US consumers' holiday spending forecast to rise 14% in 2023: Deloitte

The survey indicates that 95 per cent of US consumers plan to shop this holiday season, up from 92 per cent in 2022 and 88 per cent in 2021. Consumers are prioritising non-gift purchases (up 25 per cent YoY). Seven out of 10 (72 per cent) consumers are bracing for higher prices, especially in key categories like clothing and accessories, where 82 per cent expect an increase.

There's a notable shift in consumer behaviour. Confidence in staying within budget has dipped to 57 per cent from 63 per cent last year. As a result, consumers plan to buy an average of eight gifts, down from nine in 2022, and 54 per cent are planning to add items to their wish lists or online carts to wait for deals, up from 48 per cent last year, as per the survey.

Gift cards are gaining popularity, with the average planned spending on them increasing to $300, up from $217 in 2022. Gift cards may be viewed as a hedge against inflation. Almost 30 per cent of shoppers, identified as high spenders, are expected to account for nearly 70 per cent of the total holiday spending. These consumers plan to spend an average of $2,146 or more, focusing on high-quality products.

In addition, 75 per cent of consumers are tempted to self-gift, especially if the item is practical. However, 53 per cent plan to cut back on self-gifting to maintain their budget. While 17 per cent of consumers have student loans resuming this autumn, less than half (48 per cent) plan to reduce holiday spending, and a third (32 per cent) do not expect any change in their holiday plans.

Sustainability is increasingly important, especially among younger shoppers. Those who prefer to buy sustainable gifts spend 29 per cent more on average. Over half (55 per cent) of younger consumers plan to buy sustainable gifts, up from 48 per cent last year, in stark contrast to only 35 per cent of older generations.

ALCHEMPro News Desk (DP)