Consumers are excited about the upcoming holiday season, but worried about their budgets. Lower inflation and interest rates are good news for shoppers, but spending is slowing as the holiday season approaches.
A slowdown in consumer spending This summer could signal an overall slower holiday season, although the impact of lower interest rates on consumer purchases is not yet visible. A soft landing coupled with holiday enthusiasm can boost retail sales this season.
More than half (53%) of U.S. consumers plan to spend about the same this holiday season as they did last year, while 30% plan to spend less. Achieving these goals will be a challenge. Inflation may have slowed, but prices remain higher than a year ago. Shoppers will either need to find good deals or reduce their overall consumption to stick to their vacation budget.
Although November is the critical month for holiday shopping (62% of respondents said they will do most of their shopping that month), shoppers are planning ahead. It’s critical to get inspiration and gift guides in front of consumers as soon as possible, despite gripes about holiday advertising before Halloween.
To help brands calibrate their holiday sales expectations and anticipate channel-specific consumer responses, we surveyed 4,402 U.S. adults about their finances, shopping activities, and holiday gifting plans. holidays.