Purchasing gifts for friends and loved ones is a way for consumers to shift focus from the uncertainty and stress of the pandemic to celebrating the holidays and the promise of our return to a better tomorrow, according to an annual survey released by the National Retail Federation and Prosper Insights & Analytics.
In total, consumers plan to spend $997.79 on gifts, holiday items such as decorations and food, and additional “non-gift” purchases for themselves and their families.
“Consumers have demonstrated their resilience and adaptability throughout these extraordinary times,” said NRF President and CEO Matthew Shay. “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.”
While overall spending in these categories is down by about $50 from last year, nearly all ($45) of the decrease comes from consumers’ hesitation to use seasonal sales and promotions to buy other, non-gift purchases for themselves and their families. The holiday season is top of mind, with 42% saying they plan to start their holiday shopping by the end of October and another 41% in November.
One in five (19%) holiday shoppers say that they typically travel for the holidays but will stay home instead this year. Over half (53%) of those who changed their holiday travel plans said they are likely to spend more on holiday items this year, specifically because they will not be travelling.
As online sales have skyrocketed during the pandemic, it comes as no surprise that the majority (60%) of consumers say they plan to purchase holiday items online this year. Nearly all (91%) online shoppers plan to take advantage of free shipping, while another 44% plan to buy online, pick up in store and 16% plan to use same-day delivery.
Other top holiday shopping destinations for consumers include department stores, mentioned by 45%, discount stores (43%), and grocery stores or supermarkets (42%).
The survey asked 7,660 consumers about winter holiday shopping plans. It was conducted October 1-9 and has a margin of error of plus or minus 1.1 percentage points.
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