Retailers Anticipate Strong Holiday Sales as Strategies Pay Off

Washington, DC —According to the National Retail Federation, retail sales are expected to rise between 4.3% and 4.8% this holiday season. With low unemployment, wage growth and near record-high sentiment driving positive sales trends, retailers continue to observe more positive earnings and there is a general belief that investments and enhancements in new omnichannel strategies are beginning to pay off.

As a result, retailers are focusing on strategies designed to entice the increasing number of online shoppers into stores, lavishly reward their loyalty and ensure that an abundance of toys are always available, says CBRE’s annual “Holiday Retail Trends Guide.”

“This holiday season, retailers are getting creative to pamper customers to drive brick-and-mortar business, strengthen loyalty, and build their base beyond the end of year rush,” says Kelly Silverman, Senior Vice President S. | CBRE Retail Services. “They are offering strategies to enhance the physical shopping experience including complimentary gift wrap, lower pricing/ flash sales, in-store only deals, as well as limited quantities to encourage action plus loyalty gifts, all as a way to provide immediate satisfaction.”

Retailers are also offering new ways to rewarding store loyalty including mobile payment options including ipads and mobile payment options scattered throughout the store to avoid the “wait in line” game and to create frictionless experiences with greater efficiency for going in and out. To cater to their returning customers, they will also have their credit card on file as well as provide an e-receipt.

“Stores are also offering customers the opportunity to order and then have someone bring items to your car, that tried and true grocery model now turned retail perk. Some retailers, like Sephora are giving customers a free gift of their choice immediately, based on spending on the spot versus points for later,” says Silverman.

With the trend of shopping on mobile devices steadily increasing, retailers are offering services such as ordering online with an in-store pick up, Quick Apple Pay solution with a double click, and free overnight/ express shipping if you complete your transaction on a mobile device.

This year’s closure of Toys “R” Us’ stores has cleared a path for retailers to fill the toy void as they try to capture the fast-growing $1.3 billion toy market. Stores such as Walmart, Target and now even Michaels, Party City and Ace Hardware are offering toys including Hatchimals, LoL surprise eggs and other popular interactive and reactionary toys that drive a sense of excitement and intrigue as to what the gift actually is, Silverman tells GlobeSt.com.

DC specifically, is seeing lifestyle brands merge exclusive perks throughout the retail shopping experience including champagne service, premium personalization, luxe gift wrapping, and even complimentary delivery all in an effort to create an exclusive, comfortable and memorable experience within the store.

“DC was an overlooked market for many years and retailers tended to focus on New York and LA,” says Silverman. “However, DC has a well-educated, well-traveled, diverse and affluent population who benefit from the economic stability of the government as it lends itself to a low unemployment rate.”

As a result, retailers are now starting to realize that DC area residents have “significant disposable income to spend and these residents desire an experience similar to experiences in other major cities around the world. Retailers are also now realizing they need to compete for those dollars and that they can no longer do it by putting up the same bland storefronts and hoping that the same old same would drive business. It is leading to very innovative changes in the DC retail options, as well as what retail real estate looks like in the DC region,” says Silverman.

With this year’s holiday season being the longest in six years, holiday sales should well exceed last year’s $692 billion, according to CBRE’s report. With such high numbers and an influx of enthusiastic shoppers, retailers are now anticipating a profitable close to the holiday season.

CBRE Group, a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue).