Signs indicate the economy is getting better. Can you feel it? There is a certain buzz and excitement in the air this holiday season. Black Friday sales were strong and newscasts were filled with stories about people waiting in long lines at midnight to snag bargains. The National Retail Federation estimated that 212 million shoppers flocked to the stores and spent more than $45 billion this year.
Cyber Monday (the Monday after Thanksgiving) proved once again to be the biggest online shopping day of the year. IBM Coremetrics’ Cyber Monday Benchmark Report indicated nearly a 20 percent jump in online sales compared to 2009.
Coremetrics’ report also showed sales of luxury items were up 24 percent from 2009. Economic Analyst John Morris explains that increasing sales of nonessential items is a key indicator of the health of the economy. He points to retailer Victoria’s Secret as a prime example.
Morris says, “If women buy these high-priced bras, they’re probably willing to buy other things for themselves too. That would be a shift from the last two holiday seasons when shoppers mostly bought for others.” He goes on to explain, “Strong sales of lingerie would also suggest that shoppers are willing to indulge. That would be a change from last year when they stuck to basics.”
I don’t know if you agree with this theory, but several consumer benchmarks indicate things are looking better this year compared to the last couple of years. Let’s hope the economy can keep going strong.