A survey from the National Retail Federation (NRF) found that consumers expect to spend $875 on average on holiday gifts, decorations, food, and other seasonal items, up 5.0 percent from $833 on average that consumers planned to spend in 2022 and in line with the average consumer holiday budget over the last five years.
Past NRF surveys found an expected holiday consumer spend of $879 in 2021, $880 in 2020, $886 in 2019 and $853 in 2018.
The latest survey of 8,103 adult consumers was conducted by Prosper Insights & Analytics between October 2-9.
“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,” NRF President and CEO Matthew Shay said. “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.”
Of the $875 consumers plan to spend this holiday season, approximately $620 will be for gifts. Consumers are also said to be budgeting another $255 for seasonal items, including decorations, candy or food.
Nearly all U.S. adults (92 percent) reported planning to celebrate Christmas, Hanukkah or Kwanzaa this year, on par with last year.
Like previous years, 43 percent of holiday shoppers said they generally start shopping for the holidays before November. The top reasons people begin their shopping ahead of time are to spread out their budget (60 percent), avoid the stress of last-minute shopping (46 percent) and avoid crowds (45 percent). Regardless of how early consumers start shopping, most (62 percent) expect they won’t finish until December.
“However, early sales may sway consumers to shop even earlier,” Prosper Executive Vice President of Strategy Phil Rist said. “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 percent of consumers planning to shop online this holiday season, followed by department stores (49 percent), discount stores (48 percent), grocery stores, and supermarkets (44 percent).
Gift cards continue to be the most popular gift, with 55 percent of holiday shoppers saying they would like to receive them this year, followed by clothing or accessories (49 percent), books, video games or other media (28 percent) and personal care or beauty items (25 percent). Almost one-quarter (23 percent) of holiday shoppers said they plan to give a gift of experience, in line with last year and up from 19 percent in 2021.
Even as consumers budget more than last year for the holidays, the NRF reported that they are looking for ways to make the most of their budget. When shopping for gifts, 62 percent said sales and promotions were more important to them this year than last year. About one-third (36 percent) said they are cutting back in other areas to cover the cost of holiday items, 30 percent are purchasing gifts for fewer people and 27 percent are buying less for themselves.
Photo courtesy Macy’s
