An Inside Look at What Some Retail Experts and Analysts are Predicting
The holidays are just around the corner, which is the most important season of the year for retailers across the country. Amid a confusing, ever-changing market with consumers and businesses holding their breath, many are wondering: how will spending look in 2023 compared to 2022?
The National Retail Federation released a forecast earlier this month, predicting that holiday spending is expected to reach record levels during November and December and will grow 3-4% between 2022 and 2023. They also shared that:
- Expected average spending on gifts and other holiday essentials is up from $833 in 2022 to $875 per person in 2023.
- 43% of shoppers started buying or browsing before November.
- The top five holiday shopping destinations in order are: online, department stores, discount stores, grocery stores, and clothing stores.
Boston Consulting Group just released their “2023 Holiday Retail Forecast,” which offers some interesting predictions using data collected in their holiday spend survey in October 2023. Here’s a summary of what they say retailers can expect:
Consumers are cutting back on food delivery and dining out more than retail shopping.
BCG predicts a favorable holiday season outlook in 2023, sharing that 74% of consumers surveyed expect to spend the same or more this holiday season.
Younger generations could be the driving force for sales growth this holiday season.
About 38% of Gen Z and 36% of Gen Y (Millennials) surveyed reported expecting to spend more in 2023 on holiday shopping, compared to 20% of Baby Boomers.
Consumers plan to spend more across all categories.
A higher percentage of customers plan to spend more during the 2023 season than 2022 in certain categories like luxury goods (27%), kids/teen (23%), electronics (22%), footwear (21%) and activewear (19%). A lower percentage of consumers plan to spend more on categories like personal care (9%), alcoholic beverages (10%), pets (10%) and entertainment/media (10%).
Half of consumers surveyed plan to complete their shopping by Black Friday and Cyber Monday.
The holiday season seems to get earlier and earlier. Early analysis and planning ahead is key to retail success.
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If you’re a retail chain, these reports give reason for optimism. Shopping habits have stabilized from pre-COVID levels. Some are predicting that Black Friday and Cyber Monday could see a big year.
Time will tell if these predictions are accurate, but retailers that see the greatest success are likely those that planned ahead, prepared for the increased traffic (online and foot traffic), and maybe even added new locations to serve more of their target customers.
SiteSeer can help your retail chain evaluate and select the best locations, but our powerful analytics platform can also help you run your business better overall, with tools to:
- Understand your customer
- Find new ways to target more of those customers
- Identify and analyze your competition
- Inform your marketing/advertising efforts with data about your existing and target customers
Contact us to learn more about how SiteSeer can power your retail business as you head into the holiday season and a brand-new year.
Planning for success in 2023 requires planning ahead. Read these recent posts for targeted advice and tips: