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A new study from Deloitte predicts consumers will up their holiday spending 8% YoY in 2024, though spending on experiences such as holiday events and socializing will see the biggest gains.
The research firm’s survey data shows that spending on experiences is expected to increase 16% YOY, while non-gift purchases are expected to rise 9% and gift purchases are expected to fall 3%.
“This holiday season, consumers plan to prioritize celebrating with friends and family through experiences,” Brian McCarthy, principal at Deloitte, said in a statement. To do so, they are finding ways to make their dollars go further on the gifts they want to give and the events they want to experience.
- A quarter of respondents said they plan to host a holiday gathering on which they were willing to spend $261 on average.
A rosier view of the economy: Deloitte attributes the overall uptick to more consumers having an optimistic view of the economy, with 43% of shoppers expecting the economy to improve this year, compared to 34% last year. In addition, the $100K–$199K income group is expected to raise its spending 17% YoY.
Yet shoppers are still seeking value, with 7 out of 10 consumers anticipating higher prices and 75% planning to shop at least one promotional event, up from 61% last year.
Retail executives are accordingly anticipating a more frugal customer; 80% of executives expect private label sales to grow faster than national brands, and 76% said they believe shoppers will prioritize lower prices over brand loyalty.
“With consumers leaning more into experiences and continuing to search for value, retailers have the opportunity to attract shoppers and better connect with customers by focusing on loyalty programs and offering unique incentives,” McCarthy said.
Deloitte previously predicted that overall holiday sales are expected to rise between 2.3% and 3.3% in 2024, a slowdown from a 4.3% bump in 2023.