ICSC, formerly the International Council of Shopping Centers, has released the results of its Annual Holiday Shopping Intentions Survey. The survey found that 241 million (92 percent) consumers plan to shop this year—six million more than in 2023 and the highest percentage since 2019.
“This year has shown a more reserved, yet resilient, consumer as an uncertain economic landscape and sensitivity to higher prices have impacted many households,” said ICSC President and CEO Tom McGee. “At the same time, falling inflation and steady consumer spending have kept retail sales on solid footing throughout the year, and we anticipate another strong holiday shopping season.”
The ICSC survey found that Holiday shoppers plan to spend an average of $706 on gifts and related items—the most since 2018. Despite lower inflation, higher prices continue to weigh on consumers.
The trade association said that nine in 10 holiday shoppers believe that inflation will impact their purchases, and 37 percent said they plan to spend more this year with 42 percent attributing it to higher prices.
“In response to higher costs, most consumers plan to spend more time looking for deals; nearly half plan to take advantage of deals and promotions, and 68 percent agree that searching for discounts or exclusive offers during the holiday season will encourage them to make more trips to physical stores, an increase of seven percentage points over last year. Others are turning to loyalty programs to save, with 65 percent of respondents expecting membership and rewards programs to influence their purchases,” ICSC said in its report summary.
The survey found that physical (brick-and-mortar) stores continue to play a major role in Holiday shopping.
“Ninety-two percent of shoppers will spend in a physical store,” ICSC found. “Brick-and-mortar remains a valuable driver of omni-channel shopping, as nearly all in-store shoppers also plan to buy online from the same retailer’s website, with almost half saying that browsing in stores will influence their purchases.”
ICSC also said visiting malls and shopping centers to shop, dine and take advantage of other experiences and services is also a mainstay of the Holiday season for 200 million consumers, led by Gen Z and Millennials.
Consistent with recent years, ICSC found that 78 percent of Holiday shoppers plan to start shopping for the holidays earlier than usual and half of those cited early deals and promotions as a top reason.
This year’s ICSC survey also details an increase of 10 percentage points in the number of consumers who expect to complete their shopping in the first half of December and a decrease of 14 percentage points in those planning to finish in the second half of the month, suggesting a busy spending period in the two weeks following Thanksgiving.
The survey also indicates that most consumers will shop for gifts at discount department stores (63 percent) and traditional department stores (33 percent). Gift cards (58 percent) remain the most popular category for gift purchases, followed by apparel, accessories, jewelry (52 percent), toys and games, sporting goods, and other hobbies (50 percent).
Consumers also anticipate gift shopping for experiences, including restaurants and dining (25 percent), experiential activities (16 percent) and personal services (14 percent).
“Despite economic headwinds, 70 percent of holiday shoppers feel their financial situation is better than, or the same as, this time last year, signaling measured optimism among consumers,” said McGee. “Interest rate cuts and easing inflation are taking some pressure off holiday shoppers, but other macro factors—like geopolitical turmoil and the upcoming presidential election—are still at play.”
ICSC also released its forecast in its 2024 Holiday shopping forecast, indicating that retail sales are expected to grow 3.0 percent to 3.5 percent. ICSC also forecasts a 6.0 percent increase in food-and-beverage sales, bringing the total expected spend for the season to $1.66 trillion.
The 2024 ICSC Holiday Intentions Survey was conducted online from September 23-25, representing a demographical sample of 1,009 respondents.
