News
More holiday spend this year, says NRF
November 15, 2019
Shoppers will spend 4% more this holiday season, averaging about $1,047.83, compared to 2018. The prime reason? Consumers are in good financial shape, according to the National Retail Federation, which commissioned a study by Prosper Insights & Analytics. Individuals, ages 35 to 44, will spend the most, at $1,158.63, according to a press release.
"Consumers are in good financial shape and willing to spend a little more on gifts for the special people in their lives this holiday season," NRF President and CEO Matthew Shay said in the release.
The survey comes on the heels of of NRF’s annual holiday spending forecast, that estimates holiday retail sales in November and December will be up between 3.8% and 4.2% this year, over 2018, for a total of between $727.9 billion and $730.7 billion.
"Younger consumers are helping drive the spending increase this year," Prosper Insights Executive Vice President of Strategy Phil Rist said in the release. "They’re not just spending on their immediate family members, they’re also treating their larger circle of co-workers and friends to gifts."
More than half of shoppers between the ages of 25 and 34 (52%) plan to purchase gifts for co-workers, and 82% of those between 18 and 24 plan to purchase gifts for their friends.
Holiday shoppers will hit multiple channels, with more than half (56%) shopping online and, among those, 92% will take advantage of free shipping, 48% will use buy online, pick-up in store or use ship to store services, and 16% plan to use same-day delivery, which has doubled since 2015.
Similar to previous years, 39% plan to start buying holiday items before November, while 43% are waiting until at least November and 18% will wait until December. The survey polled 7,782 adult consumers October 1-10.
