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What effect will inflation and the economy have on holiday spending?
Stores this holiday shopping season are decking their halls with sales and advertisements hoping to lure customers in person or online.
Sunday, November 19th 2023, 6:53 PM EST
Updated:
Stores this holiday shopping season are decking their halls with sales and advertisements hoping to lure customers in person or online.
But just how much will people cut back due to inflation and the economy?
We find out what factors will impact their spending right up until Christmas, Hanukkah, and Kwanzza.
Christmas trees are up, so are sale signs meant to lure shoppers inside and intice them to buy.
So we ask John Rossi at YSU's Williamson College of Business if the Grinches of inflation, with high gas, high grocery, and high home costs will effect how much green changes hands this holiday season.
"About 60% to 70% of the people do their shopping in November so we're expecting to see a lot more volume done in November, and we have five weeks from Black Friday. So we'll be in good shape, Rossi said.
At the Eastwood Mall we found shoppers pleased with sales, many are looking for deals, and some are cutting back on how many people are their Christmas list due to the economy.
"I'm finding wonderful deals. I've been to Boskovs and they have the best. Then I'm going to H & M. I've got my grandsons with me and they're picking out stuff, and hopefully I'll be done," said Sue Kornbau.
"I'm spending a lot less. We cut out a lot of people. ... It's about family. As long as your with your family, your lucky enough to be with family that's all that matters, and it doesn't even have to be on Christmas," added Kornbau.
Leah O'Kresik who was shoping with her mom Sheila admits she traditionally sees what she wants and buys it, and laughed saying her friends called her the shopping queen, but the economy, and student loans for college means she is now going back to basice and looking for savings.
"Now since I just finished school. I just got a new job and I'm trying to save up money, so definitely like watching what I spend. Definitely looking for deals. ... With the economy now that put a damper on things, and student loans, so there's not a lot of extra spending money there," Leah O'Kresik said.
As they reflect, they'll focus more on the traditional meaning of Christmas.
"I'm spending less focusing on the family and more time together rather than gifts due to the economy," Sheila O'Kresik emphasized.
Others expect to spend about the same as last year.
"I don't do on line shopping. I like to shop like what I used to do as a kid however, I'm not going ot specifically look for deals. It just depends on like what the person I'm shopping for will get," Emily Semple said.
Because the last quarter of the year is critical to most retail stores bottom lines, folks can expect more events, and sales.
"A lot of retailers are starting what's called Black Wednesday now, which is running into Thanksgiving Thursday, and then Black Friday, and then we will have Small Business Saturday, and Cyber Monday. It's likely Cyber Monday will become Cyber Week," said John Rossi.
Retailers will look at sales and what they did during that critical period and determine if they need to do more that following week.