Holiday Spending Expected to Reach New Record
WASHINGTON, D.C. — Consumer spending on the winter holidays is expected to reach a record $902 per person on average across gifts, food, decorations and other seasonal items, according to the latest consumer survey from the National Retail Federation, conducted by Prosper Insights & Analytics.
The amount is about $25 per person more than last year's figure and $16 higher than the previous record set in 2019.
"The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season," NRF Vice President of Industry and Consumer Insights Katherine Cullen said. "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."
The increase in holiday spending is largely attributed to gifts for family members. Of the $902 shoppers plan to spend, approximately $641 is on gifts for family, friends, coworkers and more, which is an increase from $620 last year. The remaining $261 will be spent on other seasonal items such as food or candy, decorations, greeting cards and other holiday items.
[Read more: Halloween Spending Expected to Break Records]
Key findings from the survey include:
Time to Celebrate
Nearly all U.S. adults (92%) plan to celebrate winter holidays such as Christmas, Hanukkah or Kwanzaa this year, in line with 2023, according to NRF.
Shopping Early
Nearly half (45%) of holiday shoppers plan to browse and buy items before November, which is consistent with recent years and up from 40% a decade ago. The top reasons for early shopping include spreading out their budget (59%), avoiding the stress of last-minute shopping (45%), avoiding crowds (42%) and pursuing prices or promotions that cannot be missed (42%).
Despite the early start, most consumers (62%) anticipate finishing their shopping in December.
Location, Location
This holiday season, consumers will head to various shopping destinations for gifts and other items on their lists. Online remains the top destination this year, with 57% of consumers planning on making their holiday purchases online. This is followed by department stores (46%), grocery stores and supermarkets (46%), and discount stores (45%).
"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 Insights & Analytics Executive Vice President of Strategy Phil Rist said. "Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable."
Gift cards remain the most popular item on consumers' wish lists, with 53% of shoppers requesting them this year. That is followed by clothing and accessories (49%), books and other media (28%) and personal care or beauty items (25%).
The survey was conducted Oct. 1-7 and polled 8,191 adult consumers about their holiday shopping plans.
Headquartered in Washington, D.C., NRF advocates for the people, brands, policies and ideas that help retail succeed. Retail is the nation's largest private-sector employer, contributing $5.3 trillion to annual GDP and supporting more than one in four U.S. jobs — 55 million working Americans.