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last yr.

Small Business Owners Anticipate Solid Holiday Season Despite Economic Anxiety and Consumer Concerns

Despite steady growth in past quarters, small businesses express apprehension over possible consumer cutbacks this season due to depleted pandemic savings and a sentiment of economic pessimism.

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Overview

  • Small business owners express a mixed sentiment of hope and anxiety for the upcoming holiday season, fueled by evidence of solid economic growth alongside looming consumer concerns over financial stability.
  • Owners are observing signs of consumer pessimism, including fears of inflation and rising interest rates, which may impact their holiday shopping behavior.
  • Still, early preparations by retailers, including stocking up on inventory in anticipation of supply chain disruptions, suggest anticipation of robust holiday sales.
  • Industry predictions from the National Retail Federation expect holiday retail sales to increase between 3% and 4% in 2023, albeit slower compared to the 5.3% jump in 2022 due to moderated inflation.
  • As businesses navigate this uncertain landscape, trends point towards consumers favoring 'comfort' items, indicating a drive towards 'happy escapism' amid financial concerns.