Americans are projected to spend a record $1 trillion this holiday season, despite concerns over inflation and potential tariffs affecting pricing. According to Mark Mathews, chief economist at the National Retail Federation (NRF), consumer confidence is low, comparable to early 1980s levels, yet spending continues unaffected. Online sales are anticipated to rise to $253.4 billion, a 5.3% increase from last year, with significant spending expected on Black Friday and Cyber Monday. Amidst economic uncertainties, consumers are focused on essential gifts and are increasingly using “buy now, pay later” options to manage expenses. The influence of generative AI tools, like ChatGPT, has surged, with a 1,200% traffic increase to retail websites sourced from AI. Additionally, “social commerce” is on the rise, leveraging influencers to engage buyers. As competition helps keep prices stable, shoppers are likely to benefit from a variety of attractive deals this holiday season.
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