CBRE Report Highlights Retail Trends Aimed at Generating Holiday Traffic, Improving Speed of Service, Expanding Options for Shoppers
Salt Lake City—December 4, 2019—Trends in store for retailers and shoppers this shortened holiday retail season include an earlier start to holiday promotions, new collaborations to shorten delivery windows and pare their cost, a proliferation of pop-up stores, and the growing popularity of resale goods as gifts, according to a new report from CBRE.
CBRE’s annual Holiday Retail Trends Guide delves into factors that will influence the U.S. retail market as it posts an anticipated 4 percent sales gain this November and December from last year’s season, according to the National Retail Federation’s forecast. CBRE and others anticipate that consumer spending will stay resilient despite uncertainty about international trade and a slowdown in global economic growth. E-commerce sales are expected to grow at a 11 percent to 14 percent clip this season.
“Utah has experienced strong economic growth and wage increases this year, and we expect those things to factor positively into this season’s shopping activity,” commented Brian Anderson, CBRE vice president and Salt Lake City-based retail specialist. “Though robust online shopping will occur, brick and mortar stores are still the preferred shopping method; particularly as there are a number of local pop-up shops, festivals and experience-focused destinations that will draw holiday shoppers.”
CBRE’s report outlines four trends shaping the season as it unfolds:
This holiday season is the shortest since 2013, with only 26 shopping days between Thanksgiving and Christmas. That led many stores to begin their holiday promotions earlier than usual, including one major discount retailer promoting deals on toys, electronics, home goods and sporting goods on Oct. 25.
Pop-Up Stores Are Here to Stay
Retail centers and retailers alike have honed their strategies of using multiple pop-up stores to generate customer traffic, introduce new merchandise and test new concepts. Some are doing so for the first time.
Many Solutions to the Delivery Dilemma
Retailers are pursuing multiple strategies to both provide same- or next-day delivery and do so at a manageable cost. Many of their solutions entail enticing the customer to pick up their order at a store or third-party location, including drug stores, craft-store chains, dollar stores and even auto-parts stores.
Resale Now a Gifting Option
Resale shops and websites have made inroads as gift-buying destinations, even for luxury items. An Accenture survey found that 48 percent of consumers would buy pre-owned apparel and accessories as gifts. The survey also found that 56 percent would accept pre-owned merchandise as gifts this season.
One strategy being employed by luxury resellers, among other retailers, this season is a ‘buy now, pay later’ system in which shoppers can enroll in short-term, flexible payment programs to finance big-ticket purchases.
To read the full report, click here
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.