Dive Brief:
- Following sales growth predictions for the holiday season, consumer holiday-related spending rose by 6.7% compared to 2021, according to a new GlobalData report.
- The GlobalData survey of more than 55,000 consumers found that shoppers spent 8.4% more on Thanksgiving, 6.9% more during Black Friday and Cyber Week, and 6.5% more during Christmas and other purchases during the holiday season.
- However, inflation was a large reason for that growth, the report found. Thanksgiving volumes only rose 0.2%, and Black Friday and Cyber Week volumes dipped by 1.1%, while Christmas and other holiday season volume declined by 1.6%.
Dive Insight:
Retailers’ online sales this past holiday season were bittersweet. Online sales rose by 7.4% and physical store sales increased by 6.6%, according to GlobalData. However, the report noted that while online sales were helpful, the elevated costs of fulfilling online orders are cutting into retailers’ profits.
Other reports on in-store and online shopping during the 2022 shopping season show mixed results. The National Retail Federation said 196.7 million U.S. consumers shopped in-store and online between Thanksgiving and Cyber Monday, up 17 million from the year prior. On the other hand, a Placer.ai report noted that Black Friday in-store shopping at malls and big-box retailers saw a drop compared to 2021. Meanwhile, an Adobe Analytics report indicated that shoppers spent $11.3 billion during Cyber Monday sales, a 5.8% bump from the year prior.
Per GlobalData’s report, consumer holiday-related spending rose nearly 7% compared to 2021. In November, the NRF predicted that retail sales would increase between 6% and 8% between November and December 2022, in line with GlobalData’s findings.
On average, American shoppers bought gifts for about 4 people in 2022, down from roughly 6 people in 2021. Nearly two-thirds of shoppers (63.1%) set aside a budget for their holiday gift purchases in 2022, up from less than half (45.6%) in 2021, according to the report.
GlobalData’s report also indicated that more consumers were looking for discounts during the 2022 holiday season. The share of consumers who bought some holiday items at a discount increased from 38.4% in 2021 to 56.3% in 2022. Given the impact of inflation on consumer spending, enticing consumers with markdowns has been critical during this holiday season.
