A new US consumer survey points to busy holiday season, with shoppers indicating they will spend an average of 3.4% more this year than last – with requests for clothing gifts likely to be at a 12-year high.
According to the annual research from the National Retail Federation (NRF), consumers said they would spend an average of $967.13 this year, up from the $935.58 they said they would spend when surveyed at the same time last year.
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For the eleventh year in a row, gift cards remain the most popular items on wishlists, requested by 61% of those surveyed, followed by clothing and accessories at 55%, the highest level the category has seen in 12 years.
“With employment and incomes increasing, consumers are more confident this year and that is reflected in their buying plans for the holidays,” explains NRF president and CEO Matthew Shay.
“Retailers have been stocking up in expectation of this, and all signs are that this will be a busy holiday season. Retailers are preparing for a rush of consumers leading into Thanksgiving and all through December, and are offering a wide array of merchandise and promotions so shoppers can find great gifts and great deals at the same time.”
The consumer survey, conducted by Prosper Insights & Analytics, comes on top of NRF’s annual holiday spending forecast, which projects holiday retail sales in November and December this year will be up between 3.6% and 4% for a total between $678.8bn and $682bn.
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By GlobalDataIn addition, imports set an all-time record high late this summer as retailers brought in an unprecedented amount of merchandise in anticipation of a strong holiday season, and are continuing at unusually high numbers this autumn, according to NRF’s monthly Global Port Tracker report.
The survey found that only 27% of consumers say their spending will be impacted by concerns about the nation’s economy, down from 32% during 2016’s election-year jitters and the lowest level since NRF began asking the question during the Great Recession in 2009.
Holiday spending comes in three main categories – gifts, at $608.06; items such as food, decorations, flowers and greeting cards, at $218.08; and other non-gift items consumers buy for themselves and their families, at $140.99.
For the first time, online is the most popular shopping destination this year, cited by 59% of consumers. The survey also found that 57% will shop at a department store, 54% at a discount store, 46% at a grocery store/supermarket and 35% at clothing or accessories store.
Most online shoppers will take advantage of free shipping (94%) and conveniences like buy online, pick up in store (49%). In addition, 19% will take advantage of expedited shipping and 12% will use same-day delivery.
Most consumers (59%) are waiting until at least November to begin holiday shopping. However, 22% started or were planning to start in October and 19% in September or earlier. Of the early shoppers, 65% say they are trying to spread out their budgets while 49% do not want the stress of last-minute shopping and 48% want to avoid the crowds.
“While many consumers are holding off until November or later to start their holiday shopping, retailers should be prepared for high traffic online and in stores come Thanksgiving weekend as customers start tackling their lists,” Prosper Insights principal analyst Pam Goodfellow says.
“Although sales will remain an important factor for most consumers, many will lean on convenient locations and easy-to-use websites or mobile apps along with free shipping to complete their purchases.”
