Holiday spending to increase; experiences rising as popular gift option
Consumer spending is expected to rise 8% this holiday season, according to new data from Deloitte.
The 2024 Deloitte Holiday Retail Survey found that consumers surveyed plan to spend an average of $1,778 this holiday season, up nearly 10% year-over-year. The increased spending is driven by an improved economic outlook and a shift to gift categories that “emphasize the spirit of the season,” including experiences and non-gift items.
Retail spending (gifts and non-gifts) will likely remain relatively flat year-over-year ($1,043 compared to $1,020 in 2023). However, it still accounts for most (59%) of the average expected holiday spend. Surveyed consumers expect to spend $536 on gifts (down 3% year-over-year) and $507 on non-gift purchases, up 9% year-over-year. Deloitte found that consumers plan to spend $735 on experiences, up 16% year-over-year.
Participation in experiences is near pre-pandemic levels (83% this year versus 86% in 2019). Overall, the five-year CAGR (2019 - 2024) for experiences is 4.3% compared to 3% for retail categories. Four-in-10 shoppers plan to gift experiences this holiday season (such as event tickets or vouchers to restaurants or spas).
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"This holiday season, consumers plan to prioritize celebrating with friends and family through experiences,” said Brian McCarthy, principal at Deloitte. “To do so, they are finding ways to make their dollars go further on the gifts they want to give and the events they want to experience. With consumers leaning more into experiences and continuing to search for value, retailers have the opportunity to attract shoppers and better connect with customers by focusing on loyalty programs and offering unique incentives."
Deloitte found that all those surveyed making less than $200,000 intend to spend more this season, with high-income earners (those making $100,000 to $199,999) seeing the most significant gains (17% more year-over-year).
More shoppers plan to gift food and beverage products this year compared to last year — up nine percentage points year-over-year. Although holiday shoppers plan to spend 10% less on clothing and accessories this year, the category remains at the top of gift lists.
Holiday gatherings are a big part of experiences at home with one-in-four consumers surveyed planning to host a holiday gathering, invite an average of 10 guests, and spend an average of $261. At the same time, 70% of hosts are open to spending more on items or services to make hosting more convenient. Almost half (47%) would ask guests to bring food or beverages to offset costs, and 31% say they will invite fewer guests this year.
Those looking for deals will likely challenge loyalty. More than six-in-10 (62%) shoppers say they will shift brands if the preferred brand is too expensive, and 48% say they will shop at more affordable retailers. Moreover, 80% of retail executives expect private label sales to grow faster than national brand sales this holiday season.
Addition findings from Deloitte’s 2024 Holiday Retail Survey include the following:
- Among retail executive buyers surveyed, eight-in-10 expect sales growth this holiday season, aided by more in-store and online traffic.
- Nearly one-third (29%) of holiday shoppers plan to purchase gifts from a friend or family member's wish list hosted on a retailer's site.
- Multichannel shopping is remaining popular, as 48% of those surveyed plan to shop on smartphones, while 13% plan to purchase on social media. However, Gen Z is embracing these channels more, with 58% planning to shop on their smartphone and 20% planning to buy gifts on social media.
