COLUMBUS, Ohio – Increased spending by Columbus-area shoppers will power an upsurge in spending across Ohio this Christmas season, according to a new report.
The University of Cincinnati Economics Center study says retail sales in Ohio in November and December will jump 3.5 percent this year, compared to last year, with the most growth in central Ohio.
Analysts are expecting big things Thanksgiving Day and Black Friday, with a strong local presence on Cyber Monday, when many people begin their Christmas shopping on retailers’ websites, which may be good for the central Ohio economy, even if it doesn’t add to traffic in the malls.
“Many companies we see have no physical footprint and are shipping to customers straight from warehouses and a lot of times that’s from Columbus, Ohio,” says Kenny McDonald, chief economic officer of the regional development group Columbus2020.
The study found that 47 percent of shoppers expected to buy something online, compared to 44 percent who planned to shop at a discount store.
McDonald says an “unintended consequence” of the popularity of “e-tailing” may be a loss of sales tax revenue for local governments.
With Thanksgiving and Black Friday almost a week later than last year, McDonald says is hard to predict how central Ohio’s many retailers will fare. Companies like DSW, Abercrombie & Fitch, Limited Brands and Tween Brands all call Columbus home and the period between Thanksgiving and Christmas can frequently account for 40 percent of a store’s annual sales.
The study predicts total retail spending in Ohio will be $14.9 billion and blames eroding consumer confidence for growth that is slightly lower than the national forecast of 3.9 percent.
Central Ohio will see the largest increase in holiday spending – 4.4 percent — followed by Cleveland and Toledo (3.8) and Cincinnati (3.4).
Columbus shoppers also account for the largest share of retail spending in Ohio, the study said, which will amount to $2.97 billion in November and December.