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Mass. retailers association predicts 10% increase in local holiday shopping sales
National holiday sales are only expected to increase 6% to 8%.
Despite inflation being at a 40-year high, the Retailers Association of Massachusetts (RAM) is predicting a 10% increase in local holiday shopping sales this year.
RAM said in a news release Thursday that holiday sales in Massachusetts are expected to increase more dramatically in Massachusetts than in other parts of the country. The National Retail Federation predicted only a 6% to 8% increase in holiday shopping sales nationwide.
“With inflation eroding the purchasing power of our consumers and the margins of small businesses, it is more important than ever that we all work harder to protect, promote, and preserve our Main Streets and our important local shopping districts,” RAM President John Hurst said in the release.
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According to RAM, despite the high gas prices and inflation shoppers have experienced this year, consumer spending has remained relatively strong year to date. RAM members report an average sales increase of 6% year over year so far, it said.
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Yet, with increased inventory and energy costs, as well as wage increases to account for inflation, it may still be difficult for retailers to make a profit, RAM said.
“A projected 10% sales increase over the prior year leaves little margin for error or increased profitability given the 8% inflation rate,” Hurst said.
RAM also said that while online shopping is being offered by more and more members, the smaller the retailer, the more reliant they are on in-person shopping.
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The holiday shopping season is extremely important for retailers, who make, on average, 20% of their yearly sales during that period.
Last year, holiday sales had the biggest boom seen in at least 15 years, reaching an over 16% increase year over year in Massachusetts.
This year’s predicted increase is close to what retailers experienced in 2020, when they saw a 9% jump compared to 2019.
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