NRF Forecasts Uptick In Holiday Spending
Consumers heading out to the stores this holiday season will spend an average of $875, according to data from the National Retail Federation (NRF).
But that spending is not fully earmarked for gifts. Consumers surveyed by the NRF and Prosper Insights and Analytics said they would spend $620 on gifts and $255 on seasonal items such as decorations, candy or food.
In 2022, NRF’s annual consumer survey about holiday shopping intentions found that shoppers were expecting to spend $833 for gifts and other holiday related items such as food and decorations. However, NRF did not provide a breakdown last year of exactly how shoppers were planning to spend their money.
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“The winter holidays are an important tradition to many American families, and shoppers are prioritizing their holiday purchases for the people most important to them,” said Matthew Shay, NRF President and CEO. “Retailers have been preparing for months to ensure their inventories will meet demand, while at the same time helping consumers maximize their budgets with shopping events and discounts running throughout the extended holiday shopping season.”
Nearly all U.S. adults (92%) say they plan to celebrate events such as Christmas, Hanukkah or Kwanzaa this year, on par with last year.
Similar to previous years, 43% of holiday shoppers said they generally start their holiday shopping before November. The top reasons people begin their shopping ahead of time are to spread out their budget (60%), avoid the stress of last-minute shopping (46%) and avoid crowds (45%). Regardless of how early consumers start, the majority (62%) expect they won’t finish until December.
“However, early sales may sway consumers to shop even earlier,” said Phil Rist, executive vice president of Strategy at Prosper. “This year, seven in 10 holiday shoppers say they are considering taking advantage of October sales events to pick up holiday gifts, décor and other items on their list.”
Shopping destination trends continue with 58% of consumers planning to shop online this holiday season. That is followed by department stores (49%), discount stores (48%), and grocery stores and supermarkets (44%).
Gift cards continue to be the most popular gift, with 55% of holiday shoppers saying they would like to receive them this year, followed by clothing or accessories (49%), books, video games or other media (28%), and personal care or beauty items (25%).
Almost one-quarter (23%) of holiday shoppers say they plan to give a gift of experience, in line with last year and up from 19% in 2021.
Even as consumers are budgeting more than last year for the holidays, they are looking for ways to make the most of their budget. When shopping for gifts, 62% say sales and promotions are even more important to them this year than last year. About one-third (36%) say they are cutting back in other areas to cover the cost of holiday items, 30% are purchasing gifts for fewer people and another 27% are buying less for themselves.