Survey: Consumers to hunt for holiday value amid inflation concerns
Inflation is top of mind for nearly all consumers, with a strong majority noting that it is impacting their spending choices.
E-commerce platform Klaviyo’s new 2024 Consumer Spending Report reveals that 97% of those surveyed are aware that inflation is affecting the cost of goods and services, while 88% say inflation is currently affecting or will affect their spending decisions.
Consumers say they are either purchasing fewer things and spending the same amount as last year (54%), purchasing the same number of things and spending more (32%), or purchasing more things than last year and spending more (15%). For consumers, spending has increased the most on essential goods such as food and beverage, utilities, housing, and transportation. Travel is the only discretionary category where consumers are more likely to increase spending.
With increased spending concerns come more shoppers who are looking for the best deals on holiday merchandise. Only 14% of consumers shop for holiday gifts throughout the year, and although most consumers (86%) wait until the end of the year (October–December) to do their holiday shopping, they may be willing to change their minds if it means stretching their dollars.
[READ MORE: Cost savings trumps convenience, according to survey]
When asked to identify the “ideal month” for brands to begin their holiday season sales and promotion activities, more than half of shoppers (51%) identified a month earlier than October. When those who shop throughout the year were asked why they do, the majority (64%) said it’s to take advantage of discounts.
Across all age groups, consumers are most likely to shop for holiday gifts in October–November, but compared to Gen Z (8%) and millennials (12%), Gen X (16%) and boomers (17%) are slightly more likely to do their holiday shopping throughout the course of the entire year.
According to the survey, most consumers (61%) plan to spend the same amount on holiday shopping as last year. Nearly one-in-five of them (19%) are even planning on increasing their spend, and 20% are planning to decrease their spending.
Price range is the top factor in purchase decisions for 70% of consumers, followed by quality at 61%. The next most important factor, variety, lags far behind, which Klaviyo says suggests that for most shoppers and the brands vying to earn their wallet share, value is the most important factor this holiday season.
Klaviyo surveyed more than 8,530 consumers worldwide for its 2024 Consumer Spending Report.
