Published 23 October 2023
Even though the purchasing power of shoppers has improved over last year, people are likely to remain cautious, being selective on what they buy this holiday season, according to several studies.
“The resilient economy in 2023 — which has been a story of positive surprises — has buoyed the shopper,” according to a Mastercard Economics Institute (MEI) report. While shoppers can spend more this holiday season, which begins on November 1, they still want discounts and deals, and retailers are expected to provide them.
“With numerous choices and tightening budgets, you can anticipate shoppers to be increasingly selective and value-focused,” Steve Sadove, Mastercard senior advisor, mentioned in another study, the Mastercard SpendingPulse report. “We expect the most effective holiday strategy will be to meet consumers where they are — personalized promotions to in-store experiences will be key in doing so.”
Consumer Trends for the Holiday Season
Both reports align with one released earlier this year, which showed that about 80% of 1,000 consumers surveyed are planning to spend less on gifts this holiday season as they continue the price-conscious behavior adopted during the pandemic. Most respondents expressed an intention to prioritize value and seek cost-effective options when holiday shopping.
Electronics Purchases to Rise
U.S. retail sales — excluding the automotive market — are forecast to climb 3.7% during the season, compared to the same year-ago period, the SpendingPulse report shows.
The report indicates shoppers are likely to gravitate slightly more toward online shopping, which is expected to rise 6.7% from the same year-ago period, compared to a 2.9% increase in in-store shopping.
Moreover, consumers are expected to head to the electronics, gadgets, and gaming aisle, where sales are anticipated to increase 6% from the previous year. Dining out at restaurants is also likely to grow 5.4% over last year.
Spending Less and Setting Limits
If you are looking for a way to help keep costs under control, the 50-30-20 rule can be quite useful. This budgeting method divides your monthly after-tax income into three major categories: necessities, wants, and savings.
Therefore, for ideas on where to find deals, consider exploring various deal sites and tools that can help uncover online bargains effectively.
