- December 6, 2018
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The holidays are a time of ample spending in the United States. Some years are obviously better than others when it comes to how much Americans are investing in the season, but the outlook for 2018 is extremely positive. It’s easy for brick and mortar retail space to seem like a thing of the past, what with the overwhelming growth of online retailers, but the truth is, this boost has not had the negative impact on brick and mortar retail that has been insinuated. In fact, traditional retailers are already starting to feel the positive effects of a booming holiday season.
Americans are Spending More
The stability of the economy over the past year has many Americans experiencing a growth in confidence as wages increase and the unemployment rate remains stable. According to the Deloitte 2018 Holiday Survey, in fact, 73% of Americans feel certain that this boost in the economy is going to continue. What does this mean for traditional retailers? Well, across the board, retailers should begin feeling the positive effects of consumers who are feeling comfortable spending their money this season. While online retailers will be seeing the biggest hike in sales, traditional retail space will see plenty of traffic as well. The survey suggests that, while 60% of Americans do intend on doing some online shopping, 52% will also be purchasing from mass merchants, 32% from department stores, 25% from bookstores, and 22% from independent retailers. It is also important to remember that over 50% of all retail purchases are unplanned, meaning that all of these consumers finding their way into your store are likely to purchase above and beyond what they initially intended.
Big-Name Retailers Faring Well
Retail space devoted to some of the bigger name retailers, such as Walmart, Target, and Kohl’s, is remaining full of consumers this holiday season. In fact, according to Deloitte, all of the bigger name retailers we are familiar with are reporting strong third quarter sales. This trend is expected to continue throughout the end of the year, projecting a 5-5.6% increase in this final quarter. That’s a pretty big jump!
Need for Extra Employees
All retailers typically add on some holiday employees each year to help with the onslaught of consumers. This year is no different. The expected increase in sales has led to a related increase in the seasonal help that is necessary. Many of these seasonal positions could result in eventual full-time employment, giving another boost to the current economy.
Consumers are Looking for Presentation, Deals, and Ease
If your retail space isn’t up to snuff, you could get overlooked this holiday season. The Deloitte survey reported that consumers are more drawn to brick and mortar locations that display their products in a way that is orderly, easy to understand, and showcases the quality of their product. They are also looking to get the best deal, and with so many retailers out there, competition is fierce. Lastly, with the ease of online shopping at their fingertips, it’s become even more important to offer consumers a traditional shopping experience that feels easy and accessible. Focus and care should be put into making sure that the checkout and returns processes are simple and effective.
Consumers Want a Shopping Experience
Your retail space is more than just a building to house your products. Consumers this holiday season are looking for a way to interact with the product they are looking at. In fact, according to Deloitte, this is the number one reason that consumers will choose shopping in-store over buying online. Other common reasons are to avoid shipping costs, to get inspiration, to get into the holiday spirit, the ease of the returns process, and the fact that they don’t have to wait to get their product.
What’s at the Top of the Wish List?
The boost in the economy has retailers across the board seeing an increase in sales of big-ticket items, such as grills, mattresses, appliances, and electronics, among others. The top sellers, however, still remain toys, gift cards, and clothing this season. More and more retailers are choosing to carry toy products especially, likely due to the closing of Toys ‘R Us, one of the biggest toy chains to date.
Looking for Retail Space in Baton Rouge or the Surrounding Areas?
As you can see, brick and mortar retail space is not dead. In fact, now is the perfect time to open your traditional retail shop, and we are here to help you do just that. At SVN | Graham, Langlois, & Legendre, LLC, our team is motivated to find you the right space and dedicated to helping you negotiate the best deal! We will walk you through the process from start to finish, and won’t rest until you’re satisfied. Take a look through some of our available retail spaces today, and contact us to get hunting!