We are well into the holiday season of 2023, a time that comes hand in hand with shopping — lots of shopping. It is not hard to believe that the months of November, and December are the most influential to America’s economy, with the madness of Black Friday deals, and Christmas gift shopping. But just what goes into a profitable holiday season for our favorite stores?

There are five types of retail that see a massive increase in sales during the holidays: clothing and accessories, electronics and appliances, general merchandise, non-store retailers, and furniture and home furnishing. Until 2020, businesses typically reported that 19% of their yearly sales occurred between November and December. However, since the Coronavirus pandemic, there has been an additional 0.5% uptick during the holiday season, for these retailers. However, these increased profits do not happen without a lot of effort put forth from these stores, and their employees. What at first seems like a great opportunity, becomes a stressor when increased demand for products starts to affect supply chains.

Retailers are put under a lot of pressure to keep products in stock during the holidays, and sometimes it is nearly impossible to meet demand. For example, some Gen Z children and their parents may recall the Hatchimals craze of 2016. The animatronic toys were one of the most sought-after gifts for children that Christmas. Families drove miles and miles to find stores with Hatchimals in stock. The scarcity of certain items during the holidays, leads to more intense competition between stores with similar wares. 

While the holiday season is a challenge for large stores, it is even more difficult for small businesses, who lack the benefit of mass-production, to keep an adequate stock. Still, occasions like Small Business Saturday in November, provides these local retailers a much-needed boost to their revenue. In 2022, Small Business Saturday yielded 18 billion dollars in total small business sales, and 72% of shoppers stated they would continue to shop at small stores throughout the rest of the holidays, to help their community. 

The holiday shopping season is the most profitable time of year for retailers, but also the most demanding for their workers. Through the next two months, make sure to be extra kind to the workers at your local Walmart or Kohls, or give business to small local stores. They need you as much as you need them!