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<h2 class="entry-title">JLL Predicts Up to 6 Percent Growth in Holiday Season Spending</h2>
<p><span class="by-author mb8"><time class="entry-date" datetime="2017-11-02T13:46:00+00:00">November 2, 2017</time></span><span class="by-author">By<span class="author vcard"><a class="url fn n" title="View all posts by JLL Retail" href="http://retailblog.jll.com/author/katie-sershon/" rel="author">JLL Retail</a></span></span></header>
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<p><a href="http://retailblog.jll.com/wp-content/uploads/2017/11/Shoppers-shutterstock_578189137.jpg"><img data-attachment-id="2342" data-permalink="https://richard2496.wordpress.com/2016/07/28/new-technologies/" data-orig-file="" data-orig-size="" data-comments-opened="1" data-image-meta="[]" data-image-title="New Technologies" data-image-description="&lt;h2&gt;Bill Gates Says We&#8217;re on the Verge of These 3 Amazing Technological Advances&lt;/h2&gt;
&lt;p&gt;by Chris Matthews @crobmatthews JULY 27, 2016, 1:39 PM EDT&lt;br /&gt;
E-mail Tweet Facebook Linkedin Share icons&lt;/p&gt;
&lt;p&gt;He reviewed Robert Gordon’s “The Rise and Fall of American Growth”&lt;br /&gt;
If you were worth $80 billion dollars, you might not be too worried about American’s productivity slump either.&lt;/p&gt;
&lt;p&gt;Microsoft founder Bill Gates waded into one of the hottest debates in economics on Tuesday when he published a review of economist Robert Gordon’s new book, The Rise and Fall of American Growth, which Fortune described in an article published earlier this year.&lt;/p&gt;
&lt;p&gt;Gordon argues in his book that “Economic growth is not a steady process that creates economic advance at a regular pace, century after century. Instead progress occurs much more rapidly in some times than others.” Unfortunately for us, Gordon writes, we are entering an extended period of slow growth, because the incredible technological advances that fueled the last 150 years of economic advances won’t be repeated.&lt;br /&gt;
Although Bill Gates praises the book as “engaging,” and says that Gordon does a “phenomenal job illustrating just how different life was in 1870 than it was in 1970,” Gates ultimately and vehemently disagrees with the central conclusion of the book. Gordon argues that the digital revolution that began in the 1970s and was largely incorporated into the American economy by the 1990s only affected a small section of the economy, namely the world of entertainment and communication. Gates disagrees, writing:&lt;/p&gt;
&lt;p&gt;The digital revolution affects the very mechanism of the marketplace. How buyers and sellers find each other, how we amass information, how we can create models to simulate things before building them, how scientists collaborate across continents, how we learn new things—all of this has changed dramatically thanks to digital innovation.&lt;br /&gt;
And Gates believes that these changes will help power some pretty amazing technological advances that will help create economic growth and improve the human race in years to come. Here are the three that Gates mentioned in discussing Gordon’s book:&lt;/p&gt;
&lt;p&gt;Advanced Robotics&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;https://fortunedotcom.files.wordpress.com/2016/07/485332583.jpg?w=1024&amp;amp;h=683&quot; alt=&quot;New York International Auto Show Holds Preview For Media&quot; /&gt;New York International Auto Show Holds Preview For Media&lt;br /&gt;
Honda Motors demonstrates its Asimo robot during a media preview of the 2014 New York International Auto Show in New York.&lt;br /&gt;
Eric Thayer Getty Images&lt;br /&gt;
One of Gordon’s central arguments is that important technological advancements can only happen once, and therefore we can’t expect the economic growth that they foment to last forever. “This is true—but it’s true for things in the future, too,” Gates writes. “By Gordon’s definition, a robot that’s better at seeing and manipulating things than humans will only happen once.”&lt;/p&gt;
&lt;p&gt;A recent analysis of the use of robots in U.S. manufacturing between 1993 and 2007 found that the application of robots “account for more than one tenth of total GDP growth over this period.” Even more advanced robotics could power even faster growth, though there are concerns as to how the gains of that growth would be distributed to workers.&lt;/p&gt;
&lt;p&gt;A Cure for Alzheimer’s&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;https://fortunedotcom.files.wordpress.com/2016/07/151032797.jpg?w=1024&amp;amp;h=683&quot; alt=&quot;Alzheimer Disease, Mri&quot; /&gt;Alzheimer Disease, Mri&lt;br /&gt;
On The Left, Normal Brain. On The Right, Probable Alzheimer’s Disease.&lt;br /&gt;
Photograph by BSIP UIG — Getty Images&lt;br /&gt;
“Think of a cure for Alzheimer’s,” Gates writes. “That disease costs the U.S. $236 billion per year, mostly to Medicare and Medicaid. A cure would immediately alter the budget of every state in the country, not to mention millions of lives.”&lt;/p&gt;
&lt;p&gt;Although scientists don’t appear to be very close to finding a cure or treatment for the disease, Gates is right that all the economic incentives for developing such treatments are in place. Bloomberg recently called the disease “one of the [Big Pharma’s] last big untapped markets,” that could drive huge revenue gains, motivating large investments in studying the disease.&lt;/p&gt;
&lt;p&gt;Super Cement&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;https://fortunedotcom.files.wordpress.com/2016/07/103303753.jpg?w=1024&amp;amp;h=683&quot; alt=&quot;BP Says Leaking Macondo Oil Well To Be Permanently Sealed This Month&quot; /&gt;BP Says Leaking Macondo Oil Well To Be Permanently Sealed This Month&lt;br /&gt;
A [f500link]Halliburton[/f500link] cement mixing tank operates on board the Transocean Ltd. Development Driller II rig.&lt;br /&gt;
Bloomberg Bloomberg via Getty Images&lt;br /&gt;
Gates first discussed Gordon’s book in an interview earlier this year with Ezra Klein of Vox.com. In that discussion, he argued that Gordon’s book would turn out to be “ironic” because he believes we are quite close to some really important advances in materials science, perhaps the one area that would have the widest effect on the global economy. Gates said:&lt;br /&gt;
The big benefit of the scientific understanding of the last 20 years in terms of gene editing, biology, machine learning, antibody design, material understanding—we will see the dramatic effects of those things over the next 20 years, and I say that with incredible confidence.&lt;br /&gt;
What new material science means for how you build things, how long it lasts—everybody’s talking about re-maintaining infrastructure. You know, we’re going to be able to build infrastructure that lasts 10 times as long as the cement rebar approach that we’ve had today . . .&lt;br /&gt;
With all the economic pessimism we’ve been hearing lately, it sure is nice to hear someone of Gates technological pedigree arguing that the best is yet to come.&lt;/p&gt;
" data-medium-file="" data-large-file="" class=" wp-image-2342 alignright" src="https://i1.wp.com/retailblog.jll.com/wp-content/uploads/2017/11/Shoppers-shutterstock_578189137-1024x683.jpg" alt="" width="350" height="232" /></a>Once the last trace of Halloween candy is gone, Americans plan to get started on holiday shopping. Nearly 30 percent of shoppers will start shopping prior to Thanksgiving, while just over 30 percent of shoppers will start stocking up over the five day period from Thanksgiving to Cyber Monday.</p>
<p>“As we head into the holiday season, <a href="https://www.conference-board.org/data/consumerconfidence.cfm">consumer confidence is the highest it’s been in nearly 17 years</a>. We expect that holiday spending will mirror overall retail sales trends, and anticipate that  sales growth could reach as much as a six percent jump due to favorable economic conditions and the strength of the labor market,” added Greg Maloney, CEO of JLL Retail.</p>
<p><a href="http://link.jll.com/2017-holiday?src=PR">JLL’s 2017 Holiday Shopping</a> Survey found key differences in buying patterns among generational cohorts and income levels, as well as between men and women.</p>
<p><strong><u><a href="http://retailblog.jll.com/wp-content/uploads/2017/11/Holiday-spending.png"><img data-attachment-id="2340" data-permalink="https://richard2496.wordpress.com/2016/07/28/2340/" data-orig-file="" data-orig-size="" data-comments-opened="1" data-image-meta="[]" data-image-title="Uber" data-image-description="&lt;h2&gt;China Finally Legalizes Uber and Didi&lt;/h2&gt;
&lt;p&gt;by Scott Cendrowski @scendrowski JULY 28, 2016, 8:30 AM EDT&lt;br /&gt;
E-mail Tweet Facebook Linkedin Share icons&lt;/p&gt;
&lt;p&gt;The long-awaited rules were light on requirements.&lt;br /&gt;
Uber operates in plenty of places where its service is neither legal nor outlawed—a limbo of an existence. China is no longer one of those places.&lt;/p&gt;
&lt;p&gt;Seven central government ministries today legalized ridesharing services in the country, releasing a long-awaited set of rules for Uber, bigger local rival Didi Chuxing, and others.&lt;/p&gt;
&lt;p&gt;The companies’ press releases about the news this afternoon read like thank-you notes.&lt;/p&gt;
&lt;p&gt;“[T]his is a welcome step in a country that has consistently shown itself to be forward-thinking when it comes to innovation,” Uber said.&lt;/p&gt;
&lt;p&gt;“We believe the Rules reflect the government’s open-minded regulatory approach to the mobile car-hailing industry in the broader context of the sharing economy,” Didi said.&lt;br /&gt;
You don’t hear companies encouraging regulation every day. But Didi and Uber were in a tough spot in China: the gray legal zone in which they operate left them vulnerable to the whims of bureaucrats. And though they still are in ways —local governments must adopt and execute the preliminary Chinese rules—a huge uncertainty is gone in the biggest potential market for ridesharing in the world.&lt;/p&gt;
&lt;p&gt;The rules don’t appear onerous, either. The main takeaways: Drivers must have three years experience, drive a vehicle with less than 370,000 miles (a point Didi celebrated because the alternative was an 8-year age limit), and companies must charge prices that do “not disturb the normal market order by operating at the prices below the cost of operations”—basically avoid the type of deep discounting that is already a thing of the past for Uber and Didi, according to the companies and reports.&lt;/p&gt;
&lt;p&gt;The State Council also indicated taxi franchise fees would be gradually phased out in favor of moving their services online. In that way, China is supporting ridesharing companies to a greater degree than many Western countries.&lt;br /&gt;
The regulations come just as the outlook is improving for Didi and Uber. Both are saying they are closer to profitability, thanks to a slowdown in the subsidy war the two waged in the country for more than a year. Now their legal limbo is no longer clouding that outlook.&lt;/p&gt;
" data-medium-file="" data-large-file="" class="wp-image-2340  alignright" src="https://i2.wp.com/retailblog.jll.com/wp-content/uploads/2017/11/Holiday-spending-e1509630123430.png" alt="" width="230" height="243" /></a>Gen Xers to outspend Boomers</u></strong></p>
<p>Whether consumers plan to shop before or after Thanksgiving, they still plan to spend. The average budget for gifts this year is approximately $740, with another $150 budgeted for holiday décor. Naturally, there is a direct correlation between income level and annual holiday budget. High income shoppers plan to spend more than three times as much as lower income brackets. Surprisingly, Gen Xer’s have now surpassed Boomer’s as the biggest spenders, with an average of $800 budgeted for gifts this year.</p>
<p><strong><u>Bricks outrank clicks as top shopping spots</u></strong></p>
<p>There is something about shopping in physical stores during the holidays. Almost 40 percent of consumers surveyed will shop at more than six stores this holiday season. Nearly two-thirds of shoppers indicated they will shop at superstores this year, while only about 44 percent will shop online for holiday gifts. Other popular store choices were department/apparel or accessories stores (48%), electronic/toys or game stores (35%) and bath/beauty or cosmetic stores (31%).</p>
<blockquote><p>“Consumers who plan to do the majority of their shopping online will still venture out to physical stores either to pick-up purchases ordered online, or buy high-end items they want to touch and test,” added James Cook, Director of Retail Research, JLL.</p></blockquote>
<p><a href="http://retailblog.jll.com/wp-content/uploads/2017/11/Where-they-shop.png"><img data-attachment-id="2341" data-permalink="https://richard2496.wordpress.com/?p=2341" data-orig-file="" data-orig-size="" data-comments-opened="0" data-image-meta="[]" data-image-title="" data-image-description="&lt;h2&gt;China Finally Legalizes Uber and Didi&lt;/h2&gt;
&lt;p&gt;by Scott Cendrowski @scendrowski JULY 28, 2016, 8:30 AM EDT&lt;br /&gt;
E-mail Tweet Facebook Linkedin Share icons&lt;/p&gt;
&lt;p&gt;The long-awaited rules were light on requirements.&lt;br /&gt;
Uber operates in plenty of places where its service is neither legal nor outlawed—a limbo of an existence. China is no longer one of those places.&lt;/p&gt;
&lt;p&gt;Seven central government ministries today legalized ridesharing services in the country, releasing a long-awaited set of rules for Uber, bigger local rival Didi Chuxing, and others.&lt;/p&gt;
&lt;p&gt;The companies’ press releases about the news this afternoon read like thank-you notes.&lt;/p&gt;
&lt;p&gt;“[T]his is a welcome step in a country that has consistently shown itself to be forward-thinking when it comes to innovation,” Uber said.&lt;/p&gt;
&lt;p&gt;“We believe the Rules reflect the government’s open-minded regulatory approach to the mobile car-hailing industry in the broader context of the sharing economy,” Didi said.&lt;br /&gt;
You don’t hear companies encouraging regulation every day. But Didi and Uber were in a tough spot in China: the gray legal zone in which they operate left them vulnerable to the whims of bureaucrats. And though they still are in ways —local governments must adopt and execute the preliminary Chinese rules—a huge uncertainty is gone in the biggest potential market for ridesharing in the world.&lt;/p&gt;
&lt;p&gt;The rules don’t appear onerous, either. The main takeaways: Drivers must have three years experience, drive a vehicle with less than 370,000 miles (a point Didi celebrated because the alternative was an 8-year age limit), and companies must charge prices that do “not disturb the normal market order by operating at the prices below the cost of operations”—basically avoid the type of deep discounting that is already a thing of the past for Uber and Didi, according to the companies and reports.&lt;/p&gt;
&lt;p&gt;The State Council also indicated taxi franchise fees would be gradually phased out in favor of moving their services online. In that way, China is supporting ridesharing companies to a greater degree than many Western countries.&lt;br /&gt;
The regulations come just as the outlook is improving for Didi and Uber. Both are saying they are closer to profitability, thanks to a slowdown in the subsidy war the two waged in the country for more than a year. Now their legal limbo is no longer clouding that outlook.&lt;/p&gt;
" data-medium-file="" data-large-file="" class="aligncenter size-full wp-image-2341" src="https://i1.wp.com/retailblog.jll.com/wp-content/uploads/2017/11/Where-they-shop.png" alt="" width="759" height="321" /></a></p>
<p><strong><u>Men and women seek different shopping experiences</u></strong></p>
<p>The majority of women surveyed plan to head to toy stores (54%) and department stores (53%) for gifts. They prioritize low prices above any other factor, while wide selection and convenient location tie for the second most important factor. These factors make them especially eager to turn to social media (62%) and retailer emails (62%) for shopping inspirations. On the flip side, the majority of men surveyed are stocking up on big ticket items at jewelry stores (75%) and electronic stores (62%). When choosing where to shop, men are more likely to prioritize customer service and product experts. Men surveyed tend to rely on word-of-mouth in deciding where and what they will buy this holiday season.</p>
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