Consumer Behavior

Holiday spend projected to hit record-setting mark

Photo: Generated by AI. Adobe Stock.

October 28, 2024

Consumer holiday spend is expected to hit a record $902 per person, according to the National Retail Federation's latest consumer survey.

The survey, conducted by Prosper Insights & Analytics, revealed the boost in spend is largely attributed to gifts for family members, according to a NRF press release on the findings.

The projected spend amount is about $25 per person more than in 2023 and $16 higher than the previous record set in 2019.

"The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season," NRF Vice President of Industry and Consumer Insights Katherine Cullen said in the release. "Despite the shorter window of time between Thanksgiving and Christmas, retailers are prepared to meet the needs of consumers by providing holiday shoppers with earlier deals and sales and by ensuring inventory is available for the most in-demand items this year."

Of the $902 shoppers plan to spend, approximately $641 is on gifts for family, friends, co-workers and more, which is an increase from $620 last year. The remaining $261 will be spent on other seasonal items such as food or candy, decorations, greeting cards and other holiday items.

Nearly half (45%) of holiday shoppers plan to browse and buy items before November, which is consistent with recent years and up from 40% 10 years ago. The top reasons for early shopping include spreading out their budget (59%), avoiding the stress of last-minute shopping (45%), avoiding crowds (42%) and pursuing prices or promotions that cannot be missed (42%). Despite the early start, most consumers (62%) anticipate finishing their shopping in December.

"While most consumers will opt to shop at traditional retailers this holiday season, many younger consumers between the ages of 18 to 24 will also head to thrift stores and resale shops," Prosper Executive Vice President of Strategy Phil Rist said in the release. "Secondhand and refurbished gifts appeal to this age group's desire to save money and be more sustainable."