Florida retailers can expect a strong holiday shopping season, the Florida Retail Federation (FRF) forecast on Wednesday, with growth above the national average.
“We expect the year to be a good one,” said Rick McAllister, the president and CEO of the FRF, in a call with the media on Wednesday.
Pointing to figures showing holiday sales of more than 3 percent over last year at the national level, McAllister sounded optimistic for Florida retailers. He said Florida retailers will see sales of around 4.5 percent higher than last year.
“We feel very comfortable,” McAllister. “It’s going to be a good year for most retailers.”
McAllister insisted the Sunshine State was on the rebound, pointing to higher consumer confidence, lower unemployment rates, more tourism and increased retail sales, including in furniture and home furnishing areas.
“Florida continues to see a strong increase in its economy thanks to record-setting tourism, increased consumer confidence, a surging real estate market, and a seven year low in unemployment, all of which mean big expectations for retailers this holiday season,” said McAllister. “Specifically, increased consumer confidence means increased consumer spending, and confident shoppers like to celebrate the holidays by buying gifts, decorations and food for their family and friends.”
Looking at the holiday season, McAllister said online sales would grow 6 to 8 percent for the holidays over last year even as 95 percent of shopping is done at brick and mortar stores The average shopper will spend around $805 on gifts, higher than last year’s average.
McAllister said people were starting their holiday shopping earlier with 40 percent of them starting before Halloween.
“People always wonder why retailers roll out their holiday displays and items as early as they do,” said McAllister. “With millions of Floridians starting their holiday shopping in October, it’s important for retailers to respond to those shopping habits, and make sure they’re capturing those customers by providing them with the same memorable shopping experience before Thanksgiving that they would receive after it.”
Noting 87 million Americans took part in Black Friday shopping last year, McAllister said customers were still responding to extended hours and sales and expected a similar number this year.
Gift cards remain the most popular gifts but McAllister pointed to projections forecasting a drop in sales from last year. Electronics represent the second largest group of purchases followed by apparel, toys and games and food.
Looking at toys, McAllister said Barbie and Lego products would remain popular and so would Star Wars toys as “The Force Awakens” opens in December. Electronics, including smart phones and video game systems, will remain popular, McAllister said.
McAllister noted retail remains one of the most important parts of the Sunshine State’s economy, leading to 2.7 million jobs and adding $155 billion to the state.
Forecasts show between 700,000-750,000 temporary jobs added across the nation during the holidays and McAllister offered a reminder that these jobs can play an important role.
“Skeptics may point to these holiday jobs as being temporary employment, but every temporary job has the potential to turn into a permanent one and provide someone with a chance to make consistent money for their family,” said McAllister. “Retail still remains the best industry for young, new or returning workers to find employment, learn valuable skills and grow themselves professionally.”
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
