Shoppers are preparing to purchase their holiday gifts earlier this year, although the ongoing problems with inflation and gas prices continue to reshape buying habits, according to new data published by IBM’s Institute for Business Value.
The new data study found 2022 shopping budgets are up 8% from last year while 59% of consumers surveyed say they will be less concerned about Covid-19 while doing their shopping this season. However, two in three said they will be more concerned about the economy and 59% of respondents reported worrying more about supply chain disruptions that could make holiday shopping harder or more expensive.
As for the impact of current economic conditions, nearly half of consumers surveyed said they would spend less if inflation continued to drive price increases and more 60% will cut the non-essential categories like apparel, footwear, jewelry and accessories if costs become too onerous. But if gas prices go down, 35% of consumers surveyed said they will do more in-store shopping.
“According to the survey results, in 2022, consumers are hoping to re-embrace holiday traditions they’ve had to alter for the past two years,” said Karl Haller, partner and Consumer Center of Competency leader at IBM Consulting. “They’re starting their shopping and travel planning earlier but also want to hedge their bets with options like free returns or cancellations. To adapt to these changes in consumer behavior, retailers will need better visibility and traceability across product inventory, fulfillment, and returns. AI can help them understand, prioritize, and resolve critical issues in real time.”
