This year’s holiday season is going to be a gloomy one for retailers across the globe.
Shoppers plan to cut $55 billion from their non-food spending. And 58% are reducing their outlays, according to the Holiday Shopping Trends Report from Metapack, conducted by Retail Economics.
Consumers cite these reasons for their unease:
But what are retailers doing to offset their own rising operating costs? Their responses, which apparently come from other research, are not likely to please consumers:
The study puts consumers into four categories:
U.S. shoppers are not as troubled as the overall average:
But a majority of U.S. consumers are cutting back due to the rising cost of living:
In contrast, 40.1% of UK shoppers plan to cut all related spending.
The UK is facing a 22% reduction in holiday shopping spending, for a total of U.S. $5.2 billion. The U.S. will be taking a 14.4% hit totaling U.S. $30.6 billion.
Germany will suffer only a 9.4% slide, for $3.4 billion.
The following product areas will be seeing cutbacks:
Less-affluent consumers are being especially hard-hit.
What can brands offer consumers in their holiday emails and web promotions? Free returns are very important to 93% of shoppers, more than speed of delivery, the study states.
Retail Economics surveyed 8,000 consumers across the UK, USA, Canada, Australia, Germany, France, Italy and Spain in August 2022.