Get Ready for the Holiday Shopping Season: Big Retailers Kick Off Sales Early
As summer comes to a close, the holiday shopping season is already upon us. Big retailers such as Amazon, Walmart, and Target are starting their sales events early, enticing consumers to begin their holiday shopping sooner rather than later. This shift in timing is motivated by various factors, including high prices, credit card debt, and the resumption of student loan payments.
“Retailers are trying to get a bite out of that holiday shopping sooner rather than later and maybe get little bites over a longer period of time,” says Natalie Kotlyar, a retail analyst at BDO.
Industry experts have mixed opinions about what to expect this holiday season. While consumer spending remains resilient and inflation has eased compared to last year, Americans are still prioritizing essential expenses such as gas and groceries over discretionary purchases. Additionally, interest rates have reached their highest level in 22 years, consumer debt is at record highs, and student loan payments are resuming for millions of borrowers.
Despite these challenges, many consumers view holiday gift-giving as a necessity and are willing to shop earlier, search for deals, or cut back on non-essential expenses. According to a survey by Bankrate, 41 percent of consumers plan to seek coupons, discounts, or sales, while nearly 1 in 3 plan to start shopping earlier than usual.
Marketers are capitalizing on this trend by increasing their advertising spending during October and November, primarily through targeted online ads, social media, and video streaming. A report from Proximic by ComScore and the ad tech platform Nexxen found that 86 percent of marketers plan to spend the same or more on advertising compared to last year.
The start of the holiday shopping season has gradually moved earlier in recent years, reducing the novelty of Black Friday. Retail giants like Amazon set the bar for early promotions, forcing competitors to follow suit. For example, Bookshop.org is offering free shipping to directly compete with Amazon’s Prime Day. The fierce competition has pushed retailers to launch their sales events earlier each year.
Consumers have also signaled their desire to shop early. Bankrate’s survey found that 26 percent of respondents plan to start their holiday shopping in October. Surprisingly, 12 percent of shoppers began their gift-buying before the end of August, while another 12 percent started in September.
As for specific sales events, Prime Day, Walmart’s Holiday Kickoff, and Target Circle Week have already taken place. Best Buy is offering member-exclusive discounts throughout the month, with a 48-hour flash sale coming soon. Home Depot’s “Decor Days” event is running through Monday, offering savings on various items. Ulta’s “Gorgeous Hair Event” and Sephora’s Beauty Insider will start later this month.
According to Adobe’s projections, online sales during the holiday season from November 1st to December 31st will reach $221.8 billion, a 4.8 percent increase from last year. However, overall spending is expected to be much higher, with 39 percent of consumers planning to do most of their shopping online and 29 percent planning to shop in person.
This holiday season, there is expected to be a rise in the use of buy now, pay later services like Affirm, Klarna, and Afterpay. During Amazon’s Prime Day, 6.4 percent of sales were made using these services. Consumers are drawn to these options as they often offer interest-free loans for a set period, which can be more attractive than using credit cards with higher interest rates.
Consumer behavior has shifted due to regular markdowns and sales events. Shoppers have become accustomed to waiting for promotions and comparing prices to find the best deal. This means that brand and store loyalty is often overlooked in favor of saving money.
So get ready for the holiday shopping season! With big retailers starting their sales events early and consumers hunting for the best deals, it’s bound to be a busy and competitive time for both shoppers and retailers.
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