Labor Day retail predictions for 2023.

Although late August and early September don’t pack the same sales wallop that occurs during the winter holidays, retailers should not ignore this potentially lucrative time of year as summer comes to an end and consumers get ready for an autumn and winter of work and school.

What will shoppers be buying on Labor Day?

The unofficial end of summer, Labor Day represents a reason for celebration for seven out of every 10 Americans. As a retailer, this gives you the perfect opportunity to capitalize on the festivities.

As you might imagine, food is the top purchase directly related to Labor Day itself. From meats and condiments to desserts, Labor Day gives many people one last opportunity for a day-long barbecue with family and friends.

For many buyers, alcoholic beverages are a natural companion to a great meal. If you sell beer, wine or spirits, this is a great time to think about offering promotions and bundles customized for the holiday.

How much will shoppers spend on Labor Day?

Although people definitely want to commemorate the holiday, many don’t have a lot of money to spend on all the trappings. With 40% of shoppers shelling out $50 or less, it will behoove you to offer a wide spectrum of merchandise at all price points.

For the 38% who are in the middle ground when it comes to spending, be sure to offer selections that will enable them to have a delicious celebration for under $100.

For the remaining 22% who plan to pull out all the stops and spend more than $100 to outfit their Labor Day feasts, take the time to order bulk and high-end products.

How will shoppers save money this Labor Day?

Inflation is affecting virtually every aspect of our lives, including how we plan to celebrate upcoming holidays such as Labor Day. At least half of the consumers surveyed acknowledge the effect that our poor economy is having on their spending and celebrations.

An even larger number (53%) anticipate spending less, with some predicting that the change will be significant.

In addition to looking out for sales and promotions, budget-conscious consumers looking to save a few dollars will employ many of the tactics they have learned since the pandemic to relieve the strain on their pocketbooks.

Shoppers will stick to items that are currently on sale.

One tried-and-true budgeting strategy involves focusing exclusively on purchasing items that are on sale. For you as a merchant, this means that you should reduce the prices on goods that you want people to buy — even if the savings are modest. In order to draw in your bargain-obsessed customers, make it a point to update your social media pages to reflect the upcoming holiday.

Your point of sale system can be a valuable tool in implementing discounts on the fly. For instance, the POS software installed in equipment from merchant payment processor Payanywhere comes with an express discount feature that allows you to easily put individual items on sale with ease.

Shoppers will buy less than they normally would.

It stands to reason that when you don’t have as much money, you will probably lower the amount of items you purchase. That is exactly what many Labor Day shoppers in 2023 plan to do to stretch their dollar just a little bit further.

A full 48% of 2023 shoppers anticipate buying fewer items this Labor Day. That makes it even more important than ever that everything you sell is accurately represented and of the highest quality.

Even though the average actual or virtual shopping cart will contain fewer items this Labor Day, you can still score significant points with customers by enhancing their overall shopping experience. To that end, leverage your loyalty program, and use analytics and individual shopping histories to customize your valued buyers’ individual journeys. Taking this step will help to increase the likelihood of long-term satisfaction and increased referrals to your business.

Although cutting coupons from the newspaper may have largely gone by the wayside, that doesn’t mean that customers won’t take advantage of today’s modern ones. In fact, almost half of the customers surveyed plan to use coupon codes to reduce their overall spending this Labor Day.

A few weeks before the holiday, make it a point to begin sending out coupon codes to your customers. Email, social media, and blogs are all great sources that people can tap into in order to find a good deal.

If your industry allows for store or generic brands, don’t be shy about featuring them. Over a quarter of customers definitely plan to substitute them for their preferred brand this Labor Day — as long as they are less expensive, of course.

Store brands are often thought to be just as good as their brand-name counterparts but at a lower price. Although you might still want to offer familiar products, don’t hesitate to feature generics prominently to attract people who want to save money.

When times are difficult, consumers tend to change the amount or quality of the foods they prepare for holiday meals. Not surprisingly, over one-third of the people surveyed have decided to implement this frugal measure in 2023.

To that end, tailor your promotions to be in line with customers’ pared-down menus. Offer popular items in bulk or bundles designed to feed the whole family as opposed to individual packaging that is more expensive.

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