David Zalubowski / AP
With all possible predictions and measurements, this holiday shopping season will be a record break. In fact, this year-round shopping has set an unstoppable record even for the grinch.
To be exact, how big is the record?
US shoppers are expected to spend up to $ 859 billion from this month to next month. according to National Retail Federation. This can be 10.5% more than the amount spent in last year’s record holiday shopping season.
In addition, NRF $ 4.4 trillion – Yes, Trillion With NS — Used collectively in 2021.. In 2020, our shopping peaked at just $ 4 trillion.
One of the reasons is that this year’s holiday gift purchases started earlier than ever and retail spending increased. monthly From August. Still, I told NRF that more people are planning to shop this important holiday weekend than last year.And black friday It remains the day It attracts the maximum number of shoppers.
On average, people are expected to spend $ 785 on holiday gifts. according to Market research company NPD Group.
How good are the deals?
Store discounts will not be as deep as in the last few years. It’s profitable this year, but it’s also expensive for retailers, and retailers are discouraged and unable to increase sales.
NS Mass retirement The percentage of retail workers during the pandemic urged stores to raise wages faster than they have for years.For example, Amazon Disclosed Higher wages and other costs caused by a shortage of workers cost the company $ 2 billion in the previous quarter.
With factory closure Shipping bottleneck We also calculate the cost of stores. Gap says We expect to spend $ 450 million to send supplies by air rather than by a roaring port. We anticipate that supply chain disruptions will result in the loss of up to $ 650 million in sales.
What about inflation and highs?
According to the report, we see the sharpest rise in inflation since 1990. Labor Ministry data From October.And in research, people say this really worries them: consumer sentiment Low price for the first time in 10 years..But then they continue shopping — — And pay those higher prices.
This is really unusual. Consumer sentiment usually moves in sync with spending. But at least for now, inflationary concerns haven’t discouraged holiday shoppers.
“I think people are worried, but that’s a kind of positive fear,” says Akshat Goel, economist at data analytics firm IHS Markit. Goel also points out that some of the biggest price increases so far have been made. Food and gas, And they are usually not on anyone’s gift list.
In addition, he adds, this holiday season will set a spending record even after inflation adjustments. In fact, the surge in spending during 2021 was the main reason behind partnerships in ports and other regions. Shipping log jam..
Since 2020, when the trip was canceled, the wedding was postponed, and the summer camp was skipped, many people were able to spend their time in 2021 immediately. Federal pandemic aid provided a great boost to bank accounts and prompted holiday levels of spending at the beginning of the year.
Jack Klein Hentz as NRF Chief Economist put it, “Consumers are spending because they can …”
It’s Black Friday. Yes, we are shopping more than ever: NPR
Source link It’s Black Friday. Yes, we are shopping more than ever: NPR