NetElixr has raised its holiday forecast of year-over-year sales growth from 6% to 7% to 12% to 13%. The company credited the increase to a newly emerging pattern showing that consumers are buying full-priced items now rather than wait until later in the season and risk shipping delays due to the ongoing supply chain crisis.
The updated forecast is one of the most bullish yet for holiday sales. The National Retail Federation predicted that holiday sales during November and December will rise between 8.5% and 10.5% over 2020.
Year-over-year growth across industries was up 3% in September and 27% in October, according to NetElixir.
Key observations from the company are below.
Customers are buying full-priced items as they would rather have their gifts now than risk not having anything. The average order value is higher than last year.
Consumers are combatting COVID-19 fatigue with the purchase of lavish gifts and experiences
Online sales growth is not linear but in fits and starts. There is pent-up demand for purchases and over $3 trillion in savings.
Thirty-percent of online retailers are expected to run out of stock by December 10
Consumers are viewing gift-giving as an expression of freedom this year, a way to celebrate the holidays with people they may not have seen in a while.