Americans’ good intentions around holiday spending seemingly didn’t survive the buffet of tempting deals For this reason, retailers launched Black Friday Cyber Monday This is the year. 

Seven out of 10 shoppers Inflation should be taken into account with According to a survey, more than half of respondents said they planned to buy fewer items and 27% reduced their gift-giving. recent RetailMeNot survey of more than 1,000 Americans.

Yet Adobe Analytics estimated The five days between Thanksgiving Day and Christmas Cyber Monday Online spending will reach $34.8 billion Cyber Monday This alone will be the largest shopping day in 2022. Retailers can expect to make between $11.2 billion-$11.6 billion. Black Friday sales rose 2.3% last year and are currently up 2.3%. with shoppers Spend $9.12 Billion online 

“After last year’s chip shortage, supply-chain issues, and scarcer deals, this year’s generous Black Friday discounts, especially on consumer electronics and clothing, are likely a nice surprise to shoppers,” Kristin McGrath is a RetailMeNot editor and shopping expert. The Sunday Review

The holiday shopping season is here deals Feel so hot

McGrath states that this year’s holiday shopping season saw retailers stockpile more home goods, electronics, casual clothing than last year. “That’s a far cry from everything being sold out early like it was last year,” She adds that the stockpile probably contributed to better 2022. deals. 

While Black Friday promotions started early—with some launching campaigns in early November—the bulk of the deepest discounts were still reserved for Black Friday Cyber Monday. For example, some clothing stores offer extra discounts with promo codes (in addition to sale prices) during Black McGrath explains that Friday will lead to greater savings, in an effort to entice customers. “Those early deals are always great for people who know what they want and are looking for specific items early in the season. But Black Friday is a strategic time to shop for those who are unsure, or who want to cast a wide net for deals,” She adds. 

These deals These were particularly appealing to Americans who are seeing lower prices this year due to higher inflation and increased prices. So it’s more than likely that the eye-catching Black Friday Cyber Monday Some promotions were prompted by shoppers They wanted to be able to afford some of the best stuff in the market. “wants” Column rather than the “needs” McGrath comments in the column That said, it’s worth noting that those increased spending numbers from Adobe Analytics likely also have some inflation-related cost increase baked in too.

Even without it, dealsAccording to the Federal Reserve Bank of St. Louis, the average inflation for holiday gifts is likely to be lower than the overall annualized inflation rate of 7.7% published in the consumer price index. Let’s take, for instance, these TVs. According to St. Louis Fed researchers the average price for new TVs has fallen 16.8% in the past year.

Prices for toys remained relatively stable year over year, while jewelry prices are on track to creep up slightly by 0.9%—yet that’s still a far slower price growth than the 7.3% jump seen in 2021.

Holiday shopping binge could This can lead to debt overhang come January

For America’s beleaguered shoppersThe lower prices and deep discounts are welcome, but they can be a bit overwhelming. could If they encourage consumers to spend more, it can be problematic. It could lead to consumers spending more. leave This is the price to pay when the holiday season ends. 

That’s because consumers are still feeling the pinch of inflation in overall spending despite taking advantage of holiday shopping deals. “Even if the cost of the gifts you want to buy isn’t being affected by inflation, if your budget is being drained by housing costs, transportation costs, your heating bill, and groceries, you’re going to have less room to spend on discretionary purchases like holiday gifts,” McGrath said. 

In many cases, Americans have already been putting the extra burden of inflation off—and onto their credit cards. Americans’ credit card balances jumped more than 15% during the third quarter of 2022, according to the Federal Reserve Bank of New York. New York Fed researchers concluded that this was the largest increase year-over-year in more than 20 years and continued the trend of rapid credit card growth. debt This was seen in 2022. 

Not only are Americans carrying higher credit card balances, they’re applying for more cards. Year over year, the number of Americans applying to credit cards has increased. the New York Fed found

All this comes at a moment when almost all delinquents are experiencing an increase in their rates debt Types after two years of historically low default rate. Many were affected by the COVID-19 pandemic in its early phases. banks and credit card issuers provided deferral and payment assistance programs These policies were able to stop default and delinquency, but they are now history. The rate at which credit card accounts moved into “serious delinquency,” meaning they were 90 days or more past due, increased by about half a percentage point year over year—a significant increase, but still below pre-pandemic levels for now. 

And credit cards aren’t the only method shoppers They are using these payment methods to pay for their purchases. The number of buy-now, pay-later (BNPL) transactions increased by 68% last week (Nov. 21–27), while revenue from this payment method jumped 72%, according to Adobe Analytics. 

Delinquencies in this area are increasing as well: The number borrowers with Minimum one serious delinquency rose from 2.93% users in 2020, to 3.79% by 2021. according to a September 2022 report from the Consumer Financial Protection Bureau. Nearly 10 percent of BNPL users had paid at least one late charge in 2021, a significant increase from 7.8% in 2020. 

The holiday is still possible, but it’s not the best time to go. deals are perhaps undercutting inflation’s impact on consumers’ gift-giving, come January, the bills will still need to get paid. “Each shopper is going to have to do their own math on what they can afford, but the fact they’ll have to do that math and make some cuts is inevitable for many,” McGrath said.

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