How inflation is expected to affect holiday shopping

A new survey reveals the cost of living will impact not just what consumers buy, but how they make purchases.

According to a new survey of 1,000 U.S. consumers from Inmar Intelligence, “2023 Holiday Trends: Grocery and Everyday Spend,” 49% of respondents are pessimistic about the rising cost of living and 48% have a negative economic outlook.

Close to three in four (73.3%) respondents expect to make cutbacks across their overall holiday spending due to economic conditions. The most-reported stressful parts of the holiday season are affordability (54%) and picking out gifts (44%).

Unsurprisingly, seven in 10 (71%) respondents say they will actively search for coupons or promotion codes to make holiday purchases. More than half (53%) of respondents are buying fewer gifts this year in response to economic conditions, and eight in 10 (81%) say they will explore alternative gift options that are more budget-friendly.

[Read more: Consumers plan to spend less, shop earlier this holiday season]

Examining holiday spending trends more closely, Inmar Intelligence found generational differences in responses. Survey respondents from the age of 18 to 44 anticipate spending more on holiday gifts and purchases this year than last year, but respondents over 45 years of age anticipate spending about the same or less than last year.

Trends in holiday payment and shopping technology usage

• Buy now, pay later grows: Close to four in 10 (38.3%) say they will be utilizing buy now pay later (BNPL) options to manage their holiday expenses, up 65% from 23.2% the previous year. Millennials respondents aged 25-35 had the greatest increase at 88%, jumping year-over-year from 29.8% to 56.29%.
• Omnichannel shopping: Six in 10 respondents will shop for holiday purchases through an omnichannel experience (both online and in-store).
• Loyalty: Only 50% of respondents are a member of any retailer loyalty programs that offer exclusive coupons or rewards during the holiday season, which Inmar Intelligence says highlighting the importance of educating customers about loyalty programs and their benefits.
• Social influencers: Of respondents who say social media inspires their holiday purchases, six in 10 (61%) cited creator-content as the reason for their purchase.