How Holiday Discounts Could Leave You Spending More

Estimated reading time: 3 minutes

Holiday Shopping

Holidays are fast approaching, and with them the perhaps most expensive time of the year. Gift shopping, decorations, parties and celebrations – it all costs a lot. And this year, Americans are expected to “trade up” on their holiday purchases to boot. 

More shoppers are likely to reach for name-brand products while holiday shopping this year, according to a report from Adobe Analytics.

High Discounts

Retailers are expected to offer chunky discounts of up to 30% in the coming months to drive spending among increasingly cost-conscious consumers. This is driving the prediction that shoppers will pay up for premium goods, even if they could wind up spending more than if they chose an off-brand or lower premium option.

 Online sales are projected to reach nearly $241 billion over the 2024 holiday season, up 8.4% annually, per Adobe data. The share of those sales driven by more expensive goods is also set to rise by 19%, more than in the past years when high inflation made shoppers choosier.

If global weather events continue to intensify, even giants like Starbucks may be forced to pay a higher price for beans. This could necessitate a pivot towards climate-resilient agricultural technologies or alternative coffee sources. However companies choose to address the coffee supply issues, Americans may need to shell out more for their cup of joe in the meantime.

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