The melodies we hear during this season of the year often bring back fond memories of special times with families and friends. Some of the tunes are quite familiar and we can sing along with them. Others, however, are fairly new and have not yet worked their way to the top of our holiday hit parade.
The various tunes, of course, have special meanings whether religious or secular, hip hop or classic. Different groups respond to the tunes in their own way. The tunes that many people, especially retailers, really seem to be enjoying right now are those being played on cash registers.
The holiday season, which now starts early in November and goes through mid-January, is normally the busiest time of the year for retail establishments, producing from 25% to 40% of annual sales for many of them. Perhaps that’s the major reason the industry places so much emphasis and devotes even more energy to their work during the last few weeks of the year.
In 2004, shoppers across America spent about $414.6 billion during the traditional holiday season. Many in the industry expect the amount to be much larger this year, perhaps even exceeding $438.5 billion.
Shoppers were clearly attracted by steep discounts that began “Black Friday,” traditionally the biggest shopping day of the year. Many who participated in the frenzied wave of early bargain hunting on that day have come to realize that shopping during the holiday season is not a sprint, but a marathon, because they are continuing their gift-buying. (By the way, Black Friday got its name because it represented the day when many retailers were able to move out of the red, representing losses, into the black, which symbolizes profit.)
The Commerce Department recently noted that sales for November were up just 0.3%, about the same as for the previous month. When you exclude automobiles, gasoline, and building materials, retail sales climbed 0.5%, which was just about half the October gain.
While many people might not see that as a large increase, it’s about 7.4% more than retailers garnered during November last year and is in line with the 6.0% growth in sales that the National Retail Federation is forecasting for the holiday season this year.
Not only is retail shopping expected to experience growth during this season, but online shopping is also projected to see a significant expansion. Non-travel sales, as online activity is often called, is likely to rise about 24% this year and reach some $19 billion.
Another option to save shoe leather and the wear and tear fighting crowds searching for that perfect present is gift cards. They are being offered by most retailers today. In fact, some estimates indicate that branded cards will likely account for $1 out of every $5 spent on holiday gifts. These kinds of cards are fast becoming a favorite way to shop, and are perfect for those unsure of what to purchase for someone. About 67% of us will engage in this practice this year, up from the 64% in 2004. On average, each of us will purchase five of these cards to give to friends and family.
The recent boost by the Federal Reserve in the short-term interest rate to 4.25% (the 13th consecutive hike), may cause many people to adjust their approach to saving. Still, the economy continues to improve, gasoline prices have settled to levels we can live with, and consumer confidence is growing. In spite of higher heating costs anticipated in the weeks ahead, cash registers across the country are playing new and improved tunes and bringing lots of cheer to the holiday season.