US sales growth is expected to slow this holiday season since consumers are facing decades-high inflation. Reports suggest that budget-conscious consumers are seeking to stretch their dollars amid rising prices of food and gas. Bargain hunting is expected to drive up e-commerce sales amid an overall slowdown.

Holiday spending growth is projected to slow to 7.1 per cent from earlier 8.5 per cent. Online sales are expected to increase 4.2 per cent building on substantial growth.

Companies including Walmart (NYSE:WMT) and Target Corp (NYSE:TGT), which reportedly had stocked up on goods following shortages due to global supply-chain disruptions, are now left with a glut of inventory as consumers cut back on spending.

Now, retailers are willing to offer huge discounts to offload excess stock. Over the past two years, consumers have been starting their holiday shopping as early as October on fears that in-demand products would disappear from shelves by around Thanksgiving in late November.