Six Key Takeaways for Retailers to Drive Holiday Success
Consumer sentiment has risen slightly in the last few months, though it remains at historically low levels. The Consumer Sentiment index hit an historic low of 50.0 in June 2022. The index has risen slightly to reach 59.8 in October, but consumer sentiment has not been this downbeat since November 2008 when it registered 55.3. The Expectations Index declined over 3% in October as consumers wrestle with continued uncertainty over inflation as we head into the holidays. And while the rate of inflation has slowed a bit of late, the U.S. savings rate is down, revolving credit levels are up, and shoppers are challenged to manage the cost of basic goods, housing costs, and fuel prices.
Against this backdrop Ankura’s Retail team conducted a survey among U.S. consumers to understand how they are feeling about the U.S. economy and their personal financial situation and how they plan to shop and – critically – spend for the holidays in 2022. Based on the survey feedback, holiday sales could show slight improvement compared to 2021. Retailers will have to work strategically to earn shoppers’ patronage during what promises to be a competitive battle for their share of wallet.
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