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US holiday spending expected to reach new record this year

Nov 11, 2024 United States

US consumers are expected to spend a record average of 902 USD per person on gifts, food, decorations and other seasonal items during the winter holidays, according to the National Retail Federation (NRF)

According to NRF's latest consumer survey conducted by Prosper Insights & Analytics, consumers in the US are expected to spend a record average of 902 USD per person on gifts, food, decorations and other seasonal items during the winter holidays. This is about 25 US dollars more per person than last year and 16 US dollars more than the previous record set in 2019.

“The winter holidays are a treasured time for Americans, and they are prioritising spending on family this holiday season”, the National Retail Federation (NRF) Vice President of Industry and Consumer Insights Katherine Cullen said. The survey shows that this increase in holiday spending is largely driven by gifts for family members. Of the 902 US dollars, shoppers plan to spend, approximately 641 US dollars will be spent on gifts for family, friends, co-workers and others, up from 620 US dollars last year.

Katherine Cullen stressed that “despite the shorter window of time between Thanksgiving and Christmas, retailers are prepared to meet the needs of consumers by providing holiday shoppers with earlier deals and sales and by ensuring inventory is available for the most in-demand items this year”. In fact, nearly half (45%) of holiday shoppers plan to browse and buy items before November, which is consistent with recent years and up from 40% a decade ago.

Spreading their budget (59%), avoiding the stress of last-minute shopping (45%), avoiding crowds (42%) and looking for can’t-miss prices or promotions (42%) are the top reasons for early shopping. Still, most consumers (62%) expect to finish their shopping in December.

It’s also worth noting that “while most consumers will opt to shop at traditional retailers this holiday season, many younger consumers between the ages of 18 to 24 will also head to thrift stores and resale shops”, Prosper Executive Vice President of Strategy Phil Rist added, in line with “this age group’s desire to save money and be more sustainable”.

The survey questioned 8,191 adult consumers about their holiday shopping plans, and it was conducted between the 1^st and the 7^th of October. It has a margin of error of plus or minus 1.1 percentage points.

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