Despite a shaky economy, the International Council of Shopping Centers anticipates 3.8% higher sales this holiday season versus 2022.
In their holiday shopping, 87% of survey respondents said they expect to visit brick-and-mortar stores and three-quarters plan to make a purchase online and have the items shipped to them. The survey found that 41% of expected expenditure is likely to happen at a physical store, 42% online, and 17% on click-and-collect.
Consumers anticipate consolidating their purchasing across fewer retailers in the 2023 holidays. According to the survey, they plan to purchase from an average of 2.4 different types of retailers versus 3.4 in 2022. Discount department stores remain the most popular shopping destination for 63% of shoppers, but 34% will also patronize traditional department stores and 22% will check out electronics stores. Most consumers plan to pay for holiday purchases with a debit card, at 63%, or a credit card, at 50%, although 48% expect to shell out at least some cash and 14% to use buy now, pay later options.
As usual, gift cards are the most popular holiday shopper choice, with 63% of respondents expecting to purchase, followed by apparel and footwear at 56%, and toys and games at 49%. In addition, 45% of consumers plan to purchase food, such as pre-packaged baskets and alcohol, while electronics and experiential purchases came in at 41% and 22%, respectively.
ICSC noted that it expects a 7.6% year-over-year advance in 2023 food and beverages sales, leading to total sales of $1.6 trillion.
As retailers roll out seasonal assortments and deals earlier in the season, 79% of survey respondents planned to start shopping for the holidays earlier than they had in the past, with one-in-four having started making purchases in August or earlier. Of the consumers who planned to shop earlier for the holidays, 51% did so to tap early promotions.
“We expect a positive holiday shopping season this year as consumers continue to spend in spite of economic headwinds,” said ICSC president and CEO Tom McGee in announcing the survey findings. “This year’s forecast shows the industry is balancing itself out after rapid growth over the last few years, setting retailers up for another successful holiday season. This year will continue the trend of consumers starting their holiday shopping earlier and spreading it out throughout the season. While landmark holiday milestones like Black Friday and Thanksgiving Weekend remain important, it’s equally important for retailers to capture consumer interest throughout the season. Offering competitive promotions, free and reliable shipping and seamless omnichannel experiences throughout the holidays is a key part of that.”
