As the holiday shopping season approaches, retailers are rolling out early sales strategies to capture consumer spending against a backdrop of economic uncertainty.
With inflation concerns and fluctuating consumer confidence influencing purchasing behaviors, holiday shoppers are adopting a more frugal approach this year, with 33% planning to spend less than in 2023, Bankrate reported.
In August, consumer spending experienced a slowdown, rising 0.2% compared to July’s 0.5% increase. Data from the Bureau of Economic Analysis indicated that ongoing job growth pressures, along with early back-to-school and travel-related expenses, may have led households to reduce their spending.
The trend is concerning for retailers as they approach the vital holiday shopping season.
In response, major retailers like Walmart and Target are launching initiatives to entice buyers, with Walmart’s Holiday Deals event scheduled Oct. 8-13 and Target’s Target Circle Week Oct. 6-12.
Walmart+ members receive exclusive early access starting at midnight Eastern time Oct. 8. The sale begins online at noon Eastern time Oct. 8, with in-store sales starting Oct. 9.
Target Circle Week offers discounts of up to 50% across various categories. The event will feature automatic discounts for Target Circle members in-store and online, along with the return of daily deals.
Amazon’s Prime Big Deal Days is set for Oct. 8-9. Starting Oct. 8 at 12:01 a.m. Pacific time, Prime members will have access to early holiday savings on seasonal products, home essentials, toys and more during the 48-hour event.
Bedsure is participating in Amazon’s October Prime Day sale, offering discounts of up to 70% on a variety of home textiles, including flannel blankets, faux fur throws and more.
Best Buy will hold four themed sales events throughout October, including an Apple Trade-Up event where customers can trade in select Apple devices for discounts on newer Apple tech through Oct. 13. Plus and Total members receive 10% more on select Apple trade-ins.
Starting Oct. 25, Best Buy plans to celebrate the release of one of the season’s most popular games, “Call of Duty: Black Ops 6,” with a special sale across its gaming selection, including software, consoles and accessories.
Best Buy plans to continue its promotional efforts into November.
Meanwhile, Big Lots reintroduced its Black Friday Fridays, offering deals up to half off every Friday through Dec. 6. The event began Sept. 13.
The sales events come as consumer confidence in the economy is starting to improve. That could mean big paydays for retailers.
The latest reading of the University of Michigan’s Index of Consumer Sentiment was 70.1, up from 67.9 in August.
“While sentiment remains below its historical average in part due to frustration over high prices, consumers are fully aware that inflation has continued to slow,” Surveys Director Joanne Hsu said in a statement. “Sentiment appears to be building some momentum as consumers’ expectations for the economy brighten. At the same time, many consumers continue to report that their expectations hinge on the results of the upcoming election.”
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