Macro Bites: How retailers can fight holiday season economic headwinds

September 15, 2023

The holiday season is the most important time of the year for many retailers. In 2023, they face macroeconomic headwinds, with consumers seeing tighter credit conditions and higher prices. A strong labor market and excess household savings are still supportive, but this year’s environment is more challenging than last year’s. EY-Parthenon Chief Economist Gregory Daco and EY Americas Retail Leader Isaac Krakovsky discuss the economic backdrop and three strategies retail CEOs can focus on in the face of these headwinds. 

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Key takeaways

  • Retail CEOs are facing an economic environment this holiday season that presents more challenges than in the past.
  • Many retailers are pointing to consumers pulling back, which can affect the 2023 holiday season, when retailers can typically book a significant part of their annual revenue.
  • Focusing on what they can control, including labor, the promotional cadence and merchandising strategy are essential areas that retail leaders must address.

Host and featured guest

Photographic portrait of Yang Shim

Gregory Daco
EY-Parthenon Chief Economist, Strategy and Transactions, Ernst & Young LLP

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Photographic portrait of Yang Shim

Isaac Krakovsky
EY Americas Retail Leader

email LinkedIn

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