With Christmas, Hanukah and Kwanzaa just around the corner, American consumers are expected to spend an average of $1,455 through the coming weeks, according to a Deloitte survey.
Due to inflation and the Federal Reserve Bank’s attempts to bring it down with interest rate hikes, 73% of consumers expect to pay higher prices this year than in 2021. Since the nearly $1,500 spending figure is similar to last year, shoppers are looking for ways to save.
Indeed, 37% of consumers surveyed by Deloitte reported that their financial outlook this year is worse than it was in 2021. Yet, 74% said they expected to spend the same or more this holiday season. Low-income consumers estimated they would spend 25% more and high-income shoppers said they expected to cut back by 7%.
Overall, shoppers plan to purchase an average of nine gifts and 12% plan to cut back spending on non-gift items. When it comes to gifts, the “gift cards and other” category is set to increase by 7% this year. Additionally, 40% of shoppers are looking for sustainable gifts and 32% plan to buy resale items.
Online shopping is expected to take up the bulk (63%) of spending, but in-store on the rebound from 28% to 35%.
According to the National Retail Federation, holiday retail sales during November and December were projected to grow between 6% and 8% over 2021 to between $942.6 billion and $960.4 billion.
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“Last year’s holiday sales grew 13.5% over 2020 and totaled $889.3 billion, shattering previous records,” said the federation.
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