By Gary Symons
TLL Editor in Chief
The National Retail Federation projects average consumer spending over the 2024 holidays will reach a record $902 per person.
The NRF bases that number on the average expected spending for gifts, food, decorations, and other seasonal items, with figures coming from its annual consumer survey 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 largest segment for spending is attributed to gifts for family members, totalling an average of $641 on presents for family, friends, and co-workers. That’s up from $620 last year.
The remaining $261 will be spent on seasonal items related to the holidays, such as food, candy, decorations, wrapping paper, greeting cards, and more.
The NRF also says the holidays remain extremely popular with Americans, as 92% plan to celebrate winter holidays in 2024, particularly Christmas, Hanukkah, and Kwanzaa. The number was almost identical with survey numbers in 2923.
As well, the NRF says the holiday is top of mind with shoppers long before they start.
“Nearly half (45%) of holiday shoppers plan to browse and buy items before November, which is consistent with recent years and up from 40% 10 years ago,” the NRF says. “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.”
Shopping habits will follow the trend for the last few years as well, with one exception for younger shoppers.
Online remains the top shopping 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%).
However, younger consumers are introducing a trend of their own.
“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 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.”
So, what are people buying? The survey indicates that in terms of volume, 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 asked 8,191 adult consumers about their holiday shopping plans. It was conducted October 1-7 and has a margin of error of plus or minus 1.1 percentage points.