Christmas business despite inflation: financial expert expects positive developments in 2023.

Christmas business despite inflation: financial expert expects positive developments in 2023.

According to a report by www.meinkreis.at, the 2023 Christmas business will be influenced by global uncertainties and, above all, high inflation. Nevertheless, the chairman of the trade division of the WKOÖ, Ernst Wiesinger, expects a “normal and reasonable Christmas business” and points to the increased purchasing power due to high KV deals and the abolition of cold progression.

Despite inflation and increased costs, 90 percent of Upper Austrians plan to buy gifts, with planned spending on Christmas presents being on average 30 euros lower than last year. The general willingness to buy remains high, with around 40 percent not changing their shopping behavior at Christmas, while only one in five want to pay more attention to money.

When it comes to gifts, toys, vouchers, clothing/textiles and cosmetics are on trend. Interestingly, Thomas Perkmann from IG-Hauptstrasse expects that gifts for pets will also be widespread. The retailers rely on “offline added value” through personal advice and shopping experiences that cannot be offered online.

The positive buying mood and the planned willingness to buy among consumers indicate that a solid Christmas business can be expected despite inflation and increased costs. Spending on gifts may have fallen slightly compared to the previous year, but retailers remain optimistic and are relying on personal contact and the on-site shopping experience to delight consumers.