As the toy industry charges forth into the holiday season, consumer confidence remains a question.
One point of reference emerged this week as the National Retail Federation (NRF) issued its annual holiday forecast. According to the NRF, winter holiday spending this year is expected to see slow, but steady growth between 2.5% and 3.5% compared to 2023. Should the forecast prove true, consumers will spend somewhere between $979.5 billion and $989 billion in November and December, compared with $955.6 billion last year.
The economy remains fundamentally healthy and continues to maintain its momentum heading into the final months of the year. The winter holidays are an important tradition to American families, and their capacity to spend will continue to be supported by a strong job market and wage growth.”
The NRF believes that digital sales through e-commerce sites will rise between 8-9% this year following a 10.7% spike last year. Digital sales are nearing the $300 billion mark during the holiday season with high-end estimates landing around $297.9 billion this year.
While major holidays including Christmas, Hannukah, and Kwanza occur the same week this year, the shopping season is five days shorter, with just 26 days between Thanksgiving and Christmas.
Additional wildcards that could impact spending include the recent hurricanes and the forthcoming U.S. Presidential election.
