Consumer Behavior

Holiday spend this year likely will dip a bit

Photo by istock.com

October 30, 2020

Consumers aren't likely to spend more this holiday season compared to 2019 and much of the reason is due to the ongoing COVID-19 pandemic and rocky economic winds.

That's the insight from the National Retail Federation's annual survey on holiday consumer trends and predictions.

Consumers will likely average $997 on gifts and holiday items, according to the survey conducted by Prosper Insights & Analytics.

"Consumers have demonstrated their resilience and adaptability throughout these extraordinary times," NRF President and CEO Matthew Shay said in a release on the survey. "Looking ahead to the holiday season, retailers will ensure that their stores are safe for both customers and employees as we all prepare to celebrate family and friends during this special time of the year."

Overall holiday season spend will likely be down by about $50 from last year, yet consumer spending on gifts will be nearly on par with last year, decreasing by about $8.

The survey polled shoppers on holiday travel activity and one in five (19%) who said they typically travel for the holidays will stay home this year.

A majority (60%) plan to purchase holiday items online this year, and another 44% plan to use buy online, pick up in store and 16% plan to use same-day delivery.