Consumer spending on gifts, food, decorations and other seasonal items during the 2024 holiday season is likely to set a record of $902 per person, according to the National Retail Federation’s latest consumer survey conducted by Prosper Insights & Analytics.
The amount is about $25 per person higher than the average spend in 2023 and $16 higher than the previous record set in 2019.
The survey suggests that the holiday spending increase will come largely from spending on gifts. Of the $902 shoppers plan to spend, $641 will cover gifts for family, friends, acquaintances and co-workers, which is an increase from $620 last year. Consumers will spend the remaining $261 on such seasonal items as food or candy, decorations, greeting cards and related holiday purchases, according to NRF.
In the United States, 92% of adults plan to celebrate winter holidays including Christmas, Hanukkah and Kwanzaa this year, in line with 2023 results, NRF noted. As they approach the season, 45% of holiday shoppers plan to browse and buy items before November, the survey indicated, which is consistent with recent years and up from 40% 10 years ago. The top reasons for early shopping include spreading out budgets, at 59%, avoiding the stress of last-minute shopping, at 45%, avoiding crowds, at 42%, and pursuing prices or promotions that cannot be missed, at 42%. Despite early starts, 62% of consumers anticipate finishing their shopping in December.
Online channels remains the top holiday shopping destination in 2024, with 57% of consumers planning on making seasonal purchases digitally. Department stores, at 46%, are the next most popular destination, edging out grocery stores and supermarkets, at 46%, and discount stores at 45%.
Gift cards remain the most popular item on consumers’ wish lists, as 53% of shoppers will request them the course of the holidays. Then following are clothing and accessories, at 49%; books and other media, at 28%; and personal care or beauty items, at 25%.
Younger consumers might take a slightly different approach to the holidays. “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,” Prosper Executive VP of Strategy Phil Rist said. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”
Katherine Cullen, NRF vice president of industry and consumer insights, added, “The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season. 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.”
