The trend: Inflation is expected to change holiday shopping behaviors as consumers look for ways to score deals and minimize expenses.
Shoppers feel the pinch: More than half (51%) of consumers plan to buy fewer holiday gifts this year, per a Salesforce report.
Looking for value: Where consumers last year prioritized availability over brand name, this year the emphasis will be on the price tag. Salesforce estimates that half of all shoppers worldwide will switch to a different brand this holiday season because of pricing.
What retailers should be doing: Target CEO Brian Cornell noted on the company’s most recent earnings call that despite the financial difficulties many households are enduring, the retailer has consistently found that consumers are excited about celebrating the holidays. While retailers should expect more shoppers trading down and purchasing fewer items, plenty of consumers will still take advantage of the occasion to splurge on premium items.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844