by Doug Desjardins
Retailers can expect the rebound in retail sales that began in late 2009 to continue this Easter as consumers spend more on food and other Easter-related products. 
The National Retail Federation (NRF) estimates consumers, on average, will spend $118.60 on Easter products this year, up slightly from $116.59 spent last year. Though the projection represents less than a 2-percent increase from dismal Easter spending in 2009, retailers will take any increase they can get. In 2009, the average amount consumers spent on Easter merchandise dropped more than 15 percent from $135.03 in 2008.
“With signs of spring popping up everywhere, shoppers are eager to get their hands on bright, colorful Easter merchandise,” said Tracy Mullin, CEO of the NRF. “Warmer weather and special holiday promotions are the perfect mix to get people out of their homes and into stores as spring approaches.” But the report shows consumers are still wary of how much they spend, as indicated in a poll showing that 64.8 percent of people plan to do their Easter shopping in discount stores.
IBIS World is forecasting a similar jump in sales with consumers spending $14.02 billion on Easter merchandise, a 1.8-percent increase over last year. Most of that increase is expected to come in the food and candy categories, which are projected to jump 3.8 percent and 3.2 percent, respectively. Only two categories – decorations and gifts – are expected to see a decrease in sales.
The research firm also predicts a slight increase in apparel sales for Easter, ending a three-year streak of sales declines. That’s good news for retailers such as such as JC Penney, Nordstrom’s and Kohl’s that are making a strong push for both spring and Easter apparel sales.
The U.S. Commerce Department also provided good news with a report that consumer spending increased in February for the fifth consecutive month. Retail spending increased 0.3 percent for the month, bettering a forecast of a 0.2 percent jump. Analysts were encouraged that retail sales rose even though the jobs market still remained weak.
The real battle this Easter will be among food retailers attempting to push back against Wal-Mart’s grocery-department price cuts, which are seen as way for Wal-Mart to win back customers who’ve gravitated back to major grocery chains like Safeway, Kroger and Supervalu.
“Shoppers no longer consider the price savings offered by Wal-Mart to outweigh the experience and convenience of shopping at their local supermarket,” said Citigroup analyst Deborah Weinswig, who added that Wal-Mart is “lacing up the gloves to step back into the ring and win the modern-day price war in food retail.”
Resources
Easter a Warm Welcome for Shoppers and Retailers
COUPON TIME
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