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Purdue expert predicts modest bump in holiday shopping

November 1, 2011
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American shoppers are expected to open their wallets just a little wider this winter holiday season, pushing sales up 2 percent to 4 percent, according to an estimate released Tuesday by the Purdue University Retail Institute.

But online purchases will surge 15 percent, according to predictions prepared by Richard Feinberg, a Purdue professor of consumer sciences and retailing. He also expects small local shops to struggle as recession-weary consumers flock to large discount- and value-oriented retailers.

“The fact that we will have an increase in holiday sales is a miracle,” said Feinberg, pointing out the national unemployment rate of 9 percent, with many more having given up looking for work.

Feinberg expects $475 billion in total holiday sales, with the biggest single item purchased being gift cards.

He also expects near-constant sales promotions, which retailers have used in recent years to capture gun-shy customers.

Retailers will use more direct e-mail marketing this year, as they have noticed they get much higher response rates than when using snail-mail direct-mail advertising. Retailers are also trying to drive customers to their websites, both for online sales as well as to promote their stores.

"Retailers are beginning to realize that their online presence has the potential to be their biggest store. This has led them to pay attention to their Internet presence in ways they have not done in the past," Feinberg says. "They also are finding that a well-designed website not only leads to online purchases, but to more store visits, too."

Last month, the National Retail Federation, the nation's largest retail trade group, predicted winter holiday sales would rise 2.8 percent, to $465.6 billion.

That would be smaller than 2010's 5.2-percent increase, but it's higher than the average increase for November and December over the past 10 years.

And it would continue a recovery begun last year after holiday sales fell the previous two years. They dropped 4.4 percent in 2008 and 0.4 percent in 2009.

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  • Yep, Sure
    Nice, but it doesn't mesh with reality. Drive by any of Amazon's 4 central Indiana warehouses. The parking lots are still largely empty, even though the calendar says November. Nobody's filling all of these orders. Then there's Best Buy, who recently announced that instead of hiring 40,000 seasonal workers like they did last year, they'll get by this year on 20,000. I'd like to believe things are getting better, but they're not, at least not yet. People are throwing the furniture overboard now. I seriously question whether or not experts are simply naive, or if they are intentionally trying to convince us to spend. Sorry, but it's laughable at this point. The whole thing is unravelling right before our eyes.

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  5. The basic idea of nice apartments with parking and retail is a good one, but this design seems overwhelmingly big/tall for Broad Ripple. The size could be disguised a bit with lots of big trees/landscaping, but the complex is too massive to blend in easily. That section of canal between College and Westfield will also need to be upgraded on both sides. Nice apartments facing onto a nice promenade with shade trees/plantings could bring together the canal towpath/Monon recreation, the outdoor seating at existing restaurants, and this project into something that upgrades the whole area. A plan for the whole stretch makes more sense than facing nice new housing onto what looks like a ditch. Is there a plan? Does the public have input? Who pays? The apartment idea seems to be reasonable, but Whole Foods is not a good idea for appropriate retail. Besides the store being physically too big, there are already Fresh Market at 54xCollege and Whole Foods in Nora for fancy groceries. Good Earth and Kroger are within walking distance of the Shell site. There are at least 7 grocery stores within a safe bike ride. Whole Foods would add nothing but traffic congestion. This design is on the right track, but there needs to be more work done to ensure that it blends in with and enhances the existing community. A project that large will set a tone for that whole part of town. It could be a real asset, but only if done right.

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