Between decking the halls, entertaining and buying for everyone on your nice list, the cost of spreading holiday cheer can add up fast. New research from the National Retail Federation (NRF) finds that 92% of U.S. adults plan to celebrate winter holidays including Christmas, Hanukkah, or Kwanzaa this year. All that celebrating will lead to a lot of spending, with the NRF predicting that holiday spending will reach record levels in November and December, totaling between $957-billion and $966-billion.
A survey of 8-thousand consumers reveals:
- Americans plan to spend $875 on average, which is $42 more than they planned to spend in 2022. The total includes $620 for gifts and another $255 for seasonal items like decorations, food and candy.
- Many like to get an early start on their holiday shopping, with 43% saying they typically start before November.
- Nearly a third (62%) expect they won’t finish until December, no matter how early they start.
- The top place to shop continues to be online (58%), followed by department stores (49%), discount stores (48%) and grocery stores (44%).
- The most popular gift is still gift cards, as 55% say they’d be happy to receive them this year. Clothing and accessories are next with 49%, then books, video games or other media with 28% and personal care or beauty items with 25%.
- Nearly a quarter (23%) say they’re planning to give a gift of experience this year.
- To make the most of their budget, 62% say sales and promotions are more important to them this year than last and 36% say they’re cutting back in other areas to cover holiday expenses.
Source: National Retail Federation