Consumers’ average spend this holiday season is expected to be 6% higher than last year.
Shoppers’ average holiday spending will be higher this year than last but it won’t be enough to dent the impact of inflation.
Although consumers indicate they plan to purchase for fewer people, their average holiday spend will be $1,072 — 6% higher than in 2021, according to KPMG’s Consumer Pulse Survey: Holiday 2022 report. Compared to last year, however, the increased spending for the balance of the calendar year is only expected in essentialcategories rather than discretionary categories, advised KPMG.
“While consumers remain resilient and plan to spend a bit more this holiday season, it will likely not outpace inflation,” said Matt Kramer, KPMG consumer and retail national sector leader.
In other findings, online spending is expected to remain relatively flat across categories, pointing to a preference to return to physical stores for several categories of spending. Most holiday shoppers are extremely likely or likely to shop at mass market retailers (73%) and discount stores (56%) this year.
The top three concerns for holiday shoppers this season are inflation (85%), stockouts (63%) and shipping delays (57%), the report said. Approximately half of the holiday shoppers who are concerned with stockouts and/or shipping delays plan to shop earlier this holiday season.
Other insights from the KPMG report are below.
• Holiday shoppers are expecting an early start with 52% starting in October or earlier, but not as early as last year when 61% started in October or earlier, largely over the concern of stock-outs, or in 2020.
• Holiday shoppers who are concerned with inflation have two primary plans of action: buying fewer gifts per person (37%) and purchasing less expensive gift categories (34%).
• Most holiday shoppers plan on shopping Black Friday (60%) and approximately 50% plan on shopping Cyber Monday.
• Consistent with last year, retail gift cards (52%) and apparel (55%) are the two most popular gift categories.
• Holiday shoppers are expecting an early start with 52% starting in October or earlier, but not as early as last year when 61% started in October or earlier, largely over the concern of stock-outs.
“Consumers will be looking for promotions this holiday season and retailers should be looking to respond by having desirable gifts for the budget-conscious consumer,” said Kramer.