03 Oct 2024 Holiday Shopping Intentions Fueled by Consumer Optimism and Quest for Value, Reports Circana
Holiday shoppers plans to spend an average of 2% more than last year, and Black Friday hits 4-year high in expectation of best holiday deals
CHICAGO, October 3, 2024 — U.S. consumer sentiment and intentions related to the 2024 holiday shopping season are improved compared to the last two years, but are still falling short of 2021 levels in most cases. Most holiday shoppers plan to spend about the same as last year, but there is an increase in those planning on spending more, according to the annual holiday purchase intentions consumer survey from Circana™, a leading advisor on the complexity of consumer behavior. On average, consumers plan to spend $771 on holiday shopping this year, which is 2% higher than last year’s spending intentions, but still 2% below their plans in 2021. Both the number of consumers looking forward to this holiday season (64%) and those who say simply going out shopping during the holidays puts them in the holiday spirit (57%) are the highest they’ve been in 4 years.
“Spirits are up heading into the fourth quarter, and consumers are looking to hold on to that feeling of positivity,” said Marshal Cohen, chief retail advisor for Circana. “Financial concerns are still present for U.S. consumers, but they have eased which is bringing opportunity to retail this holiday season.”
Consumers are seeking a holiday escape, and that includes some retail therapy
- This year, more consumers see the holidays as a break from everything that’s happening in the world (66%).
- The holiday shoppers who say they plan on buying more gifts for others to bring them joy during challenging times (40%) and those who plan on buying more gifts for themselves as part of their own “retail-therapy” (28%) have both increased from last year, but have not yet reached 2021 levels.
Holiday spirit is stronger than looming distractions
- This year’s household food and grocery costs will impact holiday shopping for 62% of consumers, but more holiday shoppers are feeling positive about their personal financial situation than last year (57%).
- More holiday shoppers are also feeling positive about the state of the economy this year (36%).
- Less than a third of holiday shoppers say their holiday purchase decisions will be impacted by the election.
Promotions will bring the biggest gifts to retail this holiday
- Many holiday shoppers say they will buy more items that are on sale or promotion (37%).
- More consumers did some of their holiday shopping during this year’s summer retail promotional events, and more plan on taking advantage of fall promotional events than in either of the past two years.
- While 19% of holiday shoppers feel fall promotional events will deliver the best deals, nearly a quarter (24%) say they think they will get the best deals on Black Friday this holiday shopping season — the highest in 4 years.
- More than half of holiday shoppers say they will be spending less this holiday season because other costs/expenses have gone up, but only 13% of holiday shoppers said they will likely shop at different stores than they typically do in order to save money.
“Consumers continue their quest for value this holiday season, bringing the potential for renewed life to a graying Black Friday,” added Cohen. “It is up to manufacturers and retailers to keep holiday spirits high with deals that deliver that sense of value and inspire demand in the absence of new and innovative products.”