Americans plan to spend big this holiday season, tapping budgets that are 31.7% higher than in 2023, according to the Holiday Shopping Report from JLL. However, how the holiday spend is spread differs by income, JLL noted.
With more shopping options in the physical and digital worlds, 71% of survey respondents said they would use two or more channels to shop for the holidays. Only 12.8% of holiday shoppers will order exclusively online for home delivery, JLL noted. And they’re not just shopping for others, the company added, as 83% of holiday shoppers plan to give themselves a little something this year versus 76.2% in the 2023 season.
As they cope with the effects of inflation, more shoppers will head to stores and e-commerce websites on deal days this year than was the case in 2023, according to JLL. High-income shoppers are more likely to head to stores on big deal days, such as Thanksgiving, Black Friday weekend and Super Saturday. Gen Z are more likely, at 71.2% of respondents, to shop on Black Friday.
Consumers aren’t celebrating just by buying and receiving gifts. More than 95% of respondents said they planned to participate in at least one holiday-related experience, which tops the 2023 figure, JLL noted. Consumers are not limiting themselves to one entertainment activity, as 76% of survey respondents anticipated engaging in two or more holiday experiences.
In 2024, gift spending makes up 46% of total holiday budgets compared to 55% in 2023. Gift budgets rose 9.9% from 2023, but they are down 4.9% from both 2022 and 2021. Planned spending on food and décor jumped 61% from 2023, while holiday entertainment and experience budgets gained 56.4% year over year.
JLL pointed out lower- and high-income consumers will spend about the same on gifts, but the more affluent segment will spend more cash on experiences. High-income shoppers earning more than $150,000 will spend about $530 on gifts, $499 on holiday food and decor and $530 on experiences for a total of $1,559. Middle income shoppers earning between $50,000 and $150,000 will spend $644 on gifts, $326 on holiday food and decor and $298 on experiences for a total of $1,268. Consumers who have more modest incomes at $50,000 or less will spend $533 on gifts, $178 on holiday food and decor and $204 on experiences for a total of $915.
