It's the most wonderful time of the year for retailers and consumers as the holiday shopping and hiring season has started to pick up. The last few months of the year, starting with back-to-school shopping in September, are important for retailers, and the winter holiday shopping sprees are particularly crucial for the businesses and the economy. Increased consumer optimism and escalated spending are predicted to make this holiday season especially jolly.
Consumer confidence is at its highest levels since 2007 (The Conference Board, 10/28/14), and increased optimism is prompting Americans to spend an estimated 4% more this year during the winter holidays; U.S. retail sales are projected to total over $900 billion in 2014 (Deloitte, 9/24/14). Households are also allocating larger budgets for presents, while holiday gift spending is predicted to increase 8% (Prosper Spending Score, 9/4/14). In 2013, nearly half of American consumers stated that they would be budgeting less for gifts, but that number dropped 11% for the 2014 shopping season.
Cyber Monday has continued to grow as one of the largest shopping days of the year and is expected to outpace Black Friday sales. Online purchases are forecasted to be especially strong for retailers, with over half of consumers expecting to make Black Friday purchases online rather than in-store and online sales for the five-day period between Thanksgiving and Cyber Monday are predicted to rise 15% (IBM, 11/9/14).
Consumer optimism and predictions of increased spending have prompted employers across all industries to escalate hiring for the holiday season. Retailers alone are expected to add more than 800,000 seasonal workers, the highest number since 1999 (Challenger, Gray, and Christmas, 09/17/14). Many notable companies have already started ramping up hiring. UPS stated it would hire 95,000 seasonal workers, nearly doubling last year's holiday workforce, while FedEx plans to add 50,000. Both companies struggled in 2013 to handle escalated shipping volume and are adding workers in order to meet the demand of this holiday season. Online retail giant Amazon plans to add 80,000 positions, approximately 10,000 of which will roll over to full-time jobs. Walmart and Target both plan to add around 60,000 workers. Macy's leads hiring among retail stores, adding 86,000 seasonal jobs.
Manufacturers and retailers couldn't have asked for a better gift this holiday season.
Readers, has your company added seasonal workers? Or are you planning on taking seasonal work?
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