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The National Retail Federation projects U.S. holiday retail sales will exceed $1 trillion for the first time in history this year. According to the national federation, sales from Nov.1 to Dec. 31 are expected to grow around 4%.
The Nebraska Retail Federation said retailers are optimistic heading into the holiday season, driven by earlier November sales and more targeted digital marketing. Executive Director Rich Otto said retailers are increasingly using customer data and loyalty programs to reach shoppers sooner and boost holiday sales.
"Several major retailers have started their holiday shopping sales sooner than before,” Otto said. “We anticipate that will drive sales including our smaller retailers doing sales and trying to target a certain audience with information they have about data, their loyalty programs and getting their loyal customers into their stores sooner than in the past.”
A Nebraska Retail Federation report said 57% of Nebraska small and medium-sized businesses use data-driven online ads, with a majority finding them useful in several ways.
“Nebraskans are budget-conscious shoppers, and small retailers will have to be smart about driving sales,” Otto said. “Data-powered ads offer an affordable, effective way for small businesses to attract customers.”
Otto emphasized how Nebraska’s law protects both businesses and consumers in a “tough issue to tackle.” He said the legislation introduced by Sen. Eliot Bostar provides businesses with an opportunity to correct data privacy mistakes, while allowing Nebraskans to opt out of targeted advertising.
At Kearney’s Sporting Edge, digital ads play a key role in holiday planning and customer outreach. Owner Jim Crosby, who started his business 41 years ago, said the store utilizes digital advertising that became more important nearly five years ago.
“We do a lot of digital advertising year-round through all of the social media channels. And 2020 was definitely a good initiation to all of that, he said. “We've got to change a little bit how we communicate with them, with our customers because, whenever we were stuck at home, we had to figure out a way to have them be aware of what we had in the store.”
The store owner said his store uses data-powered advertising, which has yielded positive results.
“We have a whole division that I probably can’t answer as well as they could,” he said. “But I do see the results in many new customers coming in and new contacts being made.”
In the past year, the store has also felt some effects from tariffs and other economic uncertainties. Crosby said these economic changes have clearly affected pricing but have had a limited impact on inventory.
“I think probably the biggest factor is the unknown — people not knowing what the future holds,” he said. “You’ve got tariffs looming out there; you’ve got government shutdown looming out there; all those things. It created a little bit of an unrest. Any time there’s unrest, I think it affects shopping a little bit.”
Otto acknowledged challenges from tariffs on small retailers.
“Tariffs have been an issue. Most retailers have all of the inventory in stock already for the holiday season,” he said. “So, tariffs have been tough to navigate. But it has forced retailers to be more proactive and start ordering their inventory sooner.”
Despite economic uncertainty, Crosby expressed guarded optimism for the holiday season. He said proactive planning based on the previous year's sales and maintaining strong customer relationships allow his business to adapt and thrive.
In Lincoln, Mayor Leirion Gaylor Baird focused on spreading the message of supporting small retailers during the holiday season at a press conference Wednesday.
Gaylor Baird spoke about the importance of local stores in the city's economy and urged people to shop locally on Small Business Saturday.
“With the holiday season upon us, we are here to highlight some ways we can make our holiday gifts go further,” she said. “One of the most simple and powerful ways to do that is by shopping locally.”
She said that shopping locally gives back to businesses that shape the community's economic vitality, contributing to a high quality of life.