Consumer Confidence Increasing?
Consumer confidence and increased discretionary spending a sign of good things to come?
Heading into the key season for most retailers there may be some cause for a more positive outlook as there are signs that consumer confidence may be growing stronger and discretionary spending on the rise.
Looking at discretionary spending as an indicator Goldman Sachs out of the US believes that the recent jump in US retail sales for October can be directly attributed to sales of the iPhone 4S.
Apple sold more than 4 million units of the newest version of the iPhone within the first three days of going on sale October 14th – shattering the previous record of 1.7 million units sold of the previous model last year.
Another example of increased discretionary spending and stronger consumer confidence is even more recent.
Call of Duty: Modern Warfare 3 released in November.
Within the first 24 hours of its release, COD: MW3 broke all sales records with sales of over $400 million in the US and the UK alone. That’s over 6.5 million copies within the first 24 hours.
Could this be the biggest single day sale of any entertainment product ever? Activision thinks so…
“We believe the launch of Call of Duty: Modern Warfare 3 is the biggest entertainment launch of all time in any medium, and we achieved this record with sales from only two territories,” said Bobby Kotick, the chief executive of Activision Blizzard.
With Black Friday looming in the US and retailers across North America releasing statements about plans for heavy discounts and incentives being offered to lure consumers during the November/December shopping period, this “holiday season” might be even better than projected.
With momentum from the iPhone and Call of Duty: Modern Warfare 3 let’s hope the trend continues and we inch closer and closer to putting this economic mess permanently behind us.