Holiday Sales to Grow Slowest in 5 Years as Shoppers Curb Spending Amid High Inflation

U.S. holiday sales in 2023 are expected to rise at the slowest pace in 5 years, per National Retail Federation data. Sales are forecast to grow 3-4% to $957B-$967B.

Shoppers are being more calculated with spending due to high inflation, rising food/fuel prices, student loan repayments.

Online and non-store sales are expected to increase 7-9% to $274B-$279B.

Retailers like Walmart and Macy's are seeing fewer visits to physical stores despite early holiday promotions.

Warmer weather likely contributed to reduced in-store traffic compared to last year. Foot traffic is predicted to drop up to 3.5% year-over-year per Sensormatic data.