Shoppers expecting to shell out an average of $875 during this holiday shopping spree, reveals National Retail Federation report.
Holiday Shopping Trends for 2023: A Look at Consumer Behaviour
As the holiday season approaches, retailers are gearing up for a significant increase in consumer spending. According to the National Retail Federation (NRF), holiday spending for 2023 is expected to rise by about 7% compared to 2022[1].
Popular Gift Categories
The top five expected gift categories this holiday season are clothing (56%), gift cards (44%), toys (37%), books (31%), and video games or other media (31%). Interestingly, restaurant and bank-issued gift cards are the most popular, with department stores coming in third at 26% of consumer spend[1].
Sources of Gift Inspiration
Online search is the most popular source for gift inspiration, accounting for 44% of consumers[1]. Following closely are friends and family (35%) and online wish lists (26%). In-store shopping (32%) and personal experiences (18%) complete the list[1].
Holiday Shopping During Thanksgiving Weekend
Nearly three-quarters of consumers plan on shopping during the upcoming five-day Thanksgiving holiday weekend. The average anticipated spend during this period is up 5% from 2022, with shoppers planning to purchase an average of three or four gift cards, with an average spend of $49.43 per card[1].
Total Spend and Forecasted Growth
The anticipated holiday spending is between $957.3 billion and $966.6 billion. Spending during the holiday season is expected to reach record levels, with a forecast of a 3% to 4% rise year over year[1]. The total spend on gift cards this season is expected to reach $29.3 billion[1].
Retail Sales and Apparel
In October, retail sales for apparel were flat, with extensive discounting reported. Despite this, apparel remains a primary gift category for the holiday season[1].
Looking Ahead to 2024
For the 2024 holiday season, NRF expects spending to continue rising, with consumers planning to spend $1,638 on average per household, which is a 7% increase over 2023 and 15% over 2022[1].
[1] National Retail Federation (2023). Holiday Spending Forecast: 2023 and Beyond. Retrieved from www.nrf.com/holiday-headquarters/holiday-trends
AI can analyze the trends in personal-finance and identify that gift cards, particularly bank-issued and restaurant gift cards, are anticipated to be popular choices for personal-finance management during holiday shopping in 2023. Furthermore, looking ahead to 2024, the study predicts an increase in overall holiday spending, with consumers expecting to spend 7% more per household compared to 2023.
