Fueled by digital, holiday sales expected to increase 4% to 4.5%

NEW YORK — As the nation continues to move slowly toward economic improvement, stores and online retail outlets should expect to see an uptick in holiday sales this year, according to Deloitte's annual retail holiday sales forecast. Income, wage and job growth are all good indicators as businesses head into the holiday season, said Deloitte's senior U.S. economist, Daniel Bachman.



"Although consumers are watching tensions unfold in the Middle East and Ukraine, the improvement in their economic situation should more than offset the foreign conflicts’ impact on consumer confidence and retail sales," Bachman said.



Deloitte said that digital interactions will influence 50% (or $345 billion) of retail store sales for the upcoming holiday season. The number is an indicator of the increasing presence of how digital tools — laptop computers, tablets and smartphones — will influence sales at brick-and-mortar store locations.



“While online sales continue to climb, digital customer interactions through both virtual and physical store channels present greater sales opportunities than online or mobile commerce alone,” said Alison Paul, vice chairman, Deloitte LLP and retail and distribution sector leader. “Our research indicates that 84% of shoppers use digital tools before and during their trip to a store. Additionally, those shoppers convert, or make a purchase, at a 40% higher rate than those who do not use such devices during their shopping journey.”



Paul added that retailers should pinpoint what functionality is best for them when crafting digital experiences for their stores this holiday season.



"Rather than offer their full e-commerce site on a mobile device, for example, retailers may be more effective by helping consumers compare prices, scan through local assortments, and navigate the store," Paul said. "Retailers that better understand how consumers make purchasing decisions, then deliver tools that support that process in a way that is consistent and complementary across online, mobile and store channels — may have the advantage this holiday season.”