Faced with continued economic uncertainty and used to doing more with less, consumers will take a conservative approach to spending this holiday season. According to NRF’s holiday consumer spending survey conducted by Prosper Insights & Analytics, the average holiday shopper will spend $737.95 on gifts, décor, greeting cards and more, two percent less than the $752.24 they actually spent last year. NRF is forecasting holiday sales will increase 3.9 percent to $602.1 billion.
“Though the foundation for solid holiday season growth exists, Americans are questioning the stability of our economy, our government and their own finances,” said NRF President and CEO Matthew Shay. “We expect consumers to set a modest budget for gifts and other holiday related purchases as they wait and see what will become of the U.S. economy in the coming months.
“Retailers have urged Congress and the Administration to seek a long-term solution for funding the government and extending the debt ceiling instead of kicking the can down the road once again. A band-aid approach is not the answer. Americans deserve to feel good about spending their hard-earned money on gifts for others, and this holiday season it’s evident some could second-guess their spending,” continued Shay.
Washington Gridlock to Impact Consumer Spending
For the first time, NRF asked holiday shoppers if the political gridlock in Washington around U.S. fiscal concerns would affect their holiday spending plans. On average, 29 percent of respondents said the situation would somewhat or very likely affect their spending plans. Nearly one-third (32.7%) of those between the ages of 55 and 64 said political gridlock in Washington was somewhat or very likely to affect their spending, the highest percent among all age groups surveyed.
When asked specifically about the overall state of the economy and how it would affect their spending plans, more than half (51.0%) of consumers said the economy would in some way impact how they spend this holiday season. Specifically, 79.5 percent plan to spend less overall, looking to cut corners and tighten budgets where they can.
Average Person Plans to do 40 Percent of Holiday Shopping Online
With plenty of options to shop around for the best value, consumers will look to discounters (64.7%), department stores (56.3%), and grocery stores (51.1%) for their gifts and goods this holiday season. More than half (51.5%) will shop online and 35.1 percent will shop at clothing or accessories stores. Additionally, 29.5 percent will shop at electronics stores and 20.9 percent will shop at drug stores.
Whether to comparison shop or look for deals on their mobile device while out and about, the Internet will play a crucial role for retailers and shoppers this year. The average person will complete about 39.5 percent of their shopping on retail and other company websites, up from 38.8 percent last year and the highest amount in the survey’s history. Shop.org, NRF’s digital division, is forecasting online holiday sales will grow between 13 and 15 percent to as much as $82 billion.
