Friday, November 3, 2023
The National Retail Federation forecast, released Nov. 2, 2023, predicts in-store spending of between $957.3 billion to $966.6 billion in November and December, an increase of 3 and 4 percent, respectively, over 2022. These numbers are consistent with an average annual uptick of 3.6 percent from 2010 to 2019, according to Matthew Shay, president and CEO of the NRF.
"It is not surprising to see holiday sales growth returning to pre-pandemic levels," he said. "Overall household finances remain in good shape and will continue to support the consumer's ability to spend."
Jack Kleinhenz, NRF chief economist, mentioned that the pandemic pushed shoppers to online and digital commerce methods, which may increase by 7 to 9 percent this year to between $273.7 billion and $278.8 billion, up from $255.8 billion during last year's holiday season.
"Consumers remain in the driver's seat, and are resilient despite headwinds of inflation, higher gas prices, stringent credit conditions and elevated interest rates," Kleinhenz said. "We expect spending to continue through the end of the year on a range of items and experiences, but at a slower pace. Solid job and wage growth will be contributing factors this holiday season, and consumers will be looking for deals and discounts to stretch their dollars."
NRF's press briefing is available at nrf.com/media-center/press-releases/2023-holiday-reach-record-spending-levels
Consumers will also be using non-cash payment methods, according to OnePoll and Melio's survey of 1,000 small business owners. Findings, released Nov. 2, 2023, show most respondents believe that accepting multiple payment methods, beyond cash, is crucial in today's economy.
Tomer Barel, president and COO of Melio, stated that inflation has placed undue pressure on small business owners, many of whom are leaning into digital commerce technologies.
"Despite the challenges posed by inflation and interest rates, small business owners seem to adapt to the current economic climate and demonstrate impressive agility and resilience" he said. "Small businesses are the foundation of the economy, and it is critical that they have the tools to overcome future challenges."
Prashant Gandhi, chief business officer at Melio, agreed the small business segment is embracing digitization.
"It's tough to keep a small business in business – SMBs are dealing with material cost increases across multiple areas such as input prices, salaries, rent, and capital costs," he said. "The silver lining is that 1 in 4 (25.80%) businesses are leaning heavily into digitizing their business."
Gandhi further noted that many of the numerous small and midsize business owners surveyed had to make tough choices to stay in business amid rising inflation and economic uncertainty, such as tapping into savings or taking out loans (61 percent) and raising prices (50 percent). Following are additional survey highlights:
Additional survey data is available at www.prnewswire.com/news-releases/majority-of-small-business-owners-optimistic-about-financial-health-new-survey-finds-301975446.html 
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
