Retail Outlook for Holiday 2022: The Strong Get Stronger

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As the 2022 fourth quarter kicks off, those retailers that have been weathering the choppy economy so far appear poised to come out on top when all the beans have been counted. Inversely, this holiday season may be the one that finally takes out some former leaders, especially those (e.g., Bed Bath & Beyond) that have been besieged by activist investors impatiently waiting for turnarounds.

The key factor this year’s challenges is no surprise — inflation.

A recent survey of 1,000 consumers by 4Over, a producer of printed materials for the retail industry, found that about 6 in 10 shoppers, “are stressed about buying holiday gifts this year due to inflation.” Three out of four expect prices to rise further this fall. But the key takeaway might be that nearly half of Americans told researchers that this year, “paying full price for something is a dealbreaker.”

First Insight’s latest report, The State of Consumer Spending: Inflation’s International Impact found that over eighty percent of international consumers have lower confidence to spend amid persistent inflation.

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retail  consumer spending  Holiday Shopping  inflation

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