Chicago: Consumers are still looking to spend this holiday season, despite economic challenges. A recent Circana report claims that although consumers planned to spend more than they did the previous two years, they still won’t reach the levels reached in 2021.
Customers estimate that they will spend $771 on holiday shopping this year on average. That represents a 2% increase over their spending goals from the previous year, although it is still 2% less than their 2021 budget.
The general mood of consumers may be related to the increase in spending. 36% of holiday consumers this year are upbeat about the status of the economy. Sixty-four percent of respondents say they are excited about the holidays, and fifty-seven percent say that going shopping gets them in the mood. These are the greatest percentages of respondents in the last four years.
According to Marshal Cohen, chief retail advisor at Circana, “spirits are up heading into the fourth quarter, & consumers are looking to hold on to that feeling of positivity.” “While American consumers still have financial concerns, those concerns have lessened, which is creating opportunities for retail this holiday season.”
While 28% of shoppers intend to use the idea of “retail therapy” to help them feel happy, 40% of consumers aim to use gifts to cheer others up during difficult times. Don’t assume, however, that in their pursuit of happiness, they are ignoring cost.
Indeed, 37% of holiday consumers said they will purchase products that are discounted or marketed. Twenty-four percent (24%) of respondents believe that Black Friday will have the best sales of the year.
According to Cohen, “consumers are continuing to look for value this holiday season, which could revitalize a dying Black Friday.” “In the absence of new and inventive products, it is up to manufacturers and retailers to keep holiday spirits high with deals that deliver that sense of value and inspire demand.”
