NRF Predicts a 4.1% Increase Over Last Year’s Holiday Retail Season, $586.1 Billion. Independent Business Developer Discusses What it Means for Dollar Stores
National Retail Federation forecasts Holiday spending stronger than last year by over 4%. NRF Chief Economist calls the forecast “pragmatic” DRSS reports.
The National Retail Federation is America’s largest retail organization. Based in D.C. they predict that Holiday shopping for 2012 will increase significantly over 2011 increases, but that the jump in the increase is not as great as the previous years. Still good news for retailers and signs of an improving retail economy, Jack Kleinhenz, chief economist at NRF states that: “While moderate compared to what we experienced the last two holiday seasons, the forecast is a very pragmatic look at what to expect this year given the current rate of economic growth.”
Some of the issues which could have a negative effect on these numbers include if gas prices continue to rise and if job growth slows down, according to California ApparelNews.net. The article also reviewed what these numbers mean specifically for California, stating that retail should do even better in this state with its stronger job growth. California accounts for about $96 Billion of the total U.S. retail industry, or one-sixth.
Discounters Making Big Profits
According to Dollar Store Services, an independent non-franchise business developer of this business model, much of that increased spending can be expected to occur at discount retailers. Currently dollar stores are increasing their share of the retail market, even as huge discount stores like Wal-Mart experience lukewarm gains. It is estimated that they are siphoning 20 to 30% of business collectively from retailers in the neighborhoods where they open.
Discount Retail Store Services is a business development company helping entrepreneurs start a business by covering all of the core tasks including site location, lease negotiation, financing, build-out, business training, new store oversight, and ongoing wholesale support and marketing support. Opening nearly 3,000 independently owned stores to-date, they specialize in six business models including dollar stores, clothing stores, teen stores, party stores, mail box stores, and fitness centers. Find out about upcoming news on Facebook.