Inflation and interest rates impact consumer behavior this season

  • 33% of holiday shoppers plan to spend less this year due to inflation and high interest rates
  • Bankrate’s report highlights the impact of macroeconomic factors on consumer budgets
  • Early shopping starts for many as retailers like Walmart, Target, and Amazon offer October sales events
  • 42% of respondents plan to do most holiday purchases online
  • Gen Z shoppers increasingly using social media platforms for holiday purchases

Bankrate’s recent report reveals that concerns over inflation and high interest rates are causing holiday shoppers to be more cautious with their spending. Of the 2,300 surveyed, 1,789 plan to shop for the holidays this year, with many starting as early as Halloween. Retailers like Walmart, Target, and Amazon have responded by offering October sales events. Ted Rossman, Bankrate senior industry analyst, suggests that starting shopping earlier allows consumers to comparison shop and spread out their purchases. E-commerce is expected to dominate the season, with 42% of respondents planning to make most holiday purchases online. Social media platforms like Instagram, Facebook, and TikTok are becoming popular choices for Gen Z shoppers.

Factuality Level: 8
Factuality Justification: The article provides accurate information about the impact of inflation and interest rates on consumer behavior during the holiday shopping season. It cites a recent Bankrate report and includes relevant data from surveys to support its claims. The only minor issue is that it doesn’t mention the source of the Adobe Analytics report, but overall, the article presents objective information.
Noise Level: 3
Noise Justification: The article provides some relevant information about holiday shopping trends and consumer behavior during inflationary times but is mostly focused on repeating popular narratives without offering much analysis or new insights. It lacks scientific rigor and intellectual honesty by not exploring the consequences of decisions on those who bear the risks.
Financial Relevance: Yes
Financial Markets Impacted: Retailers such as Walmart, Target, and Best Buy; e-commerce platforms like Amazon; social media platforms like Instagram, Facebook, and TikTok
Financial Rating Justification: The article discusses the impact of inflation and high interest rates on consumer behavior during the holiday shopping season, which affects retailers’ sales and online platforms. It also mentions specific companies and their strategies to adapt to changing market trends.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of any extreme event in the text.

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