Inflation Will Affect Consumer Habits in 2022 Shopping Holiday

With winter vacation approaching within the next two months, the shopping season is just around the corner in the United States. Many individuals have already made holiday spending plans ahead of time. However, due to the inflationary impact of 2022, prices of essential goods such as food, groceries, and electronic products have surged, leading many consumers to re-adjust their consumption patterns. Regardless, the goal remains the same for most: minimizing expenses while seeking high-value goods.

According to a Bankrate survey conducted in September, 11% of holiday shoppers started shopping before August's end, 14% planned to begin in September, and 25% are preparing to commence shopping in October. The majority, 38% of consumers, will launch their winter holiday shopping in November, while only a meager 12% wait until December to start. An astounding 74% of consumers intend to participate in winter holiday shopping this year. Yet, over 40% of shoppers indicate inflation will alter their holiday shopping practices, with many looking to cut back and save money.

Interestingly, the effect of income on holiday shoppers' spending habits is not different at all. 45% of holiday shoppers with household incomes below $50,000 a year say inflation will change the way they shop, while 41% of those with incomes between $50,000 and $79,999 keep the same attitude. 33% of those between $80,000 and $99,999 and 34% of those earning $100,000 or more said they would be affected.

This year, holiday shoppers are keen to implement money-saving strategies; 84% of respondents' plans include purchasing generic brands, locating coupons, reaping the benefits linked with credit card usage, purchasing used items, buying fewer products, and taking advantage of discounts offered by retailers.

According to a KPMG report, consumers may limit gift purchases for the holiday season, primarily focusing on low-priced items and budget-friendly brands. However, holiday spending is still projected to grow compared to the previous year. Consumers perceive it as necessary to prioritize essential needs such as groceries, prescriptions, vehicles, and personal care, while cutting back on non-essential items. With inflationary pressure and an ailing economy, the upcoming holiday shopping season poses a challenge for both shoppers and businesses. Companies must accommodate consumer financial constraints to ensure that both parties benefit.

Vivek Pandya, Principal Analyst of Adobe Digital Insights, highlights that retailers must adjust their tactics this holiday season to win over consumers rather than profit margins. "With the demand declining, businesses need to advertise and target consumers more effectively to reach those more likely to make purchases."

For consumers, Amy Goodman, a shopping expert at Dirt Cheap, suggests creating a budget and shopping plan early to find the best discounts when the holiday season rolls around. Pay attention to return policies and product prices at checkout to ensure you can capture any drops in price. By planning, you can allocate your limited holiday time to the family instead of being consumed by holiday expenses and money concerns. This way, you lessen the pressure of long lines and limited inventory, while ensuring a more fulfilling holiday experience.