What:  KPMG released its new holiday retail outlook report which projects sales 7% higher than last year.

Why it is important: Retailers see the upcoming holiday period as an opportunity to make sales despite the continued spread of the pandemic and the supply chain issues.

The report called “Merry and Bright” surveyed 114 U.S. retail executives across the country from companies of more than USD 500 in annual revenue and aims to reveal expectations for the 2021 shopping season. According to the report, retail executives expect that e-commerce sales will grow 35% compared to the year prior.

During the holiday season, executives will rely on the growing popularity of last-mile delivery options including buy online, pick up in-store, or BOPIS, curbside pickup and buy in-store with home delivery. They will also focus marketing efforts during this time, with a plan to spend 35% of their budget between Thanksgiving and New Year.

Meanwhile while retailers are positive about the upcoming holiday season, several issues with the potential to undermine sales expectations such as difficulties pertaining to shipping container capacity, port congestion, driver shortages and the Delta variant concerns pose a significant risk.

Retailers should begin addressing challenges now to prepare for what 's ahead by doubling down on digital, encouraging customers to purchase early, and emphasizing health and safety precautions.

Can Retailers Be Hopeful for the Holiday Season