A $3.8 trillion industry

Earlier this year the National Retail Federation tipped the sector would enjoy $3.8 trillion in sales in 2019. That’s a rise of between 3.8 per cent and 4.4 per cent on the year prior.

Meanwhile, the industry employs one in five Americans, or 29 million people, and supports more than 42 million jobs.

The holiday season is peak shopping period

This year US retailers are expected to enjoy a $727.9 billion to $730.7 billion windfall over the holiday season, according to the National Retail Federation (NRF). They note this figure indicates a of 3.8 per cent to 4.2 per cent compared to 2018.

The period covers the six weeks leading up to Christmas and encompasses major sales events like Black Friday, and Cyber Monday.

Consumers to spend over $1k each

The NRF’s annual survey of holiday season spending intentions also indicates consumers are in good financial shape this year and are willing to spend more as a result.

Their survey of 7782 adult shoppers found on average consumers intended to spend $1047.83 each, which is four per cent more than the $1007.24 spent on celebrating the festive season in 2018.

Of that, $658.55 will be spent on presents.

Gift cards the No 1 present

The same NRF survey indicates gift cards rank as the number 1 present this year.

• 59 per cent of those surveyed indicated they would buy gift cards
• 52 will seek clothing and accessories as a present
• 35 per cent will purchase books/movies/music/video games
• 29 per cent will shop for electronics as a gift,
• 24 per cent will seek out home décor
• 23 per cent will buy jewelry
• 21 per cent will give personal care or beauty items
• 18 per cent will opt for gifts of sporting goods
• 17 per cent will purchase home improvement items

Three of the busiest days are still pending

According to Loss Prevention Media the prime sales event of the year might have passed but four of the top 10 busiest shopping days are yet to come.

Black Friday ranks as the biggest sales day of the year, but it’s closely followed by Super Saturday this weekend.

Other dates which are yet to deliver high trade figures include:

• Boxing Day on December 26, the day after Christmas (ranked number 3)
• Saturday, December 28, just after Christmas (ranked number 8)
• Friday, December 27, just after Christmas (ranked number 9)

Thanksgiving was huge

Black Friday traditionally ranks as the busiest shopping day for retailers, with the NRF recently noting an estimated 165.3 million people were expected to shop between Thanksgiving Day and Cyber Monday.

Online spending accelerates

Online spending this holiday period is expected to continue outpacing spending instore in 2019. According to Deloitte, 59 per cent of money spent over the period is predicted to be spent online, compared to 36 per cent in-store.

Meanwhile, two thirds of shoppers indicated they will research online and then purchase at least some gifts from a bricks and mortar outlet.

On a broader level, next year online sales across the year are expected to reach $645 billion.

Malls to benefit in 2020

Next year is tipped to offer modest growth to retailers. Trading Economics predicts the sector will enjoy 0.40 per cent month on month growth, while CBRE notes malls could be among the areas seeing a resurgence.

They state: “Malls are benefiting from the refreshing influence of Generation Zers, who prefer to shop in stores and are driving traffic back to brick-and-mortar retail. Many retail assets will convert to mixed uses, creating communities and thriving town centers”.

Millions of letters to Santa

Meanwhile, much of the shopping this festive season will be undertaken to assist Santa and his elves. Millions of Christmas lists will be posted to the big guy in red, with the New York post office receiving 500,000 letters each year.

Extra traffic

With the holiday season comes extra foot traffic, which is something that retailers both hope for and actively court. The holidays delivers 10 of the busiest shopping days of the year, with 42 per cent of all holiday foot traffic occurring on these dates alone.

That sees the stores crowded, and with crowding comes more opportunity for theft.

Loss prevention tip

Know and plan for your busiest days, hiring additional staff, with some dedicated to purely to loss prevention.

Busy staff

As retailers seek to offer their customer an exceptional customer experience in a crowded and busy environment, it can be easy for staff to become distracted from focussing on loss.

In most cases staff will be so busy completing sales transactions, handling customer inquiries and replenishing stock they will have little opportunity to watch customers for the signs of suspicious behaviour.

Meanwhile, they have more people to watch than normal, due to the rise in foot traffic.

Loss prevention tip

Employ technology like Electronic Article Surveillance. Staff may be too busy to watch the floor, but security tags, labels and antenna never get distracted from their job of protecting individual items against theft.

Chaotic stores

With sales and increased foot traffic comes a less organized retail environment. Stock has to be quickly replenished, items get returned to the wrong place by customers, and sales tables and areas are crowded with products.

This creates additional opportunity for shoplifters, who are more likely to have a sense of security that an item won’t be missed, and staff are less likely to notice them take it in the busy and crowded environment.

Loss prevention tip

Where possible, keep the store as neat, tidy and organized as you can. Ensure all replenished stock is fitted with security tags and labels, and do not position sales tables too close to the doors where there is more potential for snatch and grab theft.

Colder weather

The simple fact the weather is colder also ramps up the potential for loss. That’s because customers tend to wear bulkier clothing, which can more readily conceal stolen items.

Loss prevention tip

Train your staff in the signs of suspicious shoplifting behaviour, and have a firm policy on bag checks if appropriate in your area. CCTV can also be invaluable in identifying shoplifting as its occurring, while assisting with a prosecution after the fact.

Personal need

In addition to increased opportunity, one of the major drivers of the holiday shoplifting increase is personal need.

While some shoplifters steal because they can, others do for pure financial gain or because they feel they need to.

The holiday season sees an increase in shoplifting for these reasons, and for some that will see them take increased risks to achieve their aim.

Necessities are likely to be the targeted items by those enduring financial hardship, but the big-ticket items like electronics are more likely to be stolen for major financial gain especially when it comes to organized retail crime.

Loss prevention tip

Employ product specific loss prevention strategies. In addition to CCTV and EAS, utilise strategies which specifically cater to the item likely to be stolen.

For electronics that may mean having a locked down display, with further items secured in locked cabinets. Meanwhile, necessities like razors might be best secured with stop locks.

Looking to bolster your EAS security?

If you’re looking to improve your EAS security with additional security tags, pins and labels over the busy period ahead, you can select and order tags directly here or labels directly here. Alternatively, our friendly customer service staff are also available to assist.