Despite the challenging financial circumstances of this year, the National Retail Federation predicts that holiday sales during November and December will increase anywhere between 3.6-5.2% over 2019. Of course, how that money is spent will change; they also expect online and other non-store sales to grow by 20-30% YoY. Below, we take a look at consumer expenditures, where they’re shopping, and what they’re spending on.
Here are four things you need to know about holiday spending in 2020:
Average Consumer Expenditures
How much are consumers spending on an individual basis for the 2020 holiday season? Let’s take a look:
- $650 gifts for family, friends, and coworkers
- $230 food, decorations, etc.
- $117 other non-gift purchases for self or family
- $998 total
Did you know? Over the last decade the amount of consumers making non-gift purchases for themselves/family has hovered between 55-60%. This year, consumers are eschewing the more frivolous expenditures for gift-getting; only 48% are making non-gift purchases in 2020.
What Gifts are Topping the List?
According to American consumers, the flexibility of gift cards/certificates makes them the most universally appealing item to receive. What else are gift-getters hoping for?
- 54% Gift cards/certificates
- 47% Clothing and clothing accessories
- 34% Books and other media
- 27% Electronics and accessories
- 25% Home décor and furnishings
- 21% Personal care and beauty
Where Will Consumers Shop?
On the heels of a Q3 in which e-commerce sales were up 36.7% YoY, online purchases will dominate the holiday season.
- 60% Online
- 45% Department store
- 43% Discount store
- 30% Clothing/accessories store
- 23% Local/small business
- 21% Electronics store
Incentives to Buy
Unsurprisingly, price consciousness will lead the way in 2020 as the most important factor for consumers while holiday shopping. What other factors will drive them to buy?
- 66% Sales or discounts
- 58% Quality of merchandise
- 56% Selection of merchandise
- 49% Free shipping
- 40% Convenient location
