It’s that time of year –time to start talking about holiday shopping. This year, it is more important than ever to get a head start on your holiday season planning.
The 2022 retail holiday season is going to be much different than in years prior. There’s a lot to prepare for, and retailers will need to take a new approach to make a positive impact.
Here’s what you can expect over these next few months. Read to the end to learn seven actionable strategies to maximise your 2022 holiday sales.
Surging inflation and cautious consumer spending behaviour
Surging inflation will continue to impact the economy, putting pressure on consumers’ wallets as well as retailers’ budgets.
Inflation is the highest it’s been in the past 40 years. High inflation makes simple commodities like food and gas more expensive than they were in years prior. Higher costs for everyday goods directly reduce disposable income, negatively impacting consumer spending and increasing consumer focus on cheaper or discounted options.
What’s more, your customers also won’t have access to government stimulus money as they had in the seasons of 2020 and 2021.
Fears over an incoming recession will also play on consumer spending habits, as they become more aware of their budgets. Retailers will need to consider their own budgets as well, as these surging prices increase operational costs and harm bottom lines.
Supply-chain disruptions
Supply-chain disruptions will continue to impact retailers this holiday season, with ‘out-of-stock’ messages causing consumers to consider other brands, increasing the potential for customer churn. Your customers have learned from the holiday seasons of 2020 and 2021 and are now more comfortable exploring new brands that are better prepared.
At the same time, your customers are going to be more proactive about their spending and will opt to purchase earlier in the season to avoid missing out on products.
Additionally, even though in-store traffic is making a recovery, your customers will continue to rely on e-commerce as a leading source for holiday shopping.
How to adapt to this rapidly changing economic environment
Customer behaviour and priorities are changing, but don’t worry, there is still plenty of time to adapt and ensure your 2022 holiday season is a successful one.
We’ve put together seven actionable retail strategies that will help you maximise your holiday sales and retain that business well after the holiday season.
Read our guide to find out how you can embrace alternative channels, reduce reliance on paid media, combat declining discretionary spending, and more.
