Oct. 28, 2022
Consumers Face Different Challenges This Holiday Season
Consumers around the world are ready to celebrate the holidays again and, while they are less concerned about COVID this year, they are more concerned about the economy, says a study by IBM’s Institute for Business Value (IBV). Holiday shopping budgets are up eight per cent over 2021, but nearly half of consumers will spend less if inflation continues to increase prices. Fifty-nine per cent of shoppers are more worried about supply chain disruptions that could make holiday shopping harder or more expensive. If goods are not available due to supply chain issues, 41 per cent say they will spend less, but 30 per cent will spend more if they can find substitutions easily. Almost two in three plan to pre-order this holiday season to get their products on-time with guaranteed prices. At the same time, consumers want to keep their options open. Nearly seven in 10 will opt for brands or retailers that offer free cancellations, order changes, and returns, as well as a COVID-19-safe environment this holiday season. The study says these perks are often worth the price due to the continued worries around supply chain and product availability this season.