Over 60 per cent of consumers in the US will cut down on non-essential categories like apparel, footwear, jewellery, and accessories if they are forced to reduce their holiday shopping budget. So says International Business Machines (IBM).
Nearly half of consumers will spend less if inflation continues to drive price increases. As Covid pandemic concerns abate for many consumers, worries are shifting towards uncertain economic and supply chain conditions this holiday season. Moreover, 2022 shopping budgets are up eight per cent over 2021. However factors including inflation and price increases have made economic concerns top of mind this holiday season. While 59 per cent of consumers will be less concerned about Covid, two in three say they will be more concerned about the economy. Fifty-nine per cent of respondents worry more about supply chain disruptions that could make holiday shopping harder or more expensive. In 2022, consumers are hoping to re-embrace holiday traditions they've had to alter for the past two years. They’re starting their shopping and travel planning earlier but also want to hedge their bets with options like free returns or cancellations. Uncertainty around inflation, gas prices, and supply chain is driving consumer plans. To adapt to these changes in consumer behaviour, retailers will need better visibility and traceability across product inventory, fulfilment, and returns.
By Fashionating World