It’s ‘Deal or No Deal’ for Cash-Strapped Holiday Shoppers

Tight budgets are putting merchants in a bind this holiday season.

Fifty-six million consumers across the United States say they are skipping holiday shopping entirely this year — even more than at the height of the pandemic in 2020 — and 19% of those who are shopping say that limited funds are forcing them to cut back compared to years past.

“Deal Or No Deal: Holiday Shopping 2022” provides a snapshot of how historical inflation rates stand to cut into merchants’ holiday sales. We surveyed 2,439 consumers about how financial constraints are preventing them from
going all-out of their holiday shopping this year and what merchants can do to win over those still planning to shop.

Key findings from our research include the following:

• Fifty-six million consumers do not plan to shop for the holidays at all this year. This is more than the number that skipped shopping during the 2020 holiday shopping season at the height of the pandemic.

• Half of the consumers planning to buy less this year say it is because they simply do not have the money. Among consumers who say their income has not kept up with inflation, 62% are not shopping this year because of a lack of funds.

• Digital payments and financing options will be key to winning over the remaining holiday shoppers. More consumers paid using digital methods like mobile wallets, Venmo and even cryptocurrency than at any other time since 2020. Nearly half of holiday shoppers intend to finance some purchases using credit cards, loans or BNPL options.

Merchants must consider these three big insights when strategizing how to drive sales this holiday season. Deal Or No Deal: Holiday Shopping 2022 delves into further details about the consumer trends that will determine merchants’ success between now and the end of the year.

To learn more about what Black Friday sales can reveal about the rest of the 2022 holiday shopping season, download the report.