WASHINGTON–Although the home business has been soft at retail this year, shoppers are buying home products—from cookware to decorative pillows—so far this holiday season, said Dan Butler, vice president of merchandising and retail operations for the National Retail Federation, during a holiday conference call.
That’s because when the economy is down, “people focus on what they need.” And during the holidays, people need things like gourmet cookware and roasting pans, he said. Butler’s predictions are based on early retail sales returns and what merchants are promoting, he said.
What’s more, a nesting trend similar to what happened after Sept. 11, 2001, is playing out today, which tends to drive home purchases as people stay at home, Butler said.
Some of the key home items this holiday include digital frames, food-preparation housewares, “smart” scales that weigh body fat and water weight, and spa towels.
Overall, merchants are “magnifying” their low-price message with things like buy-one-get-one-free promotions, he said.
And this season, retailers are spelling out savings for shoppers at the point of sale, Butler said.
Instead of promoting a product as 20 percent off, retailers are promoting a $300 savings, for example.
The NRF is also predicting that Black Friday, the official holiday retail kickoff, could end up being better than expected.
According to an NRF survey, up to 128 million people will shop this Friday, Saturday or Sunday, down only slightly from the 135 million people who said they would shop over Black Friday weekend last year. Since gas is at the lowest price it has been since 2005, consumers could be more enticed to shop, the NRF said.