Consumer Behavior

Economy, finances top concerns for holiday shoppers

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October 4, 2022

Nearly a third, 29%, of U.S. consumers are thinking about spending less this holiday season and spending is expected to be on par with 2021 levels.

Those are two top findings from a consumer survey released by The NPD Group.

The consumers spending less are citing the economy and personal finances as top reasons, according to a press release on the survey.

"Consumers are ready to get out and celebrate over the 2022 holiday season, but last year's optimism has taken a beating as financial concerns have them feeling a bit more grinchy this year," Marshal Cohen, chief retail industry advisor for NPD, said in the release. "Despite economic challenges, consumers still have just as many friends and family members to shop for during the holidays; they will just be spending differently."

Additional highlights include:

• More "early" pre-Thanksgiving shoppers are starting even earlier — 39% started or plan to have started before October.
• The number of consumers planning to do holiday shopping online fell from 85% last year to 80% this year — the largest shift favoring stores in years.
• Plans to shop mass merchants grew the most from 2021, while plans for pureplay e-commerce shopping declined most.
• Consumers expect more of their holiday purchases to be made in-store (46%) than online (45%) this year — another significant shift from last year's plan for half of their shopping to be done online.
• Among those who plan to use social media for holiday shopping research, TikTok is the only one of the top four to grow.
• "Early season promotional events will help consumers to spread out their spending, while also setting the stage for a more spread-out holiday shopping season," Cohen said in the release. "Navigating this year's fluctuating shopping dynamics will require patience and persistence with the consumer, and a perspective on the holiday season that extends beyond the traditional retail definition."