Dive Brief:
- In a slightly lower holiday sale prediction, the ICSC estimates that consumers will spend 6.7% more during this holiday season than last year, according to its Annual Holiday Shopping Intentions Survey results.
- According to the survey, 75% of respondents said they planned to begin shopping for the holidays earlier this year. While 48% of survey respondents wanted to shop earlier to secure the products they wanted, 43% said they’re seeking deals and promotions.
- The survey found that 73% of respondents expect retailers to introduce sales similar to Black Friday deals earlier in the fall. Nearly two-thirds of respondents (65%) said they are going to spend significantly more time looking for discounts, per the survey.
Dive Insight:
The ICSC’s survey is yet another indicator that consumers are worried about inflation. The survey found that 89% of respondents said inflation would affect their holiday spending. Under half (42%) of respondents planned to buy brands once they were on sale, and more than a third (37%) said they will shop at retailers that tend to sell affordable goods.
“Shoppers are continuing to spend despite inflation and economic headwinds, and while higher prices will drive some of the increase in holiday spending this year, overall retailers are poised for a successful holiday season,” Tom McGee, president and CEO of ICSC, said in a statement. “Consumers are particularly interested in deals and promotions, and retailers should make the most of deal events and other milestones this holiday season.”
The ICSC’s growth estimate is somewhat lower than other predictions regarding how much consumers will spend this holiday season. A Mastercard report released in September predicted that consumers would spend 7.1% more in 2022 than last year’s holiday season, excluding automotive sales.
Other research suggests that inflation will cause consumers to cut back their spending, look for holiday deals early and compare prices across a range of retailers this year. A Gartner survey released last month found that while 10% of shoppers plan to spend more, 28% anticipate spending less during the 2022 holiday season.
