase in consumer spending. (Source: “Holiday Retail Sales Driven by Confident Shoppers with More to Spend and More to Buy, Synchrony Financial Study Finds,” Business Wire, November 20, 2015; http://www.businesswire.com/news/home/20151120005367/en/Holiday-Retail-Sales-Driven-Confident-Shoppers-Spend.)
“Every indication is pointing towards this being a big holiday season for retailers,” says Alan Cundiff, Director of Operations at Constant Force Displays. “Not only are people likely to spend more, but the study suggests that they are likely to start spending earlier as well, which means retailers have to be prepared.”
The study found that nearly one third of consumers are planning to spend more money than they did last year. Electronics, clothing, shoes, and gift cards all scored highly as hot-ticket items for consumers.
“All signs are suggesting increased spending across the board,” says Cundiff. “If the statistics are accurate, both high-end items and more affordable products are going to be selling big this season. This means that every retailer should be ready, no matter what type of product they offer.”
However, the study also found that consumers are selective with their spending. Almost three quarters of those surveyed stated that they “price shop” to find the best deals, while 90% are planning on making most of their purchases during sales.
“Retailers can’t expect to just rake in sales,” notes Cundiff. “Even when consumers are spending more, they are still savvy and informed about their purchases. Retailers have to remain competitive if they want to take advantage of this positive holiday forecast.”
The holiday season has become competitive for retail businesses and, as a result, many begin their holiday promotions as early as in October. Though released recently, the study was actually conducted in late September, indicating that customers are thinking about holiday shopping well before the season arrives.
“It’s crucial for retailers to be advertising sales and deals during the holiday season,” says Cundiff. “That means having promotions, sending out flyers, and using signage and displays in the store to create awareness. Businesses need to remind people about their Christmas shopping and really drive home just how much they could save.”
While the increase in customers is a good sign for retail businesses, Cundiff warns that businesses that are unprepared will not be able to take full advantage of any increased consumer sentiment.
“You need to be able to handle the extra business,” says Cundiff. “That means keeping your shelves stocked with products and ensuring the retail experience is positive. Hiring extra staff and using a shelf-management system to keep shelves full can make a big difference in helping to manage the holiday rush.”
While the study found that online shopping is rising as a choice for consumers, physical stores were still the first choice for the majority of respondents.
“This is a good sign for retailers,” says Cundiff, “but it means they have to stay competitive. Customers prefer the retail experience when it’s done right. Business owners really need to be doing everything they can to improve the retail experience.”
Constant Force Displays specializes in retail solutions that provide retailers with the ability to reach and sell more products and solve retail challenges. More information on how Constant Force Display helps ensure retail success can be found on their website at www.constantforcedisplays.com.