Online and offline retailers in the U.S. will notice a continuation of strong sales from the previous year, as sales ahead of the 2018 Super Bowl will reach $15.3 billion, according to a survey.
The National Retail Federation (NRF) and Prosper Insights & Analytics’ poll showed that Americans would spend more than $80 on average for the sporting event. The amount represents an 8.5% increase from $14.1 billion in 2017, despite having the same estimated audience of 188.5 million people.
Super Bowl Sales
Even before the event, Vyze recommended that e-commerce firms should consider consumer retail financing options for customers, since a portion of these customers’ spending activity will happen online. The survey noted that 11% of respondents plan to purchase sporting apparel and accessories.
On the other hand, food and beverages will account for a majority of retail sales. Based on the survey, businesses need to pay special attention to viewers between 25 and 34 years old, as this age group plans to spend an average of $118.43 for the occasion. Phil Rist, Prosper Insights executive VP of strategy, said that the trend indicates “strong spending momentum” since last year’s holiday season.
While consumer spending continues to be strong, retailers should not remain complacent. Amazon’s ongoing expansion, for instance, will make it harder for smaller businesses to stay afloat. The retail giant’s investments led to tougher competition, whether for its online or offline rivals. For now, retailers remain optimistic as Super Bowl merchandise sales increased exponentially this year.
The U.S. government’s tax reforms may provide some relief. NRF chief economist Jack Kleinhenz believes that the reforms would help in uplifting consumer spending in 2018. Still, retailers need to be prepared on how to divert that increased spending away from Amazon into their business.
Several challenges await the retail sector, despite a forecast of growth in consumer spending in 2018. Businesses should prepare for any of the possible obstacles this year.