Brands always look forward to the holiday season to meet and exceed their sales target, but sometimes it does fire negatively because of inflation and shifts in consumer behavior. As 2023 nears its end retail industries in the US and Europe, are still grappling with rising costs of living and inflation.
Consumers are holding tight onto their wallets and will not part easily with their hard-earned money unless there are worthy deals or bargains. The 2023 holiday season marketing will be marked by brands’ efforts to differentiate their offerings and meet consumer priorities for value and convenience. The holiday season is also critical for brands to strengthen their connection with consumers in the face of some difficult headwinds.
According to the National Retail Federation (NRF), about 182 million people are expected to shop during the Thanksgiving holiday weekend, an increase of nearly 16 million compared to 2022. This is the highest estimate since 2017. It stated that nearly 74 percent of holiday shoppers plan to shop during the five-day Thanksgiving holiday weekend, up from 69 percent from pre-pandemic 2019.
Researchers attributed this to too good deals that cannot be given a miss, and tradition. The report highlighted that Black Friday was regarded by consumers as the most popular day to shop, with 72 percent planning to shop. The second most popular day is Cyber Monday, which attracted 39 percent of shoppers.
Matthew Shay, president and CEO of NRF, said the Thanksgiving holiday weekend marks some of the busiest shopping days of the year. “Retailers have been preparing for months for this occasion. They are stocked and ready to help customers find the gifts and other items they want at great prices during the entire holiday season.”
The report highlighted that around 59 percent of holiday shoppers started browsing and buying from early November for the holiday season. They want to get a head start on their shopping. Phil Rist, executive vice president of strategy at Prosper Insights & Analytics, pointed out that earl shopping is a trend they have been tracking for several years. “There is evidence the deals and promotions from October resonated with consumers. More than 40 percent of shoppers say they took advantage of retailers’ October sales to shop specifically for holiday gifts, décor and other seasonal items.”
Consumers prefer to seek discounts ahead of major holiday retail events, while some like to shop all year.