As we head into the heart of the holiday shopping season, consumers, despite inflationary pressures, seem to be in a spending mood, which is good news for many small businesses. According to the latest Mastercard SpendingPulse, overall retail sales grew 11% year-over-year in September 2022, and e-commerce sales rose 10.7% in the same period.
While spending on home goods was down, “experiential spending continued to grow,” with restaurant spending up 10.9% year-over-year.
And there’s more good news—the KPMG’s Consumer Pulse Survey: Holiday 2022 report says consumers will be spending about 6% more this holiday than last year, even though they expect to buy gifts for fewer people. On average, shoppers plan to spend $1,072.
“While consumers remain resilient and plan to spend a bit more this holiday season, it will likely not outpace inflation,” said Matt Kramer, KPMG consumer and retail national sector leader.
The KPMG survey also found that shoppers are flocking back to retail stores, leaving online spending “relatively flat.” Holiday shoppers do have some concerns, though, including inflation (85%), stores being out of merchandise (63%), and shipping delays (57%). And about half of the holiday shoppers who are concerned with finding products in stores and/or shipping delays plan to start shopping early this year (meaning now). Most also plan to shop on Black Friday (60%) and Cyber Monday (about 50%).
Clothing and retail gift cards top consumers’ shopping lists. Retailers should be aware that shoppers are looking for deals and promotions this year, and make sure you carry gifts in a range of prices, so there’s something to fit all your customers’ budgets.
Both surveys covered here were published in Chain Store Age. If you’re a retailer, it’s well worth reading.
Holiday shopping stock image by DGLimages/Shutterstock