Reports for consumer spending in the United States continue to surprise, as it increased by its highest levels in 3 1/2 years, growing at a 1.1 percent rate.
That is also happening on the online retail side of things in December, as spending is expected to increase by 20 percent to reach $29.5 billion, according to comScore.
ComScore Chairman Gian Fulgoni, understands that the major shopping is behind us, but at the same time, consumers are willing to wait up to the latest moment this year to get a deal.
“While it is now safe to say that the heaviest online spending days of the season are behind us, we believe we may continue to see strong growth rates during the remainder of the season due to the late-season shipping deals being offered by some retailers, and consumers’ ability to buy online and pick-up their purchase the same day at the retail store.
“It’s also clear that many consumers are willing to delay their holiday shopping later in the season this year in an effort to take advantage of any late season price discounts being offered by retailers,” Fulgoni said.
With the large increase earlier this week - specifically Monday and Tuesday - it's quite possible online retail sales in the U.S. will exceed those figures. A lot of that surge is connected to getting merchandise before delivery deadlines. There are some bold websites even guaranteeing delivery for Christmas, all the way up to orders on Sunday.
These conditions make this year difficult to predict for overall Christmas sales this year. A lot of stores offered discounts much earlier in the season this year, and then have held off on offering steeper discounts. Consumers came out spending in response to the discounts, but have held off on buying everything, assuming the usual late season discounts will arrive. For some they have and for others they haven't.
Some of the retailers probably have done everything they're willing to, having a lot of pressures on earnings recently. Publicly held companies especially are leary of offering too steep of discounts at the expense of profits this year.
For smaller online retailers, it may be a banner year, making up for lower margins with increased sales. I'm looking forward to seeing what the numbers really are in early January. They also may be better than thought, as consumers have resisted cutting back too much, and continue to lead the American economy.
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