Big holiday deals are making a comeback this year—but customers might not be spending the big bucks like normal.
Key Details
- Big holiday savings are expected to kick back into gear this holiday season after retailers faced supply chain issues and big price jumps brought on by inflation.
- Big companies are starting to advertise upcoming holiday savings including Amazon, Walmart, and Target.
- “Last year, there wasn’t a lot of product and retailers didn’t need to discount,” says Edward Jones analyst Brian Yarbrough. “Fast forward to this year and we’re in the exact opposite situation.”
- Although the savings are big, the spending could be low.
Why it’s news
This time last year, retailers were facing supply chain issues and did not have an abundance of products to do sales on.
This year, due to inflation, customers have cut back on spending so retailers have an abundance of products and are preparing massive sales.
Retailers usually wait until November to begin dishing out the deals, but this year the savings are starting earlier.
Amazon announced its “Prime Early Access Sale” starting October 11 that is pushing major sales for shoppers. Along with the online retail giant Walmart and Target are also offering big deals this week.
Not as Much Sales
Although the discounts are expected to be big, the actual sales might not be.
Online holiday sales from November 1 through December 31 are projected to be $209.7 billion, up only 2.5% from a year ago, according to Adobe Analytics.
The reasoning behind the predictions is, Americans have been plagued with high inflation prices the past few months. They have had to spend more money on gas, food, and other necessities and won’t have the extra cash for gifts like normal.
Retailers are hoping that offering these big sales will entice customers to buy an abundance of products and clear the shelves, but if the predictions are true that might not be the case.
