(NewsUSA)
- Economic uncertainty and higher prices have brought shifts in consumer behavior, yet recent sales trends show steady spending, and economic indicators are moving in a positive direction heading into the holiday season. New data from ICSC, the member organization for the Marketplaces Industry, suggests that most people are eager to enjoy themselves this holiday season—including shopping and dining out.
ICSC has released its Annual Holiday Shopping Intentions Survey for 2024, and results suggest that 92% of American consumers plan to participate in holiday shopping this year, the highest percentage since 2019. The organization also forecasts an increase of 3.0% to 3.5% in retail sales from October through December, with a 6.0% increase in food and beverage sales.
Although online shopping continues, many shoppers combine online purchases with visits to brick-and-mortar stores. ICSC’s survey showed that nearly all in-store shoppers also plan to buy online from a retailer’s website, and almost half said that in-store browsing influences online purchases.
Shoppers will spend an average of approximately $700 on gifts and other holiday items this year, according to the data, with 58% reporting a plan to buy gift cards, 52% planning to buy clothing and accessories, and 50% planning to buy toys and games.
“Despite economic headwinds, 70% of holiday shoppers feel their financial situation is better than or the same as this time last year, signaling measured optimism among consumers,” said Tom McGee, President and CEO of ICSC. “Interest rate cuts and easing inflation are taking some pressure off holiday shoppers, but other macro factors such as geopolitical turmoil and the results of this year’s election are still at play.”
Consumers are still planning to spend this holiday season but are increasingly focused on how they can find the best prices, according to ICSC. Though inflation is moderating, 9 in 10 say it will impact their purchase decisions. In response, most consumers say they’ll plan to spend more time hunting for deals and discounts, and 68% say they’ll visit brick-and-mortar stores more often in pursuit of promotions – seven percentage points higher than in 2023.
“Shoppers overall are well-positioned for the holiday season,” McGee added. “While this year has seen consumers tighten their belts in some areas, they’re continuing to spend – and we expect that moderating inflation and a steady labor market will help maintain spending throughout the holiday season.”
Visit icsc.com for more information.
