George Washington University professor predicts ‘grim’ holiday shopping season

Kristi King | kking@wtop.com

October 17, 2022, 9:44 PM

The outlook for the upcoming winter holiday shopping season is “grim,” according to an expert at The George Washington University School of Business. ... “I don’t think this is going to be a joyous, bountiful, relaxing, happy, holiday season,” said Donna Hoffman, the Louis Rosenfeld Distinguished Scholar and professor of Marketing at the D.C. university. ... Summing up what she expects, Hoffman said, “One word, four letters: G-R-I-M.”

Last year’s holiday season saw an uptick in what was described as “revenge travel,” as well as people interested in experiences and goods. But Hoffman thinks the current mood is to return back to basics. ... “I think there are a lot of clouds on the horizon, thunderstorm clouds,” Hoffman said. ... She characterizes as “bleak” the recent release of the consumer price index. ... “People are worried about (the cost of) gas and eggs and milk and bread and food. I don’t think we’re going to see a lot of discretionary purchases,” Hoffman said.

Hoffman said people have become painfully aware of supply chain issues affecting everything from baby formula to computer chips. That, she said, is driving early shopping and pressure to get holiday shopping done. ... “Because if it’s in the store, on the shelf now, it might not be there in a week or in a month,” she said. “I think we’re also seeing the holiday shopping is going to be a lot more fundamental, not as fun and frivolous, perhaps and maybe focused more on basics.”

Hoffman said she believes the financial concerns transcend income levels. ... “I think that there are very few segments in the population who are not worried about what’s happening,” Hoffman said. ... “Because if you are in a middle class or an upper middle class segment, you’ve got to be hurting from the stock market. And you’ve got to be worried about, for example, if you’re close to retirement. ‘Maybe I can’t retire; maybe I need to wait because my 401(k) has taken a hit.’ I think this quarter, this Q4 right now in the United States is impacting almost everybody; and I think it’s going to be very difficult.”

{snip}

Kristi King
Kristi King is a veteran reporter who has been working in the WTOP newsroom since 1990. She covers everything from breaking news to consumer concerns and the latest medical developments.

kking@wtop.com
@KingWTOP