Some financial analysts are predicting that the upcoming holiday season could be one of the most successful for retailers since the global recession began nearly a decade ago.
The National Retail Federation forecasts a 3.9% increase in retail sales this holiday season, which is higher than the 3.3% 10-year average holiday sales growth, according to Matthew Shay, the organization’s president and chief executive officer.
“Our forecast is a realistic look at where we are right now in this economy, balancing continued uncertainty in Washington and an economy that has been teetering on incremental economic growth for years,” Shay told ABC News. “Overall, retailers are optimistic for the 2013 holiday season.”
Shortest Shopping Season Ever
Experts from BMO Capital Markets said the record short number of days in the 2013 holiday shopping season could impact retail sales. Because Thanksgiving falls on November 28 his year, there are only 26 shopping days between Thanksgiving and Christmas, the fewest possible days. In 2012, retailers saw the longest seaon, with 32 days between the two holidays, because Thanksgiving fell on November 22.
Still, there is some cause for cautious optimism, according to BMO senior analyst Sal Guatieri. Household finances are better than they were a year ago and home prices and equity are going up, although job growth has been moderate, unemployment is still high, and consumer confidence has been shaken by policy uncertainty, such as the recent government shutdown and the ongoing problems implementing the Affordable Care Act.
“The ongoing housing market recovery will support demand for furnishings and appliances this year,” Guatieri said. “Continued price discounting should put a few smiles into the holiday shopping season.
Get Ready for the Busy Season
For manufacturing and warehouse facilities, perhaps the best piece of advice is the old Boy Scout motto, “Be prepared.”
Allan Parsons, short-term rental manager for Briggs Equipment UK, said if predictions of higher consumer spending this holiday shopping season come true, it could cause a supply chain headache for retailers and wholesalers if they aren’t ready to keep up with increased demand.
“Warehouse equipment and electric counterbalance trucks are heavily in demand and booking early is critical at this time of year,” Parsons said. “By investing and preparing for the busy season, businesses can safeguard themselves against these risks and unexpected costs.”
Besides being prepared, Parsons suggested that businesses keep these other four tips in mind when preparing for the upcoming holiday season:
1. Be Ready for Any Eventuality — Winter weather can complicate fulfillment and delivery. Make sure you have the proper snow and ice removal equipment – such as plow attachments for pickups or special attachments for forklifts — to minimize downtime and reduce accidents.
2. Prepare Your Staff — Higher demand and increased production can put additional pressure on workers. Help ease the transition into the busy period by educating workers on what to expect and offering rewards and recognition for good work.
3. Train the Temporary Help — Many businesses bring temporary workers in to help during the holidays. If they aren’t properly trained, there can be an increase in workplace accidents, damaged products and other unnecessary expenses.
4. Get Ready for Breakdowns — When equipment failures and unexpected repairs hit during your busiest period, they can be extraordinarily disruptive. Review your service and maintenance contracts now and perform routine maintenance according to a regular schedule to keep your equipment operating as efficiently as possible.