Cautious spending dampens holiday shopping expectations
- Economists predict a more normal holiday shopping season compared to the pandemic years, with potential record sales unaffected by inflation.
- Consumers are significantly more selective in their purchasing behaviors, leading to some retailers missing earnings expectations.
- Despite economic uncertainties, there is growing consumer optimism which could contribute to a decent holiday shopping experience.
As the holiday shopping season approaches, retailers face a mixture of consumer optimism and caution. This year's shopping season is expected to be more normal than previous years affected by the pandemic, with economists suggesting it may set new sales records, though not adjusted for inflation. Neil Saunders, a retail analyst, pointed out that consumers remain selective in their purchasing as monetary constraints linger, leading to some retailers experiencing unexpected challenges in their earnings, as seen with Target's recent earnings miss. Despite the general sentiment, a survey revealed a rise in consumer confidence, suggesting potential for a decent season, especially around key shopping days like Black Friday, which has essentially become a week-long event. Retailers are deploying techniques such as discounting and in-store experiences to attract buyers, aiming to navigate this uncertain economic landscape effectively.