According to the annual holiday purchase intentions consumer survey from Circana, a leading advisor on the complexity of consumer behavior, U.S. consumer sentiment and intentions related to the 2024 holiday shopping season are improved compared to the last two years but are falling short of 2021 levels in most cases.
“Spirits are up heading into the fourth quarter, and consumers are looking to hold on to that feeling of positivity,” said Marshal Cohen, chief retail advisor for Circana. “Financial concerns are still present for U.S. consumers, but they have eased which is bringing opportunity to retail this holiday season.”
Circana reports that, on average, consumers plan to spend $771 on holiday shopping this year, which is 2% higher than last year’s spending intentions, but still 2% below their plans in 2021. Both the number of consumers looking forward to this holiday season (64%) and those who say simply going out shopping during the holidays puts them in the holiday spirit (57%) are the highest they’ve been in 4 years.
“Consumers continue their quest for value this holiday season, bringing the potential for renewed life to a graying Black Friday,” added Cohen. “It is up to manufacturers and retailers to keep holiday spirits high with deals that deliver that sense of value and inspire demand in the absence of new and innovative products.”
This year, more consumers see the holidays as a break from everything that’s happening in the world (66%), and that includes indulging in some retail therapy. Statistics from Circana show holiday shoppers who say they plan on buying more gifts for others to bring them joy during challenging times (40%) and those who plan on buying more gifts for themselves as part of their own “retail therapy” (28%) have both increased from last year, but have not yet reached 2021 levels.
Circana’s report also highlights that promotions will bring the biggest gifts to retail this holiday with many holiday shoppers saying they will buy more items that are on sale or promotion (37%). In particular, while 19% of holiday shoppers feel fall promotional events will deliver the best deals, nearly a quarter (24%) say they think they will get the best deals on Black Friday this holiday shopping season — the highest in 4 years.
Additionally, more consumers did some of their holiday shopping during this year’s summer retail promotional events, and more plan on taking advantage of fall promotional events than in either of the past two years. More than half of holiday shoppers say they will be spending less this holiday season because other costs/expenses have gone up, but only 13% of holiday shoppers said they will likely shop at different stores than they typically do in order to save money.
Visit www.circana.com to learn more.
About Circana
Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet, so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition.
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