Shoppers are optimistic this year, as they plan to increase spending by 8%, according to the 2024 Deloitte holiday retail survey.
What’s different this year, as the agency’s ConsumerSignals data shows, is that holiday shoppers will spend more on experiences than goods. Spending in this category will increase 16% over last year.
Gift spending will be relatively flat (–3%), and nongift purchases such as party apparel and decorations continue to gain in importance (+9% ).
However, all of this is in context of terms of the current economic situation of a cost-of-living squeeze, so consumer are still being frugal. They’re planning to cut back on self-gifting (–16 ), trade down to more affordable brands (62%) or retailers (48%), and shop promotional events (75% versus 61% in 2023).
From the retailer perspective, optimism is present as will with 80% expecting sales growth this holiday season aided by anticipated traffic growth in both in-store and online channels. However, 78% felt that earlier promotions are pulling sales forward, emphasizing the need for retailers to have the right products and prices early in the season.
The bulk of the holiday spending in late November, despite earlier promotional pushes.
The survey looked at the attributes consumers used to select a retailer. The top three were:
- 39% High quality
- 37% Getting a great deal
- 35% Variety of products/style
As to where consumers will spend the survey found the following:
- 38 % Online retailers
- 17% Mass merchant retailers
- 6% Department stores
- 5% Supermarkets or groceries
- 4% Electronic or computer retailers
- 3% Warehouse membership clubs
