The upcoming Christmas festival will see a reinstatement of fashion resilience in US markets – as work orders from apparel retailers and brands have seen a significant rise. National Retail Federation (NRF) predicts that the upcoming Christmas holiday spending is expected to be strong despite the current inflationary challenges.
NRF estimate that holiday retail sales during November and December will grow between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion.
NRF is banking on positive growth – as for the past 10 years holiday retail sales have averaged an increase of 4.9%.
In this holiday season, NRF assumes that online and other non-store sales, which are included in the total, to surge between 10% and 12% to between $262.8 billion and $267.6 billion. This figure is up from $238.9 billion last year, which saw astonishing growth in digital channels as consumers turned to online shopping to meet their holiday needs during the pandemic.
While e-commerce will remain important, households are also expected to shift back to in-store shopping and a more traditional holiday shopping experience.
“While consumers are feeling the pressure of inflation and higher prices, and while there is continued stratification with consumer spending and behavior among households at different income levels, consumers remain resilient and continue to engage in commerce,” NRF President and CEO Matthew Shay said.
Shay said, “In the face of these challenges, many households will supplement spending with savings and credit to provide a cushion and result in a positive holiday season.”
Prospect in Bangladesh RMG
This will provide a much-required respite momentum to Bangladeshi readymade garment (RMG) manufacturers. As the country is the second largest apparel exporter to the USA. And Bangladeshi apparel makers are optimistic that this sales boost will offset the past lean season. As the inflow of RMG orders was low over the last three months as brands and buyers were sitting on old unsold garment items.
After witnessing a couple of dull months of lean growth – apparel makers are once again witnessing full bookings. Industry leaders opined that the stock leftover from last season is diminishing promptly with the beginning of Christmas sales in the USA and Europe.
Bangladeshi RMG leaders are optimistic that this Christmas will see a massive sale.
AK Azad, Chairman and CEO of Ha-Meem Group said to the media, “So, it is predicted that the consumers’ response in the upcoming Christmas may also not be as upbeat as projected.”
“This means the inflow of orders from international retailers and brands may not pick up until August next year,” AK Azad added.
Bangladesh has received nearly 20% fewer orders so far this year paralleled to the same season last year, he added.
Although entrepreneurs pointed out that prices have not gone up in the European and US markets – despite the sales increase.