Welcome to The Backroom, a program that takes you behind the scenes as the Retail Dive team covers the stories and trends reshaping retail. You canhereview all of our past and present podcast episodes, and you can listen onApple Podcasts、Stitcher、iHeartRadioandSpotify.

In 2022, many in retail held an optimism that seemed unimaginable at the height of the pandemic. After the cloud of uncertainty in 2021, the macroeconomic backdrop became clearer. Federal government support for consumers boosted savings that carried into the new year; meanwhile, COVID-19 vaccines spurred demand for apparel as people returned to in-person work, entertainment—and shopping. Holiday sales in 2021 were strong, and many chains had a busy first quarter.

However, the inflation surge that emerged in 2021 continued into 2022, squeezing household budgets and weakening discretionary spending. Although healthy employment and wage growth eased this pressure somewhat, retailers now facevery pragmatic consumerswho spend cautiously, seek good prices, and will even abandon brand loyalty if it means a good deal.

In this episode of The Backroom, we explore what all this means for the holiday sales season. Notably, retailers also face challenges such as rising costs and ongoing supply chain disruptions, which journalists and editors from Retail Dive, Marketing Dive, Supply Chain Dive, and Payments Dive will delve into in the October 6 webinar "Signed, Sealed, Delivered." Be sure toregister！

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Editor's note: This episode was produced and edited by Caroline Jansen.