Consumers in Deloitte’s Holiday Retail Survey told the business services firm they plan to spend an average of $1,778 this year, including experiences, up 8% from 2023, with the average number of intended gift purchases at nine versus eight in the prior year.
Retail spending for gifts and non-gifts, excluding experiences, during the holidays likely will remain relatively flat year-over-year at $1,043 versus $1,020 in 2023, according to the survey. In addition, consumers plan to spend $735 on experiences, up 16% year-over-year, Deloitte noted. Surveyed consumers expect to spend $536 on holiday gifts in 2024, down 3% year-over-year, and $507 on non-gift purchases, up 9% from 2023. Participation in experiences is near pre-pandemic levels, Deloitte asserted, at 83% this year versus 86% in 2019.
The 2024 holiday season is beginning with an improved economic outlook and something of a shift to categories such as experiences, as well as non-gift items including décor and party apparel. Four in 10 consumers plan to gift experiences, such as event tickets or vouchers to restaurants or spas.
Among consumers surveyed, about 70% expect higher prices. To deal with current circumstances, many consumers plan to adjust spending by cutting back on self-gifting, considered by 32% compared to 48% in 2023, and shopping at least one promotional event, at 78% versus 61% in the year-earlier season.
The survey suggested that most holiday shopping will occur in late November despite heightened interest in October promotional events, Deloitte maintained.
More shoppers plan to gift food and beverage products this year, up nine percentage points year-over-year. Holiday shoppers plan to spend 10% less on clothing and accessories this year versus last, but the category remains at the top of gift lists.
Holiday gatherings are a big part of experiences at home, and one in four consumers surveyed plan to host a holiday gathering and invite an average of 10 guests while spending an average of $261. At the same time, 70% of hosts are open to spending more on items or services that make hosting more convenient. They’re also resourceful, with 47% saying would ask guests to bring food or beverages to offset costs; and 31% saying they would invite fewer guests this year.
Although holiday shoppers are more optimistic and willing to spend for this holiday season, Deloitte indicated they remain focused on finding the best deals to maximize their budgets even if that means choosing value over loyalty. In considering the remainder of the year, 43% surveyed consumers said they expect the economy to improve this year, up nine percentage points from 2023.
Consumers surveyed who make less than $200,000 annually intend to spend more this season, with high-income earners, those making $100,000 to $199,999, generating the most significant gains with a plan to spend 17% more year-over-year. Consumers looking for deals might challenge loyalty, with 62% saying they would shift brands if the preferred label is too expensive. At the same time, 48% said they would shop at more affordable retailers if that seems sensible. Online-only retailers, at 71%, and mass merchants, 55%, come out on top as preferred retail formats to shop for the holidays
As to getting shopping done, 29% of surveyed consumers said they plan to purchase gifts from a friend or family member’s wish list hosted on a retailer’s site; 48% said they intend to shop on smartphones; and 13% said they expect to purchase on social media. Gen Z is embracing the latter methods more, with 58% planning to shop on their smartphones and 20% planning to buy gifts on social media.
As they look to save money, 78% of holiday shoppers plan to shop at least one promotional event, up from 61% in 2023, Deloitte maintained,. Some 68% of consumers intending to shop during Thanksgiving week to take advantage of deep discounts. Younger and higher-income consumers expect to participate the most in Thanksgiving week promotions.
In a retail executive survey, eight in 10 respondents said they expected sales growth this holiday season, aided by more in-store and online traffic. Moreover, 80% of retail executives expect private-label sales to grow faster than national brand sales this holiday season.
The Deloitte fielded the consumer survey between August 30 and September 6 and the retail survey between June 12 and July 3.
