🗞️ Sales Slouching Into the New Year?
The party may be coming to an end for retail as brands gear up for slower sales. Nearly half of survey respondents expect their holiday sales to take a hit thanks to the economy. Looking into 2023 this jumps to nearly 2/3 of respondents.
This attitude is well-supported by the current consumer environment: Given the record-breaking start to the holiday shopping season, it’s clear that people are ready and willing to spend, despite all of the economic headwinds at play. Brands are likely looking to do what’s best for their bottom lines with the decision to forgo steeper discounts, and bet on shoppers’ willingness to pay full price (or close to it) to shore up their sales as much as possible heading into the uncertain environment waiting for us in the new year.
Reality begins where the free money train ends. And how much of this is a normalization from the recent boom?