Holiday Retail Sales Show 2022 Has Been a Good Year

The National Retail Federation (NRF) released its annual holiday forecast. It projects total holiday season sales between $942.6 billion and $960.4 billion in 2022.

Retailers continue to face challenges. The NRF expects inflation to hit near 40-year highs. This is expected to take a toll on holiday spending budgets. However, wages should be able to offset the toll.

Walmart and Target both ran deals campaigns for the holiday shopping season. They sold apparel items at a 20% discount during a two-week period ending September 17. In addition, the company’s sporting goods department saw a noticeable increase in discount prices.

Consumers are still looking for deals and savings. Despite reports of a looming recession, people are willing to trade down for value. As a result, retailers are struggling to rid themselves of excess inventory.

While many US consumers are excited about the holiday season, a significant number of them are sending mixed signals. Many are concerned about high prices and supply chain disruptions. Others are worried about the impact of higher interest rates. Still, most are not willing to cut back on gifts and experiences.

Consumers are expected to begin shopping early to beat rising prices. However, this year won’t come close to the sales levels of the last couple of years.

With inflation still high and consumers reluctant to spend, many retailers are turning to discounting to stimulate spending. However, they may find it difficult to reduce their inventories by cutting prices.

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