The launch of the iPhone X and online competition is expected to make it even harder on brick-and-mortar stores this holiday season. Holiday apparel sales are expected to drop for the first time since 2008. Specialty retail, department stores and footwear retailers are all expected to take a .4% dip in sales. According to Morgan Stanley, Amazon will account for up to 50% of US retail sales this holiday season.
Another major challenge facing retail this season is the latest gadget in technology. The new iPhone X, which cost $999, will be taking a large chunk out of consumer’s wallets. The Apple iPhone X could absorb up to $30 billion of discretionary spending this holiday season. As consumers search for products online and spending is targeted towards the new iPhone X, the brick-and-mortar sector may see a loss in income this holiday season.