Holiday shopping is expected to grow, boosted by inflation
Holiday retail sales are projected to grow by 4.5% to over $1 trillion despite consumer concerns over inflation and economic pressure. Analysts suggest that while spending remains strong, much of the growth is driven by higher prices rather than increased unit volume.
Why it matters
Provides insight into the health of the consumer economy and the impact of inflation on holiday shopping habits.
Despite macroeconomic pressures and a cautious consumer , retail sales this holiday season are expected to grow year-over-year as spending remains strong.
According to Bain & Company's annual forecast , holiday retail sales are expected to top $1 trillion for the first time, marking a 4.5% growth. That growth is largely projected to be from in-store sales at 70%, though e-commerce is continuing to gain share.
The holiday spending is supported by higher tax refunds , which are up $43 billion this year, or 17% year over year, adding more cash to consumers' wallets. Even still, the report noted that Bank of America estimates half of that benefit has already gone to higher gas prices , which have significantly squeezed budgets.
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