Deloitte: Holiday spending up despite gloomy forecasts
NEW YORK — Despite many forecasts of a gloomy holiday season for retailers, Deloitte is predicting an increase in consumer spending. Deloitte’s 28th annual survey of holiday spending intentions and trends indicates shoppers surveyed plan to spend an average of $421 on holiday gifts this year, up from $386 last year. They also expect to buy an average of 12.9 gifts, ending a five-year decline in the number of gifts they plan to purchase.
The amount consumers plan to spend on non-gift items for themselves or their families rose 14% from 2012, while spending on home and holiday furnishings jumped 25% from last year. In addition, 54% of consumers believe the economy is on the rebound, an increase of 22 percentage points in the past two years.
The Internet moved into the top spot among holiday shopping destinations for the first time in its 15 years represented in the survey, bumping discount/value department stores from the No. 1 position. Nearly half (47%) of consumers plan to purchase items online, followed by 44% at discount/value stores. More than three-quarters (76%) of consumers cite convenience as a reason for shopping online, followed by price (63%).
The omnichannel shopper is most likely to make retailers’ spirits bright. Those who shop a combination of store, Internet and mobile channels plan to spend a total of $1,643 on the holidays, 76% higher than those who shop in the store only. Nearly 8-in-10 (77%) consumers say that if a product is not available on a store’s website, they will go elsewhere, while only 13% would go to that same retailer’s store. In addition, 45% of all respondents indicate they would switch to an entirely different store chain or website if they can’t find the desired item in a retailer’s store.
Other findings include:
- Nearly three-quarters (73%) of consumers say their holiday spending will be influenced by coupons or promotional offers.
- More than 7-in-10 (71%) say they plan to take advantage of free shipping offers, while nearly half (47%) expect free returns. More than 4-in-10 (44%) shoppers intend to take retailers up on price-matching guarantees, 36% will shop extended hours and 35% plan to order online for in-store pickup.
- Retailers also may have good reason to roll out the promotions early this year: The number of consumers who say they expect to complete the majority of their shopping by early November (30%) rose five percentage points from last year. One-quarter (25%) of consumers plan to shop on Black Friday, and 24% plan to do so on Cyber Monday. Forty-five percent indicate that Black Friday isn’t as important as it used to be.
"The survey reveals a brighter consumer spending outlook than we’ve seen in several years," said Alison Paul, vice chairman, Deloitte LLP, and retail and distribution sector leader. "Consumers are feeling more generous about gift spending, and we are encouraged by their plans to spend more on going out for celebrations, decorating their homes and treating themselves and their families to ‘early gifts’ while holiday shopping this year. The government shutdown and debt crisis had the potential to dampen consumer sentiment; however, the settlement likely averted any significant impact on the holiday season. The timely resolution of those issues may also give consumers an extra confidence boost just as promotions start hitting the stores and the shopping season gets underway."
Reports: Sears Holdings may be open to selling Canadian flagship store
NEW YORK — Sears Holdings’ Canadian division may consider selling off its Toronto flagship store if the right buyer comes along, according to published reports.
In the latest sign of trouble for the retailer, Sears Canada CEO Douglas Campbell told the Globe and Mail, one of Canada’s largest newspapers, that the company was considering closing more stores, including the one at the Toronto Eaton Centre. Sears Canada’s head office also is located at Eaton Centre. The newspaper reported that Campbell’s predecessor, Calvin McDonald, was reluctant to sell the location because of its symbolic importance, but that Seattle-based Nordstrom was interested in buying the location as it prepares to open its first Canadian store next year.
Sears Holdings, based in Chicago, reported a $194 million loss in its second-quarter 2013 earnings, announced in August, compared with a $132 million loss in second quarter 2012. The Canadian division has been especially hard-hit: While same-store sales at Sears’ U.S. stores declined by 0.8%, Sears Canada experienced a 2.5% decline in comps; Kmart’s comps declined by 2.1%. Nevertheless, online business at Sears.com and Kmart.com increased by 20%, the company said.
Jewel-Osco to celebrate reopening of Chicago Ohio & State location
ITASCA, Ill. — Jewel-Osco will celebrate on Wednesday the official grand reopening of its Ohio & State location in Chicago.
The refreshed store will mark the occasion with a ribbon-cutting ceremony at the store on Wednesday. Town officials and community members from the River North neighborhood, as well as Jewel-Osco executives and associates, are invited to the event.
“Jewel-Osco is committed to delivering a shopping experience that exceeds the expectations of our local customers,” said Jewel-Osco president William Emmons. “The redesigned Ohio & State location brings a reinvigorated look to our customers, while offering a fresh, new feel to their shopping experience, and it also brought many new jobs to downtown Chicago. We look forward to continuing to provide our neighbors with fresh, quality products and the outstanding service they expect from Jewel-Osco.” The revamped store was designed to offer customers a new experience in fresh products and virtually every department received a fresh update in the remodel.
Equipped with a new self-service salad bar, the produce department is a destination in and of itself, with a variety of changes, including a new juice bar, expanded cut fruit section, freshly made guacamole and new earth-tone flooring. The bakery is now equipped with a new case that offers several types of fruit tarts, truffles, Eli’s cheesecakes, fudge fantasy brownies and a variety of other confectionary items. With an expanded prepared hot and cold food section, the deli is equipped with a carving station and offers Dietz & Watson sandwiches and wraps made daily. The refreshed meat and seafood department includes hand-trimmed as well as natural and antibiotic-free chicken and seafood that can be seasoned and steamed without an additional cost. During the liquor department’s transformation, the craft beer selection was expanded.
To commemorate the occasion and its 11 years of being at Ohio & State, Jewel-Osco will make donations to two local organizations and a grammar school in the community. The company will recognize Catholic Charities by donating $5,000 to support its nutrition programs.
The Metropolitan Family Services also will receive $5,000 to support its community schools programsh. Jewel-Osco also will donate $500 to the Franklin Fine Arts Center.
The Ohio & State location is the first of many re-grand opening ceremonies that will occur in the upcoming months. Jewel-Osco is working on more than 25 remodels in stores across the Chicagoland area.