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The Impact of Inflation on Early Holiday Shopping Deals

Inflation and

Early Holiday Shopping Deals

The holiday season is just around the corner, and many shoppers are already gearing up for their annual gift-buying sprees. However, this year’s shopping season has been slightly different since inflation has changed how people shop.

Inflation has driven early holiday shopping, with shoppers looking for the best deals before prices rise any further. Retailers are also responding with promotions and excess inventory to entice shoppers to spend early.

In this article, we will explore the early holiday shopping deals being offered by various retailers and the impact of inflation on consumer shopping habits.

Early Holiday Shopping Deals

The holiday season is typically marked by massive sales, with Black Friday deals being the most popular of them all. However, retailers have been making changes to their shopping events, reflecting the shifting habits of consumers due to inflation.

They are offering early Black Friday deals, enticing shoppers to start shopping before prices soar any further. JCPenney is one of the retailers that started early Black Friday deals in 2021, offering discounts across all product categories.

Walmart has also adopted this strategy with its “Black Friday Deals for Days” promotion. The promotion includes separate sale events, both online and in-store, throughout November to keep customers engaged and shopping early.

Macy’s is partnering with Toys “R” Us to offer shoppers online Black Friday sales, both ahead of and during the holiday period. Beauty lovers are not left out of early holiday shopping deals.

Ulta, the popular beauty retailer, is having a “Beauty Black Friday Sale,” with discounts on makeup, skincare, and hair care products. The retailer is also offering free standard shipping up to a certain amount.

For sport fans, Dick’s Sporting Goods is offering up to 50% off on select items, with a “best price guarantee” to ensure customers find the best deal. This promotion is attractive to sports enthusiasts who want the best quality products at the best prices.

Inflation and Consumer Shopping Habits

Inflation is the persistent increase in general prices over time, which can have severe impacts on consumers’ purchasing power. According to a GOBankingRates survey, 60% of Americans are concerned that inflation will impact their holiday spending, while 34% plan to spend less on holiday shopping due to inflation concerns.

The survey found that 63% of respondents said they plan to shop earlier this holiday season to avoid higher prices. Consumers are looking to take advantage of early shopping deals to maximize their purchasing power.

Consumers are also focusing on sales and promotions when holiday shopping, with 83% of respondents reporting that they’re on the lookout for holiday sales. Sales and promotions give shoppers the perception of saving money, providing a reason to spend more freely.

Retailers are also responding to consumer behavior by offering promotions and excess inventory to encourage early shopping. Retailers understand that customers are looking to save money, so they are offering discounts and promotions earlier in the holiday season.

Some retailers are also introducing excess inventory sales to clear out old stock and make room for new items.


Inflation has far-reaching consequences, including affecting holiday spending habits. Early holiday shopping deals are one way retailers are responding to increasing consumer concerns about inflation.

The deals encourage customers to shop early, allowing them to take advantage of lower prices before inflation kicks in. Consumers are focusing on sales and promotions, looking for ways to maximize their purchasing power.

Retailers are responding by offering promotions and sales earlier in the holiday season, as well as introducing excess inventory sales. As the holiday season approaches, it’s important to do your research and shop smart.

Look out for early holiday deals and promotions to maximize your purchasing power and gift-giving budget. Happy shopping!

Retailers’ Holiday Strategy

The holiday season is the busiest time of the year for retailers, and it is critical for them to have a solid holiday strategy.

However, this year’s holiday season comes with unique challenges due to supply chain issues, inventory management issues, and the need to clear past merchandise. Retailers are also predicted to have a more promotional holiday season, as forecasted by Mastercard’s senior advisor for 2021.

Supply Chain Issues

One critical factor affecting retailers’ holiday strategy is supply chain issues. Supply chain disruptions have been caused by the global COVID-19 pandemic, which has led to shipping delays, port congestion, and a shortage of workers.

Retailers have been struggling to receive their inventory on time, which has significantly impacted their ability to meet customer demand. Retailers need to work collaboratively with suppliers and logistics providers to manage these disruptions effectively.

This year, retailers are paying close attention to their inventory levels to avoid overstocking or understocking their stores. Understocking results in lost sales, while overstocking leads to markdowns, which can hurt retailers’ bottom line.

Forecasting Inventory Accurately

Another important aspect of retailers’ holiday strategy is to forecast their inventory accurately. Forecasting inventory levels during the holiday season is challenging because demand can be unpredictable.

Retailers need to plan their inventory based on past sales data and current shopping trends to ensure they have the right mix of products in their stores. This year’s holiday season is no exception.

Retailers must anticipate and plan for shifts in consumer behavior due to the COVID-19 pandemic, such as the potential for more online shopping and increased demand for home goods. Retailers that can forecast inventory levels accurately will be better positioned to meet customer demand while avoiding overstocking or understocking their stores.

Clearing Past Merchandise

Clearing past merchandise is yet another critical aspect of retailers’ holiday strategy. Retailers must make room for new seasonal products, which means that they need to clear out older merchandise to create space.

This helps ensure that customers can quickly find and purchase new seasonal items, and retailers can sell off old inventory before it becomes outdated. Clearing past merchandise can also be an opportunity for retailers to provide additional value to customers.

For example, retailers can offer deep discounts or bundle older items with new products to encourage customers to make additional purchases.

Promotional Holiday Season

Mastercard’s senior advisor, Steve Sadove, predicted that the holiday season would be far more promotional than last year. The advisory firm expects retailers to be discounting more heavily this year to compete for shoppers’ business.

According to Sadove, this year’s promotional activity is due to the ongoing COVID-19 pandemic, which has accelerated the shift in consumer behavior towards online shopping and focused on value and discounted goods. Consumers are now looking for more attractive prices, free delivery, and loyalty rewards to get the most value from their holiday shopping.

To entice shoppers to spend, retailers are offering additional discounts for early holiday shopping, free shipping incentives, and various promotional events to drive holiday sales.


The holiday season is critical for retailers, and it requires a well-planned and executed strategy. This year, retailers face unique challenges due to supply chain disruptions, the need to forecast inventory accurately, and the need to clear past merchandise to make way for in-season products.

The promotional holiday season expected by Mastercard’s senior advisor suggests that retailers need to be even more creative to attract holiday shoppers, including offering free delivery and loyalty rewards, amongst others. Retailers need to prioritize offering a seamless shopping experience across all channels to maximize sales potential, making it a win-win situation for both consumers and retailers alike.

In conclusion, retailers face unique challenges during the holiday season, such as supply chain disruptions, accurate inventory management, and the need to clear inventory. Retailers must plan and execute a well-thought-out holiday strategy that not only meets customer demand but also maximizes sales potential.

To entice shoppers to spend, retailers must offer promotional events, free delivery, and loyalty rewards, among others. One thing is for sure; the holiday season is crucial for retailers, and they must prioritize offering a seamless shopping experience across all channels to ensure holiday success.

The key takeaway is that retailers that adapt their holiday strategies amid challenging times can see an increase in sales potential and customer satisfaction.

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