For 37 years, Deloitte has studied consumer behavior and sentiment ahead of the holiday shopping season. By 2022, it found that consumers will buy less and cut back on travel as they face higher prices.
The consultancy notes that the continued impact of inflation and a shift in consumer priorities will define the 2022 holiday season, as consumers look for ways to make the season merry:
“While many Americans feel pressure from higher prices, it is possible that are evaluating how they spend money in general between socializing, giving gifts and traveling.”
Deloitte says inflation is likely to curb holiday shopping habits and according to his research:
– Holiday spending will remain flat year over year with an average of $1,455 per household, but consumers plan to buy fewer gifts (9 gifts vs. 16 gifts in 2021) for family and friends.
– As consumers look for the holidays to be merry, non-gift purchases are likely to be reduced (down 12% year over year) and shift spending to experiences (up 7% year over year) .
– Low income people plan to spend 25% more than last year ($671)while high-income individuals plan to cut 7% (to $2,438).
– Giving away resale items remains a key cost-saving strategy as consumers look for ways to maximize spend: 32% of shoppers plan to buy resale items and almost half of surveyed retail executives (48%) will be selling refurbished or used products this season.
– Nearly half (49%) of holiday shoppers plan to participate in Thanksgiving week events, up from 47% in 2021. Three in 10 holiday shoppers plan to spend on Black Friday (29% vs. 25% in 2021), and Cyber Monday (30% vs. 27% in 2021).
– More than half of consumers (60%) will switch brands if their preferred brand is not available and will check stock availability before making a shopping trip. Nearly two-thirds (65%) will switch brands if prices are too high.
– Travel demand slows, with less than a third (31%) of Americans planning to travel between Thanksgiving and mid-January, up from 42% in 2021.
– 15% of Americans plan to travel over Thanksgiving weekend and 14% plan to do it between Christmas and New Year.
– Financial considerations (37%) are the biggest drag this season for not travelingand 1 in 5 Americans who stay at home cite concerns about travel disruption.
Of those planning to travel, 3 in 4 plan to spend the same or less than they did in 2021. The average budget for vacation travel this year (including transportation and accommodation costs) will reach $1,287 dollars.
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