Holiday Spending Trends 2024: What to Expect this Season

As the holiday season approaches, consumers are poised to part with more of their hard-earned cash than they did in 2023. The National Retail Federation estimates that spending from November to December will rise between 2.5% and 3.5%, reaching between $979.5 billion and $989 billion. This optimistic outlook sees shoppers planning to invest more in seasonal decorations and experiences, although they may slightly cut back on gifts.

The holiday spirit beckons as shoppers browse festive displays.

Factors Influencing Holiday Purchases

As consumers gear up for holiday shopping, several unpredictable factors will shape their purchasing decisions. This year, the interplay of volatile weather, election distractions, and a pronounced deal-hunting mentality will be critical. The fact that there are fewer days between Thanksgiving and Christmas compared to last year will create a sense of urgency for shoppers.

Interestingly, a Deloitte survey of around 4,000 consumers reveals that shoppers expect to spend an average of $1,778 on the holidays this year—an 8% increase from the previous season. This surge in anticipated spending is attributed to a more favorable economic outlook and a shared belief among consumers that prices are set to rise. Higher-income households are particularly willing to spend more.

“There’s a strong desire among consumers to celebrate, but they’re also more price-sensitive and looking for the best deals,” said a Deloitte spokesperson.

With nearly 80% of shoppers planning to participate in October and November deal events (up from 61% last year), retailers should expect an intense competition for consumer attention.

The Shadow of Election Season

The upcoming elections on November 5 present another layer of uncertainty affecting holiday shopping. Retail giants, including Walmart and SharkNinja, may find that consumer focus is divided, potentially slowing down purchasing behaviors as voters weigh their options.

Weather Conditions: A Double-Edged Sword

Weather plays an integral role in shaping consumer moods and habits during the holiday shopping frenzy. The unseasonably warm temperatures that have defined early fall might dampen the spirit of shopping for heavier winter attire. Additionally, ongoing severe weather events, including hurricanes, could significantly redirect spending. Many families may find themselves focused on recovery efforts rather than holiday shopping.

The impact of severe weather on consumer spending during the holidays.

Rebuilding Instead of Shopping

Families affected by hurricane damage will likely prioritize rebuilding and essential purchases over holiday gifting. As they redirect their resources towards home repairs and necessities, the overall holiday spending landscape will see noticeable changes. These shifts could see declines in traditional gift categories as consumers reassess their priorities in the face of recovery.

Conclusion: Adapting to Change

Amid these challenging times, retailers and brands will need to adapt swiftly to capture the attention of shoppers navigating a complex landscape influenced by economic pressure, election distractions, and changing consumer priorities. As spending habits evolve this holiday season, one thing remains clear: the retail sector must innovate and respond to the shifting expectations of its consumers to thrive.

Engaging shopping experiences are more valuable than ever.

As the countdown to the holidays begins, both retailers and shoppers will navigate a season filled with challenges and opportunities, aiming to achieve the best outcomes in their respective pursuits. To learn more about shopping strategies and the best places to find deals this season, keep your eyes peeled for updates from your favorite retailers and platforms.