More customers to buy most gifts on sale this holiday season, survey finds
A new forecast predicts most growth this holiday season as customers hunt for deals and consider value brands — and cut back on gifts for themselves.
Holiday sales are expected to rise 2% to 5% this year over last, lower than last year’s 6% growth over 2022, according to the Holiday Outlook Survey from consulting firm AlixPartners. Some 42% of respondents intend to purchase most gifts on sale, an uptick from the 38% who were looking to that strategy in 2023. Spending declines are planned for nearly all product and services categories except for food and beverage at home.
A quarter (26%) of consumers plan on spending less this holiday season than last year, and those spending reductions are significantly more prominent with lower-income households. Forty-three percent of households with annual incomes under $45,000 said they plan to spend less than last year, according to survey responses.
Roughly one-third of $45,000-$100,000 households will pullback compared to 2023. That number declines to 22% for $100,000-plus households.
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“Consumers are clearly under pressure, and many have no plans to open wallets much wider this holiday season,” said Bryan Eshelman, Americas leader of the retail practice at AlixPartners. “After decades of conditioning from Black Friday and Cyber Monday blowouts, shoppers expect retailers to go heavy on promotions and be generous with the discounts. We can safely say ‘Tis the season for deals, deals and more deals.’”
Other insights from the AlixPartners survey include:
- About 42% of respondents intend to purchase most gifts on sale, an uptick from the 38% who were looking to that strategy in 2023.
- Holiday decorations (-11%), show/experiences (-11%) and travel (-10%) are among the categories suffering the biggest declines in spending intention.
- Two-thirds of customers intend to make at least 30% of holiday purchases online.
- Nearly two-thirds (65%) of shoppers plan to start holiday buying after Halloween – a significant decline from the 2019-2022 period.
