During the third quarter 2017, U.S. retail e-commerce sales for the third quarter of 2017, adjusted for seasonal variation, but not for price changes, was $115.3 billion, an increase of 3.6 percent (±0.7 percent) from the second quarter of 2017, according to the U.S. Census Bureau’s latest report.
Total retail sales for the third quarter of 2017 were estimated at $1.27 trillion, an increase of 1.1 percent (±0.2 percent) from the second quarter of 2017. The third quarter 2017 e-commerce estimate increased 15.5 percent (±1.1 percent) from the third quarter of 2016 while total retail sales increased 4.3 percent (±0.4 percent) in the same period. E-commerce sales in the third quarter of 2017 accounted for 9.1 percent of total sales.
On a not adjusted basis, the estimate of U.S. retail e-commerce sales for the third quarter of 2017 totaled $107.0 billion, an increase of 1.9 percent (±0.7 percent) from the second quarter of 2017. The third quarter 2017 e-commerce estimate increased 15.5 percent (±1.1 percent) from the third quarter of 2016 while total retail sales increased 4.0 percent (±0.4 percent) in the same period. E-commerce sales in the third quarter of 2017 accounted for 8.4 percent of total sales.
Black Friday is this week and holiday shopping is coming. And Accenture and Deloitte surveys found that shoppers are planning to spend 54 percent and 51 percent, respectively, of their holiday budgets on the web. And National Retail Federation estimates consumers will spend an average of $967 per person this holiday season.
While most consumers (54 percent) say they’re keeping their holiday spending about even with last year, young adults (18–24 years old) are likely to increase theirs, according to a survey released last week by the National Retail Federation and Prosper Insights & Analytics.
Approximately 24 percent of consumers overall say they’ll spend more this year, but nearly half (46 percent) of those aged 18–24 — which includes the oldest members of Generation Z — and 39 percent of those aged 25–34 years old, will spend more than they did a year ago.
Foot traffic in stores has been down in recent years, according to research firm ShopperTrak. Consumers visiting brick-and-mortar stores on Black Friday and Saturday has dropped since 2011. So retailers are getting creative with their brick and mortar stores. CBS calls it “retailment,” combining retail with entertainment.
One trend is the showroom model, making a luxurious, intimate setting for shoppers to examine a limited selection of merchandise. High-end retailers have started to use this trend. Nordstrom opened its first showroom-style store, called Nordstrom Local, on Melrose Place in Los Angeles. Customers work with personal stylists to put together ensembles, using tablets or phones. According to research from consulting firm PWC, that face time results in higher sales, a decreased likelihood of returns and even increased e-commerce business.
More than half of millennials surveyed in recent years said that visiting showrooms could prompt them to make a purchase, according to research conducted by WD Partners. The share of older shoppers who said this surged to 57 percent this year from 22 percent in 2015.
In addition, CNN reported Walmart is throwing 20,000 parties in November and December. Sears is putting its entire store on sale for the month of November. Macy’s has a Samsung pop-up store in its flagship New York City location and virtual reality headsets for furniture shoppers in some stores. JCPenney is giving customers coupons worth up to $500 when they shop in stores on Thanksgiving Day.
Many of America’s youngest consumers will also be heading to stores this season, according to a survey from Junior Achievement USA. Most (54 percent) plan to do much of their shopping at brick-and-mortar discount stores such as Walmart and Target this holiday season. Less than half of teens (46 percent) said that they would be doing much of their shopping online, while about a third (34 percent) planned to head out to the shopping malls.
Previous research has also found that physical stores appeal to younger consumers. Millennials remain committed to brick-and-mortar, and younger members (ages 20–23) even more so: 58 percent of that cohort make most of their purchases offline — up five percentage points from the generational average, while 18 percent of older millennials (ages 32–35) make most of their purchases on mobile — up two percentage points from the generational average, according to coupon company CouponFollow.
Clothing and accessories will be bought by 61 percent of consumers, the same as last year, while 59 percent will give gift cards, up from 56 percent last year, according to the National Retail Federation and Prosper survey. Books, music, movies or video games will be given by 44 percent, the same as last year, while 41 percent will give toys, down from 42 percent. The number giving food or candy is up at 34 percent from 31 percent, and 29 percent will give electronics, down from 30 percent, according to the organizations’ research.
National retailers and local malls will open as early as 4 p.m. on Thanksgiving Day this year. In 2016, a survey from the National Retail Federation said early Thanksgiving Day in-store shopping before 5 p.m. dropped by 19 percent. Throughout the weekend, the survey found 44 percent went online and 40 percent shopped in-store. Black Friday was still the busiest day by far, with three in 10 shoppers (29 percent) heading out after 10 a.m. on Black Friday, up from 24 percent in 2015.