More shoppers plan to hunt for deals this holiday season
With inflation remaining high, a large majority of shoppers are expected to seek deals, shop savings events and compare prices this holiday season.
Three out of four (76%) shoppers plan to go out of their way to look for better holiday deals, an increase of 7% from last year’s holiday season (69%), according to a new survey from Bread Financial.This holiday season, 89% of shoppers indicated that price hikes are impacting their planned purchases, up from 86% last holiday season.
According to the survey, one-third (33%) of shoppers plan to spend “more” on holiday purchases this year, down two points from 2022. Nearly half (49%) plan to spend the same amount as last year, while 18% plan to spend more.
Among those planning to spend more, 58% are doing so because they want to, while 42% are doing so because they need to due to inflation. Half (50%) of shoppers expect to begin their holiday shopping by late October, up from 42% in 2022.
Likely to assist in budgeting, shoppers plan to lean into cash (53%) and debit cards (59%) this holiday season. Three in 10 shoppers (30%) plan to use a bank-branded credit card. Last year, 37% of shoppers ended up using one. Intent to use retail credit cards is holding steady from last year at 27%, while buy now, pay later plans are up 4% from 2022 at 21% planned use.
“While the holiday spending outlook isn’t bleak, shoppers will be keeping their spending in check,” said Bread Financial in the report. “Key to winning this season will be marketing to customers via relevant channels, rich and timely promotions and, last but not least, compelling, front-and-center value propositions – ensuring that customers feel confident in their purchases and parting with their hard-earned dollars.”
A number of surveys have indicated that the upcoming holiday season will see an increase in sales despite an increased number of consumers looking to save money. According to the Adobe online shopping forecast for the 2023 holiday season, covering the period from Nov. 1 through Dec. 31, 2023, U.S. online holiday sales will hit $221.8 billion. This represents 4.8% growth year-over-year (YoY).
According to a study from PwC’s “Holiday Outlook 2023,” almost 40% of consumers will spend more this holiday season overall than they did last year. Those with household incomes of $120,000 or more will exceed an average spend of $3,000.