OVERALL OUTLOOK
Holiday Spending Likely To Be Steady or Higher for Most Shoppers, but Inflation and Election Could Change Consumers’ Plans
When asked how much they plan to spend overall on holiday gifts this year compared to last, 54% of holiday shoppers said about the same amount, while 25% said more and 21% said less.
Compared to last year, how much do you plan to spend on holiday gifts overall, online and in physical stores?
Considering their online shopping specifically, though, 34% of consumers buying gifts this year expect to spend more, while 24% said less. Those rates were roughly reversed for in-store shopping with just 21% expecting to spend more in physical stores and 33% expecting to spend less.
Compared to last year, how much do you plan to spend on holiday gifts overall, online and in physical stores? (Among Gen Z respondents)
As their spending power is increasing, adult members of Gen Z are more optimistic than older generations in how their holiday spending will fare this year compared to last. Among Gen Z, 34% expect to spend more on holiday gifts overall this year, while 47% expect to spend more online.
What is your budget for holiday gifts this year?
Gen Z still trails older generations in the amount they plan to spend on holiday gifts, though, with just 22% planning to spend over $500. Among Gen X and baby boomers, 30% plan to spend over $500.
That level of spending is the exception, however, as a majority of all respondents, 51%, say they will be spending between $101 and $500.
Where do you plan to shop for holiday gifts this year?
Although a larger share of holiday shoppers expects to spend less in-store this year than more, brick and mortar purchases will still play a sizable role for most consumers. A full 29% of respondents plan to do at least a majority of their holiday shopping in stores, while another 30% expect to shop equally online and in store. Online shopping was a bit more popular among respondents, however, with 41% expecting to do at least a majority of their holiday shopping online.
Considering the larger economic and geopolitical picture, inflation remains a concern for most shoppers while a significant number also believe that the US presidential could impact the amount they plan to spend on holiday gifts.
How likely are the US presidential election and its outcome to affect your holiday shopping spending this year?
“72% of respondents still believe the rate of inflation will have at least a somewhat negative impact on their holiday spending.”
Even though US inflation growth rates have come down, a full 72% of respondents still believe the rate of inflation will have at least a somewhat negative impact on their holiday spending. At the same time, about one in five holiday shoppers believe the US presidential election and its outcome are very likely or almost certain to impact their spending.