Holiday Spending To Grow, New Survey Reveals
Consumer spending during the holiday season is forecast to reach record levels, according to a new report from the National Retail Federation.
A survey of 8,191 adult consumers conducted by Prosper Insights & Analytics found that shoppers expected to spend $902 on average, up $25 per person from 2023 and $16 higher than the previous record set in 2019. Nearly all U.S. adults (92%) plan to celebrate winter holidays such as Christmas, Hanukkah, or Kwanzaa this year, in line with 2023.
The increase in holiday spending is largely attributed to gifts for family members. Of the $902 shoppers plan to spend, approximately $641 is on gifts for family, friends, co-workers, and more, which is an increase from $620 last year. The remaining $261 will be spent on other seasonal items such as food or candy, decorations, greeting cards, and other holiday items.
“The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season,” said Katherine Cullen, vice president of Industry and Consumer Insights for the NRF. “Despite the shorter window of time between Thanksgiving and Christmas, retailers are prepared to meet the needs of consumers by providing holiday shoppers with earlier deals and sales and by ensuring inventory is available for the most in-demand items this year.”
Nearly half (45%) of holiday shoppers plan to browse and buy items before November, which is consistent with recent years and up from 40% 10 years ago. The top reasons for early shopping include spreading out their budget (59%), avoiding the stress of last-minute shopping (45%), avoiding crowds (42%), and pursuing prices or promotions that cannot be missed (42%). Despite the early start, most consumers (62%) anticipate finishing their shopping in December.
Online remains the top destination this year, with 57% of consumers planning on making their holiday purchases online. This is followed by department stores (46%), grocery stores and supermarkets (46%), and discount stores (45%).
“While most consumers will opt to shop at traditional retailers this holiday season, many younger consumers between the ages of 18 to 24 will also head to thrift stores and resale shops,” said Phil Rist, executive vice president of Strategy with Prosper. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”
Gift cards remain the most popular item on consumers’ wish lists, with 53% of shoppers requesting them this year. That is followed by clothing and accessories (49%), books and other media (28%), and personal care or beauty items (25%).
