After tepid holiday sales, retailers are hoping for a strong post-Christmas finale for the month.
As consumer cash in gift cards and head back to stores for returns, the hope is that they will also open their wallets.
Sales in the final week of December can account for 15 percent of total holiday revenue, according to MasterCard, which said sales until now for the holidays grew only 0.7 percent this year over last.
For car audio, the end of December, following Christmas, can account for almost a quarter of sales for the holiday. Teens and young adults tend to receive cash so they can choose their own gifts, which pushes their spending into post-holiday territory. Also, consumers come back to the shop to have their gifts installed in the car, so labor is billed more heavily at the end of the month.
J.R. Stocks of Freeman’s Stereo Video (7 stores, based in Charlotte, NC) says the post Christmas week accounts for about 24 percent of its holiday sales.
A little help from lawmakers in Washington might also help the final days of December. “One of the biggest weeks of the holiday season is just beginning, and we are looking to Washington to come together in these crucial moments to avert going over the fiscal cliff,” said National Retail Federation CEO Matt Shay. “Consumers’ mixed confidence so far this holiday season has been evident, but we still believe we are on pace for decent growth overall.”
For car audio retailers, the weather is another factor. Some regions have experience the first snowfall of the season this week, which could boost sales of remote starters.
For a full holiday report click here.
Source: USA Today
