Sales to grow modestly on Black Friday, Cyber Monday
Home Accents Today Staff -- Home Accents Today, November 18, 2013
Los Angeles - Encumbered by concerns about the lackluster economy and weary from the federal government shutdown in October, consumers are expected to spend conservatively this Thanksgiving and holiday season, according to industry and market research firm IBISWorld..
IBISWorld expects revenue generated by the Thanksgiving holiday to increase only slightly from 2012. And while Cyber Monday sales are anticipated to increase by double-digits in 2013, "this growth rate is deceptive, as it is mainly due to consumers' continued shift away from physical store shopping and toward online deals."
Overall, IBISWorld projec, gift spending from Black Friday through Cyber Monday to grow 2.2% year-over-year.
"For the fourth year in a row, disposable incomes have only inched up, wearing on consumers' ability to shop 'til they drop," IBISWorld explained. "October's government shutdown also played a role in weakening spending; consumers lost some of their recovered confidence about the domestic economic outlook and tightened their purse strings."
Compared with last year, Thanksgiving spending is anticipated to grow 3.7% to $8.2 billion. More than two-thirds of that will come from spending on food and drink for family gatherings and festivities - a category that is expected to increase 5.1% from 2012.
This year, Black Friday is projected to generate $13.6 billion in revenue, an increase of 3.9% over last year's total. Spending will be driven by door-buster deals an online sales.
Spending over the Black Friday weekend - which includes Friday, Saturday and Sunday - is anticipated to grow just 1.7% to $38.7 billion. The bulk of weekend purchases, at 35.2 %, is expected to be made on Black Friday itself.
Cyber Monday, while still only about 15.0% the size of Black Friday in terms of revenue, is forecast to grow 13.1% compared to last year.