The holiday shopping season may not be as merry for retailers this year, with a recently released report suggesting they could see less sales growth over the festive period.
The growth rate for holiday sales will be roughly 3% this year, S&P Global Ratings predicted in the “U.S. Holiday 2024 Sales Outlook” report it published on Tuesday.
It marks a slower pace than 2023, when holiday sales grew 4.7%, according to the report.
S&P Global Ratings suggested retailers will “lean on deals to bring the holiday cheer” and put more money toward advertising to draw in more shoppers.
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Some companies have already started rolling out discounts ahead of the holidays, something that the report said they might be doing to “pull forward sales” as shoppers “grow more cautious during the weeks leading up to the holiday, particularly during an election year and a shortened holiday shopping window.”
Retailers will likely hold more “deal events” prior …