Excited for end-of-year shopping? US consumers are feeling good about the holidays.

Why Americans are shopping early ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

TODAY'S NEWS. TOMORROW'S INSIGHTS. A daily newsletter from McKinsey & Company   Edited by Belinda Yu   Editor, Atlanta Happy holiday shopping In the news • More holiday deals. The holiday season is a make-or-break time for many retailers. For department stores, the last two months of the year can make up to one-quarter of annual sales. But even as retailers confront a critical test, consumers contending with the rising prices of gas and groceries may be thinking about their budgets. According to a recent survey of 1,000 US consumers, nearly 60% said that they'd consider finances when making decisions about holiday shopping. Retailer leaders say that they expect to offer more deals to lure shoppers. [NYT] • Clearing out the old. Holiday pajamas, dresses for New Year's Eve, artificial fir trees: US retailers are stocking their shelves with last year's excess goods. In July, retail companies accumulated $548.8 billion in inventory, nearly 22% more than in 2021. Previous years have seen companies spending on cutting-edge gadgets, coveted toys, and fashionable clothes to increase store traffic. Now, some are working to clear out merchandise stockpiles instead. For consumers who are feeling the pinch of inflation, discounts will be most welcome. [Reuters] Higher-income and younger consumers are especially excited, with about two-thirds eager or excited for holiday-shopping season. On McKinsey.com • Happy holidays. As the holiday-shopping season draws nearer, US retailers face some big challenges. They've endured severe supply chain problems over the past few years, and now, consumer sentiment about the economy is historically low. Still, Americans are more enthusiastic about the holidays than they've been in years, find McKinsey senior partner Kelsey Robinson and colleagues. According to our latest Consumer Pulse Survey of more than 1,000 US consumers, 55% say they're excited about holiday shopping in 2022, up from 34% last year. • Early bird shoppers. US consumers are doing their holiday shopping earlier than ever, with 56% shopping in October instead of waiting for Black Friday sales in November, our survey finds. More than half of the consumers who say they're shopping earlier cite concerns about increasing prices or product availability. Several retailers have already moved their promotions to earlier in the year, such as one leading e-commerce company that held a mid-October holiday-shopping event. See three key discoveries about US consumers. Explore US shoppers' mindsets Was this forwarded to you? Sign up here. Or send us feedback—we'd love to hear from you. Follow our thinking This email contains information about McKinsey's research, insights, services, or events. By opening our emails or clicking on links, you agree to our use of cookies and web tracking technology. For more information on how we use and protect your information, please review our privacy policy. You received this email because you subscribed to the On Point newsletter. Manage subscriptions | Unsubscribe Copyright © 2022 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007