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Survey says U.S. consumers plan to spend more this holiday season

Holiday gift purchases expected to average $718; Consumer enthusiasm for Black Friday shopping hits eight-year peak.

October 9, 2014

Amid signs of increased optimism about their personal finances, one-quarter (25 percent) of U.S. consumers plans to spend more on holiday shopping this year compared to 20 percent in 2013, and spending on holiday gifts is expected to average $718, according to Accenture’s annual holiday shopping survey.

The survey also found consumer enthusiasm for Black Friday shopping has reached its highest level in eight years. Two-thirds of respondents (66 percent) said they are likely to shop on Black Friday, compared to 55 percent who planned to do so in 2013 and 44 percent who said the same back in 2007. In addition, 37 percent plan to shop online during that period using a desktop, mobile device or tablet, which is up from 32 percent in 2013. Plans to shop on Thanksgiving Day and evening rose to 45 percent from 38 percent in 2013. Of those consumers planning to shop on the holiday, 47 percent said that they will be shopping in a physical store between 6 PM Thanksgiving Day and 5 AM on Black Friday.

The Accenture Holiday Shopping Survey found that of those consumers planning to spend more this year, 28 percent said they have more discretionary income and 22 percent noted that they have greater job security, up from 15 percent in 2013. Additionally, consumers are planning to allocate a greater share of wallet to holiday shopping than in previous years. For example, of those planning to spend more this year, 47 percent plan to spend $250 or more compared to 40 percent in 2013. Of the 19 percent of consumers who plan to spend less this year, 41 percent said they will reduce the amount they spend by less than $100.

Even though they intend to spend more, holiday shoppers remain keenly focused on discounts and sales. Nearly all respondents (96 percent versus 94 percent in 2013) said that discounts will be important to their purchasing decisions, and more than one in four (29 percent) said that it would take a discount of 50 percent or more to persuade them to make a purchase.

Retailers could also see a shift in sales in the post-holiday season this year, as more than half (57 percent) of consumers plan to purchase gift cards (the top item on consumers’ shopping lists) this year and 17 percent will use gift cards to do their holiday shopping, up from 10 percent in 2013. For example, a gift card may prompt additional sales when the card is redeemed since it is likely that the recipient will spend extra money to buy an item of greater value, versus leaving a balance on the card. Moreover, by offering an incentive for holiday gift card buyers to make additional purchases or to enroll in their loyalty card program, retailers might be able to convert holiday enthusiasm into a brand relationship that extends throughout the year.