Increased holiday spending fueled by deals and promotions, as per recent report
Holiday Shopping Predictions Point to Slower Growth Compared to Last Year
According to the International Council of Shopping Centers (ICSC), consumers are expected to increase their holiday spending by 6.7% this year compared to 2021. This slightly lower estimate is based on the results of the ICSC's Annual Holiday Shopping Intentions Survey.
The survey found that 75% of respondents plan to commence their holiday shopping earlier this year. Approximately half of respondents (48%) wish to shop early to secure the desired products, while 43% are searching for discounts and promotions. The survey also showed that 73% of respondents anticipate retailers to introduce Black Friday-like sales earlier in the fall, and 65% said they are prepared to devote a substantial amount of time searching for discounts.
The ICSC's prediction suggests that consumers are concerned about inflation, as 89% of survey respondents stated that inflation would impact their holiday spending. Almost half of respondents (42%) plan to purchase brands only when they are on sale, while more than a third (37%) intend to shop at affordable retailers.
In a statement, ICSC President and CEO, Tom McGee, said, "Shoppers are continuing to spend despite inflation and economic headwinds. While higher prices will drive some of the increase in holiday spending this year, retailers are poised for a successful holiday season."
The ICSC's growth estimate is somewhat lower than other predictions regarding consumer spending during this holiday season. A report by Mastercard, released in September, projected that consumers will spend 7.1% more in 2022 compared to the last holiday season, excluding automotive sales.
Research indicates that inflation could lead consumers to cut back on their holiday spending, look for deals early, and compare prices across various retailers this year. According to a survey by Gartner, released last month, while 10% of shoppers plan to spend more, 28% anticipate spending less during the 2022 holiday season.
The inflation's impact on holiday spending and shifting consumer behaviors have led retailers and analysts to adjust their 2022 holiday season forecasts. They are focusing on providing value and targeted promotions to maintain sales momentum. As the economic factors continue to evolve, it remains to be seen how consumer spending will fare during this holiday season.
- Given the concerns about inflation, consumers are intending to purchase brands only when they are on sale, as indicated by the ICSC's Annual Holiday Shopping Intentions Survey.
- In an attempt to secure the desired products and find discounts, a significant number of shoppers plan to commence their holiday shopping earlier this year.
- Retailers are expected to introduce Black Friday-like sales earlier in the fall, according to the survey, as shoppers anticipate these deals to help manage their budgets in the face of inflation.
- A study by Gartner shows that while some shoppers aim to spend more, a substantial number expect to cut back on their holiday spending in 2022, reflecting the impact of inflation and the shifting consumer behaviors.
