Small Businesses Expect Strong Holiday Sales

Monday, November 24, 2014

NEW YORK -- Nearly half, 47%, of retailers expect holiday sales to be stronger this year than last, reports the American Express OPEN Small Business Holiday Monitor. And 36% of small-business owners overall anticipate the same level.

Far more small-business owners, 42%, will give their staff end-of-year bonuses than a year ago, 27%.

On average, employees can expect to receive a 15% bonus this year, up from 13% last year and 9% in 2012, according to the survey. And more small-business owners will give their clients/customers gifts this holiday season (58%, up from 41% last year and 51% in 2012). However, the average budget for client/customer holiday gifts fell to $905 from $1,129 last year and $958 in 2012.

Other survey findings:

• 44% of small-business owners will throw a holiday party, up from 32% last year. On average they will spend $902 on their celebration, on par with $895 a year ago.
• 58% say “Santa Claus” most closely describes their gift-giving behavior, on par with 59% last year. Thirty-one percent (up from 26% last year) say “Scrooge” is a more fitting description.
• 78% of small-business owners and 63% of retailers do not plan to discount products/services or reduce prices to boost holiday sales and 78% of both small-business owners and retailers say they do not feel pressure from larger competitors to offers discounts on their products/services. Some 54% of business owners and 70% of retailers say they are starting promotions the same time as last year.

Published by The Business Journal, Youngstown, Ohio.
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