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Holiday Sales Trends and Economic Impact
By O1ne Mortgage
Introduction
The holiday season is often considered the most wonderful time of the year, but it can also be a significant strain on the wallet. In terms of consumer spending, only the back-to-school and back-to-college seasons outpace winter holidays like Christmas and Hanukkah. This article delves into the trends in holiday sales growth and what they mean for the broader economic outlook.
Holiday Sales Growth in 2022
After a significant jump in 2021, holiday sales growth eased in 2022. According to data from the National Retail Federation (NRF), holiday sales reached $936.3 billion in 2022, a 5.3% increase from 2021. While this is higher than the average holiday sales growth rate of 4.9% over the past decade, it fell short of the NRF’s prediction of a 6% to 8% increase.
Factors Influencing Holiday Sales
Several factors contributed to the slower growth in holiday sales in 2022. Rising costs due to inflation and consumer concerns about a potential future recession played significant roles. A study conducted by CNBC in December 2022 found that 41% of Americans planned to spend less on holiday gifts in 2022 compared to 2021. The average planned spending was $907 in 2022, down from $1,004 in 2021.
Online and Nonstore Sales Lead the Way
Despite the overall slower growth, online and nonstore sales saw the most significant increase from 2021. With 87.2 million consumers shopping online on Black Friday and 77 million on Cyber Monday, it’s no surprise that this category led the way. Spending on groceries and beverages also posted a significant increase, partly due to the 11.8% rise in the consumer price index for food at home from December 2021 to December 2022.
Declining Categories
Not all categories experienced growth. Sales of furniture and home goods, as well as electronics and appliances, saw declines year-over-year. This could be due to continued supply chain bottlenecks affecting delivery dates for furniture or a shift away from the trend of home upgrades that began during the pandemic.
Economic Outlook
The holiday sales data provides valuable insights into the broader economic outlook. While the growth rate was lower than expected, the overall increase in sales indicates a resilient consumer market. However, the rising costs and consumer caution suggest that economic challenges remain.
Conclusion
Understanding holiday sales trends is crucial for retailers and consumers alike. As we navigate economic uncertainties, staying informed about spending patterns can help make better financial decisions. If you’re looking for expert mortgage services, O1ne Mortgage is here to help. Contact us at 213-732-3074 for all your mortgage needs.
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