In a typical year, the last quarter holds a lot of optimism for retailers: the holiday season draws heavy foot traffic to stores, increased spending on digital, and accounts for a significant portion of annual sales. In fact, November and December alone can generate up to a quarter of annual sales (and significantly more in profit) for department stores and specialty retailers.
This year, there is a very different story beginning to unfold. A&M’s survey revealed that 70% of consumers will alter their holiday spending habits compared to last year, with nearly 50% of consumers saying they have already been forced to alter their spend on various items. We are potentially on the cusp of one of the most disappointing holiday seasons in over a decade.