Consumer Behavior

Economy, finances top concerns for holiday shoppers

Photo by istock.com

October 20, 2022

Nearly a third, 29%, of U.S. consumers are considering spending less this holiday season due to concerns about inflation and personal finances.

While the majority plan to spend the same or more than last year the number planning to spend less is higher this year compared to 2021, according to a holiday purchase intentions survey from The NPD Group.

"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 a release on the study findings. "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:

• One in five (20%) holiday shoppers will spend less over the holidays because their economic situation has changed.
• More than one in 10 (12%) will be spending less on gifts so they can spend more on holiday entertaining-related expenses, like food, drink and decorations.
• Over half (52%) are less concerned about COVID-19 compared to a year ago (up from 32% in 2021).
• More than half (55%) are planning to go to a friend or family member's home for the holidays (up from 47% in 2021).
• 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 stores (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."