Retail and Merchants Association Says NH Retailers Prepared

A survey of retailers conducted by the Retail Merchants Association of New Hampshire (RMANH) finds that New Hampshire retailers are ready and looking forward to the 2011 holiday selling season.

According to the survey results, 63 percent of NH retailers surveyed are anticipating that their 2011 holiday sales will be the same as or better than last year. In fact, retailers are expecting their holiday sales will be up 3.1 percent or slightly higher than the forecast for retail sales nationally.

Due to our lack of a sales tax, New Hampshire retailers tend to do better than retailers in other parts of the country. Combine that with sales and competitive pricing, and consumers will have a tremendous advantage this holiday season, said Nancy C. Kyle, president and CEO of RMANH, in a press release. 

There will be plenty of choices for consumers this year and lots of help in stores. Fully 84 percent of respondents to the RMANH study claimed their 2011 inventory is the same as, or better than last year's levels. And, 67 percent said they will be hiring or have hired extra holiday help. Of those, 92 percent reported hiring at the same level or hiring more than 2010. Fifty percent of RMANH members say they offer online shopping, and expect online sales to account for up to 25 percent of their entire holiday sales.

More and more retailers are using social media, with 67 percent of RMANH members now replying that they are using social media. That's up from 47 percent last year. Several members commented that although they aren't using it now, it's part of their plans for the very near future. Of retailers already using social media, Facebook had the most users at 64 percent, while 18 percent say they are using Twitter. QR codes still seem to be too new for NH retailersno one surveyed reported using them.

When asked about ways they are marketing their businesses, several retailers replied that they are coordinating multi-store events with other retailers, restaurants and hotels.  Deep discounts are being used to lure customers, and many retailers offered customer recognition programs that resulted in more discounts for the consumer.

When asked what factors would have the biggest effect on sales for the 2011 holiday season, the majority of respondents cited consumer budget constraints, followed by a lack of consumer confidence and negative media reports. Higher unemployment rates in the northern part of the state were identified as having a regional impact.

As for positive impacts for the 2011 holiday season, many of the respondents noted that seasonal weather will help, especially cold temperatures without major storms. The October blizzard was seen as a positive, motivating consumers to think about holiday shopping earlier than normal. Lower fuel costs were also seen as a positive to helping sales. In general, retailers noted that offering an attractive mix of unique merchandise will entice customers, as will a well-trained sales staff. Retailers in general noted that customers were shopping a bit later this year, as compared to last year.

With Christmas falling on a Sunday this year, NH retailers say they expect the busiest shopping days will be the Thursday and Friday before Christmas. With heavy gift card sales anticipated, the day after Christmas is also expected to be brisk.  

Consumers are focused on a sense of family and what is really important in the scheme of things, these values will be reflect in holiday purchases. Winter clothing and quality personal items that are practical are expected to do well. There's also a focus on the homenice home necessities and cookware, a bit more upscale than ordinary, gourmet food items and fine wines. Books and personal electronics are also expected to sell wellwith a focus on tablets, smart phones, and e-readers.

Looking to 2012, the state's retailers say they anticipate a slow economic recovery. Retailers plan to keep inventory low for the first quarter. Concerns about the federal government settling the deficit/debt limit issue and how that will influence consumer behavior were mentioned. Consumers will continue to be cautious, and early indicators suggest that they will be very focused in their purchases.

About the Survey and the Retail Merchants Association of New Hampshire: The RMANH 2011 member holiday survey was designed to gauge retailing trends in New Hampshire.  Members of the Retail Merchants Association of New Hampshire were surveyed via email and social media between October 17 and November 7, 2011.