NRF: Holiday spending to decline as consumers spend less on non-gift items

Consumers are prioritizing their holiday spending this year. 

Consumers expect to spend $997.79 on gifts, holiday items like food and decorations and additional “non-gift” purchases, according to a survey by the National Retail Federation and Prosper Insights & Analytics. The overall total is down about $50 from last year’s survey, with nearly all ($45) of the decrease coming from consumers’ hesitation to use seasonal sales and promotions to buy other, non-gift purchases for themselves and their families

Still, consumer spending on gifts is on par with last year, decreasing by only about $8, while per person spending on other holiday items like decorations is actually up slightly, according to the NRF. Expected spending remains significantly higher than the five-year average for both those categories. 

Sixty-percent of consumers said they plan to purchase holiday items online this year. Other top holiday shopping destinations for consumers include department stores, mentioned by 45%, discount stores (43%), and grocery stores or supermarkets (42%).

Other findings from the survey are below.
•    Nearly all (91%) online shoppers plan to take advantage of free shipping, while another 44% plan to use buy online, pick up in store and 16% plan to use same-day delivery.

•    One in five (19%) holiday shoppers say that they typically travel for the holidays but will stay home instead this year. Over half (53%) of those who changed their holiday travel plans said they are likely to spend more on holiday items this year, specifically because they will not be traveling.

•    Forty-two percent of respondents said plan to start their holiday shopping by the end of October and another 41% in November.

•    Promotions head the list of what would convince consumers to start shopping earlier than usual this season, followed by avoiding crowds (37%), avoiding stress of last-minute shopping (31%) and items selling out (26%.

The survey asked 7,660 consumers about winter holiday shopping plans. It was conducted Oct. 1- Oct. 9.