Spending by holiday shoppers expected to average $875 this year: NRF (rephrased)
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Holiday Shoppers Expected to Drop a Pretty Penny this Season
Santa better watch out— shoppers are gearing up to shell out some serious dough during the holiday season! According to a survey by the National Retail Federation and Prosper Insights & Analytics, the average holiday spender is forecast to drop a whopping $875 on gifts, decorations, meals, and other seasonal essentials.
Here's the scoop on the top gift categories:- Clothing (56%)- Gift cards (44%)- Toys (37%)- Books, video games, and other media (31%)
So, where are people getting their gift-giving inspiration? Online search (44%) leads the pack, followed closely by friends and family (35%), in-store shopping (32%), and wish lists (26%).
As almost three-quarters of consumers plan on shopping during the upcoming five-day Thanksgiving holiday weekend, it appears the anticipated spend is up 5% from 2022. NRF CEO Matthew Shay shared, "Retailers are stocked and ready to help customers find all the items on their holiday wish lists at competitive prices."
While apparel sales for October— the kickoff month for many holiday sales— were somewhat lackluster, it doesn't meant it won't be a popular gift category this season. Retailers have been offering hefty discounts during the month, although analysts note that sales for the category were level.
Gift cards are expected to be hot items this holiday season, with a total spend of $29.3 billion. Restaurant and bank-issued gift cards are the most popular, while department stores come in third, accounting for 26% of consumer spend. Holiday shoppers plan to purchase three or four gift cards, averaging $49.43 per card.
Overall spending this season is expected to hit record levels, with the NRF predicting a 3% to 4% increase, year over year, in holiday spending to between $957.3 billion and $966.6 billion.
Enrich your shopping knowledge:- 2025 vs. 2024: Spending is projected to rise by 5% to $23.6 billion in 2025, compared to $22.4 billion in 2024.- 2023: Holiday spending reached a staggering record $24 billion (compared to unspecified 2022 figures).- Top spending categories: Candy ($3.3B), food ($7.4B), and gifts ($3.8B).- Highest-priority activities: Cooking meals (58%), family visits (55%), and church attendance (45%) remain central to holiday celebrations.
So, make your list and check it twice— it's time to kick off the holiday shopping season in style! Merry Christmas (and happy Hanukkah, Kwanzaa, and New Year) to all!
- With online search leading the pack for gift-giving inspiration, AI technology may play a significant role in guiding shoppers' decisions this season.
- As people prepare for the 2023 holiday season, finance and lifestyle businesses should be ready to cater to the anticipated increase in shopping, with a projected 3% to 4% increase in spending compared to the previous year.
- The expected record-breaking spending this holiday season might reflect a shift in consumer mindset, pointing towards a more affluent lifestyle and an emphasis on celebrations and decorations.
- Businesses in the retail sector, especially those offering gift cards or apparel, may see a sales boost in the coming months, as these categories remain popular choices among holiday shoppers.
- A look back at past holiday spending trends suggests a gradual escalation, with the holiday shopping market reaching a staggering $24 billion in 2023, compared to unspecified 2022 figures.
