2024 Holiday Spending Projected to Set New Record

Prediction exceeds the previous record set before the pandemic.

Jane Neal, Content Editor

October 25, 2024

3 Min Read
Holiday Shopping, Tay Rees, Getty Images
Holiday ShoppingTay Rees, Getty Images

It may be time to start budgeting for holiday spending, as consumer spending on winter holidays is expected to break records this year. Last week, License Global reported Deloitte and the National Retail Federation (NRF) predicted modest growth in holiday sales. The NRF has released an additional report focused on consumer spending. According to the NRF’s latest consumer survey conducted by Prosper Insights & Analytics, consumer spending on the winter holidays will reach a new record, projected to reach an average of $902 per person on gifts, food, decorations and other seasonal items. The amount is about $25 per person more than last year’s figure and $16 higher than the previous record set in 2019. This is significant considering this year’s holiday shopping season is notably shorter than usual, with a mere 26 days between Thanksgiving and Christmas.

“The winter holidays are a treasured time for Americans, and they are prioritizing spending on family this holiday season,” says Katherine Cullen, vice president, industry and consumer insights, NRF. “Despite the shorter window of time between Thanksgiving and Christmas, retailers are prepared to meet the needs of consumers by providing holiday shoppers with earlier deals and sales and by ensuring inventory is available for the most in-demand items this year.”

Related:Holiday Forecasters Predict Modest Sales Growth

People who love getting gifts will be happy to hear the increase in holiday spending is largely attributed to gifts for family members. Of the $902 shoppers plan to spend, approximately $641 will be on gifts for family, friends, co-workers and others, an increase from $620 last year. No one needs to fear missing out on holiday treats, though, as the remaining $261 will be spent on seasonal items such as food or candy, decorations, greeting cards and other holiday items.

Nearly all U.S. adults (92%) plan to celebrate winter holidays such as Christmas, Hanukkah or Kwanzaa this year, in line with 2023.

Shopping early for the holidays seems to have shifted from trend to tradition. Nearly half (45%) of holiday shoppers plan to browse and buy items before November, consistent with recent years and up from 40% 10 years ago. The top reasons for early shopping include spreading out their budget (59%), avoiding the stress of last-minute shopping (45%), avoiding crowds (42%) and pursuing prices or promotions that cannot be missed (42%). Despite the early start, most consumers (62%) anticipate finishing their shopping in December. 

This holiday season, consumers will head to various shopping destinations for gifts and other items on their lists. Perhaps owing to the truncated shopping season and, subsequently, fewer shopping days, online remains the top destination this year, with 57% of consumers planning on making their holiday purchases online. This is followed by department stores (46%), grocery stores and supermarkets (46%) and discount stores (45%). 

Related:It’s Time to Start Toy Shopping

One other money-saving strategy this holiday season, especially among Gen Z, could be thrifting.

“While most consumers will opt to shop at traditional retailers this holiday season, many younger consumers between the ages of 18 to 24 will also head to thrift stores and resale shops,” says Phil Rist, executive vice president, strategy, Prosper. “Secondhand and refurbished gifts appeal to this age group’s desire to save money and be more sustainable.”

About the Author

Jane Neal

Content Editor, License Global

Jane Neal is a Content Editor for License Global. Working remotely in the great state of Wisconsin, Jane specializes in retail and pop-culture trends.

She has worked extensively in the communication field as a managing editor, advertising copywriter, technical writer and journalist. She detoured for several years into academia where she taught journalism, English and humanities at the college level.

A complete Marvel nerd, she enjoys food, films, fishing, friends and family … and alliteration.

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