Consumer anxiety and uncertainty are higher than we’ve seen in decades.
In our 2021 holiday shopping and travel report, we saw the first hint of waning consumer interest from the opposite ends of the generational spectrum, namely Generation Zers and Baby Boomers. The data for the 2022 holiday season show that millennials and Gen Xers have joined the other generations in their general despair and lack of enthusiasm for holiday shopping, travel and planning, as well as holiday activities across the board.
Furthermore, the Consumer Confidence Index (CCI) shows a steep decline in consumer confidence, which is negatively impacting consumer purchasing and holiday travel plans, and will likely continue into the 2022 holiday shopping season and beyond.
Our recent study confirms this, as we found a noteworthy decline in confidence when it comes to consumers being able to shop and travel where and how they like in the upcoming holiday season. Only 42% of consumers feel confident they’ll achieve their 2022 holiday plans, which is down from 66% in 2021. Additionally, interest in holiday shopping, holiday traveling and holiday activities is significantly down compared to 2021.
Are retailers destined for gloomy holiday retail sales? Not necessarily. With some well-thought-out research and strategy, retailers can find positive ways to engage with their customers.
Retailers need to engage consumers with programs and services that make the shopping experience memorable and enjoyable. This will help brands come out on top this year, and—more importantly—secure a deeper sense of customer loyalty.
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