Tis the season to be spending

The 2021 holiday season saw historic growth. What’s in it for 2022?

Published on 2022-10-24

Black Friday, Cyber Monday, Christmas… the end-of-year holiday season frenzy is starting. Although it’s being met with economic difficulties, like inflation on the rise and multiple natural disasters, the spending forecast might not be what you expect.

When looking at behavior trends it’s important to look beyond economic factors. Our connection with others, emotions, and desires also play huge roles in the mix. So when hard times hit, people want and can push through. That’s something the pandemic has taught us. Many may find themselves looking to navigate the complicated economic environment we’re in allowing us to expect positive growth in sales overall.

These are two key trends that are shaping our prediction:

1. Post-Pandemic Effect:

Although much time has passed, we’re still seeing the effects of post-pandemic energy, excitement, and relief developing before us.

More in-person events, return to office modalities, more travel, basically anything in the realm of non-virtual activities continue to rise. This directly impacts apparel, outdoor accessories, holiday-themed props and decor, and even home improvements.

Another factor to keep in mind is the return of the in-store shopping experience. Of course, e-commerce is here to stay and strive, but there will be a boost in shopping in stores. This is because it provides the benefit of receiving purchases in real-time and of selecting and taking exactly what you want or need that is less likely to be returned.

2. Extended Holiday Season Research:

To offset the concerning cost-of-living raise, growing inflation, and other challenges, consumers will be taking advantage of the extended holiday shopping season. They’ll be monitoring prices, checking early deals, and purchasing goods and gifts ahead of time.

With tighter budgets, people are closely studying the market to get the most out of their money and the right item for what they’re looking for.

Additionally, being an early bird is a way to avoid getting caught in the multiple supply chain issues that surround the busy spending season.

3. Fear of Missing Out:

Even though consumer wallets have been negatively impacted by the economic circumstances, nobody wants to sacrifice the gift-giving drive of the holiday spirit. Many have been saving and counting on this time of year to treat their loved ones and deservedly treat themselves.

The anticipation of the last holidays of the year, and especially Christmas, has people ready to dip into savings, make some trade-offs and reduce unnecessary costs to participate in this shopping spree.

To conclude, there’s an abundant amount of in-store and online retailers disputing prices and deals, and today’s consumers are highly conscientious of the market making more thoughtful spending decisions. Although this year’s sales will not surpass those of 2021, we do expect high retail sales growth for 2022.

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