Chicago – Despite economic pressures, consumers are still looking to spend this holiday season. According to a new report from Circana, consumers intended to spend more than they did in the last two years, but still won’t quite meet the levels hit in 2021.
On average, consumers say they plan to spend $771 on holiday shopping this year. That’s up 2% from last year’s spending intentions, but still 2% below what they planned to spend in 2021.
The increase in spending could be tied to the overall consumer mood. This year, 36% of holiday shoppers are feeling positive about the state of the economy. Sixty-four percent say they are looking forward to the holiday season and 57% say going out shopping puts them in the holiday spirit – both figures are they highest they’ve been in four years.
“Spirits are up heading into the fourth quarter, and consumers are looking to hold on to that feeling of positivity,” said Marshal Cohen, chief retail advisor for Circana. “Financial concerns are still present for U.S. consumers, but they have eased which is bringing opportunity to retail this holiday season.”
Some shoppers plan on using gifts to bring joys to others during hard times (40%), while others plan to use the concept of “retail therapy” to help bring themselves joy (28%). But don’t think they’re overlooking price in their quest for happiness.
In fact, more than one-third of holiday shoppers (37%) say they will buy items that are on sale or promotion. Nearly a quarter (24%) think Black Friday will deliver the best deals of the season.
“Consumers continue their quest for value this holiday season, bringing the potential for renewed life to a graying Black Friday,” said Cohen. “It is up to manufacturers and retailers to keep holiday spirits high with deals that deliver that sense of value and inspire demand in the absence of new and innovative products.”
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