PwC’s 2024 Holiday Outlook survey revealed 59% of respondents believe inflation will influence their holiday purchasing this year. Even so, consumers indicated they would spend about 7% more for their year-end festivities for an average of $1,638.
The survey suggested some fragmentation in spending. For example, there is a marked gap between those ready to splurge and those tightening their budgets.
As the holiday season approaches, 29% of survey respondents said they intend to spend less when compared to the 2023 season, with those consumers planning to lay out $776 in the 2024 holidays. Yet, 26% of respondents said they were prepared to spend more, allocating $3,076. Income makes a difference: 34% of consumers earning more than $65,000 per year say they will spend more, while only 21% of those earning under $65,000 say the same.
For those cutting back, decisions about nonessential purchases might dictate how they prioritize holiday spending, indulging only where it matters most to them, PwC asserted. Price-sensitive consumers have grown more discerning and adaptive, for example by purchasing private labels and store brands. In addition, the business services firm added, shoppers are more willing to try resale/used products, at 45% versus 38% in 2023; as well as rental programs, at 31% versus 26%. The shift is particularly prominent among GenZers and Millennials, reflecting a broader trend toward more sustainable and cost-effective shopping habits. Buy online/pick up in store is gaining ground, too, with adoption led by Gen Z and Millennials. However, in general, home delivery remains the top delivery method for 82% of consumers when shopping online for the holidays, consistent with the 2023 season,PwC pointed out.
Differences between generations will affect holiday shopping. GenZers and Millennials lead the way in sustainable shopping, self-gifting and buying experiences in preference to physical goods, while Gen X and Baby Boomers lean toward convenience and practicality, often choosing gift cards and shopping in physical stores. Gen Z consumers value celebrity and influencer endorsements, with 40% citing them as an important factor when holiday shopping versus 28% of all survey respondents.
Gen Z is tops when it comes to boosting holiday budgets, with a 35% increase planned on average to $1,752. Millennials have budgeted the most among prime shopping generations — with GenAlpha just starting to adopt a consumer role — at $2,222 on average, up 16% from the holidays last year. GenXers and Boomers expect to spend less, down year-over-year 18% and 2%, respectively, to $1,454 and $1,126.
How shoppers shop also is important. Consumers who plan to shop in stores more frequently than usual in the holidays expect to spend $2,307 on average versus $1,297 for less frequent visitors, according to PwC. The survey suggested consumers are becoming more comfortable with in-store technology. Some 63% of respondents who anticipated shopping in physical locations more frequently than usual during the holiday season said they value self-checkout technology and mobile payment. Reflecting evolving retail technology and convenience priorities, 48% of consumers placed the same value on just-walk-out technology.
Women emerged as a driving force behind holiday spending gains in 2023, This season, male shoppers intend to outspend their female counterparts with a projected 13% increase in holiday budgets, PwC observed. When it comes to buying presents for others, men are more likely to gift home appliances, at 28%, than are women. In comparison, 58% of men plan to buy footwear as gifts for themselves, followed by electronics, at 55%, and video games, at 51%. Men plan to spend $2,018 on the holidays in 2024 including $932 on gifts, versus women, at $1,291 and $706, respectively.
