Holiday shopping is hitting new highs this season. In its latest report, the National Retail Federation (NRF) reveals the average consumer plans to spend a record $902 on gifts, food, decorations, and other holiday essentials.
What’s the bigger picture? According to Prosper Insights and Analytics, this is an increase of about $25 per person from last year and $16 more than the previous peak in 2019.
This data could help businesses and individuals make more informed decisions based on consumer confidence and market conditions heading into the peak period.
What’s driving record holiday spending this year?
The NRF’s vice president of industry and consumer insights Katherine Cullen says 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,” says Cullen.
Here are some holiday spending highlights:
- Gifts for loved ones lead the way: Shoppers plan to dedicate $641 of their holiday budgets to gifts for family, friends, and co-workers—a rise from $620 last year.
- Festive essentials add up: The remaining $261 will be spent on holiday necessities, including food, candy, decorations, greeting cards, and other seasonal items.
Early shoppers surge; online leads the way
The latest NRF research shows 92% of US adults plan to celebrate winter holidays like Christmas, Hanukkah, or Kwanzaa.
Forty-five percent of holiday shoppers will browse and buy items before November—up from 40% a decade ago.
Why are consumers shopping early?
Holiday consumers often shop early because they want to secure the best deals and avoid the holiday rush, embracing the “early bird catches the worm” mindset.
- 59%: Spread out their budget.
- 45%: Avoid last-minute stress.
- 42%: Avoid crowds.
- 42%: Catch early prices and promotions.
However, 62% of shoppers expect to complete their holiday shopping in December.
Here are the top shopping destinations according to the report:
- 57%: Online.
- 46%: Department stores.
- 46%: Grocery stores/supermarkets.
- 45% Discount stores.
Thrift stores attract young holiday shoppers`
Prosper executive vice president of strategy, Phil Rist says while most consumers will choose to shop at traditional retailers this holiday season, many younger consumers between the ages of 18 to 24 will also go to thrift stores and resale shops.
“Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable,” says Rist.
Gifts at the top of the ‘Wish Lists’ this holiday season
- Gift cards lead: 53% of shoppers want gift cards this year, making them the most popular item.
- Other favorites: Clothing and accessories (49%), books and media (28%), and personal care or beauty items (25%).
NOW READ: Australians want to spend more this Christmas
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
