Expected 4% Retail Sales Gain This Holiday Season Is Bad News For Large Retailers

Bloomberg, citing a forecast by Deloitte LLP, reported consumers are expected to spend more this holiday season but at niche retailers such as Bonobos and Fabletics.

In fact, Deloitte found upstart and niche stores have steered away $200 billion in annual sales from big chains such as Wal-Mart Stores, Inc. WMT and Macy's Inc M over the past five years.

Related Link: Amazon Vs. The Department Store: The Battle Is Just Beginning

U.S. consumers are expected to spend more than $1 trillion as a whole (not including motor and gasoline purchases) from November through January.

Rod Sides, vice chairman of Deloitte, was quoted by Bloomberg as saying that small startups are "nibbling away a little bit of the volume at a time." He added that smaller websites with a particular niche or specialty are actually the ones gaining market share away from large retailers.

Bargain hunters could, however, be swayed back to department stores, which may offer better price points and sell more compelling products, Sides also said in the report.

Finally, the U.S. election isn't expected to impact the holiday spirit, at least not from a gift giving standpoint. Deloitte found that while the presidential campaign could negatively impact early-season shoppers, consumers historically return to spending once the election ends.

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