The holiday shopping season holds significant importance for retailers, and the impact is particularly heightened in 2023 due to shifting consumer behaviors influenced by economic dynamics and evolving preferences. There are multiple factors shaping consumer sentiment during this holiday season. Our 2023 consumer holiday survey reveals that inflation remains a top concern for shoppers. This sentiment aligns with broad U.S. economic indicators, highlighting the challenges Americans face due to inflation, rising mortgage and interest rates, and the resumption of student loan payments. Consequently, many consumers find themselves with limited resources for discretionary spending.
However, amidst these concerns, there are notable positive indicators within the U.S. economy. Unemployment rates remain low, and consumers continue to engage in activities like dining out and traveling. Additionally, the third-quarter Gross Domestic Product (GDP) surged by 4.9%, surpassing analysts’ expectations and significantly exceeding the 2.1% increase in the second quarter. This robust GDP growth was largely propelled by consumer spending. The pressing question remains: how sustainable are current spending habits for shoppers in the long run?
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