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Holiday shopping: Why surging inflation, supply chain issues and a pandemic aren't deterring consumers
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Consumers should start holiday shopping early amid supply chain crunch: National Retail Federation CEO
National Retail Federation CEO Matt Shay provides insight into the supply chain crisis and labor shortage.
The highest inflation in nearly four decades, ongoing supply chain woes and concerns regarding the omicron variant of the coronavirus aren't stopping U.S. consumers from splurging on their loved ones this holiday season.
"People have gone into this holiday season in a sense wanting to make up for some of last year," Katherine Cullen, the senior director of industry and consumer insights at the National Retail Federation, told FOX Business.
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Although last year was a strong sales season, "many localities are saying there are safe ways to gather with family, there are safe ways to travel" this year, which means people are not having tocancel holiday plans, according to Cullen.
"I think people are looking to spend even more this year because they want to celebrate with family and friends," she added. "They're splurging on gifts. They're spending on travel."
For instance, NRF data in October showed that those over 65 years old planned on spending more on gifts this year compared to 2020.
Cullen said this could be because they are expecting to celebrate the holidays with their grandchildren or younger relatives.
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"That emotional mindset is really important when we look at spending because that is driving some of what we're seeing right now," she said.
During the first 11 months of the year, sales were already up 14.2% over the same period in 2020, according to the NRF, which calculates retail sales excluding automobile dealers, gasoline stations and restaurants.