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The holiday season is here, and for many shoppers, that means gifts are still on the to-do list before the last-minute rush sets in. Today marks National Shopping Reminder Day, a timely nudge to take action before the 30-day countdown to Christmas begins.
For consumers who still plan to shop, it’s a season of value hunting. Retailers like Amazon, Walmart, and T.J. Maxx (TJX+2.19%) are poised to do well, with bargain-driven shoppers flocking to these discount giants for deals.
Walmart, in particular, has been a standout performer this year, and its solid track record is expected to carry through the holiday season, Greg Zakowicz, senior e-commerce expert at software company Omnisend, told Quartz in an email.
With the convenience of online shopping, marketplaces like Amazon (AMZN+1.13%) and Walmart (WMT-1.24%) are expected to dominate, though brick-and-mortar stores remain strong contenders, especially for bargain hunters. Fast fashion giant Temu is also likely to benefit – and even snag a good chunk of marketshare.
“Temu will continue to eat away at Amazon as consumers are more price conscious,” said Jerry Sheldon, vice president of IHL Group, a global research and advisory firm.
“Bargain shopping” will be a major theme, as consumers opt for Walmart and other discount retailers. Sheldon expects Apple’s (AAPL+0.16%) new AI-enabled phone and laptops to be “hot” electronic items this year. However, AI-powered desktops won’t be available in time for Christmas, which he sees as a “big missed opportunity” for retailers.
Because of rising costs of living and inflation outpacing wage growth, many shoppers will be emphasizing cost-conscious gifting, with a shift away from expensive electronics and apparel in favor of more affordable, value-driven options.
Popular gifts this year will include toys and electronics, with the Blue’s Clues (PARA+2.34%) toy line and a “healthy dose of AirPods” topping the list, Zakowicz noted. While traditional gifts for children remain significant, the holiday season may not be as child-centric as in previous years – parents, spouses, and even pets are now at the top of many gift lists, according to an Omnisend survey. About 51% plan to shop for their parents, while 50% are buying for their spouses, and nearly 30% will spoil their four-legged friends with gifts.
The economic outlook for this year’s holiday season, however, is less than cheerful. Sheldon explains that, with inflation outpacing wage growth, holiday sales are expected to be flat or see only a modest increase of 1%. A “big drop” will come from shoppers who typically spend on themselves, and who account for 30% to 40% of holiday shopping. Those purchases will likely be postponed until January, when the big sales begin.
The National Retail Federation (NRF) predicts that holiday sales will increase by up to 3.5% this year, potentially reaching $1 trillion.
As National Shopping Reminder Day gives shoppers one last push before the holiday rush, now is the time to finish up that shopping and finalize budgets – before prices climb and deadlines hit.