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2021 Holiday sales grew to $887B according to the National Retail Federation – a 14.1% increase from 2020. This happened in the face of incredible retail headwinds including labor shortages, supply chain problems, and the Omicron variant. But you don’t need to be an economist to know that the 2022 holiday season will be different. Inflation has been historically high and stubborn to all attempts to cool it down.
Like much in the contemporary US landscape, inequality and division are affecting the holiday retail season. Our research found that people are experiencing three entirely different holidays depending on psychological reactions to inflation. We’ve broken down the population into three distinct segments reflective of outlook and behavior.
The key to understanding consumer behavior during this holiday season is not just economics, but behavioral economics. The holidays invoke strong feelings. So does money. When they collide, you get the season we predict in this report.
Biggest takeaway? The psychological impact of inflation on the 2022 holiday retail season cannot be overstated.
Click ‘Download PDF’ below to dive into our key findings and advice for brands.