PROVIDENCE, R.I. (WPRI) – Despite supply chain issues that plagued the retail industry and high inflation, consumers continued to spend in 2022.
According to the National Retail Federation, consumers focused more on goods than services last year and retail sales were up 7.6% by the end of December.
Retail expert Kristen Regine said during the holiday season there were deals nearly everywhere, with major box stores trying to get rid of extra inventory.
“Retailers had tried to pivot when COVID happened and then they were left with all of this excess inventory having trying to scramble to get the aging inventory out,” Regine said.
In 2023, Regine expects supply chain issues to start leveling out, but retailers are starting to adapt to the way shoppers habits are changing.
For example, many consumers are shopping online or ordering a head of time and picking up their items at the store.
“Stores are trying out smaller footprints … Target is doing that,” Regine explained. “You are also seeing partnerships, like Sephora going into Kohl’s.”
Regine said she expects to see more self check out options to help companies cut costs.
“Instead of having a cashier setting up and scanning your items, it will be more of those terminals where you go and check yourself out,” she said.
This year, Regine expects consumers to be more conscious of how and where they spend they spend their money.
“That will play into how the economy shapes up for 2023,” she said.