{"id":1684575,"date":"2022-10-12T07:08:03","date_gmt":"2022-10-12T11:08:03","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1684575"},"modified":"2022-10-12T07:08:07","modified_gmt":"2022-10-12T11:08:07","slug":"record-high-discounts-are-expected-during-the-holidays-despite-inventory-gluts-softening-consumer-spending","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/record-high-discounts-are-expected-during-the-holidays-despite-inventory-gluts-softening-consumer-spending\/","title":{"rendered":"Record-High Discounts Are Expected During the Holidays Despite Inventory Gluts, Softening Consumer Spending"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">26<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Frecord-high-discounts-are-expected-during-the-holidays-despite-inventory-gluts-softening-consumer-spending%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1684575&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"article-body\">\n<p>Adobe reported\u00a0that online shopping sales\u00a0in the United States will likely hit $209.7 billion during the <a href=\"https:\/\/www.theepochtimes.com\/t-holiday-sales\">holiday sales<\/a> season, as consumers struggle with high <a href=\"https:\/\/www.theepochtimes.com\/t-inflation\">inflation<\/a> and a weakened economy.<\/p>\n<p>The software company predicted<a href=\"https:\/\/news.adobe.com\/news\/news-details\/2022\/Adobe-Forecasts-209.7-Billion-Holiday-Season-Online-U.S.-Cyber-Monday-to-Top-11-Billion\/default.aspx\"> in its Oct. 10 report<\/a> that online sales will slightly grow 2.5 percent year over year from Nov. 1 to Dec. 31.<\/p>\n<\/div>\n<p>Shoppers spent $204.5 billion online during the 2021 holiday season, a growth of 8.6 percent from the previous year, after consumers were reluctant to shop at physical retail stores due to the pandemic.<\/p>\n<p>Almost half of the projected online customer spending is expected to come from\u00a0electronics,\u00a0at $49.8 billion, up 2.9 percent.<\/p>\n<p>This was followed by apparel, which is projected to hit $40.7 billion in online purchases, while groceries are set to reach $13.3 billion in sales online.<\/p>\n<p>However, the holiday season is expected to influenced by an \u201cuncertain economic environment\u201d due to higher prices, volatile markets, and rising borrowing costs.<\/p>\n<p>Inflation\u00a0rose 8.3 percent in August from the same time in 2021 and 0.1 percent from July, according to the Department of Labor last month.<\/p>\n<p>Food, housing, and gas were up 11.4 percent, 6.2 percent, and 25.6 percent, respectively, from a year ago.<\/p>\n<p>The\u00a0Federal Reserve\u00a0has been aggressively raising interest rates this year, and has made three consecutive hikes of 75 basis points in its efforts to combat inflation.<\/p>\n<p>\u201cConsumers are battling inflationary pressures, but getting the best discounts they\u2019ve seen in years because retailers have quite a bit of oversupply of inventory. They will definitely be spending earlier and spreading their spend across the season because discounts are spreading across the season,\u201d Vivek Pandya, lead analyst at Adobe, <a href=\"https:\/\/wwd.com\/business-news\/retail\/adobe-holiday-sales-up-just-2-5-online-1235382331\/\">told Women\u2019s Wear Daily.<\/a><\/p>\n<h3>Holiday Season Sales Expected to Decline This Year<\/h3>\n<p>Many retailers are still dealing with a glut in their inventory, which has hurt profit margins, as they attempt to sell off the excess stock.<\/p>\n<p>\u201cThe supply chain has eased, and the demand has slowed for goods, so retailers are trying to offload inventory and drive up growth by bringing prices down, which means cutting into profit margins but also opportunities to win consumers and drive loyalty for the long term.\u201d<\/p>\n<p>\u201cCyber Week,\u201d which lasts from Thanksgiving to \u201cCyber Monday,\u201d will likely haul in a total of $34.8 billion, an increase of 2.8 percent from last year, said Adobe.<\/p>\n<p>The largest online discounts are expected to reach consumers between Thanksgiving and Cyber Monday, as retailers \u201ccontend with oversupply and a softening consumer-spending environment.\u201d<\/p>\n<p>Last year, Cyber Week made up 16.6 percent of sales for the season, but it is expected to fall to 16.3 percent of the total holiday season\u2019s online spending in 2022.<\/p>\n<p>Cyber Monday, the year\u2019s biggest online shopping day, is expected to rake in a record of $11.2 billion in spending, which is an increase of 5.1 percent from last year, according to Adobe.<\/p>\n<p>\u201cBlack Friday\u201d online sales are projected to grow only by 1 percent this year, at $9 billion, but Thanksgiving sales are predicted to fall to $5.1 billion, a decline of 1 percent from 2021.<\/p>\n<p>Amazon also\u00a0announced that it will hold a second \u201cPrime Day\u201d from Oct. 11\u201312, which Adobe said will encourage consumers to hopefully spend earlier this year before the holidays.<\/p>\n<p>Target and Walmart both said that they will also hold\u00a0early holiday sales events in October.<\/p>\n<p>\u201cThe shape of the holiday season will look different this year, with early discounting in October pulling up spend that would have occurred around Cyber Week,\u201d said Patrick Brown, vice president of growth marketing and insights at Adobe.<\/p>\n<p>\u201cEven though we expect to see single-digit growth online this season, it is notable that consumers have already spent over $590 billion online this year at 8.9 percent growth, highlighting the resiliency of e-commerce demand.\u201d<\/p>\n<p>Discounts are expected to reach 20 percent from the day after Cyber Monday through the remainder of the year.<\/p>\n<p>Computers, electronics, and toys will have the most significant discounts, reported Adobe.<\/p>\n<p>Adobe believes that the traditional holiday shopping day sales are losing their effect, as online shopping becomes a common daily activity and consumers receive discounts on a regular basis throughout the season.<\/p>\n<div class=\"author_wrapper\">\n<div class=\"one_author_block round\">\n<div class=\"top_row\">\n\t\t\t\t\t<a href=\"https:\/\/www.theepochtimes.com\/author-bryan-jung\"><\/a><\/p>\n<p>Follow<\/p>\n<\/div>\n<p>Bryan S. Jung is a native and resident of New York City with a background in politics and the legal industry. He graduated from Binghamton University.\n<\/p>\n<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Adobe reported\u00a0that online shopping sales\u00a0in the United States will likely hit $209.7 billion during the holiday sales season, as consumers struggle with high inflation and a weakened economy. The<\/p>\n","protected":false},"author":1,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1684575","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1684575","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1684575"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1684575\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1684575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1684575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1684575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}