Deloitte: Holiday Shoppers Focus On Experiences, Not Stuff.

Deloitte’s 39th annual holiday survey finds U.S. respondents are planning to increase retail spending to $1,778 each in 2024, up 8% on a year-over-year basis, thanks to a sunnier economic outlook, perceived higher prices, and 17% more spending by those with incomes of $100,000 to $199,000.

Respondents to Deloitte’s 2024 survey also said they’d prioritize experiences like holiday events and socializing (+16% YoY), with spending on gifts expected to decline 3% YoY. Respondents also plan to increase spending on non-gift purchases such as party apparel by 9%.

“As consumers look to travel, host events at home, or participate in holiday concerts and activities, it may be an important time for retailers to take stock of shifting priorities,” Deloitte says in the report’s Executive Summary. “A cost-of-living squeeze continues to weigh on holiday shoppers, and seven in 10 surveyed expect prices to increase again this year on holiday goods.”

The survey says all income groups show signs of frugality, with 70% of respondents expecting higher prices this season. They plan to cut back on self-gifting, with only 32% of respondents planning to buy self-gifts vs. 48% a year ago. Respondents also said they’d trade down to more affordable brands (62%) or retailers (48%), and shop promotional events (78% vs. 61% in 2023).

This year shoppers can be expected to pursue value as they walk a fine line between being festive and managing their budgets. Seven in 10 expected higher prices — that’s unchanged since 2022.

The most preferred retail options include online-only retailers (71%) and mass merchants (55%). They’re also willing to exchange loyalty for lower prices: 62% said they’re would shift brands if the preferred brand is too expensive; 48% said they’d shop at more affordable retailers.