According to a recent report from Mastercard SpendingPulse, retail sales are expected to grow 7.1% this holiday season.
“This holiday season, consumers may find themselves looking for ways to navigate the inflationary environment – from searching for deals to making trade-offs that allow for extra room in their gift-giving budgets,” said Michelle Meyer, U.S. Chief Economist, Mastercard Economics Institute. “New job creation, rising wages and lingering savings should have many consumers ready and able to spend.”
The 2021 holiday shopping season proved to be a resurgence for consumers. Pent-up demand, supply chain logistics, and savings encouraged shoppers to embrace physical retail and fill their carts with gifts.
Retail promotions and in-store experiences will both be at an all-time high during this year’s positive holiday shopping season.
Key trends for holiday 2022 include:
Extended Holiday Shopping
Each year, holiday shopping promotions begin earlier and earlier. The season’s retail growth is expected to surge in October with early deals on the horizon. Black Friday will return with strength, but will continue to be a month-long savings event rather than one day. The combination of early shoppers and last-minute shoppers will bring an extended holiday shopping season for 2022.
Savings
Bargain hunting will be in full force this season. Consumers are looking to save the most money with deals, discounts, price matching and price monitoring.
In-Store Experiences
Holiday doorbusters and brick-and-mortar activations will work together to captivate today’s consumers and drive them towards stores during the holiday season. Holiday spirits are immediately boosted by in-store experiences and the sense of community it brings. In-store retail sales are expected to be grow 7.9% year-over-over.
Fashion-Forward Gifting
Revamped wardrobes will be a common theme for 2022 as consumers look to move past popular athleisure trends caused by the pandemic. Both apparel (+4.6%) and luxury (+4.4%) are predicted to be hot holiday gift sectors, sending consumers into the new year in style.
“This holiday retail season is bound to be far more promotional than the last,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated. “Easing supply chain issues coupled with the rapid shift in consumer spending trends and over-ordering inventory have left retailers in an interesting position ahead of the holidays. Retailers that were able to clear past merchandise and accurately forecast inventory needs will be the best positioned for growth.”
Source: Mastercard Spending Pulse – BusinessWire
Photo Credit: Pixabay
