Retailers are hoping to attract customers during the holidays in the midst of possible economic downturns  as the federal reserve attempts to control pandemic-borne rising price levels.

With Thanksgiving already passed, the holiday season has arrived with Christmas and New Year’s Day fast approaching.

Many firms including Amazon, Best Buy, and Kohls's are presenting their Black Friday Sales and offering different events in the hope to attract more customers.

Retailers were forced to drop online prices for merchandise as shoppers remained price-conscious on Black Friday and throughout the weekend.

During the pandemic, Americans have focused on saving during the recession and a returning labor market.

Price levels have been climbing at the highest pace in decades even as the economy recovers  from the pandemic and the Federal Reserve’s attempts to control them by raising interest rates.

However, customers are becoming more pessimistic about the economy as borrowing money has become more expensive.

Companies and retailers are aiming to increase their sales as this is the first holiday season after a significant relief from the pandemic in the United States.

They hope to entice consumers to purchase their products before another economic slowdown occurs by offering them discounts and different events, and the holidays present a perfect opportunity to do so. 

Retail sales also enable authorities to get a preview of the economic progress that could be made in the following weeks and months to come in 2023.

Forecasters initially believed that consumer spending will remain strong in the fourth quarter due to household savings accumulated from the pandemic, but recent observations show Americans only saved 3.1 percent of their after-tax income, which is less than half the share of those before the pandemic.

Consumer sentiment is also expected to decrease as consumers continue to feel pessimistic about the economy and their financial situation.

Many of those on a fixed income, especially lower-income citizens, are expressing concern about increasing spending due to the  rapidly increasing prices for daily necessities like gas and groceries.

To those who must deal with the rising prices, shopping during the holiday season remains a luxury.

In order to outrun a likely economic slowdown in the future, many companies are offering products at low prices as labor costs rise to meet productivity increases .

As the first post-pandemic holiday season approaches, it remains a question whether retailers will be able to successfully attract customers despite the economic turndown.

Seoyeon Yu
Grade 11
Korea International School Jeju