A new holiday spending survey from BizInsure reveals a shift in consumer habits this year, with Americans focusing on essential items like clothing while pulling back on travel and high-ticket gifts. The survey, conducted in early November with 1,200 respondents, highlights the impact of inflation on holiday spending as 85% of Americans report cutting back on discretionary expenses.
Key Findings:
- Gift Spending Caps at $50 for Most
- A majority of Americans believe holiday gifts for extended family should cost less than $50, with significant others and children being the exceptions.
- Partners receive the largest budgets, with most respondents allocating $100-$200 for gifts for their significant others. Children’s gifts follow closely, with 65% of Americans willing to spend $50 or more per child.
- Minimal budgets are reserved for coworkers, teachers, and staff, where 90% of respondents suggested spending $20 or less.
- Clothing Dominates Gift Choices
- Clothing tops the list of holiday gifts, with 75% of Americans planning to purchase apparel for loved ones.
- Other categories like toys (40%) and experiences (30%) lag behind, while just 8% plan to gift travel.
- Shopping Preferences: Big Retailers Over Small Businesses
- Nearly 70% of Americans plan to shop online at large retailers such as Amazon. Similarly, 65% will shop in person at big-box stores like Target and Walmart.
- Small businesses are seeing less traffic, with only 20% of respondents likely to shop online at independent retailers and 28% planning to shop in person at small businesses.
- Generational Differences in Holiday Spending
- Gen Z shows stronger support for small businesses, with one-third “very likely” to shop at independent retailers this holiday season.
- Boomers, by contrast, prefer large retailers, prioritizing convenience and familiarity.
- Delivery Trends: Weekly Packages Are the Norm
- 60% of Americans anticipate receiving weekly deliveries throughout the holiday season, while 11% expect daily package arrivals.
- This increase reflects a continuation of online shopping trends spurred by the pandemic.
Regional Insights on Package Deliveries:
- South: Leads in both daily (4%) and rarely (5.83%) delivery categories, showing a divide between online and in-person shopping preferences.
- Midwest: Reports the lowest daily (2.5%) and weekly (0.08%) delivery rates, indicating a higher reliance on in-person shopping.
- West: Has the highest proportion of weekly deliveries (21.08%), reflecting greater dependency on online shopping.
Essentials Over Extravagance
This year’s survey shows a clear focus on essentials, with Americans opting for practical gifts like clothing over experiences or luxury items. Budgets remain consistent with previous years, reflecting a cautious approach to holiday spending amid economic uncertainty.
Younger generations, particularly Gen Z, are bucking some trends by showing greater interest in gifting experiences and supporting small businesses. Whether these preferences will shape future holiday traditions remains to be seen.
This article, “2024 Holiday Spending Trends: Americans Shift to Basics Amid Inflation” was first published on Small Business Trends
Source: Small Business Trends
