As the holiday season approaches, American consumers are gearing up for a spirited return to spending, as revealed by Deloitte’s 38th annual Holiday Retail Survey.
This year’s holiday spending is expected to surpass pre-pandemic levels for the first time, with consumers planning to allocate an average of $1,652. This marks a substantial 14% increase compared to the previous year. Notably, nearly one-third of shoppers intend to focus their holiday budgets on the final two weeks of November, with 78% actively engaging in holiday shopping during this period.
The survey highlights that 95% of consumers are eager to participate in the holiday season, representing a notable increase from 92% in 2022 and 88% in 2021. Furthermore, consumers across all income groups are committed to increasing their holiday spending, with middle-income groups aiming for a remarkable 26% surge compared to the previous year.
In response to inflation and higher prices, consumers are adjusting their holiday shopping strategies. They plan to purchase slightly fewer gifts this year (8 instead of 9 in 2022) and place a greater emphasis on gift cards, with an average spend of $300 compared to $217 in 2022. Additionally, a significant 66% of shoppers intend to take advantage of Black Friday and Cyber Monday sales, marking a substantial increase from 49% in 2022.
Apart from traditional gifts, the survey predicts a 25% increase in non-gift purchases this year. Consumers are showing a growing interest in holiday decorations, furnishings, and non-gift apparel items alongside traditional gifts.
Nick Handrinos, Vice Chairman at Deloitte LLP and U.S. Retail, Wholesale, Distribution, and Consumer Products Leader, commented on the changing consumer behavior, «Although inflation shows signs of moderating, consumers have come to expect higher prices and are adjusting their holiday spending accordingly.»
He added, «Retailers can anticipate continued in-store growth as shoppers seek to maximize their budgets with their favorite retailers, creating new opportunities to build loyalty.»