US Retailers See Uptick in Holiday Sales Amid Pandemic-Era Savings Dwindle

As the holiday season approaches, US retailers are seeing an uptick in sales, which marks a recovery from last year’s holiday season. In 2020, high inflation impacted consumers’ spending power, leading retailers to heavily discount their inventory. This year, holiday shopping is seen as a bellwether for US consumer resilience as pandemic-era savings dwindle and interest rates remain high.

According to a gauge from Salesforce Inc., US online sales grew by 9 percent year-on-year, driven by categories such as footwear, sporting goods, health, and beauty. However, clothing, home, and beauty showed the biggest discounts.

Online sales leading up to Cyber Monday on November 27 will provide companies with an early sense of holiday-season performance, as they await slower brick-and-mortar data. Initial forecasts for November and December point to dismal sales growth, with Salesforce predicting online sales to grow by only 1 percent compared to 2022, the slowest pace in at least five years. Adobe expects revenue to grow by 4.8 percent, far behind the pre-pandemic average annual growth rate of 13 percent. However, the two companies analyze different transactions, which accounts for the variation in their numbers.

Meanwhile, Canada-based e-commerce marketplace Shopify Inc. reported that global Black Friday sales rose by 22 percent, with categories like clothing, personal care, and jewelry leading the way. This data provides insight into the changing landscape of holiday shopping, as consumers continue to adjust their spending habits amid evolving economic conditions.