Following its big Holiday 2024 forecast announcement and presentation last week, the National Retail Federation (NRF) has released the results of a consumer survey that focuses on the expected average spend per person for the Holiday season.
Consumer spending for this year’s winter holidays is expected to reach a record $902 per person on average across gifts, food, decorations, and other seasonal items, according to the NRF’s latest consumer survey conducted by Prosper Insights & Analytics. The figure is reportedly ~$25 per person more than the 2023 figure and $16 higher than the previous record set in 2019.
“The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season,” commented NRF VP of Industry and Consumer Insights Katherine Cullen. “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.”
The NRF reported that the increase in Holiday spending is primarily 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 trade association wrote in its survey summary.
In line with 2023, nearly all U.S. adults (92 percent) plan to celebrate the winter holidays (Christmas, Hanukkah or Kwanzaa) this year.
The survey data reveals that nearly half (45 percent) of Holiday shoppers are already planning to browse and buy items before November, showing a proactive approach that is consistent with recent years and up from 40 percent 10 years ago. The top reasons for early shopping include: spreading out their budget (59 percent), avoiding the stress of last-minute shopping (45 percent), avoiding crowds (42 percent) and pursuing prices or promotions that cannot be missed (42 percent).
Despite the early start, the NRF found that most consumers (62 percent) anticipate finishing shopping in December.
On the sales channel front, Online reportedly remains the top destination this year, with 57 percent of consumers planning to make Holiday purchases online, followed by Department Stores (46 percent), Grocery Stores and Supermarkets (46 percent), and Discount Stores (45 percent).
“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,” offered Prosper EVP of Strategy Phil Rist. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”
The survey also found that gift cards remain the most popular item on consumers’ wish lists, with 53 percent of shoppers requesting them this year, followed by clothing and accessories (49 percent), books and other media (28 percent), and personal care or beauty items (25 percent).
The survey asked 8,191 adult consumers about their Holiday shopping plans. It was conducted from October 1 to 7 and has a margin of error of +/-1.1 percentage points.
Image courtesy REI