Shifting Holiday Shopping Trends in 2023
If you’re planning to spend less on gifts this holiday season amid inflation pressure, you’re not alone. U.S. consumers are expected to spend less this holiday shopping season as price-consciousness has become a defining characteristic of consumer behavior, a new survey revealed.
Approximately 80% of consumers are expected to spend less this holiday season than in past years, according to the 2023 Holiday Shopping Trends Report, a survey of over 1,000 shoppers nationwide conducted by automation platform Celigo. The report states that consumers are more price-conscious than ever before, with a remarkable 77% of respondents expressing their intention to prioritize value and seek cost-effective options for their holiday purchases.
As the U.S. holiday shopping landscape continues to evolve, price-consciousness is shaping consumer behavior. This follows economic forecasts that predict a cooldown in goods buying later this year.
Setting Spending Limits
Budgeting is a hot topic this year, with an overwhelming majority of respondents setting spending limitations. Approximately 80% indicated that they plan to spend less than $5,000 on holiday shopping this season. Furthermore, 49% plan to spend less than $1,000, and 30% intend to spend between $2,000 and $5,000. However, there remains a demographic willing to spend moderately on meaningful gifts and experiences.
Setting a spending limit before you begin shopping is a smart strategy to keep costs down. Planning ahead can help you determine how much to allocate for different people’s gifts, which in turn allows for opportunities to cut back.
For instance, if you’re accustomed to purchasing multiple gifts for grandchildren, establish an appropriate total amount to spend on that generation. Consider sending physical gifts to those you won’t see during the holidays and opting for experiences that don’t incur high costs, such as teaching a family recipe or visiting a local museum. This approach may even be appreciated by parents who prefer less clutter in their homes.
The Rise of Online Shopping
Online shopping is projected to be the primary channel for holiday shopping this year, with 75% of consumers indicating they will rely on it for most of their shopping, and 65% will conduct all their holiday purchases online. Respondents cited product availability, speedy delivery, and convenience as the primary reasons for favoring online shopping over physical stores. Moreover, the report added that Black Friday and Cyber Monday are diminishing in importance, with nearly 50% of consumers intending to begin their shopping as early as September.
Embracing Small Retailers
Consumers are increasingly turning to independent retailers rather than e-commerce giants and big-box stores. Just over half of consumers prefer shopping at independent retailers, citing their unique product selections that are often not easily found in larger chains. Additionally, many respondents highlighted the value of community connection, with 41% mentioning this as a reason for choosing small retailers this year.
These establishments are embedded within their communities, contributing to the local economy and fostering genuine relationships with customers, which creates strong loyalty among clientele.
Ultimately, the holiday season is about finding ways to connect and create lasting memories with loved ones. Emphasizing this perspective can make the season more enjoyable, even when faced with the pressures of budgeting and shopping.
