As major retailers begin rolling out deals to drum up sales during the upcoming holiday shopping season, unique challenges await. In 2023, retailers will have to navigate new realities ranging from heightened geopolitical tensions to supply chain disruptions to budget-conscious consumers.
The good news is that consumers plan to start holiday shopping earlier — and spend more — this year than they did last year. For instance, in the U.S., shoppers are expected to spend $875 on gifts, decorations, food and other seasonal items, according to a survey from the National Retail Federation. That amount is up $42 from 2022.
“Today’s consumers are tech-savvy phygital shoppers, and mobile devices have become their personal shopping companions. Their ability to snap up the best deals from any device, on any channel and at any time is a boon for retailers,” said Kayla Broussard, chief technology officer for the Kyndryl U.S. consumer and travel market. “But that also means it’s easier for consumers to shop multiple retailers, making the competitive landscape more challenging. Since people are shopping across channels, businesses need to offer experiential retail with desired products at great value.”