US consumer spending is expected to hit an unprecedented average of $902 per person this holiday season, an increase of over $25 from last year, the National Retail Federation (NRF) forecast.
Family will play an important part in the growth, with approximately $641 of the total expenditure going toward gifts for family members, friends and coworkers. That figure is up from the $620 shelled out for the same purpose last year, the NRF reported last week in a survey it conducted with Prosper Insights & Analytics.
“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,” said NRF vice president Katherine Cullen.
The remaining $261 is going to non-gift seasonal items including decorations, food or candy, and greeting cards, according to the survey. About 92% of adults said they intended to celebrate Christmas, Hanukkah or the African American holiday of Kwanzaa this year, consistent with numbers from 2023.
About half of respondents planned to start buying before November, reflecting a gradual increase from 40% a decade ago. The primary motivations for early shopping included spreading out their budget, avoiding last-minute stress, circumventing crowds and capitalizing on promotions. Still, 62% of respondents said they anticipated completing their shopping in December.
Online shopping remains the top destination for holiday purchases, with 57% of consumers planning e-commerce buys. Popular shopping venues were department stores, grocery stores and supermarkets, and discount stores.
“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,” said Phil Rist, Prosper executive vice president of strategy. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”
Gift cards topped wish lists for 53% of respondents, with 49% preferring clothing and accessories, including jewelry. An additional 28% wished to receive books and other media while 25% wanted personal care or beauty items.
Image: Shoppers at the mall during the holidays. (Shutterstock)
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