The holidays season is always an expensive time of year, but 2023 is expected to see a 3-4% spike in holiday spending, according to the National Retail Federation.

During the pandemic, stimulus money incentivized holiday spending, causing huge spending spikes of 9.1% in 2020 and 12.7% in 2021. The 3-4% spike we are seeing is equivalent to the average annual holiday increase levels pre-pandemic.

Despite the return to pre-pandemic spending, shopping habits have drastically shifted in the past 3 years. Online shopping has grown dramatically and is expected to increase by 7-9% from last year. This means that around $278.7 billion could be spent online over the next 2 months. Black Friday and Cyber Monday have contributed to the growth in online sales.

(Contributed/voyado.com)

However, contrary to popular belief, most Thanksgiving weekend sales are not impulsive (only around 28%) but rather deliberately thought-out purchases.

Spending on tangible goods is still lower than services, which has already returned to pre-pandemic levels.

Of consumers, 43% stated they started holiday shopping before November, but most plan not to finish shopping until December. Consumers plan to spend around $875 on gifts, décor, food and any other extraneous holiday items.

Economy has been a big topic of conversation and a major fear of many. However, the economy is holding strong with expected wage and job growth. In fact, holiday retailers are predicted to hire around 345,000 and 450,000 seasonal workers.

Frugality is still number one for most shoppers with 61% of consumers saying sales and promotions are paramount when shopping. The importance of holiday shopping and spending remains top priority for most despite the ever-changing world we live in. Of people, 58% say it is important for them to spend on gifts and holiday celebrations.

Whether it’s Christmas, Hanukkah, Kwanza or another special day, the holiday season still remains a time of both giving and spending.

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