Retailers Expect Strong Holiday Spending

The holiday spending season is expected to be a lively one this year, and brick-and-stick stores remain a critical component to the shopping season.

ICSC, a retail real estate researcher, forecasts a 4.9% increase in holiday spending over last year, reaching an $832.3 billion total. The average adult is expected to spend $683 on holiday-related items.

Ninety percent of adults say they plan to shop in retail locations for gifts and related goods, according to ICSC, which surveyed more than 1,000 U.S. consumers. Eighty-two percent expect to make an additional purchase in store while picking up their online purchase.

“Our annual Holiday Shopping Intentions Survey once again shows that consumers are not only optimistic about the upcoming holiday season, but also continue to favor physical stores when shopping for gifts,” says Tom McGee, president and CEO of ICSC. “Consumers expect convenience and experience when shopping, which means that those retailers with a good omnichannel strategy will likely see success this holiday season.”

Promotions are key to driving more in-store visits, the survey found. More than 60% of shoppers say that searching for deals is what drives them to take more trips to stores. The most popular purchases: gift cards (63%); apparel, footwear and accessories (55%); toys and games (48%); and food and alcohol (43%).

Eighty-seven percent of shoppers say they plan to research online before going into a physical store. Eighty-two percent of respondents say they’ll use their smartphone in store to compare prices, check inventory and access digital coupons.