November 20, 2017


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Holiday Update  
Almost Half Of Younger Consumers Plan To Spend More During The Holidays

From the National Retail Federation, November 16, 2017
 
"With the holiday shopping season about to hit the home stretch, most consumers say they will spend about the same as last year. But a new survey released today by the National Retail Federation and Prosper Insights & Analytics shows that young adults (18-24 years old) are the most likely to show an increase in spending. 
 
"As Gen Z and Millennials gets older, their purchasing power increases, and the rise in disposable income is sure to be seen by retailers," NRF President and CEO Matthew Shay said. "This group of consumers has spent time carefully researching gifts for friends, family and themselves, and are ready to begin knocking out their shopping lists." 
 
The survey found 54 percent of consumers overall plan to spend about the same as last year, with 24 percent planning to spend more. But among those ages 18-24 - which includes the oldest members of Generation Z - 46 percent say they will spend more than last year. The next-closest group was those aged 25-34 years old, with 39 percent planning to spend more. 
 
Clothing and accessories will be bought by 61 percent of consumers, the same as last year, while 59 percent will give gift cards, up from 56 percent last year. Books, music, movies or video games will be given by 44 percent, the same as last year, while 41 percent will give toys, down from 42 percent. The number giving food or candy is up at 34 percent from 31 percent, and 29 percent will give electronics, down from 30 percent. 
 
"With an additional full shopping weekend this December, consumers will have plenty of time to browse and complete their holiday purchasing, whether it's gifts for others or décor for their homes," Prosper Principal Analyst Pam Goodfellow said. "Gift cards continue to be a popular low-risk option for gift givers, and this year we're seeing food increase in favor as well. As Americans look to celebrate with even more of the special people in their lives, food serves as a great way to come together." 
 
Out of the 95 percent of Americans shopping for the holidays this year, 80 percent plan to spend time with family or friends, 63 percent plan to give or open gifts and 50 percent plan to make a special meal or festive treats. Also, 45 percent plan to decorate their homes and 31 percent plan to attend a religious service. 
 
In a new question this year, the survey found that 38 percent of consumers plan to donate money to a charity or cause and 37 percent plan to donate items, including holiday meals for needy families. Of those donating, 80 percent said it would have no effect on their overall holiday spending. 
 
Holiday shoppers plan to purchase an average of four gift cards with an average value of $45 per card, the second most-popular gift after clothing. Spending on gift cards is expected to reach $27.6 billion, up from last year's estimated $27.5 billion. The most popular gift cards include those for restaurants (purchased by 36 percent of buyers), department stores (33 percent), Visa/Mastercard/American Express (24 percent), coffee shops (21 percent) and entertainment (18 percent)." 
 

Holiday
More Than 164 Million Consumers Plan To Shop Over Thanksgiving Weekend And Cyber Monday

From the National Retail Federation, November 14, 2017
 
"The biggest shopping weekend of the year is right around the corner and 69 percent of Americans - an estimated 164 million people - are planning to shop or considering shopping during Thanksgiving weekend, according to the annual survey released today by the National Retail Federation and Prosper Insights & Analytics. For the first time in survey history, the numbers include Cyber Monday in addition to Thanksgiving Day, Black Friday, Small Business Saturday and Sunday.

"This year, we updated our survey to more accurately capture consumer behavior throughout the entire shopping weekend - Thanksgiving Day through Cyber Monday," NRF President and CEO Matthew Shay said. "Consumers will benefit from competitive promotions both in stores and online lasting the course of the weekend, allowing them to find the best gifts at the lowest prices."

Of those considering shopping the long holiday weekend, the survey found that 20 percent plan to shop on Thanksgiving Day (32 million) but Black Friday will remain the busiest day with 70 percent planning to shop then (115 million). A substantial 43 percent are expected to shop on Saturday (71 million), with 76 percent saying they will do so specifically to support Small Business Saturday. On Sunday, 21 percent expect to shop (35 million) and 48 percent are expected to shop on Cyber Monday (78 million).
 
Of those shopping, 66 percent said they're doing so to take advantage of deals and promotions retailers will offer, while 26 percent cited the tradition of shopping over Thanksgiving weekend and 23 percent said it's something to do over the holiday weekend. Another 23 percent said it is when they start their holiday shopping.
 
According to the survey, 56 percent of Americans have already started their holiday shopping, but most still have a long way to go. Only 12 percent of consumers have completed at least half of their shopping, while only 2 percent have finished all of their holiday shopping.
 
When asked what they enjoy the most about shopping during the holidays, 35 percent said it is a family tradition while 23 percent said they most enjoy holiday decorations and displays; 18 percent cited finding the perfect gift for someone.

"While the utility of the weekend will continue to draw shoppers into stores and online to efficiently and inexpensively check off their lists, we're also seeing consumers report tradition and the opportunity to partake in holiday cheer as reasons for shopping, too," Prosper Principal Analyst Pam Goodfellow said. "By now, people know what sort of deals they can expect to see during the weekend and are budgeting for them accordingly, and in many cases expertly."
 
"For Gen Z, the holiday shopping weekend is a can't-miss opportunity," Goodfellow said. "This group overwhelmingly sees in-store shopping as a valuable way to connect with others, be it friends, family or store associates at their favorite retailers."

While many consumers will take advantage of deals over Thanksgiving weekend, 31 percent will refrain from shopping that weekend. Of those not planning to participate, 52 percent won't shop because they do not enjoy the experience and 51 percent say they never shop during Thanksgiving weekend. Of those not shopping, 46 percent said nothing would change their mind but 27 percent said a good sale or discount on an item they want could get them to shop. "
 

Holiday
Black Friday To Tally 115 Million Shoppers

From the Retail Dive, Daphne Howland, November 15, 2017
 
"Most Americans - 69% or an estimated 164 million people - are planning to shop or considering shopping during Thanksgiving weekend, according to an annual survey released Tuesday by the National Retail Federation and Prosper Insights & Analytics. Of those, 20% plan to shop on Thanksgiving Day (32 million), though Black Friday will remain the busiest day, with 70% (115 million), planning to shop then, the survey found.

But other days of the weekend will also be busy: 43% (71 million) are expected to shop on Saturday, with 76% of those saying they want to support Small Business Saturday. On Sunday, 21% (35 million) expect to shop and 48% (78 million) are expected to shop on Cyber Monday.

And Americans have their reasons for shopping over the weekend. Of those who will, 66% say they're taking advantage of deals and promotions, 26% cited tradition and 23% said that "it's something to do" over the holiday weekend. Another 23% said the weekend marks the launch of their holiday shopping. More than half (56%), however, have already started their holiday shopping, albeit few have finished.
"
 

Duluth
Editorial - Our View: Is Sick-And-Safe Even A Problem?

From the Duluth News Tribune, November 19, 2017
 
"Yes, of course workers in Duluth should be allowed to bank paid days off to take when they're ill, when a family member is ill, or when they have to deal with an emergency related to their safety or the safety of loved ones.

But the reality is that most full-time workers in Duluth already have and enjoy this benefit.

The 46 percent figure that keeps getting bandied about with regard to workers here without access to paid sick-and-safe days refers "primarily" to "part-time workers. Most employers (in Duluth) provide some form of sick-or-safe leave," the co-chairwomen of the Duluth City Council-appointed Earned Sick and Safe Time Task Force acknowledged in a commentary in the News Tribune on Nov. 12.

In addition, the task force reported in its recommendations to the council that an overwhelming 90 percent of employers who responded to an online survey indicated they already offer earned paid time off.

Nevertheless, a majority of the task force recommends that the council create an ordinance mandating the benefit for all workers. The task force is scheduled to present its recommendation at the City Council meeting today.

The recommendation is in spite of any unease over government intruding on private business and in spite of the bottom-line burden such a local law would be expected to have businesses, specifically smaller ones. Business leaders have been quite outspoken with concerns, sometimes on behalf of businesses reluctant to speak up for fear of losing customers.

Businesses in Duluth already are absorbing a 31 percent water rate increase, a 9 percent electric rate increase, property revaluations that drove up property taxes by as much as 30 percent, and the coming possibility of a half-percent sales tax for streets. There's also the unknown costs of reconstructing Superior Street and of converting the Duluth Steam Plant. Like the rest of us taxpayers, how much more can they be asked to take?
"
 

Income     
Minnesotans Enjoy Per Capita Income That Is 13.3 Percent Higher Than The National Average

From Minnesota Employment and Economic Development, November 15, 2017
 
" Minnesotans enjoy per capita income that is 13.3 percent higher than the national average.

According to U.S. Census Bureau figures, Minnesota's workers had an aggregated income of $179.3 billion in 2015, which ranked 16th nationally, even though the state was 21st in population. Minnesota's total income that year topped Arizona, Indiana, Tennessee, Missouri and Wisconsin - all states with more residents than Minnesota.

So why do Minnesotans on average make $3,826 more in annual income than the typical U.S. worker?

Part of the answer may lie in income sources. Wages and salaries accounted for 77 percent of Minnesotans' income in 2015, followed by Social Security income; investment, dividends and net rental income; self-employment income; and retirement income.

Meanwhile, wages and salaries accounted for 74.3 percent of household income nationally. Social Security income; interest, dividend or net rental income; and retirement income accounted for a larger share of income nationally than in Minnesota.

Minnesota ranks seventh nationally when it comes to percentage of income generated from wages and salaries. It finishes much lower in other income categories: Social Security (35th), interest, dividends or net rental (32nd), self-employment (24th), retirement (48th) and other types of income (38th)."
 

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Tel. (651) 227-6631 - mnretail.org - mnra@mnretail.org