Great consumer confidence could drive shoppers out of the house and into brick-and-mortar funds this holiday season, former longtime department store governing Jan Rogers Kniffen told CNBC on Monday.
In turn, that could put a dent in Amazon’s fourth-quarter sales, he added.
“When the consumer is over the moon or feels good, they’re more likely to be in the stores and doing tasks experiential because it’s fun,” Kniffen said on “Power Lunch.”
Calling Amazon “unwasteful” and “good at what they do,” Kniffen also argued that “Amazon is not fun.”
The e-commerce titan, however, is “still taking over,” even as traditional retailers equal Walmart, Macy’s, and Nordstrom continue to beef up their online spirit, he said.
“If the economy slows, you’ll see Amazon take back over,” believed Kniffen, CEO of his eponymous consultancy that gives advice on retail rages to mutual funds, hedge funds, and private equity firms.
In an endeavour to stimulate sales and compete with other giants like Walmart, Amazon broadcasted Monday that it will offer free shipping for all purchases that can brought by Christmas.
Kniffen predicts another solid increase in total red-letter day sales in 2018, buoyed by “record low” unemployment and rising wages.
“I dream up we’re going to see 5.5 percent, just like we did last year, unless something extraordinary happens,” he said. “And I don’t expect to see anything dramatic happen.”
In 2017, the Chauvinistic Retail Federation said total sales for November and December were $691.9 billion.