Retailers Bank on Holidays for 40 Percent of Total Sales

Online sales, new delivery options key for sales growth.
4:57 | 11/25/14

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Transcript for Retailers Bank on Holidays for 40 Percent of Total Sales
Okay. It is Tuesday November 20 fit the markets in New York are open and our big number this morning 40%. As a holiday shopping period gets in the full swing retailers are expecting to make a whopping 40% of their annual sales in the coming weeks. And with new online options making things easier for shoppers Americans likely will spend upwards of sixty billion dollars. Just on line in November and December hello everyone I'm Michelle Franzen in New York here with the details as US shoppers start whipping out those credit cards. Daniel Douglas Gabriel of the Washington Post good morning. Good morning no one thing retailers are set did to do start doing is now as its offer quick delivery options can explain knows. So come. A quick delivery options are overnight aides seen patient being second day shipping we've seen the from the past but more retailers are offering it. At a greater read and I think we're gonna continue to see that play out in the field following. Christmas holidays of the season for the next few years the comments they want to be more competitive in this space. Are right so quick delivery options same day next day overnight so attractive for US shoppers. I'm. A couple of things you have a few different types of shoppers are the ones who. Procrastinate. Up until the last few days before the holidays and they need their gifts as quickly as possible and you have the other side the equation. The guys who are really want their things immediately to try to get ahead of all of their shopping for the season so they want to see their products the next day or not two days later. And then just having the regular shoppers who might have an event says. They need to address her hair she user what happy you for the next day or two days from now in so. You know rising trying to compete for all those different types of shoppers to think more retailers are going to look towards this kind of delivery option to arming competitive. Bargain mentality and they want it now we're seeing target Wal-Mart even Macy's taking on Amazon in this area power they stacking nap. So of course you're larger retailers like you targets your me season in wal marts and such. They're going to be a probably out in front of this beast because sold much of the volume of business they do of course is coming down during the season and so much of it has shipped. But you're also seeing smaller retailers are origins Victoria secrets some of the individual kind of apparel stores is Wallace electronics stores. All of these options as well I mean that this holiday season that he mentioned earlier at times can a tree took out. Country about 40% of the sales for the entire year so retailers want to make sure they're well positioned to gain is much. Of profits as they possibly can during the season so. They they're one and they want to be their for the consumer and this is a great way to do it and certainly they wanna get a jump on the competition we've had shippers like UPS. And FedEx. Disappoint online shoppers last year what changes are delivery companies make in and anticipation. Of this bigger online delivery year. I think a lot of beans delivery companies are trying to figure wagering calibrate their expectations for what this season will bring. Mean you see bulking PS synthetic seen that there are anticipating a huge huge volume an uptick but. I mean UPS's. I think seeing the B Mi C about 585. Million. Deliveries during December alone which is about a 11% increase from the previous year and FedEx is seeing about maybe 219. Million about 88 point 8%. Increase not astronomical changes but I think in anticipation for and that kind of volume. They've started to look over their systems making sure that the logistics. It needs the needs in the demands of the consumer. And we've also had a revised GDP number this morning showing last quarter. The economy grew nearly 4%. Could retailers see a holiday surprise in their sales number of it goes beyond this 40%. Certainly I mean historically when you have such a strong economic growth going into the holiday season. Retailers tend to do very well and psychologically shoppers feel a lot more comfortable spending if they think that the economy's approved improving. They feel OK give me a little bit more disposable income and cash over to retailers so I think a lot of retailers. In this holiday season can probably expect to do a little bit better than. The numbers are projecting which is still pretty good and 61 billion dollars in sales was nothing just. To sniff fat so if they are able to top fad that'll be really impressive. All right and we certainly we'll see. How that 40% number will start to take shape in these coming days Daniel Douglas Gabriel from the Washington Post thank you very much they youths. Happy Thanksgiving to you you of course can keep up with the latest headlines right here on ABC news dot top even watching the big number on Michelle Franzen in New York.

This transcript has been automatically generated and may not be 100% accurate.

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