Consumers To Increase Holiday Spending by 4% This Year
Consumers are feeling good about the economy and about their personal financial situation. The average shopper will spend about $1,047.83 on holiday gifts this year. That spending level amounts to a 4% increase over last year, says the National Retail Federation. In total, retailers anticipate selling about $730.7 billion in goods in November and December.
Businesses that are concerned about the tariffs set to impact products purchased from China will likely import everything they need well in advance of the shopping season. That strategy should minimize the hit to profitability as the tariff date is expected to be December 15.
Over half of consumers, 56%, will do at least some shopping online. They’ll be looking for free shipping, same day delivery, and the ability to purchase exactly what they want. Traditional stores are also on the list for shoppers:
- Department stores: 53%
- Discount stores: 51%
- Clothing and accessory stores: 34%
- Electronics stores: 23%
- Local small businesses: 23%
Regardless of where they’re shopping, consumers will be seeking out discounts (70%), high quality goods (59%), and a good product selection (57%). These are all details your clients should be addressing in their ad campaigns.
NRF analysts broke out the typical consumer holiday spending budget into the following categories:
- Gifts for friends, family members and co-workers: $658.55
- Candy, food, decorations, cards, flowers: $227.26
- Other non-gift purchases: $162.02
Remind your clients that they should dress up their gift card options as 59% of consumers plan to buy at least one during this holiday season. In addition, 52% of shoppers will pick up apparel and accessories. Other popular gift categories include books (35%), electronics (29%) and home décor items (24%).
Your clients can’t afford to waste their ad budgets during this important season. Check out the AudienceSCAN profiles for consumers who plan to shop on Black Friday and Small Business Saturday. These profiles are available on AdMall from SalesFuel. Make sure to encourage your clients to advertise on the media formats that are most likely to influence shoppers this year.