Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Five Trends to Watch for 2022’s Holiday Shopping Season

by 
R.J. Hottovy
 on 
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 Placer.ai Free
Oops! Something went wrong while submitting the form.
Text Link
Beauty
Text Link
Fitness
Text Link
Retail
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In
Placer.ai Office Index: April 2024 Recap – Recovery Continues
Movie Theaters in Q1 2024: A Preview of Coming Attractions?
Let’s Get Physical: Fitness In 2024
Where Are Workers Returning to Office in 2024?
2024 Wins: Sweetgreen & First Watch on the Rise
A Full-Service Turnaround: Bloomin’, Dine, and Texas Roadhouse
Wendy’s and Denny’s: Breakfast and Late Night Dining Drives Success
Coffee Chains: Q1 2024 Update and What’s Changed Since COVID
Checking in with RBI and YUM!
Chipotle & McDonald's Serving Up Success
Wingstop & Shake Shack Continue Growing Their Reach 
Strong Start for Sprouts in 2024
Crocs’ Footwear Fairytale
Who Attends NCAA Final Four Events?
Eclipse Fever: How Did the (Retail and Hospitality) Stars Align?
Exploring Albertsons Companies’ Grocery Growth
Placer.ai Mall Index: March 2024 Recap – Malls Rise Again
Placer.ai Office Index: March 2024 Recap
Florida Spring Break Break-Up? Travelers Still Love Florida!
Provo-Orem and Ogden-Clearfield Emerging As Utah Hotspots 
Three Formulas for Experiential Retail in 2024
Aldi & Lidl Making The Cut
Texas Suburbs on the Rise
Exploring Luxury Hotel Brands’ Guest Segmentation
The St. Patrick’s Day Effect
How Can JOANN Make a Comeback?
Panera Bread Well Positioned for Possible IPO
Who Will Benefit From Family Dollar’s Downsizing?
Dave & Buster’s and Main Event Entertainment: Food and Fun for Everyone
Darden Brands: Location Analytics and Consumer Behavior
Nike and lululemon: a Strong 2023, Sprinting into 2024
Where Is Retail and Dining Foot Traffic Thriving in Early 2024?
Placer.ai White Paper Recap – February 2024
Three Retail & Dining Chains That May Surprise in 2024
Specialty Discount Chains Rock Retail Therapy
Placer.ai Mall Index: February 2024
Placer.ai Office Index: February 2024 Recap
Ulta Beauty Continues To Shine
First Watch Sails Into 2024
Hibbett Sports and DICK’S Sporting Goods: A Psychographic Analysis
Checking in With Discount & Dollar Stores
Peeking Behind The Curtain: Movie Theaters in 2023 and Beyond
Diving Into Brick-and-Mortar Eyewear
Getting Into Gear: Exploring The Auto Part Industry
Recapping Valentine’s Day 2024 Foot Traffic Trends
Fitness: A Strong Start to 2024
Dutch Bros. Continues To Percolate Visits
Super Bowl 2024: Placer.ai’s Postgame Foot Traffic Analysis
CAVA & sweetgreen Are On the Rise
Hats Off For Off-Price
Who Is Shopping at Malls?
Drilling Down Into Home Improvement
Walmart, Target, Costco & Superstore Space 2023 Recap
Catching Up With Shake Shack and Wingstop
Something To Chew On: Demographic Shifts at Steakhouse Chains
Placer.ai Office Index: Looking Back at 2023
Recapping RBI & Yum! Brands’ 2023 Foot Traffic Performance
Placer.ai White Paper Recap – January 2024
Who Shops at Anthropologie and Urban Outfitters?
Three Taco Chains to Watch in 2024
Starbucks and Dunkin’: 2023 in Four Data Points
Who Visits CVS and Walgreens?
Fashionably Frugal: Apparel in 2023
Catching Up With Fast Food
The Grocery Sector in 2023: An End-of-Year Recap
3 Mall & Shopping Center Trends for 2024
Bakery Chains Rising To The Top
Placer.ai and Esri Partner to Deliver Geospatial Analytics
Tampa Tourism Trends
Going For The Green: The Changing Dynamics Of Country Clubs
Christmas Day Dining Recap
Major Urban Shopping Districts – Holiday Season Recap
Placer.ai Office Index: December 2023 Recap
Recapping the 2023 Holiday Shopping Season
Placer.ai White Paper Recap – December 2023
7 Retail & Dining Segments to Watch in 2024
Diving Into Holiday Season Favorites
Super Saturday and Christmas Eve Eve: A Winning Combination
3 Budget Grocery Chains Finishing 2023 On a High Note
Making It In America: International Chicken Chains Bring The Heat
Domestic Tourism at a Glance: A Q3 2023 Roundup
Five Pizza Chains On The Rise
Jewelry Brands Taking Advantage of the DTC Opportunity
Secondhand News: Kids' Thrift Shops
Recapping 2023’s Dining M&As
MetLife Stadium Kicks Off Football Season
Placer.ai Office Index: November 2023 Recap
Small Coffee Chains Brewing Big Success