CLEVELAND — Despite inflation dominating the headlines for the past 12 months and threats of a looming global recession, the National Retail Federation still expects a healthy holiday shopping season with retail sales expected to top $960 billion. However, that doesn’t mean consumers aren’t cutting back when and where they can.
A tour of Northeast Ohio’s major shopping centers on Thanksgiving night was devoid of large crowds and people camping out for Black Friday deals. After pandemic-related disruptions to the holiday shopping seasons in 2020 and 2021 as well as general shifts in consumer behavior, most major retailers scaled back their opening hours. Instead of opening on Thanksgiving, most retailers plan to open their doors in the early morning hours of Black Friday.
Shoppers have also hit the reset button.
As News 5 extensively reported this week, many shoppers at area grocery stores were keenly aware of inflation’s impact on the prices of their usual Thanksgiving Day spreads. Many are being more deliberate than they have been in prior years.
“Everyday shopping, it’s a struggle. It’s a struggle,” said shopper Melissa Conti. “For a while, I was able to kind of take a breath but now the way inflation is, not so much. Living paycheck to paycheck is a struggle.”
In many respects, inflation has been the story of 2022, affecting seemingly every American and every budget.
Largely triggered by the pandemic and the supply chain woes that followed, the cost of common goods and services has increased dramatically in the past 12 months, peaking at a year-over-year price increase of 9.2% in June for a common bundle of goods. The price increases for food have been even more dramatic. According to the Consumer Price Index, increases in the price of food skyrocketed in 2022, peaking at a 13% price increase year over year in August.
Despite these challenges, the National Retail Federation projects holiday retail sales to grow 6% compared to 2021 and 13% compared to 2020. Retailers have inventory to liquidate, which is welcome news for cost-conscious consumers.
