The Clap
Online sales increased by 3.5% YoY to $211.7bn during the holiday season.
What
This increase was largely driven by record-high discounts, as shoppers have become more price sensitive and tend to hunt for bargains rather than splurge.
In 2021, shortages in products would drive consumers to pay more for products. However, fears of a recession and continuous economic pressure have changed consumer spending habits, pushing them to become more price conscious.
So What
With the Fed all but promising more interest rate hikes in the coming year, consumers are expected to remain cautious with their spending.
Now What
Online spending season reached record heights during the holiday, signifying the success of markdowns in attracting consumers.
