Holiday Shopping Predictions for 2022
It’s the most wonderful time of the year! With summer in the rearview mirror and holiday shopping on everyone’s mind, we wanted to break down the retail sector’s predictions for how this shopping season might go. Inflation and the recession, coupled with supply chain issues and a tight labor market, are sure to make for an interesting season. But is it really all that bad? Let’s dive in!
Shifts in Timing
Many retailers still have a surplus of items they stocked up on during the pandemic that have since fallen out of favor with consumers. To get their inventory back on track, we predict a lot of heavy discounting heading into the shopping season. And since inflation is still high and consumer confidence is still low, shoppers are more likely to be spending earlier than ever–meaning they won’t be waiting until the last minute to get deals. According to YouGov, over half of U.S. consumers surveyed say they plan to begin shopping before November this year (that’s up from 30 percent in 2021). Because of this, the retail sector is likely to be putting their best promotions out first, rather than holding off until closer to December.
Spending Trends
Despite concerns over inflation, it’s still predicted that consumers will be spending more this holiday season. According to Deloitte’s annual holiday retail forecast, holiday retail sales are predicted to increase between 4 and 6 percent in 2022–totaling $1.45 to $1.47 trillion between November and January. E-commerce sales are also expected to grow by 12.8 – 14.3 percent as compared to last year. Consumers are more likely than ever to hit the web and research the best deals out there. There is also a ton of interest in free shipping and returns this season.
Increase in Discounts
It’s expected that business owners will continue to offer steep markdowns and promotions on their inventory. Keep your eye on the usual suspects, including Black Friday, Small Business Saturday, Cyber Monday, a second Amazon Prime Day, and more.
How to Engage
According to Simon Data’s study “Consumer Holiday Shopping in 2022,” shoppers overwhelmingly prefer email as a means to learn about deals or get responses to inquiries. But 34 percent would rather be contacted by SMS/text message about shipping updates. And once again, personalization is key: abandoned cart emails, curated sales, and personalized discounts are all ways to engage with customers and help maintain brand loyalty.
Social media also continues to be a huge driver of retail sales. According to Insider Intelligence, over 50 percent of adults in the U.S. will make a purchase through social media in 2022. If you haven’t started planning out your social media marketing strategy for this holiday season, it’s time to get going.
Getting your business ready for the holiday rush is easy with ARF Financial. Whether you need to ramp up hiring, update your marketing approach, or make some big changes to your storefront, we’ve got tips, tricks and great loan products to help. Swing by our blog, the Financial Pantry where you’ll learn all the latest and greatest news in the industry. Then, take a look at what makes ARF Financial your best trusted partner when it comes to small business loans. Happy holidays!