One-third of Consumers Plan to Cut Holiday Spending This Year as Inflation and Interest Rates Rise

33%

Due to inflation and high interest rates, 33% of consumers plan to spend less on holiday shopping this year, while 24% expect to spend more, according to a Bankrate report. Nearly a quarter of shoppers feel stressed about holiday costs, with Gen X feeling the most pressure. Meanwhile, many shoppers are starting earlier, with almost half beginning by Halloween.

16.2%

Globally, the Buy Now, Pay Later (BNPL) option has gained users' acceptance of 16.2% to reach US$484.7 billion and is now playing a vital role for retailers to connect with consumers. Driven by the rise of e-commerce and cashless transactions, BNPL appeals especially to younger generations, offering flexible, interest-free payment plans. With Klarna's integration for Adobe Commerce and Magento Open Source, merchants can enhance customer experience, boost sales, and attract new customers through flexible payment options and increased purchasing power.

58%

According to data from Bazaarvoice, many consumers are concerned about fake reviews, so many of the users particularly Gen Z opt for social media to seek product information on platforms like TikTok and Reddit. With rising mistrust of reviews on sites like Amazon due to misleading practices, the FTC has announced a ban on fake reviews starting in October. As shoppers look for authenticity, brands and influencers are shifting towards more engaging, authentic content to connect with consumers.

1,200

Bureau of Labor Statistics stated that, in the US advertising and related industries have seen a huge job loss of 1200 in August. The slower-than-expected job growth adds pressure on the Federal Reserve to consider interest rate cuts at its September meeting. Leisure and hospitality led job growth for private employers in August, adding 46,000 jobs, up from 24,000 in July. Construction also saw gains, while manufacturing experienced the largest decline, losing 24,000 jobs. Revised data for June and July shows that job additions were significantly lower than initially reported, indicating a sharper labor market slowdown than expected.

25%

After overcoming two years of declining growth, Snap is on track for record annual revenue, with a user base of over 850 million and a 25% increase in global content engagement in Q2. Despite lagging share prices due to slower ad growth, Snap is shifting from large brand advertisers to smaller, performance-focused ones, boosting lower-funnel revenue by 16% in Q2. The company aims to enhance its ad products by integrating various platform features, providing deeper insights and better results for advertisers.

44%

As per the iHeartMedia survey, 44% of US consumers feel that they were ignored by the media and advertisers. With 75% willing to pay more for brands that share their values, and 72% of them avoid the brands that ignore them, the report highlights a disconnect between marketers' priorities and consumer expectations.

0.7%

As per recent surveys, the users from Dollar Tree now moving to stores like Walmart and despite these circumstances, even though Dollar Tree reported a slight increase in Q2 sales by 0.7%, the overall net sales remain low. The company faces challenges from economic pressures, rising legal costs, and the ongoing transformation of its business, including the downsizing of Family Dollar stores and expansion in the Southwest. Meanwhile, changing consumer behavior and reduced SNAP benefits have impacted sales at both banners.