As the holiday season approaches, Mitch Gould, CEO of Nutritional Products International (NPI), the 2024 US holiday retail sales forecast is projected to see modest growth, according to EY-Parthenon.
EY-Parthenon’s latest forecast anticipates a 3% increase in retail sales for the upcoming holiday season, marking a significant milestone as sales are expected to exceed $1 trillion for the first time. However, this growth rate falls short compared to the 4% rise recorded in 2023 and the 5.2% boost in 2022.
Gould notes, “Consumers are becoming more selective in their spending, given the pressures of high prices, increased interest rates, and a cooling job market. While total retail sales will reach new heights, much of the growth is driven by pricing rather than an increase in volume.”
Despite these challenges, e-commerce remains a driving force in the holiday retail landscape, expected to contribute to 20% of total holiday purchases. Gould explains, “The shift toward online shopping continues, providing brands like NPI with an effective platform to reach a broader consumer base. This trend reflects evolving consumer habits and presents opportunities for companies offering essential products that cater to consumers’ evolving needs.”
The 3% growth forecast for this year aligns with the average annual holiday growth of 3.7% seen between 2010 and 2019, highlighting a return to pre-pandemic trends. However, real volume sales are only expected to increase by 0.5%, given that inflation for holiday-related goods is predicted to be around 2.5%. Gould emphasizes, “Retailers should be prepared for a highly competitive environment, focusing on pricing strategies, value-driven offers, and convenient shopping experiences.”
Looking ahead, the economic outlook suggests a gentle deceleration into 2025, driven by tighter monetary policy and persistent high costs. Recession risks remain contained, but consumers are expected to be cautious amid a softening job market and slower income growth.
“At NPI, we understand the importance of adapting to changing consumer trends,” Gould says. “Our team remains committed to helping global brands enter the U.S. market, leveraging the strength of our retail distribution network to connect with consumers effectively, particularly during pivotal shopping seasons.”
For more information about Nutritional Products International and Mitch Gould, visit www.nutricompany.com.
MORE ON NUTRITIONAL PRODUCTS INTERNATIONAL AND ITS FOUNDER
NPI is a privately held company specializing in the retail distribution of nutraceuticals, dietary supplements, functional beverages, and skin-care products. NPI offers a unique, proven approach for product manufacturers worldwide seeking to launch or expand their products’ distribution in the U.S. retail market.
Gould, known as a global marketing guru, also has represented icons from the sports and entertainment worlds such as Steven Seagal, Hulk Hogan, Ronnie Coleman, Roberto Clemente Jr., Chuck Liddell, and Wayne Gretzky.
