Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a account? Log In

Five Trends to Watch for 2022’s Holiday Shopping Season

R.J. Hottovy
October 12, 2022
Five Trends to Watch for 2022’s Holiday Shopping Season

With Amazon’s second Prime Day event of 2022 scheduled for October 11th and 12th, we can safely say that the 2022 holiday season has officially kicked off. Most retailers and commercial property owners were hoping for a return to normalcy this year and there are clear signs that this year will look more like pre-pandemic holidays than 2020 or 2021. Still, this year offered its own set of challenges which are likely to impact year-end and early 2023 retail performance. Below are some trends we identified for the 2022 holiday season. For our ongoing analysis as the season unfolds, read our weekly executive insights on The Anchor.

1. Consumer Behavior will be Bifurcated. 

Much like the broader retail sector in 2022, this holiday season will likely see differing behavior between higher-end and budget consumers. Recent weekly foot traffic data shows luxury department stores outperforming both off-price retailers and the overall apparel average. Year-over-year (YoY) visits the week of September 26th were down just 3.3% for luxury department stores while off-price and overall apparel posted 7.2% and 8.7% dips, respectively. 

But while YoY visits to luxury retailers may be outpacing the wider apparel sector, the luxury category still took a hit relative to its own performance in 2021 – largely driven by a decrease in visits from middle-income. Foot traffic data indicates a decline in visits from trade areas with a large share of households earning less than $100K annually, as these households are likely facing more inflationary pressures and operating with tighter budgets due to the absence of stimulus checks. 

These trends could indicate that higher-income consumers will continue to spend this holiday season, while other consumers will have a more value-focused mindset. 

2. Continued Focus on Services over Physical Goods. 

One of the key trends that caught retailers off guard this year was consumers’ abrupt shift away from physical goods to out-of-home services as pandemic concerns dissipated and consumers were eager to get back in the public. Beauty and fitness both saw their visits skyrocket in 2022, with fitness visits up 16.7% and beauty visits up 5.8% for the week of September 26th relative to the equivalent week in 2021.

The beauty and wellness sector will likely continue to be one of the strongest categories in discretionary retail. The beauty category may well receive an additional boost in the coming months as consumers look for budget-friendly gifts, while January 2023 should provide fitness with the significant seasonal boost it missed in 2022. 

3. Home Entertaining Categories will be Strong

Home furnishings was one of the hardest hit categories in retail in 2022 as the category laps two strong years of demand and an unsteady housing market. And throughout the end of the year, inventory bottlenecks and higher prices for those retailers that manufacture overseas will still likely result in the home furnishing sector seeing store visits below other discretionary retailers.

Still, both high-end and budget retailers like Crate & Barrel, HomeGoods and others that specialize in entertaining products should see increased demand ahead of the holidays as both high- and low-income consumers plan for a COVID restriction-free holiday season. Interestingly, we’ve heard from several housewares retailers that food preservation products are seeing increased demand ahead of the holidays because of inflation.

4. More Store-in-Store Partnerships on the Horizon

As we outlined earlier this year, many consumer brands are finding success partnering with larger-box retailers for store-in-store partnerships (including Sephora and Kohl’s, Ulta and Target, Toys 'R Us and Macy’s, Disney and Target, and Petco and Lowe’s). Results have differed by brand and by category, but typically we’ve seen a mid-single-digit lift in visitation trends and an expansion in trade area when larger retailers add these store-in-store partners.

Last week ahead of the holiday selling period, Dick’s Sporting Goods and Peloton announced a store-in-store partnership whereby Peloton will sell its stationary bikes and other products in more than 100 Dick’s Sporting Goods stores. The store-in-stores will be staffed by Dick’s employees, and deliveries will be fulfilled by Peloton’s in-home delivery and installation teams. 

This announcement may indicate a trend of store-in-store partnerships announced ahead of the holiday season. It’s become more expensive for traditionally digital native brands (DNBs) to acquire customers due to changes in Apple and Google security and privacy actions, so partnering with established brick-and-mortar players allows DNBs to expand their reach while reaching new audiences. At the same time, legacy retailers can use these partnerships as an opportunity to differentiate their product assortment and add new experiential elements while diversifying the way it monetizes its store square footage. 

5. Dollar stores and Mass Merchants Will Continue to see Increased Visits

Already, dollar stores are seeing lower-income consumers trade down from traditional superstores such as Walmart, while superstores are seeing middle-income consumers trade down from other channels: Between January and August 2019, only 4.9% of residents in Walmart’s trade area had a yearly household income above 200K, compared to 5.2% in the same period in 2022. 

The impact of inflation will most likely continue into the holiday season, with consumers across the income spectrum looking for ways to save on gift and party shopping. 

New Year, New Challenges – and New Opportunities

While this year does not pose quite the same difficulty to brick-and-mortar retailers as the Delta-plagued 2021 season, 2022’s holiday shopping season still presents some significant obstacles. Still, along with the challenges come opportunities, and retailers who can appeal to customers’ current value orientation, tap into current consumer trends, or offer high-end shoppers a true luxury experience are well-positioned to benefit. 

For more data-driven retail insights, subscribe to the weekly Anchor newsletter. 

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Free
Oops! Something went wrong while submitting the form.
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In’s Q4 2022 Quarterly Index Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023 Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight
Three Ways Retailers Can Think Small to Increase Store Impact
Offline Beauty Is on an Upswing
The Evolving Migration Patterns of New York’s Florida Snowbirds Office Index: November 2022 Recap
How Viral Social Media Trends Can Drive Offline Engagement
Are You Ready for Some Football? Experiential Marketing Shows Promise
Mall and Shopping Center Trends For 2023
Retail Corridors and Indoor Malls: A Holiday Head-to-Head
Placer Bytes: Nike, lululemon, and GameStop Update Mall Indexes: November 2022 Update
Black Friday 2022: Consumers Hear the Call
Digitally Native Brands: Taking Off, Offline
Discount and Dollar Stores Leading the Pack
Turkey Wednesday 2022
Retail’s Evolving Holiday Season
Placer Bytes: Starbucks and Department Stores Ahead of Black Friday
Ulta: A Force to be Reckoned With
College Towns Drive Dining Growth
Foot Traffic Trends Reveal Consumers Ready for Holiday Cheer
How Retailers Can Win Big By Going Small
How Are Consumers Feeling Ahead of Black Friday 2022?
Off-Price, Hibbett, and Dick’s Pre-Holiday Check-in
Ho, Ho, Wholesale: Costco, Sam’s Club, and BJ’s
October 2022’s Retail Rebound
Target and Walmart Ahead of the Holidays
Home Improvement: Leave it to the Pros
Despite Inflation, Holiday Season is Off to a Good Start Office Index: October 2022 Recap Mall Indexes- October 2022 Update
Americans Double Down on Fitness
The State of Grocery
CVS and Walgreens: The Wave Continues
Coffee Chains Brewing Up Visits Spotlight: Pizza Players
What Drove COVID-Era Urban Migration Trends?
Kroger and Albertsons: A Merging of Strengths
Texas Roadhouse Innovations Dishing Up Success
Holidays on the Horizon: Mid-Range and Luxury Shopping
McDonald's and Chipotle's Post-Pandemic Success
Announcing’s Q3 2022 Quarterly Index
5 Hot Restaurant Brands for 2023
Target Finds a Winning Deals Day Formula
Five Trends to Watch for 2022’s Holiday Shopping Season
September 2022 Analysis: A Difficult Month and Time for Optimism
Inflation’s Retail Winners
Five Apparel Retailers to Watch Ahead of the Holidays Spotlight: Wawa’s QSR Pivot Mall Indexes: September 2022 Recap Office Indexes: September 2022 Recap
The Impact of Population Growth on Commercial Real Estate 
Starbucks' New Makeover
There's Somethin' About Pumpkin
Expanding Offline Reach
Breakfast Restaurants are Rising in Popularity
The Power of Labor Day 2022
Tourism in Miami Heating Up
Citi Trends on the Rise
Reaching Rural Consumers Through Retail Media Network
Darden Restaurants Cooking Up Success
The Home Improvement Sector: A Sign of Consumer Confidence
QSR Is Having a Northeastern Growth Spurt
Domestic Migration’s Ripple Effects
A Look Back at Back To School 2022
Kroger Digital Tell-All
The Return of In-Person Networking
The Reinvention of the American Mall Office Building Indexes: August 2022 Recap Mall Indexes - August 2022 Recap
Five Below’s Back to School Success
Plus-Size Fashion’s Staying Power
Placer Bytes: Best Buy & GameStop 
Petco Barking Up the Right Tree
Lipstick Effect Boosts Ulta’s Growth