Consumers Plan To Spend Big This Holiday Season

As nan vacation play approaches, retailers are preparing for their astir awesome clip of nan year. As malls, shopping centers and stores crossed America bedeck their properties pinch holly, retailers are anticipating accrued spending by customers — mounting nan shape for a lucrative (and alternatively jolly) vacation season.

According to JLL’s 2024 Holiday Shopping Survey of much than 1,000 consumers, vacation budgets are up by 31.7%, pinch nan mean user readying to walk $1,261, a crisp summation from past year’s $958. And galore of those dollars will beryllium spent successful bricks-and-mortar locations, considering astir shoppers scheme to sojourn beingness stores, pinch only 12.8% opting to do each their shopping online for location delivery.

Here’s a breakdown of nan awesome trends down this spending surge.

Shoppers are splurging connected much than gifts

The vacation play is not conscionable astir gift-giving anymore — shoppers are broadening their budgets to screen a afloat festive experience. Gifts stay important, but spending is shifting importantly toward vacation food, décor, and entertainment.

While vacation budgets are so up, only 46% of that is allocated for gifts, a driblet from 55% past year. Meanwhile, spending connected nutrient and décor has surged by 61%, and intermezo budgets person accrued by 56.4%. This displacement shows consumers are prioritizing nan vacation ambiance itself — lavish meals, festive decorations, and clip spent pinch loved ones.

Higher-income consumers, peculiarly those earning complete $150,000, are fueling overmuch of this growth, spending importantly much connected experiences and non-gift items. Meanwhile, middle- and lower-income shoppers are focusing much connected gifts and essentials, pinch lower-income households spending 27.4% little than nan mean consumer.

Experiences outweigh worldly gifts

Holiday experiences are becoming conscionable arsenic important arsenic nan gifts themselves. More than 95% of shoppers scheme to participate successful astatine slightest 1 vacation activity, and 76% will prosecute successful 2 aliases more. Millennials, peculiarly those aged 30-44, are starring this trend, spending 65.4% much connected nutrient and décor and 44.3% much connected experiences than different property groups.

This displacement is widespread, moreover among lower-income shoppers, though they whitethorn limit themselves to 1 experience. Popular activities see eating out, attending events, and family-friendly outings. Retailers who tin efficaciously merge experiential festive elements into their environments guidelines to use from this increasing attraction connected vacation fun.

Department stores will person a jolly season

The entreaty of beingness unit remains beardown this vacation season, pinch 87.2% of shoppers readying to interact pinch nan shop successful immoderate way. Department stores are experiencing a resurgence, becoming nan apical destination for vacation shoppers, up of apparel and wide merchandisers.

The jump successful section shop visits correlates pinch nan summation successful promenade visits, pinch astir three-quarters of promenade shoppers heading to a section store. A higher proportionality of these shoppers will beryllium high-income earners aliases men. Men are besides much apt to caput to electronics stores and jewelry stores.

Meanwhile, importantly much women will caput to wide merchandisers and discount & dollar stores, particularly those earning little than $50,000. Women earning complete $50,000 are much apt to sojourn section boutiques.

Shoppers are playing Santa for themselves

Self-gifting continues to rise, pinch 83% of shoppers readying to dainty themselves this vacation season, up from 76% successful 2023. While apparel and electronics proceed to beryllium apical categories, preferences alteration by generation. Millennials are nan biggest self-gifters, pinch astir 90% readying to bargain thing for themselves, while older shoppers (60+) are much conservative, pinch one-third opting retired of self-gifting altogether.

Gifting choices style vacation spending

As vacation shopping heats up, cardinal trends uncover what consumers prioritize. Clothing, electronics, and accessories — particularly jewelry — are apical gifts this season, pinch electronics gaining astir 13 percent points complete past year. In contrast, gift cards person dropped by 7 percent points but stay celebrated among women, older shoppers, and those earning nether $50,000.

While complete 40% of consumers opportunity ostentation won't impact their plans, 70% of modest-income shoppers are adapting their strategies. Many are focused connected buying little costly gifts (or moreover utilized aliases refurbished goods) aliases re-gifting. For example, nan Gen Z group will shop for less group and trust connected sales. Consumers will besides proceed to thin into shopping during woody days — some online and in-store.

Riding nan activity of vacation cheer to semipermanent maturation

By tapping into these cardinal trends, retailers tin position themselves for occurrence not conscionable during nan holidays but good into nan future. From leveraging nan surge successful experiential spending to harnessing nan allure of woody days, opportunities to differentiate unit brands widen beyond this festive season.

Strategic location choices, enticing interiors, and staying successful tune pinch shifting user preferences will thief retailers build lasting connections pinch shoppers — driving maturation that carries connected agelong aft nan vacation frenzy fades.