US holiday sales to grow at slowest pace since 2018, report says

U.S. holiday sales are expected to grow at their slowest pace in six years, data from Deloitte showed on Thursday as persistent inflation and dried up savings turn shoppers more frugal for the all-important shopping period.

Holiday retail sales are likely to rise between 2.3% and 3.3% in the November 2024-January 2025 period, totaling up to $1.59 trillion, data report said, from a 4.3% growth to $1.54 trillion last year.Sales grew 3.1% in 2018.

WHY IT’S IMPORTANTHoliday season sales generally account for more than half of U.S. retailers’ annual revenue.

A shorter season this year – with only 27 days between Thanksgiving and Christmas – has pushed retailers into launching higher promotional discounts earlier in the season.

CONTEXTConsumers across all income brackets have been hit by lower personal savings, which dipped to about 3.4% in the recent months, compared to an average of 3.8% in June this year, according to the report.

Reuters