The 2022 holiday season is in full affect and excitement is at an all-time high; however, this year has a different feel. 2020 was different with the pandemic. But this year brings inflation and so many unknowns. Consumer demand has softened, while there is a surplus on inventory, higher than it has been in previous years. Due to the low economy and inflation US consumers are sending retailers mixed messages. Customers have the money to spend but are looking for ways to save more than splurge.
Keeping this in mind retailers started the holiday season off a little earlier than normal. Trying to get consumers to start shopping early. They are providing incentives such as:
- Membership benefits to drive loyalty and share increase of the wallet
- Price matching
- Widening the window of returns during the holiday season
Other subtle adjustments that are not noticeable to you or I is the hiring of fewer than normal seasonal employees thinking that growth will come. Also, retailers are utilizing and investing in data systems to predict shopping preferences and or habits and manage inventory. Here are some key take aways for 2022 holiday season
- Holidays are back -excited to go all out to celebrate for the holidays after three years of suppressed behavior from Covid-19 pandemic
- Shopping has begun- some consumers start shopping in October instead of waiting for the big rush
- Consumers are looking and wanting value- people are willing and ready to switch stores if they find a better price tag
Written by Senior Integrated Media Planner, Heather Russell
