{"id":119162,"date":"2023-12-08T14:09:00","date_gmt":"2023-12-08T18:09:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=119162"},"modified":"2023-12-13T14:09:52","modified_gmt":"2023-12-13T18:09:52","slug":"us-holiday-sales","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/us-holiday-sales\/","title":{"rendered":"2023 US Holiday Sales Show a Complicated Economy"},"content":{"rendered":"\n

Is holiday spending breaking records or masking economic troubles? What’s the outlook for shopping trends? How are retailers being impacted?<\/p>\n\n\n\n

US holiday sales over Thanksgiving topped $10 billion online, but growth lags behind previous years. Shoppers are flocking to discount retailers, leaving traditional stores in the cold. \u201cBuy now, pay later\u201d programs are gaining traction, offering relief and risks for strained consumers.<\/p>\n\n\n\n

Continue reading to learn what the holiday sales numbers say about the US economy.<\/p>\n\n\n\n\n\n\n\n

Holiday Shopping in America<\/h2>\n\n\n\n

US holiday shoppers are spending at near-record levels this year, topping $10 billion in online sales<\/a> over Thanksgiving weekend alone. But shifting payment preferences and economic headwinds could dampen retailers\u2019 celebratory mood.<\/p>\n\n\n\n

Background<\/strong><\/h3>\n\n\n\n

Though US holiday sales comprise a modest part of the American economy, they contribute to total consumer spending, which fuels over two-thirds of the nation’s gross domestic product<\/a>. Experts say holiday spending reflects shoppers\u2019 mindset and is an indicator of retail sector health. <\/p>\n\n\n\n

The National Retail Federation has predicted a modest 3% to 4% uptick in holiday sales for 2023<\/a>\u2014a significant drop from last season\u2019s 9% surge. A November Conference Board survey<\/a> further indicates that Americans, while still buying, are feeling more fiscally cautious.<\/p>\n\n\n\n

Black Friday and Cyber Monday Results<\/strong><\/h3>\n\n\n\n

Experts say that initial Black Friday and Cyber Monday results offer retailers a reason for optimism, but also signal a shift in retail landscapes. <\/p>\n\n\n\n

Black Friday set online shopping records<\/a>, with spending climbing 7.5% from 2022 to reach a new high of $9.8 billion (alternate estimates suggest it hit $16.4 billion<\/a>). Cyber Monday followed suit with a 9.6% increase in spending\u2014roughly $12.4 billion.<\/p>\n\n\n\n

But there\u2019s more to the story. Experts predict a dampening holiday season<\/a> as dollar sales growth is set to decline from last year’s 6% to 3.3% in 2023. This not only falls below the pre-pandemic average of 3.9%, but is a stark contrast to the vigorous growth of previous years.<\/p>\n\n\n\n

Key Factors Impacting Consumer Spending<\/strong><\/h3>\n\n\n\n

Economists say Americans are tightening their budgets and looking for holiday bargains due to <\/strong>ongoing economic pressures<\/strong><\/a>: Home prices are at an all-time high, inflation continues to outpace the Federal Reserve’s 2% target, credit card debt<\/a> has hit record levels, student loan relief has ended, and rents are on the rise. <\/p>\n\n\n\n

The budget tightening is also evident in where<\/em> Americans are choosing to shop.<\/strong> Third-quarter sales reveal a shift in shopping trends, with more Americans favoring cheaper retail options over leading stores.<\/p>\n\n\n\n