FY22 Q4 retail and e-commerce predictions and analysis include marketing channel changes, inventory management, and budget shifts

Markacy, a digital strategy and marketing firm based in New York City, released its 2022 Holiday Marketing Forecast. Markacy works with leading brands to better align marketing investments to P&L results. The report is an assessment of various factors aimed at helping brands navigate unique challenges and seize new opportunities in the 2022 holiday season.

“Holiday 2020 and 2021 saw abnormal increases in e-commerce traffic and sales due to the global pandemic. At Markacy, we predict only single-digit growth this year in e-commerce sales as retail shopping returns to full strength and consumers consider macro-economic factors and its impact on spending.”

Tucker Matheson, Managing Partner and Co-Founder at Markacy said: “Holiday 2020 and 2021 saw abnormal increases in e-commerce traffic and sales due to the global pandemic. At Markacy, we predict only single-digit growth this year in e-commerce sales as retail shopping returns to full strength and consumers consider macro-economic factors and its impact on spending.”

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The report includes trends, analysis and recommendations such as:

● Due to observed year-over-year decrease in Meta performance, brands need to tap into more traditional marketing channels to stay competitive during the holiday season.

● Direct mail, TV, CTV, out-of-home, audio and direct buys with publications have been the greatest beneficiaries of budget shifts as brands focus on new channels and data sources for prospecting new customers.

● While brands were focused on revenue growth and new customer acquisition at the expense of profitability in 2020 and 2021, brands will be more focused on the bottom line heading into the new year.

● Brands will be actively managing inventory to get rid of high inventory or overstocked items to reduce inventory overhead heading into 2023.

Chris Jones, Managing Partner and Co-Founder at Markacy added: “With the macroeconomic factors influencing consumer spending, we are advising clients to maximize the 2022 holiday season– including taking advantage of strategic promotions to sell through excess inventory and capture incremental sales. Currently, we are still forecasting growth in e-commerce sales next year, albeit at more modest levels, but think it’s important to stay aggressive in the near-term while demand remains relatively strong.”

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