More people are working and consumer confidence is up- teeing up this holiday season to be a good one for retailers. Bobbi Rebell reports.
Consumers will get in their new cars - fill em up with cheap gas - and head to the mall this holiday season to buy big ticket items - for their homes - that are worth more - knowing they can pay the bills - because they feel secure in their jobs. BMO Capital Markets Michael Gregory: SOUNDBITE: MICHAEL GREGORY, DEPUTY CHIEF ECONOMIST AND HEAD OF U.S. ECONOMICS, BMO CAPITAL MARKETS (ENGLISH) SAYING: "The incomes that are being generated by these jobs, now consumers believe they are going to stick around for a while. So they are prepared, perhaps, to spend a bit extra, maybe dip into their credit cards, take out a little bit of a loan from that perspective, and pay it off in the new year. And again, a sure sign that maybe the consumers are back into form again, in terms of what we typically see during the holiday shopping season. " Look for consumers to invest in stuff for their homes. So big ticket items like refrigerators and washer dryers should do well. Gregory says not only is there pent-up demand to buy stuff, consumers really want to get out of the house, and make an event of it. SOUNDBITE: MICHAEL GREGORY, DEPUTY CHIEF ECONOMIST AND HEAD OF U.S. ECONOMICS, BMO CAPITAL MARKETS (ENGLISH) SAYING: "There is nothing like going out in the holiday season, and you know going shoulder to shoulder with the crowds. It's part of the experience. And I think that is the key thing for this holiday season. I think consumers want to have that experience." In fact a survey by Deloitte found that consumers will spend the majority of their holiday budgets in-store. But look out for the mobile shopper. That same survey found 72 percent of smartphone owners will use their device for holiday shopping. And social media will also play a big role. Deloitte retail analyst Ramesh Swamy: SOUNDBITE: RAMESH SWAMY, RETAIL ANALYST, DELOITTE (ENGLISH) SAYING: "In total, social media is going to influence 50 cents on every dollar spent in the store. So consumers are going to be using their tablets, mobile and other digital channels to actually do a lot of pre-work. So, this year we are also seeing over 2/3rd of consumers are also going to be participating in web-rooming which is the concept of actually looking online and other details before visiting the stores." After years of trying to lure nervous consumers, the stars may finally align for retailers.