Business Trends

Retailers Get Rotten Eggs this Easter

In Uncategorized on March 24, 2009 at 4:37 pm

 

Photo by polska1

Photo by polska1

The Easter Bunny will have less in its basket this year as holiday expenditure is expected to decline eight percent, according to industry research firm IBISWorld. Total sales from Easter clothing, candy, flowers, decorations, food and greeting cards are expected to fall from $14.8 billion in 2008 to $13.6 in 2009.

Holiday gift giving will take a hit because many households are continuing to tighten purse strings due to the financial climate. Candy sales in particular are estimated to reach only $1.77 billion, down by 10.2 percent from Easter 2008. Interestingly, the forecast for candy sales could have been much worse had it not been for the holiday’s calendar date.

“Easter falls on April 12, compared to March 23 of last year, so candy producers and marketers have 20 additional days to merchandise their products and entice the public to spend,” explained George Van Horn, senior analyst with IBISWorld.  “This will cushion some of the inevitable blow on spending.”

Businesses still expected to perform well this Easter are supermarkets. This industry will experience a 3.5 percent rise in food sales as families prepare their holiday meals at home, rather than dining out. Though these meals will be on a budget, the nation will spend about $4.6 billion on food this Easter.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: