Circana: Consumers’ holiday shopping plans include buying differently
Consumers plan to be more selective in their buying behavior this holiday shopping season.
While the usual items top holiday shopping lists, consumers are planning on buying less and looking more deals to offset higher prices, according to the annual holiday purchase intentions consumer survey from Circana.
The majority (81%) of holiday shoppers indicated an expectation of higher prices as a result of tariffs and stronger regulations on imports of goods from other countries.
Nearly two-thirds (63%) of consumers said that the cost of food and groceries this year will impact their holiday shopping behavior, whether they buy fewer gifts, spend less on the gifts they purchase, or opt for more “off brand” items.
“Purchase prioritization will be front and center for consumers this holiday shopping season,” said Marshal Cohen, chief retail advisor for Circana. “Holiday shoppers will be making more thoughtful and deliberate choices based on their budget and the value they get from the purchase, leaving less room for the impulse spending that is critical to holiday season growth.”
Top gifts
The top types of planned physical gifts look similar each year, noted Circana, and the number of holiday shoppers planning to buy those items changed very little from last year. Leading the pack this year are clothing and accessories (56%), technology and electronics (38%), beauty (33%), entertainment (30%), home (29%) and toys (28%).
While more consumers plan to purchase technology and electronics than last year, they are moderating their spend on those products to an average of $851. Select home products and entertainment may see a boost in spending based on early consumer intentions, with an average planned spend of $378 and $218 respectively.
Beauty is the one area where consumers plan on both buying more and spending more, with an average planned spend of $247.
Holiday shoppers will also consider adjusting how they spend on different gift recipients. More than half (54%) of consumers plan on buying for kids this holiday season, and of those, only 31% plan on spending less on those kids.
Among the half of consumers planning to buy gifts for their spouse or partner this year, 40% plan to spend less on them. And, while only 11% of holiday shoppers will be buying for pets this year, only 37% of them plan on scaling back their splurge on them.
“Consumers may have entered this holiday shopping season with a more cautious spending mindset, but the spirit of the season is still a factor in their spending choices,” said Cohen. "Don’t underestimate the resilience of the consumer. Purchase prioritization, particularly at the holidays, is the result of weighing need and practicality with emotion and perceived value. It is in the gray area where that blend of considerations comes together that retailers and manufacturers can find their opportunity to capture the consumer’s attention if they can convey a benefit that surpasses price.”
