All Things Money: Holiday Season, Most Magical Time, in Deed

It's impossible to learn about All Things Money without looking into the economic impact of the Holiday season.

The holiday season starts at the end of November with Thanksgiving and Black Friday, then continues to Christmas, and Hanukkah to finish in the New Year.

Stores and retailers know that shoppers are busy over this period, and their needs for goods and services quickly rise. 

As a result, businesses of all shapes and sizes rely on this period to turn a profit and, in many cases, to keep the lights on for the following year.

Continue reading for an in-depth look at consumer spending and its impact on businesses over the holiday season.

How Shoppers Celebrate the Holidays

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Christmas timeBefore we get into the details and impacts of the season, let's take a quick look at some of the ways people spend money over the quarter:

  • Winter vacations- Some people visit ski slopes and cold areas in the cold weather.
    While others escape to the beach, bringing a slight boost to tourist venues in warmer climates.
  • Family gatherings- Families meet up with each other over the holiday season for Christmas, Thanksgiving, Hanukkah, and New Year's.
    These gatherings mean more money is spent on food, drink, alcohol, and gifts, boosting retail sales.
  • Gift giving- The most significant spending over the holiday season comes from people buying gifts for each other.
    Some US families spend thousands of dollars annually on gifts for their family and friends.
  • Decorations- Decorations are an essential part of the holiday season.
    Nearly everyone puts up some decorations for one celebration or more over the period.
    These decorations are often complex and expensive, especially for people who celebrate Christmas.
  • Cold weather spendingFrom warm socks & cocoa to heaters & snow ploughs, consumers need to pay for certain expenses to cope with the cold weather of winter.
    In colder areas, people will also need to pay for winterization of vehicles and property for safety reasons.
How companies benefit from the season

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