The Scoop on PromotionsProject Support Team Blog

December 3rd, 2009

2009 Holiday Sales - Up or Down?

As the holiday season is approaching, marketers are wondering, “How will holiday sales be this year?”  Obviously people still have concerns about the economy and are being cautious with their spending.

“Households continue to focus on “essential gift giving” such as staple consumables, candy, beverage/alcohol and entertaining at home, and 86 percent said that they expect to spend the same or less this year than last year – with a 7 percent increase in those indicating they would spend less.  Overall, Nielsen is projecting holiday sales will rise .03 percent this year, accounting for $90 billion in dollar sales”. (Nielsenwire, September 30, 2009).

Now more than ever, marketers would be wise to turn to promotions to encourage consumers to buy more gifts this year.  “Consumers have decided to be much smarter about their shopping and are educating themselves more before making purchases.  Because consumers have so many options, retailers are coming up with promotions to both draw people in their stores and once they are inside, “convince them to buy then and there.””  (Houston Chronicle, October 4, 2009)

It’s our job as marketers to offer compelling reasons for consumers to buy their products this holiday season. Although holiday gift sales are projected to be focused on essential items, it is our belief that promotions can help increase sales of big ticket products as well as the essentials.