Christmas comes early for retailers

Stores are stocking Christmas items early again; with tentpole occasions critical to driving spending in a time of tighter budgets and online competition, it’s a sign that deeper economic and technological currents are critical to Christmas 2023. 

Why Christmas matters

When it comes to Christmas, timing is everything. Get it right and it can make a financial year, get it wrong and people tire of the occasion. Or at least they say they do; there’s little evidence that people who complain about Christmas items in summer buy less in the festive season.

But we’re into different financial times, with cost increases across the board meaning that some shoppers need to spread out their purchases ahead of what is usually an incredibly busy and expensive time for many people. 

What’s going on

CNN reports some of the expert views around why some shoppers are beginning to spot festive items such as decorations in stores – events not only seen in the US, but also in some UK supermarkets and discounters. 

• The wider economic climate is important, argued Zak Stambor, senior retail and ecommerce analyst with Insider Intelligence: “Retailers’ response to the slowdown in discretionary spending is to lean into tentpole occasions such as the holidays to convince consumers to open their wallets.” 
• Likely, some instances are more about inventory tactics than retail strategy: too little summer inventory or leftovers from last year’s Christmas inventory that needs to go.

Online sales are key

However, the rise of potent, and often search-driven online retail channels like Amazon are having an outsized effect. 

• Amazon Prime’s Early Access sales have had a big effect on the market, with other retailers afraid of losing share to the tech giant, which also benefits from a more search-driven experience rather than having to present the products to everyone that comes into the store. 
• Elsewhere, Home Depot, Lowe’s, and Dollar Tree in the US have all rolled out selections in their online stores. 
• Lowe’s, in particular, noted some of the underlying currents driving the decision, having told CNN that holiday decoration searches in July saw a 50% increase versus the prior months, suggesting that canny shoppers are thinking ahead. 

The brand view

For brands, Christmas is a difficult balance of celebrating the time of year while hammering home the marketing basics, especially the fact that a great Christmas activation can yield benefits over the full year. 

There’s also a fine line to walk between catering to Christmas trends – according to some UK retailers this means the year of vegan treats, non-traditional centrepiece dishes, and low or no-alcohol drinks – and carving out a distinctive and memorable path through the Christmas melee. 

Seasonal specials, like Starbucks’ pumpkin spice latte, are important signals of the year. But some retail experts caution against rolling it out earlier each year so as to saturate the market and diminish its ability to drive seasonal sales. 

Sourced from CNN, The Guardian, Stoke Sentinel, WARC, Retail Gazette