The holiday season is coming up fast, and according to a National Retail Federation consumer survey conducted by Prosper Insights & Analytics, consumers expect to spend $875 on average on gifts, decorations, food and other seasonal items, up about $42, or 5%, from what they planned to spend in 2022.
Of the $875 consumers plan to spend, about $620 is budgeted for gifts and $255 for seasonal items such as decorations, candy or food.
The survey indicated that 92% of adults in the United States plan to celebrate events such as Christmas, Hanukkah or Kwanzaa this year, on par with last year. As has also been the case recently, 43% of holiday shoppers say they generally start their seasonal shopping before November to spread out their budget, for 60%, avoid the stress of last-minute shopping, for 46%, and avoid crowds, for 45%. Regardless of how early they start, 62% of survey respondents said they don’t expect to finish shopping until December.
Destination trends continue with 58% of consumers planning to shop online this holiday season, 49% at department stores, 48% at discount stores, and 44% at grocery stores and supermarkets.
Gift cards continue to be the most popular present, with 55% of holiday shoppers saying they would like to receive them this year, followed by clothing or accessories at 49%, books, video games or other media at 28% and personal care or beauty items at 25%. In another approach, 23% of holiday shoppers say they plan to give an experience-related gift, in line with 2022 and up from 19% in 2021.
Even as they budget more for the holidays than they did last year, consumers are looking for ways to make the most of their spending. When shopping for gifts, 62% of respondents said sales and promotions are even more important to them this year than last year, with 36% saying they are cutting back in other areas to cover the cost of holiday items, while 30% are purchasing gifts for fewer people and 27% are buying less for themselves.
“The winter holidays are an important tradition to many American families, and shoppers are prioritizing their holiday purchases for the people most important to them,” NRF president and CEO Matthew Shay said in introducing the survey. “Retailers have been preparing for months to ensure their inventories will meet demand while at the same time helping consumers maximize their budgets with shopping events and discounts running throughout the extended holiday shopping season.”
The changing seasonal shopping dynamics that have evolved over the past few years may significantly affect the season. Prosper executive vp of strategy Phil Rist added, “Early sales may sway consumers to shop even earlier. This year, seven in ten holiday shoppers say they are considering taking advantage of October sales events to pick up holiday gifts, décor and other items on their list.”
